The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
On 2 June 2015, ASIC released a consultation paper entitled CP 232 Remaking ASIC class orders on superannuation: [CO 04/1574] and [CO 06/636] which proposes to remake, without significant changes, the following class orders which are due for automatic repeal:
- Class Order [CO 04/1574] Application form and cooling-off relief for certain transfers of members between financial products and interests within a superannuation fund. This class order expires on 1 April 2016.
- Class Order [CO 06/636] Superannuation: Delivery of product disclosures for investment strategies. This class order expires on 1 October 2016.
ASIC is seeking comments by 7 August 2015.
On 5 June 2015, the ATO withdrew Interpretative Decisions ATO ID 2008/25, ATO ID 2008/27 and ATO ID 2008/28 as they contain a view in respect of the General Employee Entitlements and Redundancy Scheme (GEERS) that no longer applies after the commencement of the Fair Entitlements Guarantee Act 2012 (Cth) on 5 December 2012. Fair Entitlements Guarantee (FEG) replaced the GEERS regime on 5 December 2012.
On 5 June 2015, the ATO issued the following Interpretative Decisions:
- ATO ID 2015/13 Superannuation Guarantee: liability of company in liquidation for superannuation guarantee charge in respect of a Fair Entitlements Guarantee advance paid by a third party - This decision relates to a FEG advance by the Department of Employment to a former employee of a company in liquidation, through a third party provider, rather than via the insolvency practitioner. The ATO states that where the third party provider does not make superannuation contributions in relation to the FEG advance by the quarterly cut-off date, the taxpayer (ie, the company in liquidation) is liable for the superannuation guarantee charge (SGC) under the Superannuation Guarantee (Administration) Act 1992 (SGAA).
- ATO ID 2015/14 Superannuation guarantee: liability of company in liquidation for superannuation guarantee charge in respect of a Fair Entitlements Guarantee advance paid by a liquidator - This decision provides that the taxpayer, a company in liquidation, will be liable to the SGC under the SGAA, where the company's liquidator has not made sufficient superannuation contributions in respect to the FEG advance to a former employee by the relevant quarterly cut-off date.
- ATO ID 2015/15 Superannuation guarantee: liability of liquidator for superannuation guarantee charge in respect of a Fair Entitlements Guarantee advance - This decision provides that the "SGAA does not impose a liability on a liquidator to pay the SGC out of its own funds if the liquidator fails to make sufficient superannuation contributions by the relevant quarterly cut-off date in respect of a FEG advance the liquidator paid to a former employee of the company."
- ATO ID 2015/17 Income tax: complying superannuation fund: deduction for future liability to pay death benefits- section 295-470 of the Income Tax Assessment Act 1997 - This decision provides that a trustee of a complying superannuation fund can make a choice under subsection 295-465(4) of the Income Tax Assessment Act 1997 (Cth) (ITAA 97) to claim a deduction under section 295-470 of the ITAA 97 after the death of an insured fund member.