Financial Services eBulletin - 1 October 2014
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 22 September, the Senate Economics Legislation Committee Report on the Corporations Amendment (Streamlining the Future of Financial Advice) Bill 2014 (as amended on 28 August 2014) was listed in the Senate. In the Report, the committee recommends that the Senate pass the amended Bill.
- On 23 September, an exposure draft of the Tax and Superannuation Laws Amendment Bill: CGT exemption for compensation and insurance was released. The exposure draft proposes amendments to the operation of the capital gains tax (CGT) provisions in the Income Tax Assessment Act 1997 to ensure that a CGT exemption is available to trustees and beneficiaries who receive compensation or damages in respect of certain events or in respect of certain policies of insurance. The exposure draft of the Explanatory Memorandum explains that the proposed instrument simply clarifies and confirms the existing administrative treatment in respect of such compensation and insurance policies. Submissions are due by 21 October 2014.
- On 23 September, an exposure draft of the Tax and Superannuation Laws Amendment (2014 Measures No. 7) Bill 2014: Providing certainty for superannuation fund mergers was released. The exposure draft proposes to:
- amend the Income Tax Assessment Act 1997 to ensure that individuals whose superannuation benefits are involuntarily transferred from one superannuation plan to another without their consent are not disadvantaged through the application of the proportioning rule to their benefits;
- amend the Taxation Administration Act 1953 to remove the need for a roll-over benefit statement to be provided to an individual whose superannuation benefits are involuntarily transferred. Submissions are due by 20 October 2014 and are preferred in online format.
- On 24 September, the Tax and Superannuation Laws Amendments (2014 Measures No. 5) Bill 2014 was passed by the House of Representatives without amendment. The Bill contains amendments to the Income Tax Assessment Act 1997and the Taxation Administration Act 1953 to abolish the mature age worker tax offset, abolish the seafarer tax offset, and reduce the rates of tax offset available under the research and development tax incentive.
- On 24 September, an exposure draft of the Australian Securities and Investments Commission Amendment (Corporations and Markets Advisory Committee Abolition) Bill 2014 was released. The exposure draft proposes to repeal Part 9 of theAustralian Securities and Investments Commission Act 2001 in order to abolish the Corporations and Markets Advisory Committee as well as providing for transitional and saving arrangements necessary to reflect the cessation of this agency.
- On 24 September, the Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy Amendment Bill 2014 and the Australian Transaction Reports and Analysis Centre Supervisory Cost Recovery Levy (Collection) Amendment Bill 2014 were introduced into the House of Representatives. These Bills contain amendments to replace the existing Supervisory Cost Recovery Levy with new industry contribution arrangements intended to fund both the regulatory and financial intelligence unit functions of the Australian Transaction Reports and Analysis Centre, as announced by the Government as part of the 2014 Budget.
- On 24 September, the Australian Securities & Investments Commission (ASIC) released 14-249MR ASIC seeks feedback to help clarify fee and cost disclosure requirements. According to the release, ASIC is particularly interested in seeking feedback and comments on proposed changes designed to clarify the requirements for:
- indirect costs, double counting and fee issues for superannuation products;
- the disclosure of costs associated with investing through interposing entities by managed investment products; and
- the appropriate application of the consumer advisory warning for some products. Comments are due by 17 October 2014.
- On 25 September, the Australian Tax Office (ATO) announced that all APRA funds must be able to receive SuperStream contributions by 3 November 2014 unless they have notified the ATO of an alternative start date.
- On 25 September, the Final Budget Outcome 2013-14 was released by the Treasurer, Joe Hockey, with an accompanying media release.