There were no significant new superannuation reforms announced in the 14 May 2013 Federal Budget. However, the following superannuation reforms, which were announced on 5 April 2013, were confirmed:
- a cap of $100,000 on tax-free earnings on superannuation assets supporting income streams from 1 July 2014
- a $35,000 concessional contributions cap for individuals aged 60 and over from 1 July 2013 (and for individuals aged 50 and over from 1 July 2014) to replace the general concessional contributions cap until 2018 when the general cap is expected to reach $35,000. See exposure draft legislation "Tax and Superannuation Laws Amendment (2013 Measures No. 3) Bill 2013: Superannuation concessional contributions cap" and the draft explanatory memorandum;
- all individuals to be able to withdraw from their superannuation fund any excess concessional contributions made from 1 July 2013. The withdrawn excess contributions are to be taxed at the individual's marginal tax rate plus an interest charge;
- an extension of social security deeming rules;
- deferred lifetime annuities to have the same concessional tax treatment as earnings on superannuation assets supporting income streams from 1 July 2014;
- the threshold account balance below which inactive accounts and uncontactable members must be transferred to the Tax Office to be increased from $2,000 to $2,500 on 31 December 2015 and $3,000 on 31 December 2016; the establishment of a Council of Superannuation Custodians. The Minister for Financial Services and Superannuation announced on 9 May 2013 the members of a Charter Group who will help develop the Charter of Superannuation Adequacy and Sustainability and establish the Council of Superannuation Custodians.
The Government also made the following further announcements:
additional funding of $2.6 million for the SCT and $5.4 million to enhance financial literacy;
minor amendments to the 2012-13 Budget measure to increase contributions tax on concessional contributions from 15% to 30% for individuals with income greater than $300,000;.
a change to the eligibility criteria for the low income superannuation contribution to include payments under $20; and
use of levies collected by APRA to fund compensation for failure of Trio Capital Limited.
- APRA issued a media release on 9 May 2013 announcing it has released for consultation eight draft prudential practice guides (PPGs) for the superannuation industry. These PPGs complete "APRA's review of superannuation-related guidance material to support the implementation of the new prudential framework for superannuation". APRA has also issued a summary of the proposed treatment of existing superannuation guidance.
The proposed new superannuation PPGs are as follows:
- Prudential Practice Guide SPG 160 Defined Benefit Matters;
- Prudential Practice Guide SPG 222 Management of Reserves;
- Prudential Practice Guide SPG 511 Remuneration;
- Prudential Practice Guide SPG 532 Investment Risk Management; and
- Prudential Practice Guide SPG 533 Valuation.
There are also draft updates to the following superannuation PPGs:
- Prudential Practice Guide SPG 221 Adequacy of Resources;
- Prudential Practice Guide SPG 270 Contribution and Benefit Accrual Standards; and
- Prudential Practice Guide SPG 280 Payment Standards.
Comments on the 8 draft PPGs are due by 4 July 2013. APRA has also released revised versions of 2 existing cross-industry PPGs that now incorporate relevant references to the new superannuation framework. These PPGs are:
- Prudential Practice Guide CPG 233 Pandemic Planning; and
- Prudential Practice Guide CPG 234 Management of Security Risk in Information and Information Technology.
- ASIC issued a release on 6 May 2013 warning financial services licensees to adopt robust recruitment processes when appointing persons who have worked for a business against which ASIC has taken action.
- The Deputy Prime Minister and Treasurer and the Minister for Financial Services and Superannuation issued a joint media release on 8 May 2013 announcing that Australian Government Bonds will be available for trading on the Australian Securities Exchange for the first time on 21 May 2013.
- ASIC has released the following reports Report 340 - 'Capital protected' and 'capital guaranteed' retail structured products and Report 341 - Retail investor research into structured 'capital protected' and 'capital guaranteed' investments.