The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.

Type Subject matter Source Description

ASIC

Amended Instrument for Generic Financial Calculators

ASIC Corporations (Amendment) Instrument 2018/40

On 13 March 2018, the ASIC Corporations (Amendment) Instrument 2018/40 (Instrument) was registered on the Federal Register of Legislation. The Instrument amends the ASIC Corporations (Generic Calculators) Instrument 2016/207.

The Explanatory Statement notes that "the purpose of the Instrument is to defer the commencement of the requirement for a generic financial calculator relating to superannuation and retirement (Superannuation and Retirement Calculator) to include the present value of future receipts and payments using an assumed rate of inflation of 2.5% until 1 July 2019".

According to ASIC, the exemption has been extended "because there are superannuation reforms that may impact on how superannuation calculators should present and calculate estimates in the future".

To qualify for the exemption, a provider of a retirement or super calculator must take "reasonable steps to ensure that the calculator displays to theuser in the ordinary course of its use or has printed on it a clear and prominent statement specifying whether or not the estimate takes into accountan assumed change in the cost of living between the time of the preparation of the estimate and the future time".

ASIC will continue to monitor the effect of these reforms.

ASIC

Second Deputy Chair to be appointed and ASIC to receive competition mandate

Speech by Kelly O'Dwyer, Minister for Revenue and FinancialServices, to ASIC Annual Forum

On 19 March 2018, the Minister for Revenue and Financial Services, Ms O'Dwyer, announced the Government's intention to create a new role for a second ASIC Deputy Chairperson in order to "build and strengthen ASIC's leadership." The new role will seek to help ASIC's flexibility in managing "the breadth of its new powers and increased responsibilities". The reappointments of the current ASIC Deputy Chair, Mr Peter Kell, and Commissioner John Price were also recognised in the announcement. Finally, Ms O'Dwyer announced a new Statement of Expectations for ASIC, which will include a new competition mandate. The new mandate "will require ASIC to consider the effect that its work and the exercise of its powers will have on competition in the financial system". According to Ms O'Dwyer, this is consistent with the reforms "recommended by David Murray in his 2014 Financial System Inquiry report".

ATO Outcomes from 2016/17 superannuation tax reforms

Speech by James O'Halloran, ATODeputy Commissioner, to AIST Conference of Major Superannuation Funds

On 14 March 2018, the ATO Deputy Commissioner, James O'Halloran, advised that in the lead up to the introduction of the 2016/17 budget reforms, the ATO "received 13,820 written requests for assistance about the application or administration of super". According to Mr O'Halloran, ever since the introduction of event-based reporting to the ATO (using a Transfer Balance Account Report, or TBAR form), "nearly all large APRA funds have lodged transfer balance account reports for about 1.3 million members who are drawing an income stream". The ATO expects "the incidence of excess transfer balance determinations to be quite low" and has issued 3,000 determinations throughout the month of January. Some 7,000 members will also be contacted in May to advise that they have exceeded their transfer balance cap "because of income streams with commutation restrictions, such as lifetime pensions…[or] capped defined-benefit income streams". Mr O'Halloran also noted that the fourth annual ATO APRA Fund Diagnostic Report will be released in the next month.