The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 30 October 2014, the NSW Treasury released Superannuation funds and Impact Investment Frequently Asked Questions (FAQs), which address whether superannuation funds can invest in "impact investments" and how superannuation funds can assess and manage risks specific to those investments.
- On 5 November 2014, ASIC Class Order [CO 14/1118] was registered with the Federal Register of Legislative Instruments. Under this Class Order, the interim relief from the shorter Product Disclosure Statement regime, granted to superannuation platforms, multi-funds and hedge funds by ASIC Class Order [CO 12/749], has been extended from 30 June 2015 to 30 June 2016. The Explanatory Statement can be accessed here.
- On 7 November 2014, APRA updated its Frequently Asked Questions in relation to the following topics:
- MySuper and eligible rollover funds - to add new FAQ 62: Must a performance-based fee charged by an investment manager form part of the 'investment fee' within a MySuper product or can it be excluded as an indirect cost of investment? Where an RSE licensee offers a lifecycle strategy with more than four age cohorts the inclusion of performance-based fees within the 'investment fee' could result in there being more than the permissible four cohorts for investment fees?;
- Reporting framework for registrable superannuation entities (RSEs) - to amend FAQ 23: Are Reporting Form SRF 160.0 Defined Benefit Matters (SRF 160.0) and Reporting Form SRF 160.1 Defined Benefit Member Flows (SRF 160.1) to be reported for each sub-fund as well as each defined benefit RSE?
- On 7 November 2014, the ATO withdrew ATO ID 2002/371 (Part IX taxation of superannuation entities - Superannuation fund expenses - trauma policy). According to the ATO, the ID is withdrawn because it contains an ATO view in respect of a provision of the ITAA 1936 that does not apply after the 2006-07 income year. In the ID, the ATO makes further comment about the SIS regulations and the sole purpose test in respect of trauma policies.
- The Australian Taxation Office has released its Annual Report 2013-14. The report notes that limited recourse borrowing arrangements have tripled in value from June 2012 to June 2014, indicating that SMSFs are investing more heavily in property. Among other measures resulting from the ATO's compliance activities, it obtained enforceable undertakings to rectify breaches, removed tax concessions to 129 funds and disqualified 585 trustees in response to serious breaches. The ATO also raised over $256.4 million in liabilities where individuals exceeded their superannuation contribution caps. In addition, the ATO blocked 258 funds from entering the system and removed 186 existing funds in which it suspected illegal access was planned.