The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
|Legislative update||Superannuation Supervisory Levy Imposition Determination 2017 was registered|| |
On 11 July 2017, the Superannuation Supervisory Levy Imposition Determination 2017 (Determination) was registered.
The Determination relates to the levies imposed by the Superannuation Supervisory Levy Imposition Act 1998 (Cth) for the 2017-18 financial year.
According to the Explanatory Statement, the Determination provides that for superannuation funds other than small APRA funds and single member approved deposit funds, 'the restricted component of the 2017 18 levy will be calculated at 0.00307 per cent of assets held by the entity, subject to a minimum of $3,500 and a maximum of $300,000. The unrestricted component of the 2017 18 levy will be calculated at 0.005655 per cent of assets held by the entity'.
The Determination was deemed to be operative from 1 July 2017.
|ASIC||Report 535 on ASIC cost recovery arrangements released||Report REP 535|| |
On 14 July 2017, ASIC released Report 535 titled "ASIC cost recovery arrangements: 2017-18" (Report).
The Report seeks to update 'industry on the changes to ASIC’s cost recovery arrangements' in accordance with the ASIC Supervisory Cost Recovery Levy Act 2017, which came into effect on 1 July 2017.
The Report identifies industry sectors and provides a methodology for calculating levies. Amongst other things, the Report provides that:
|ATO||Taxation changes to departing Australia superannuation payment for working holiday makers||ATO webpage|| |
On 3 July 2017, the ATO updated its webpage to reflect changes to the Departing Australia Superannuation Payments (DASP) regime for superannuation funds.
If a superannuation fund receives a DASP application from a former working holiday maker on or after 1 July 2017, then the new withholding tax rates apply for the DASPs paid on or after 1 July 2017. The taxed and untaxed elements of the taxable component of a DASP for working holiday makers was increased to 65% from 1 July 2017.
If a superannuation fund receives a DASP application from a non-working holiday maker on or after 1 July 2017, the DASP ordinary tax rates will apply to a DASP for a non-working holiday maker. The DASP ordinary tax rate for non-working holiday makers is 35% for the taxed element and 45% for the untaxed element from 1 July 2017.
A FAQ is also available here.
|Case law update||Application to set aside consent orders dismissed||Matsen v Superannuation Complaints Tribunal  FCA 765|| |
On 6 July 2017, the Federal Court of Australia handed down its decision in the matter of Matsen v Superannuation Complaints Tribunal  FCA 765.
In May 2015, Mr Masten appealed a decision of the Superannuation Complaints Tribunal to proportionately allocate a death benefit payable under his son's superannuation policy. By consent, the applicant and respondents agreed on the amounts to be allocated.
Masten then sought to set aside the consent orders on numerous grounds including that the mediator had "pressurised" the applicant to continue the mediation process.
The court found that the evidence fell short of proving a basis upon which to set aside the consent orders. It was unnecessary to consider the allegation of duress given that the consent orders were signed over a month after the mediation and in the interim the applicant had sought legal advice. Accordingly, the application to set aside the consent orders was dismissed.
|Ministerial announcement||Superannuation guarantee non-compliance||Media Release|| |
On 14 July 2017, the Minister for Revenue and Financial Services, Kelly O'Dwyer, announced that the Federal Government will "introduce a Bill into Parliament this year that will ensure an individual’s salary sacrifice contributions do not reduce their employer’s superannuation guarantee obligation".
Minister O’Dwyer also released the report of the Superannuation Guarantee Cross Agency Working Group titled "Superannuation Guarantee Non compliance". The report makes recommendations to improve compliance with the superannuation guarantee legislation. Minister O'Dwyer has stated that the Government is considering the recommendations made in the report.
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