The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
|Australian Financial Complaints Authority||
In a media release on 14 February 2018, ASIC announced its support of the passage of the Treasury Laws Amendment (Putting Consumers First - Establishment of the Australian Financial Complaints Authority) Bill 2017.
ASIC will work with key stakeholders and Government to ensure a smooth transition from the old framework to the new framework. The new AFCA will start accepting complaints no later than 1 November 2018. Until then, ASIC will retain direct oversight of the Financial Ombudsman Service and the Credit and Investments Ombudsman. Separate arrangements are in place for the ongoing operation of the Superannuation Complaints Tribunal to ensure that it isable to deal with current complaints.
ASIC will be consulting soon on the updated Regulatory Guide 139 which will detail ASIC's oversight of AFCA. It will also publicly consult on new internal dispute resolution (IDR) standards and the mandatory IDR reporting requirements that are also contained in the AFCA Bill.
Until ASIC consults on and updates the new IDR Policy, existing legislative IDR requirements for superannuation trustees and retirement savings account providers will continue to operate in their current form.
The ATO has released guidance information on transitional capital gains tax (CGT) relief. The relief is available to trustees of superannuation funds who adjust asset allocation to comply with the transfer balance cap and transition-to-retirement income stream (TRIS) reforms that commenced on 1 July 2017.
The purpose of the CGT relief is to provide temporary relief from certain capital gains that might arise from the TRIS reforms or the introduction of transfer balance cap. Trustees of superannuation funds are advised to ensure that any choices regarding the application of CGT relief to assets are consistent with this purpose.
CGT relief may be available where members need to reduce amounts supporting retirement phase super income streams to ensure their total amounts in retirement phase did not exceed $1.6 million.
The use of CGT relief will apply differently depending on what method is used to calculate the exempt current pension income (ECPI) at the start of the 'pre-commencement period' (being 9 November 2016 to 30 June 2017).
|ATO||Law Companion Guidelines name change||
The ATO has changed the name of its Law Companion Guidelines (LCG) product to Law Companion Ruling (LCR). The change takes effect from Monday 19 February 2018, and is based on feedback received since the introduction of the guidelines. The new name intends to better reflect the LCR's status as a public ruling which is binding on the Commissioner. An addenda has been issued to formalise the change of name for the 29 previously issued LCGs.
|Federal Parliament||Report of Senate Economics References Committee||
The due date for the Senate Economics References Committee report has been extended from 14 February 2018 to 26 June 2018. The inquiry was referred by the Senate to report on the regulatory framework for the protection of consumers, including small businesses, in the banking, insurance, and financial services sector.
|Treasury||Announcement of CIPRs advisory group||Minister for Revenue and Financial Services Media Release||
On 19 February 2018, the Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP, announced the establishment of a consumer and industry advisory group to assist in the next phase of development for a framework for Comprehensive Income Products for Retirement (CIPRs).
|Treasury||Early release of superannuation||Treasury consultation announcement||On 21 February 2018, Treasury released exposure draft regulations and an explanatory statement to effect the transfer of the early release of superannuation function to the ATO. Treasury is seeking submissions by 23 March 2018.|