Superannuation Alert - Budget edition 10.05.18
- 10 May 2018
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
This week our alert includes a round-up of the 2018/2019 Federal Budget measures that relate to superannuation.
|2018/2019 Federal Budget
On 1 May 2018, the Minister for Revenue and Financial Services, Kelly O'Dwyer, announced the authorisation of Australian Financial Complaints Limited to "operate the Australian Financial Complaints Authority (AFCA), the new financial dispute resolution scheme". Ms O'Dwyer said, "AFCA will have expertise to deal with all disputes across the entire financial services industry, including superannuation and small business lending disputes” and the new AFCA scheme will "operate under significantly higher monetary limits and compensation caps".
As part of the scheme, all "Australian Financial Services Licensees, Australian Credit Licensees, superannuation trustees and other financial firms required to become members of AFCA by law, and will need to do so by no later than 21 September 2018. AFCA will, in the coming months, outline the process for applying for membership".
AFCA will begin accepting complaints from 1 November 2018.
|ATO||Addendum to Law Companion Ruling LCR 2016/8||
On 2 May 2018, the ATO issued an Addendum to Law Companion Ruling LCR 2016/8, making minor amendments and corrections. The Ruling provides guidance on the transitional CGT relief available for trustees of complying superannuation funds and pooled superannuation trusts in relation to the transfer balance cap and transition-to-retirement reforms commencing on 1 July 2017.
|ATO||Super fund reporting of member account transactions - ATO draft instrument||
On 3 May 2018, the ATO published Draft SPR 2018/D2 - Taxation Administration Member Account Transaction Service - the Reporting of Information Relating to Superannuation Account Transactions 2018. The instrument applies to "every superannuation provider in relation to a superannuation plan (excluding a self- managed superannuation fund) and every life insurance company that is required to lodge a Member Account Transaction Service (MATS) form".
This instrument will require MATS forms to be lodged to report employer contributions, non-employer transactions, acknowledgement of a valid notice of intent to claim a personal superannuation contribution deduction and retirement phase events, all within 10 business days. Additionally, "member contribution balance amounts [are] required to be reported as at 30 June of a financial year, no later than 31 October following the end of the financial year to which the amount relates".
The instrument commences "on the day after it is registered on the Federal Register of Legislation and will apply from 1 July 2018".
|Treasury||Release of exposure draft legislation for superannuation budget measures||On 8 May 2018, the Treasury released for public consultation exposure draft legislation in relation to the Government's "Protecting Your Super" package, as announced in the 2018-19 Federal Budget. These amendments relate to capping fees on certain superannuation accounts, not offering unnecessary insurance, and transferring inactive accounts to the ATO sooner. These changes are "designed to protect Australians’ superannuation savings from undue erosion by fees and insurance premiums".|
All information on this site is of a general nature only and is not intended to be relied upon as, nor to be a substitute for, specific legal professional advice. No responsibility for the loss occasioned to any person acting on or refraining from action as a result of any material published can be accepted.