Superannuation Alert 16.06.17

Financial Services eBulletin

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

Type Subject matter Source Description
Legislative update Further budget reforms Bill passed Treasury Laws Amendment (2017 Measures No. 2) Bill 2017

On 15 June 2017, the Treasury Laws Amendment (2017 Measures No. 2) Bill 2017 was passed by the Senate without amendment and now awaits Royal Assent.

The Bill amends the key budget reform Act (Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016) and associated legislation, specifically to make amendments to the:

  • transfer balance cap; 
  • concessional contribution rules;
  • non-concessional contribution rules; 
  • objective of superannuation; 
  • transition to retirement income stream rules; 
  • capital gains tax relief for superannuation funds; and
  • streamlining of administrative processes.
Legislative update ASIC's supervisory cost recovery levy legislation passed ASIC Supervisory Cost Recovery Levy Bill 2017
 
ASIC Supervisory Cost Recovery Levy (Collection) Bill 2017
 
ASIC Supervisory Cost Recovery Levy (Consequential Amendments) Bill 2017

On 15 June 2017, the Senate passed, without amendment, the following three Bills that propose to "enable the recovery of the regulatory costs of ASIC" by imposing a levy on ASIC regulated persons.

The Bills now await Royal  Assent.

ALRC ALRC Report 131  Elder Abuse — A National Legal Response

On 14 June 2017, the Australian Law Reform Commission released its report into current Australian "laws and frameworks which seek to safeguard and protect older persons from misuse or abuse by formal and informal carers, supporters, representatives and others".

The ALRC has made 43 recommendations for law reform and in particular, proposes that the provisions relating to death benefit nominations in SIS be amended to clarify:

  • "witnessing requirements for making, amending and revoking nominations";
  • "the authority of a person who holds an enduring power of attorney in relation to the making, alteration and revocation of a nomination"; 
  • "whether a procedure for the approval of a nomination on behalf of a member should be introduced"; and
  • "the extent to which other aspects of wills law may be relevant".
ATO Budget reform additional guidance Removal of election to treat super income streams as lump sums
 
New transfer balance cap - child death benefit recipients

The ATO has updated its website to include the following information guides:

  1. Removal of election to treat super income as lump sums - From 1 July 2017, the ability to elect to treat super income stream benefits as lump sums for tax purposes will be removed; and
  2. New transfer balance cap - child death benefit recipients - From 1 July 2017, child recipients of a death benefit income stream from a deceased parent may have a modified transfer balance cap, as opposed to the new transfer balance cap of $1.6 million.
Case law update TPD complaint Carette v Superannuation Complaints Tribunal [2017] FCA 640

On 29 May 2017, the Federal Court of Australia handed down its decision in the matter of Carrette v Superannuation Complaints Tribunal [2017] FCA 640.
 
In this matter, the Applicant appealed from a decision of the SCT which affirmed a decision of the Board of Trustees of the State Public Sector Superannuation Scheme (Trustee) to deny the Applicant's claim for a TPD benefit.
 
The Federal Court held that the SCT failed "to engage with the critical parts of actual material that was before the Trustee and that was before the Tribunal" which indicated that the Applicant's current condition was a separate and independent condition not related to the Applicant's earlier condition.
 
The matter has been remitted to the SCT for re-hearing.

Case law update TPD complaint Gomez v Board of Trustees of the State Public Superannuation Scheme [2017] QSC 98

On 29 May 2017, the Supreme Court of Queensland handed down its decision in the matter of Gomez v Board of Trustees of the State Public Superannuation Scheme [2017] QSC 98.
In this case, the Plaintiff claimed the payment of a TPD benefit from the Board of Trustees of the State Public Superannuation Scheme (Trustee).

The claim was initially refused by a delegate of the Trustee.  The Plaintiff sought a review of that decision, but the initial decision was affirmed by the Trustee.  The Plaintiff sought a further review on the basis of additional material.  A senior board delegate of the Trustee again affirmed the Trustee's initial decision to refuse to grant the Plaintiff's claim.

The Supreme Court held that the additional material provided by the Plaintiff "put forward sufficient material to show there was a case to be investigated further" and that the Trustee failed to properly reconsider the claim in light of the additional material.

 

Further information

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.