Page 1

Superannuation Law Updates: The 30 June Rush (And What You Have Missed) by Todd Riley | July 2007 Area of Expertise | Superannuation

Introduction The start of the 2008 financial year has brought with it the commencement of the vast majority of the Federal Government’s 2006 Budget “Simpler Super” changes. While the superannuation industry has been busy processing extraordinary numbers of contributions, there was a flurry of final updates to, and clarification of, the Simpler Super changes to superannuation law. In addition, the Government took the opportunity to release changes to legislation supporting Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) and Australian Financial Services (AFS) Licensing. Below is a snap shot of the important releases made by various regulators and treasury in the lead up to 30 June.

Author

Topic

Description

Status

ASIC1

AFS Licensing

Release of updated versions of the Policy Statement 166 Licensing: Financial requirements, and Pro Forma 209 Australian financial services licence conditions. ASIC has also withdrawn three guides for AFS licensees given clarifications to PS 166 and PF 209.

ATO2

Simpler Super - Employers

Fact sheet explaining how changes to superannuation law will impact on employers.

Released 26 June 2007

ATO

2007 Federal Budget Changes

Tax Laws Amendment (2007 Measures No. 4) Bill 2007. Contains amendments to the Superannuation Industry (Supervision) Act 1993. The amendments allow superannuation funds to invest in instalment warrants.

Effective on receiving royal assent

ATO2

Simpler Super - General

Updated Industry Stakeholder Q and A.

Effective 26 June 2007

ATO2

Simpler Super – SMSF

Fact sheet on the understanding superannuation interest in a self managed superannuation fund.

Released 29 June 2007

ATO2

Simpler Super – Taxation

Fact sheet on the calculation of lump sum benefits from a taxed superannuation fund.

Released 29 June 2007

2

1

T U R KSLEGAL

Effective 25 June 2007

TUR KALERT


Author

Topic

Description

Status

Simpler Super – Taxation

Fact sheet on how superannuation payouts are taxed in general.

Released 29 June 2007

Supervisory Levy

Superannuation Supervisory Levy Imposition Determination 2007 – Superannuation Supervisory Levy Imposition Act 1998 and Retirement Savings Account Providers Superannuation Supervisory Levy Imposition Act 1998. These are the 2007 – 2008 figures released for superannuation entities and retirement savings account providers.

Effective 1 July 2007

AFS Licensing – Compensation Arrangements

Announcement made that regulations to support section 912B of the Corporations Act 2001 have been made. The new regulations require AFS Licensees to have adequate professional indemnity insurance in place, subject to certain transitional periods.

Effective 1 July 2007

Simpler Super - Various

Superannuation Industry (Supervision) Amendment Regulations 2007 (No.3). Various amendments to the SIS Regulations addressing the 2006 Federal Budget Simpler Super changes (pensions and annuities, indexation arrangements, contributions splitting, public offer funds and employer sponsors, and return of contributions).

Effective 1 July 2007

Simpler Super -Taxation

Income Tax Assessment Amendment Regulations 2007 (No. 6). This regulation compliments regulations previously made earlier in 2007 to support the 2006 Federal Budget Simpler Super changes. The regulations deal with notional contributions to defined benefit funds, allocations from reserves, and multiple accounts.

Effective 1 July 2007

APRA4

Simpler Super Tax File Numbers

Release of Superannuation Industry Supervision Tax File Number approval number 1 of 2007. The approval revokes and replaces the previous TFN approvals to facilitate the 2006 Federal Budget changes to tax file number usage.

Effective on day after registration

APRA4

Reporting Standards

Financial Sector (Collection of Data) (reporting standard) determination No. 5 of 2007. This determination deals with the reporting of off balance sheet business concerning “credit support received”.

Effective no later than 30 June 2007

ATO2

Treasury3

Treasury3

Treasury3

Treasury3

2

T U R KSLEGAL

TUR KALERT


Author

Topic

Description

APRA4

RSE Licensing – Outsourcing

Superannuation Industry (Supervision) modification Declaration No. 1of 2007. Modification to Regulation 4.16 of the Superannuation Industry (Supervision) Regulations 1994 dealing with the outsourcing of material business activities to custodians and sub-custodians.

AUSTRAC5

Anti-Money Laundering and Counter Terrorism Financing Rules

Anti-Money Laundering and Counter Terrorism Financing Rules – amendment instruments 2007 (1) – Section 229 of Anti-Money Laundering and Counter Terrorism Financing Act 2006. The rules specify reporting periods for reporting entities under the AML/CTF legislation.

Status

Effective 1 July 2007

Effective on day after registration

Endnotes 1

Australian Securities and Investments Commission www.asic.gov.au

2

Australian Taxation Office www.ato.gov.au

3

Department of Treasury www.treasury.gov.au

4

Australian Prudential Regulation Authority www.apra.gov.au

5

Australian Transaction Reports and Analysis Centre www.austrac.gov.au

For more information, please contact: Todd Riley Senior Associate T: 03 8600 5031 todd.riley@turkslegal.com.au

Sydney | Level 29, Angel Place, 123 Pitt Street, Sydney, NSW 2000 | T: 02 8257 5700 | F: 02 9239 0922 Melbourne | Level 10 (North Tower) 459 Collins Street , Melbourne, VIC 3000 | T: 03 8600 5000 | F: 03 8600 5099

Business & Property | Commercial Disputes | Insurance & Financial Services Workers Compensation | Workplace Relations www.turkslegal.com.au This Tur k Aler t is cur rent at its date of public ation. While eve r y c a re h a s b e e n t a k e n i n t h e p re p a rat i o n o f t h i s Tu r k Al e r t i t d o e s n o t co n s t i t u te l e g a l advice and should not b e relied up on for this pur p ose. Sp e c i f i c l e g a l a dv i ce s h o u l d b e s o u g ht o n p a r t i c u l a r m at te r s. Tu r k s Le g a l d o e s n o t a c ce p t resp onsibilit y for any er rors in or omissions from this Tur kAl e r t . Th i s Tu r k Al e r t i s co py r i g ht a n d n o p a r t m ay b e re p ro d u ce d i n a ny fo r m w i t h o u t t h e p er mission of Tur ksLegal. For any enquir ies, please contac t t h e a u t h o r o f t h i s Tu r k Al e r t .

Superannuation Law Updates: The 30 June Rush (And What You Have Missed)  

The start of the 2008 financial year has brought with it the commencement of the vast majority of the Federal Government’s 2006 Budget “Simp...

Advertisement