This week’s Super Alert notes the Royal Assent of a superannuation Bill, APRA’s announcement of new executive appointments, ASIC’s reminder to AFS licensees to meet financial reporting obligations on time and a Parliamentary Committee’s scrutiny of the superannuation sector.
Superannuation SG Bill receives Royal Assent
On 2 October 2019, the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2019 received Royal Assent and is now Act no. 78 of 2019.
As referred to in our Super Alert of 20 September 2019, the new Act amends the Superannuation Guarantee (Administration) Act 1992 to ‘allow individuals to avoid unintentionally breaching their concessional contributions cap when they receive superannuation contributions from multiple employers. Instead of receiving contributions into superannuation, an employee may apply to the [ATO] to opt out of the SG regime in respect of an employer and negotiate with the employer to receive additional cash or non-cash remuneration’.
The ATO subsequently published some related information on its website and stated eligible individuals should complete the ‘Super guarantee opt out for high income earners with multiple employers form‘ (NAT 75067) which will be available on ato.gov.au from 21 October 2019.
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APRA announces new executive appointments
On 3 October 2019, APRA issued a media release announcing a number of new executive appointments which reflect a new organisational structure. According to APRA, it will ‘move to an industry-based supervision model, with separate supervisory divisions responsible for superannuation, insurance and banking’.
Ms Suzanne Smith has been appointed as Executive Director, Superannuation.
APRA will also ‘strengthen and intensify its focus and resourcing allocated to the supervision of governance, culture, remuneration and accountability … as well as technology-related risks and operational resilience’.
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ASIC reminds AFS licensees to lodge annual financial statements
On 4 October 2019, ASIC issued a reminder to all Australian Financial Services licensees to ‘lodge their annual financial statements and auditor reports by the due date as required under the Corporations Act 2001.’
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Parliamentary Committee scrutiny of superannuation sector
On 10 October 2019, the House of Representatives Standing Committee on Economics announced that it ‘will scrutinise the superannuation sector over two days of hearings in Canberra on 21 and 22 November 2019, as part of its ongoing review of the four major banks and other financial institutions’ (including superannuation funds). This follows a request made to the Committee by the Treasurer, The Hon Josh Frydenberg MP on 1 August 2019.
According to the media release, the Committee’s examination ‘will include monitoring the sector’s progress on implementing relevant recommendations from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.’
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This alert was written by Natalie Cambrell, Partner, Sanela Osmanovic, Associate and Joseph Cheung, Solicitor.