Super Alert – 20 December 2018

Welcome to this week’s edition of HWL Ebsworth’s Super Alert. This will be our last edition for this year. The Super Alerts will resume in late January. We take this opportunity to send our warm wishes for the festive season and a happy new year.

AUSTRAC guidance released for superannuation sector

On 14 December 2018, AUSTRAC released a report titled “Industry Specific Guidance – Superannuation Sector” (Guidance), which is aimed at educating reporting entities in the superannuation industry “of the risks they face from criminal exploitation and how they can proactively combat financial crime”.

According to AUSTRAC, the purpose of the Guidance is to help superannuation entities:

• “better understand their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006“;
• “identify risks and potential criminal actions arising from the conduct of superannuation funds and their clients”; and
• “explain how [superannuation funds] can use their AML/CTF ‘toolkit’ to mitigate the industry-specific money laundering and terrorism financing (ML/TF) risks they face”.

Please click here to read more.

Mid-Year Economic and Fiscal Outlook released

On 17 December 2018, the Hon Josh Frydenberg MP, Treasurer, released the 2018-19 Mid-Year Economic and Fiscal Outlook.

In relation to superannuation specifically, it was noted that the Government will:

• “increase the minimum penalty from 50 per cent to 100 per cent of the superannuation guarantee (SG) charge for employers who could have come forward under the SG amnesty but did not and were subsequently caught” (please note that the Amnesty Bill, the Treasury Laws Amendment (2018 Superannuation Measures No.1) Bill 2018 has not yet been enacted by Parliament); and
• “allow victims of certain crimes, such as serious violent crimes, with unpaid or partially paid compensation orders to access their perpetrator’s superannuation….[and] this measure will commence 12 months after the relevant legislation receives Royal Assent”.

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ASIC extends commencement date of section 29QC disclosure requirements

On 17 December 2018, the ASIC Superannuation (Amendment) Instrument 2018/1080 (Instrument) was registered on the Federal Register of Legislation. This Instrument extends the date for compliance with section 29QC(1) of the SIS Act from 1 January 2019 to 1 January 2024.

Please click here to read more.

This article was written by Natalie Cambrell, Partner, Damian Tarulli, Special Counsel and Sanela Osmanovic, Associate.