In this week’s Super Alert is an announcement from the government in relation to the retirement income covenant and APRA’s latest quarterly superannuation statistics and issue of its Insight newsletter.
APRA – Insight Issue 2 released
On 27 May 2020, APRA released Insight issue 2 for 2020. The topics covered include:
- ‘Myths and misconceptions should be no barrier to super consolidation’;
- ‘Risk-Weighted Assets’; and
- ‘How APRA prepared for and has responded to the coronavirus crisis’.
Please click here to read more.
Permanent tax relief Act – Merging super funds
On 27 May 2020, the Treasury Laws Amendment (2020 Measures No 1) Act 2020 (Cth) was registered on the Federal Register of Legislation after receiving Royal Assent on 25 May 2020. As referred to in our Super Alert of 15 May 2020, the Act makes permanent the current temporary arrangements for ‘loss relief and asset rollover that provide relief from CGT liabilities to superannuation funds in the event of fund mergers and transfer events’ which was due to expire on 1 July 2020.
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APRA – Quarterly superannuation statistics
On 26 May 2020, APRA released its quarterly superannuation statistics which contains information about the assets in the industry up to March this year. According to APRA, there has been a 0.3% reduction in total superannuation assets in the past 12 months, largely due to ‘a significant downturn in global financial markets as a result of COVID-19’.
Please click here to read more.
Government announcement – Retirement income covenant
On 22 May 2020, the Hon Jane Hume issued a media release announcing that the government would ‘defer the introduction of the Retirement Income Covenant, previously scheduled to commence on 1 July 2020’. The government will consult with the industry further prior to determining a revised date.
Please click here to read more.
This article was written by Natalie Cambrell, Partner and Sanela Osmanovic, Senior Associate.