In this week’s first Super Alert for winter, a number of new instruments have been registered by the various regulators including changes to the age limits for certain contributions. ASIC is also proposing to amend the commencement date for the new RG 97 obligations.
AUSTRAC – Identification in circumstances of domestic violence
On 20 May 2020, the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2020 (No. 3) was registered on the Federal Register of Legislation. According to the Explanatory Statement, the Instrument amends the Anti-Money Laundering and Counter-Terrorism Financing Rules 2006 to ‘make it plain that a reporting entity can use the [limited and exceptional] processes described in Part 4.15 [to verify the identity of a customer] when their customer is experiencing or has experienced [family and domestic violence]’.
The instrument is effective from 21 May 2020.
Please click here to read more.
ASIC – Updated FAQ in relation to RG 97 commencement
On 26 May 2020, ASIC updated its COVID-19 FAQs referred to in our Super Alert – 3 April 2020. The additional question and answer is as follows:
‘Will ASIC be amending the transitional arrangements in RG 97 instrument ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070?
Yes. ASIC will be amending the transitional arrangements for Product Disclosure Statements (PDSs) shortly to allow entities to come into the new disclosure regime from 30 September 2020 and require any PDS given on or after 30 September 2022 to comply with the new disclosure regime. There will be no change to the periodic statement transition arrangements. ASIC will issue a media release and update the RG 97 webpage when the amendment is made’.
Please click here to read more.
ASIC – Deferral of design and distribution obligations
On 27 May 2020, the ASIC Corporations (Deferral of Design and Distribution Obligations) Instrument 2020/486 was registered on the Federal Register of Legislation.
It gives effect to the deferral of the commencement date for the design and distribution obligations contained in the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019, as referred to in our Super Alert – 15 May 2020.
The new commencement date will be 5 October 2021.
Please click here to read more.
Family law – New rate for DB interest splits
On 28 May 2020, the Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2020 was registered on the Federal Register of Legislation. It specifies the interest rate for an adjustment of a base amount in a defined benefit interest under regulation 45D(3) of the Family Law (Superannuation) Regulations 2001.
The Determination commences from 1 July 2020.
Please click here to read more.
Regulations registered – New age limits for certain contributions
On 29 May 2020, the Superannuation Legislation Amendment (2020 Measures No. 1) Regulations 2020 were registered on the Federal Register of Legislation.
As referred to in our Super Alert – 6 March 2020, the regulations increase ‘the age at which the work test starts to apply (from 65 years to 67 years) and the age limit for spouse contributions (from 69 years to 74 years)’.
The changes will apply to contributions made in the 2020/21 financial year onwards.
Please click here to read more.
ATO – new guidance for non-arm’s length expenditure
On 2 June 2020, the ATO issued Practical Compliance Guidance 2020/5 ‘Applying the non-arm’s length income provisions to “non-arm’s length expenditure” – ATO compliance approach for complying superannuation entities’ (PCG).
The PCG ‘provides a transitional compliance approach where a superannuation entity incurs certain non-arm’s length expenditure of a general nature that has a sufficient nexus to all ordinary and/or statutory income derived by that entity in the respective income year’.
This transitional compliance approach will cover the 2020/21 financial year and continues the transitional compliance approach already contained in Law Companion Ruling 2019/D3.
Please click here to read more.
This article was written by Natalie Cambrell, Partner and Sanela Osmanovic, Senior Associate.