SUPERANNUATION – AUSTRALIA – REGULATION

High-risk super funds put on ATO watch list

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Original article by Kate Cowling
The Australian Financial Review – Page: 9 : 21-Aug-15

The Australian Taxation Office (ATO) is investigating self-managed super funds (SMSFs) engaging in aggressive tax strategies. SMSFs considered high risk will be placed on a watch list and the trustee could be fined for breaches of the Superannuation Industry Supervision Act. Assistant commissioner Kasey Macfarlane warned that individuals "looking to play the system" would be identified through new data capture techniques adopted by the ATO.

CORPORATES
AUSTRALIAN TAXATION OFFICE, THE TAX INSTITUTE, RP DATA LIMITED, AUSTRACK PTY LTD

$2.5m super cap gains support

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Original article by Sally Rose
The Australian Financial Review – Page: 6 : 4-Aug-15

There is growing support among superannuation funds for the introduction of a cap on super balances of at least $A2.5 million. The Actuaries Institute expressed support for the cap in its submission to the Australian Government’s tax inquiry, which closed on 31 July 2015. The institute also believes that the transfer of super from the accumulation to retirement phase should trigger capital gains tax liability.

CORPORATES
THE INSTITUTE OF ACTUARIES OF AUSTRALIA, GRATTAN INSTITUTE, BT FINANCIAL GROUP PTY LTD, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, TOWERS WATSON, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, FINANCIAL SERVICES COUNCIL, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN TAXATION OFFICE

Super board overhaul will cost up to $168m

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Original article by Joanna Mather
The Australian Financial Review – Page: 7 : 29-Jul-15

Industry Super Australia has estimated that implementing the Federal Government’s governance reforms for the superannuation industry will cost between $A89m and $A168m. Amongst other things, super funds will have to recruit and train new directors in order to comply with the requirement that 33 per cent of directors – and the chair – are independent. Australian Institute of Company Directors CEO John Brogden rejects suggestions that directors will demand higher fees for being on the board of a super fund.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, FINANCIAL SERVICES COUNCIL, AUSTRALIA. DEPT OF THE TREASURY

New front in war over super governance

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Original article by Jennifer Hewett
The Australian Financial Review – Page: 1 & 2 : 27-Jul-15

The Federal Government’s proposed superannuation reforms have been criticised by Industry Super Australia in its submission to Assistant Treasurer Josh Frydenberg. The reforms will require one-third of super fund directors, and the chairman, to be independent, while employers and unions will no longer need to have representatives on the board. ISA argues that under the current governance model industry funds’ returns have generally been higher than those of retail funds.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, HOST-PLUS, NATIONAL SENIORS AUSTRALIA LIMITED, MASTER BUILDERS AUSTRALIA INCORPORATED

Crackdown on super inducements

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Original article by James Eyers, Clancy Yeates
The Australian Financial Review – Page: 16 : 15-Jun-15

The Superannuation Industry (Supervision) Act prohibits Australian financial institutions from offering employers incentives to choose them as their superannuation fund provider. Assistant Treasurer Josh Frydenberg has flagged stricter penalties to discourage such behaviour, a move that has been welcomed by Financial Services Council CEO Sally Loane.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, FINANCIAL SERVICES COUNCIL, AUSTRALIA. FAIR WORK COMMISSION, INDUSTRY SUPER AUSTRALIA PTY LTD

Default fund choice aired

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Original article by Sally Rose
The Australian Financial Review – Page: 21 : 4-Jun-15

The financial system inquiry concluded that Australian superannuation fees are too high, costing members about $A20bn a year. Inquiry chairman David Murray has told a conference of the need for increased competition in the sector in order to reduce fees, while Assistant Treasurer Josh Frydenberg has flagged possible changes to the default super fund regime to boost competition. However, industry and retail super fund executives disagree on whether such reforms will result in lower fees.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, COLONIAL FIRST STATE GROUP LIMITED, INDUSTRY FUND SERVICES PTY LTD, RICE WARNER ACTUARIES PTY LTD, GRATTAN INSTITUTE, COMMITTEE FOR SUSTAINABLE RETIREMENT INCOMES, ERNST AND YOUNG, AMP LIMITED – ASX AMP, CHALLENGER LIMITED – ASX CGF, DIMENSIONAL FUND ADVISORS

Cbus advised to appoint more independents

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Original article by Sally Patten
The Australian Financial Review – Page: 13 : 11-May-15

An independent report has made recommendations aimed at improving corporate governance at the Cbus superannuation fund. They include appointing more independent directors, including an independent chairman. The report, which was produced by Graeme Samuel on behalf of Cbus, also recommends measures aimed at preventing scandals such as the leaking of members’ personal information to the Construction, Forestry, Mining & Energy Union in 2014.

CORPORATES
CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, ACTU, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Unions urge defiance on super freeze

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Original article by Ewin Hannan
The Australian Financial Review – Page: 8 : 26-Mar-15

The ACTU states in a submission to the Fair Work Commission that mandatory contributions to superannuation should be increased by 0.5 per cent to 10 per cent for workers on award minimum wages. The Australian Government does not want to increase super contributions, but the ACTU claims that the commission has power under the Fair Work Act to order the increase

CORPORATES
ACTU, RESERVE BANK OF AUSTRALIA, AUSTRALIANSUPER PTY LTD, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Unions urge defiance on super freeze

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Original article by Ewin Hannan
The Australian Financial Review – Page: 8 : 26-Mar-15

The ACTU states in a submission to the Fair Work Commission that mandatory contributions to superannuation should be increased by 0.5 per cent to 10 per cent for workers on award minimum wages. The Australian Government does not want to increase super contributions, but the ACTU claims that the commission has power under the Fair Work Act to order the increase

CORPORATES
ACTU, RESERVE BANK OF AUSTRALIA, AUSTRALIANSUPER PTY LTD, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

Retirement lump sum could end

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Original article by Sally Rose
The Australian Financial Review – Page: 21 : 25-Mar-15

The financial system inquiry’s recommendation that future retirees should not receive a superannuation lump sum payout may be implemented. The Department of the Treasury’s executive director John Lonsdale addressed the Australian Securities & Investment Commission’s annual conference on 24 March 2015. He raised the prospect of new rules that would require superannuants to finance their retirement via a default pension fund rather than a lump sum payout

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, SUPERANNUATION CONSUMERS CENTRE, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD