TRUSTS AND TRUSTEES – AUSTRALIA

Room for unions to work with super funds: Combet

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Original article by Ewin Hannan
The Australian – Page: 2 : 18-Apr-19

Industry Super Australia chairman Greg Combet says he has no concerns with union officials raising industrial relations issues with trustees of superannuation funds. However, he stresses that trustees must be mindful of their duty to act in the best interest of fund members when considering such issues. The Australian Prudential Regulation Authority recent advised that trustees must not be influenced by "sponsoring organisations" in carrying out their duties. Combet has previously been ACTU secretary and a Labor minister.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, ACTU, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, IFM INVESTORS PTY LTD, BHP GROUP LIMITED – ASX BHP, BLUESCOPE STEEL LIMITED – ASX BSL, AUSTRALIANSUPER PTY LTD, GLENCORE PLC

Treasurer’s super war on activists

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Original article by Michael Roddan
The Australian – Page: 1 & 2 : 4-Mar-19

Treasurer Josh Frydenberg wants to ensure that union-appointed trustees of industry superannuation funds do not seek to pursue political objectives at the expense of members’ interests. Industry funds currently manage $631 billion worth of assets, with this figure tipped to increase to over $1 trillion by 2024; boards of industry funds are equally represented by trustees from employers and unions. Frydenberg’s concerns have been sparked by union calls for funds to pressure BHP and BlueScope Steel to reverse a decision not to renew a contract for Australian-crewed ships that carry iron ore.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, BHP GROUP LIMITED – ASX BHP, BLUESCOPE STEEL LIMITED – ASX BSL, ACTU, MARITIME UNION OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIANSUPER PTY LTD, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, WOOLWORTHS GROUP LIMITED – ASX WOW, QANTAS AIRWAYS LIMITED – ASX QAN, WOODSIDE PETROLEUM LIMITED – ASX WPL, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, UNITED VOICE, AUSTRALIAN SERVICES UNION

Taxing trusts as companies not a bad idea, lawyers say

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Original article by Joanna Mather
The Australian Financial Review – Page: 4 : 28-Jul-17

Opposition leader Bill Shorten has indicated that he will scrutinise the tax treatment of family trusts if Labor wins the next federal election. Currently, trust themselves are not taxed, with the income they distribute being taxed at a beneficiary level. However, it is possible that Labor may decide to start taxing trusts as companies, a move once considered by the Howard government. Michael Parker of Hall & Wilcox says such an idea has merit, provided that trusts are still able to access franking credits and the capital gains tax discount.

CORPORATES
AUSTRALIAN LABOR PARTY, HALL AND WILCOX, RSM GROUP, BDO GROUP PTY LTD

Super trustees ‘fail to act’ on liquidity risks

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 21-Dec-16

The Australian Prudential Regulation Authority has expressed concern that many trustees of superannuation funds are not using the results of liquidity stress testing when making investment decisions. APRA has noted that while super funds have made progress with regard to liquidity stress testing, further improvement is needed. Rice Warner adds that Australia’s ageing population presents a major liquidity risk for super fund trustees.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RICE WARNER ACTUARIES PTY LTD

Target super literacy, says Deloitte

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Original article by Sally Rose
The Australian Financial Review – Page: 17 : 4-Dec-15

Russell Mason of Deloitte notes that some trustees of superannuation funds voluntarily undertake a course for financial product advisers, but he argues that it should be compulsory for all of them. The issue of governance standards in the sector is again under scrutiny after cross-bench senators rejected the Australian Government’s proposal for one-third of all super funds’ directors be independent. Former Reserve Bank governor Bernie Fraser will review governance standards in the industry.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, RESERVE BANK OF AUSTRALIA, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL