Welcome to the weekly KHQ Super Alert. This week the Federal Budget was announced and only a couple of minor superannuation-related measures were announced. ASIC updated its guidance in relation to virtual meetings and AUSTRAC updated its guidance in relation to the ‘tipping-off’ prohibition. Meanwhile, Treasury released draft legislation for the next tranche of financial advice reforms.
Treasury – Proposed supervisory levies for 2025/26
On 27 March 2025, Treasury released a discussion paper in relation to the proposed financial institutions supervisory levies for the 2025-26 financial year. The proposed levies relate to APRA, Treasury and the ATO and the government is seeking industry feedback. The consultation period closes on 25 April 2025.
Click here for details.
ASIC – Updated guidance in relation to virtual meetings
On 26 March 2025, ASIC published further guidance on virtual meetings for companies and registered schemes by updating some frequently asked questions on its website. The guidance sets out ASIC’s expectation that entities using virtual meeting technology will ensure members ‘have equivalent opportunities to participate at meetings using virtual technology as occurs for in-person meetings, and [provides] guidance on:
- whether virtual meetings require a phone line option,
- the use of webcasts, and
- how to notify ASIC once an entity’s constitution has been amended’.
As referred to in our Super Alert of 7 February 2025, in the Government’s response to the ‘Statutory Review of the Meetings and Documents Amendments’, it encouraged regulators like ASIC to issue further guidance.
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Government – Federal Budget released
On 25 March 2025, the Hon Jim Chalmers MP, Treasurer, delivered the Federal Budget for the 2025/26 financial year. Budget Paper No. 2 sets out the various measures announced.
The following relate to superannuation (both directly and indirectly):
- ‘[t]he Government will strengthen the fairness and sustainability of Australia’s tax system by providing $999.0 million over four years to the Australian Taxation Office (ATO) to extend and expand tax compliance activities’ – this measure will enable ‘the ATO to continue its engagement program to ensure timely payment of tax and superannuation liabilities by medium and large businesses and wealthy groups’;
- the Government will provide:
- ‘$8.7 million over three years from 2024–25 to the Office of the Australian Information Commissioner (OAIC) to support enforcement activity’;
- ‘$5.3 million in 2025–26 to the OAIC to continue its regulatory oversight of the Digital ID and Identity Verification Service programs’; and
- ‘$3.4 million in 2025–26 to [Attorney-General’s Department] and the Australian Institute of Criminology to strengthen counter‑fraud arrangements across the Commonwealth through the continuation of the Commonwealth Fraud Prevention Centre’.
Click here for details.
AUSTRAC – Guidance in relation to revised ‘tipping-off’ prohibition
On 25 March 2025, AUSTRAC released guidance in relation to an amended provision in the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act). On 31 March 2025, changes to the ‘tipping off’ prohibition set out in section 123 of the AML/CTF Act, which relates to disclosure of suspicious matter reports, will come into effect.
The purpose of the changes is to focus on whether the disclosure of the information would or could prejudice an investigation. Currently, if an entity submits a suspicious matter report, no information about the report must be disclosed to the relevant customer. As part of the new guidance, AUSTRAC has provided examples of controls that can be put in place to reduce the risk of tipping off, amongst other things.
Click here for details.
Legislation – Further amendments to family law regulations registered
On 24 March 2025, the Family Law (Superannuation) Amendment (Technical Amendments) Regulations 2025 (Cth) (Amendment Regulations) were registered on the Federal Register of Legislation. The Amendment Regulations amend subclauses 35(2) and (45)(2) of Schedule 3 of the Family Law (Superannuation) Regulations 2025 (2025 Regulations). They include technical amendments to the valuation factors to reflect updated actuarial assumptions, and to enable accurate valuation of a broader range of superannuation interests and benefits (including innovative retirement income stream products).
According to the Explanatory Statement, the Amendment Regulations ‘are technical in nature and are intended to rectify two drafting errors identified after the 2025 Regulations were made’. The 2025 Regulations are due to commence on 1 April 2025. The Amendment Regulations will commence immediately following the commencement of the 2025 Regulations.
Click here for details.
Treasury – Consultation on next stage of financial advice reforms
On 21 March 2025, Treasury launched a consultation on the ‘[d]raft legislation delivering the next tranche of the Government’s financial advice reforms’, which aims to
- ‘replace the statement of advice with a more fit-for-purpose client advice record’;
- ‘provide clear rules on what advice topics can be collectively charged for via superannuation’; and
- ‘allow superannuation funds to provide targeted prompts to members to drive greater engagement with superannuation at key life stages’.
In an associated media release, the Hon Stephen Jones MP, Assistant Treasurer and Minister for Financial Services, explained that there is further legislation to come ‘to modernise the best interests duty and create a new class of adviser’. That legislation ‘will be consulted on and combined with the draft legislation released today to be introduced into Parliament as a single package’.
The consultation period closes on 2 May 2025.
