Welcome to the latest issue of the KHQ Super Alert. This week, ASIC released a new information sheet which consolidates material on trustee transparency and disclosure obligations, and also issued a media release encouraging trustees to improve performance test fail communications to members. Meanwhile APRA has postponed the effective date for proposed CPS 230 and the ATO published the indexed caps and thresholds for 2023-24.
APRA – Updated timeline for new operational risk management prudential standard
On 13 April 2023, APRA provided an updated timeline for the implementation of proposed Prudential Standard CPS 230 Operational Risk Management (CPS 230). In response to feedback received during consultation (see our Super Alert from 29 July 2022), APRA intends to move the effective date of CPS 230 to 1 July 2025 (it was originally intended to be operational from 1 January 2024), and ‘provide transitional arrangements for pre-existing contractual arrangements with service providers, with the requirements in [CPS 230] applying from the earlier of the next contract renewal date or 1 July 2026’.
CPS 230 and the draft supporting guidance are expected to be released in mid-2023.
Click here for details.
ASIC – Trustees encouraged to improve member performance fail communications
On 12 April 2023, ASIC issued a media release reminding trustees to be ‘more member-centric in their approach’ to performance test failure communications with members.
ASIC reviewed the performance communications by the four trustees that had again failed the 2022 annual performance test for MySuper products. ASIC commented that while the trustees ‘took into account’ the guidance provided in Report 729 Review of trustee communications about the MySuper performance test (see our Super Alert of 8 July 2022), ‘some trustees took a reactive approach’ and ‘did not have cohesive communications strategies in place’; meaning their member communications were ‘inconsistent or lacked clarity’. ASIC Commissioner Danielle Press encouraged ‘trustees to assess their approach to member communications’ and ‘bear in mind ASIC’s expectations for balance, prominence and clarity in their performance communications to members’.
Click here for details.
ATO – Amended first home super saver scheme guidance released
On 12 April 2023, the ATO released updated versions of the following materials from its legal database:
- Law Companion Ruling 2018/5: First home super saver scheme; and
- Super Guidance Note 2018/1: First home super saver scheme.
The materials have been updated to reflect changes made to the first home super saver scheme by the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Act 2022 (Cth). As noted in our Super Alert of 18 February 2022, the Act increased ‘the maximum amount of voluntary contributions made over multiple financial years that are eligible to be released under the First Home Super Saver Scheme from $30,000 to $50,000’.
Click here and here for details.
ASIC – Release of disclosure obligations summary
On 11 April 2023, ASIC announced the release of Information Sheet 278 Inventory of superannuation trustee transparency and disclosure obligations (INFO 278) which consolidates superannuation ‘trustee transparency and disclosure obligations into one webpage with links’. INFO 278 outlines a range of trustee disclosure obligations that are administered by ASIC under the Corporations Act, the SIS Act and the associated regulations.
Click here for details.
Treasury – Consultation on draft regulations for financial reporting by trustees
On 11 April 2023, Treasury released draft regulations titled Treasury Laws Amendment (Measures for Consultation) Regulations 2023: Financial reporting and auditing of registrable superannuation entities (Draft Regulations) for consultation. The Draft Regulations support amendments in Schedule 6 of the Treasury Laws Amendment (2022 Measures No. 4) Bill 2022 which propose to extend and adapt the ‘financial reporting and auditing requirements in Chapter 2M of the Corporations Act 2001 to apply to registrable superannuation entities (RSEs)’ (see our Super Alert from 25 November 2022).
The Draft Regulations ‘prescribe requirements for the preparation, lodgement, disclosure and publication of information and documents by RSEs to improve the compliance and transparency of the superannuation sector’.
Consultation closes on 5 May 2023.
Click here for details.
ASIC – Directors encouraged to oversee whistleblower programs
On 6 April 2023, ASIC released an article written by Commissioner Danielle Press identifying good practice for whistleblower programs and encouraging directors to take responsibility and oversee their organisations’ whistleblower program. The article comments on ASIC’s recent report into the whistleblower practices of seven large financial firms and outlines ASIC’s ‘seven features of a strong whistleblower program’ (see our Super Alert from 3 March 2023).
The article highlights that ‘[b]oards are ultimately responsible for their firm’s governance and risk management arrangements, including whistleblower policies and programs’ and encourages directors to ‘consider the outcomes they want from their [programs]’ and ‘[e]nsure the program operates in such a way that those outcomes are achieved’.
Click here for details.
APRA – Updates to SDT FAQs
On 6 April 2023, APRA published 11 additional frequently asked questions on the Superannuation Data Transformation reporting standards. These provide further guidance on the amendments to the reporting standards which were finalised in March this year (see our Super Alert from 10 March 2023).
Click here for details.
ATO – Updated superannuation caps and thresholds released
On 5 April 2023, the ATO published the indexed superannuation caps and thresholds for 2023-24. However, the concessional and non-concessional contributions caps will not be indexed for the next financial year.
Click here for details.
This alert was written by Kiara Leslie (Lawyer), Sanela Osmanovic (Senior Associate), and Natalie Cambrell (Director).
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