Welcome to the latest issue of the KHQ Super Alert. The ATO has released additional information in relation to the administration of the ‘More Flexible Superannuation’ changes. The Government has also announced that insurance sold within superannuation will be exempt from the deferred sales model for add-on insurance.
Parliament – Regulations to exempt insurance in superannuation from deferred sales model for add-on insurance
On 8 July 2021, the Treasurer announced that following the passage of the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 in December which introduced the deferred sales model for add-on insurance, the Government would introduce ‘regulations to exempt a class of add-on insurance products where it would not be appropriate that they be captured by the deferred sales model’. One of the classes of products which will be exempt from the deferred sales model for add on insurance would be ‘insurance sold within superannuation (including group life insurance)’.
Click here for details.
ATO – Recontribution of early release superannuation payments
On 6 July 2021, the ATO published an article in relation to the operation of the Treasury Laws Amendment (More Flexible Superannuation) Act 2021. As referred to in our Super Alert of 18 June 2021, the Act:
- enables ‘individuals aged 65 and 66 to make up to three years of non-concessional superannuation contributions under the bring forward rule’;
- allows individuals who have utilised the COVID early release scheme to make ‘re-contributions’ that do not count towards their non-concessional contributions cap (effective from 1 July 2021); and
- repeals the Superannuation (Excess Concessional Contributions Charge) Act 2013 in its entirety.
The ATO has explained how each of these changes will be administered by it.
Click here for details.
Reminders
- ASIC’s Regulatory Guide RG 271 Internal dispute resolution becomes effective on 5 October 2021. Trustees are required to have a complaints policy in place and publish this policy online. Please get in touch if you need assistance in developing this documentation.
- As referred to in our Super Alert of 23 April 2021, the consultation period for APRA’s draft prudential practice guide on climate change financial risks closes on 31 July 2021.
