Super Alert – 18 March 2022

Welcome to the latest issue of the KHQ Super Alert. This week, Treasury announced that it would conduct a quality of advice review and AFCA commenced a consultation on its new proposed funding model.

APRA – Changes to FAQs on the Superannuation Data Transformation project

On 17 March 2022, APRA made changes to three frequently asked questions relating to its Superannuation Data Transformation project. These were:

  • ‘1.0 What data is required for the historical data collection and what are the due dates for submission of data under the SDT reporting standards?’;
  • ‘251.2 e: How should RSE licensees report cases where the assessment of insurance claim did not occur due to the insurance claim being withdrawn or closed?’; and
  • ‘550.0 p: What does APRA expect RSE licenses to report for the strategic sector related fields under SRF 550.0 table 2?’

Click here for details.

ATO – COVID-19 re-contribution amounts

On 15 March 2022, the ATO issued CRT Alert 003/2022 in relation to COVID-19 re-contributions by members. According to the ATO, ‘[f]rom 1 July 2021 to 30 June 2030, [i]individuals can re-contribute amounts they withdrew under the COVID-19 early release of super (ERS) program without them counting towards their non-concessional cap’.

Trustees should be aware that if they receive ‘an approved form from a member, [they] need to report this information to the ATO monthly. The ATO has now released functionality in Online Services to enable [trustees] to lodge using the ‘file transfer’ service’.

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Treasury – Consultation on next stage of expansion of the Consumer Data Right

On 15 March 2022, Treasury issued a media release on its consultation in relation to the expansion of the Consumer Data Right to ‘‘Open Finance’ as the next sector to be assessed’. While Open Finance ‘will include the assessment of the non-bank lending sector, merchant acquiring services, and key data sets in the general insurance and superannuation sectors’, this consultation will exclusively focus on non-bank lending. According to Treasury, the ‘[c]onsultation on merchant acquiring services, general insurance and superannuation will occur later in the year’.

Submissions on the current consultation close on 12 April 2022.

Click here for details.

Treasury – Quality of advice review

On 11 March 2022, Treasury issued a media release in relation to the Government’s quality of advice review. The review, which is ‘[c]onsistent with recommendations 2.3, 2.5 and 2.6 of the [Hayne] Royal Commission’, highlights the Government’s commitment ‘to ensuring that Australians have access to high quality, affordable and accessible financial advice’.

To assist with the review, terms of reference have been released. While submissions are being accepted as part of the review, no submission closing date has been provided. A report on the findings of the review is intended to be provided to Government prior to 16 December 2022.

Click here for details.

AFCA – Consultation on AFCA’s new funding model

On 10 March 2022, AFCA opened a consultation process relating to its ‘new funding model to be introduced on 1 July 2022’. According to AFCA, the proposed model is to include:

  • ‘a single registration fee for financial firm members’;
  • ‘a simplified complaints fee structure’;
  • ‘a threshold of five free complaints’; and
  • ‘the removal of the superannuation levy’.

The consultation period concludes on 22 April 2022.

Click here for details.

KHQ Lawyers - Natalie Cambrell

Natalie Cambrell Director

Natalie leads our Superannuation & Financial Services team. With more than 25 years’ experience, she has an enviable reputation for her in-depth knowledge in these highly regulated and complex... Read More

KHQ Lawyers - Sanela Osmanovic

Sanela Osmanovic Senior Associate

Sanela is a Senior Associate in our Superannuation & Financial Services team, and has a broad range of experience working with a range of superannuation fund trustees... Read More

KHQ Lawyers - Jordan Diamantopoulos

Jordan Diamantopoulos Lawyer

Jordan is a lawyer in our Litigation & Dispute Resolution team, with experience across the private and public sector. He commenced with KHQ as a graduate lawyer in 2021,... Read More