Welcome to the latest issue of the KHQ Super Alert. This week, APRA released the March quarterly superannuation statistics and FAQs relating to its superannuation data project. Also, the Government began consultation on a Bill intended to expand AFCA’s jurisdiction to hear superannuation complaints.
APRA – Updates to SDT FAQs
On 24 May 2023, APRA published four additional frequently asked questions (FAQs) and two updates to existing FAQs in relation to the superannuation data transformation (SDT) project (see our Super Alerts from 25 February 2022 and 2 September 2022).
Click here for details.
Treasury – Consultation in relation to AFCA’s jurisdiction to hear superannuation complaints
On 23 May 2023, the Government released for consultation the Treasury Laws Amendment (Measures for Consultation) Bill 2023 which proposes to amend the ‘Corporations Act to reinstate AFCA’s jurisdiction to hear complaints relating to superannuation, whether or not they meet the definition of superannuation complaint in the Corporations Act’. The announcement of the proposed amendments follows the recent MetLife v Australian Financial Complaints Authority [2022] FCAFC 173 decision ‘which held that AFCA did not have jurisdiction to hear complaints relating to superannuation unless the complaint was specifically listed in section 1053(1) of the Corporations Act’.
If passed, the Corporations Act will be amended so that:
- ‘complaints specifically listed in section 1053 will be treated as superannuation complaints, and will be subject to the additional provisions set out in Part 7.10A, Division 3’; and
- ‘other complaints relating to superannuation will be able to be heard in AFCA’s non-superannuation jurisdiction’.
Click here and here for details.
APRA – March 2023 quarterly superannuation statistics
On 23 May 2023, APRA released the March 2023 iteration of the quarterly superannuation statistics. From March 2022 to March 2023, some key statistics include:
- a 1.1% increase in total superannuation assets over the year ($3,456.5 billion to $3,493.5 billion);
- a 4.3% increase in assets in APRA-regulated MySuper products over the year ($924.7 billion to $964.5 billion); and
- benefit payments increased by 13.8% over the year, reaching $95.8 billion.
Click here for details.
Legislation – Addressing unintended consequences of changes to the ‘work test’
On 22 May 2023, the ATO registered the Taxation Administration (Remedial Power – Work Test for Personal Superannuation Contributions) Determination 2023 (Tax Determination) which is intended to address unintended consequences of recent changes to the ‘work test’. From 1 July 2022, the application of the work test was removed for individuals aged between 67 and 75 (unless they claim a tax deduction for personal contributions) and, as a result, the work test was relocated from the SIS Regulations to the Income Tax Assessment Act 1997 (ITAA 97).
The Tax Determination will modify the operation of the work test in the ITAA 97 ‘so it can be satisfied if a person is an employee under the expanded meaning in the SIS Act or RSA Act and otherwise meets relevant criteria’.
Click here for details.
ATO – Notices of intent to be acknowledged and reported
On 19 May 2023, the ATO issued a release titled Notices of intent must be acknowledged addressing the abovementioned unintended error in the operation of the ‘work test’ and commenting on the Commissioner of Taxation’s use of its remedial power to issue a legislative instrument to correct this unintended error. The release also outlined that where a ‘valid [n]otice of intent (NOI) to deduct contributions from a member’ is received, an acknowledgement of that NOI must be given ‘without delay’ and this acknowledgement must also be reported to the ATO within 10 business days.
Click here for details.
APRA – Letter to RSE licensees on Phase 2 of the SDT project
On 19 May 2023, APRA issued a letter to RSE licensees updating the ‘roadmap for consultation on reporting standards under Phase 2 of the SDT project’. The letter included an update to note that consultations on ‘proposed reporting standards for investments’ and ‘RSE licensee profile’ that were previously planned for May 2023 are now intended to commence in November 2023 (see our Super Alert from 2 December 2022).
Click here for details.
This alert was written by Kiara Leslie (Lawyer), Sanela Osmanovic (Senior Associate), and Natalie Cambrell (Director).
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