Super Alert – 27 October 2023: superannuation CEO roundtable; downsizer contributions; NALI/NALE reforms


Posted By and on 27/10/23 at 12:15 PM

Welcome to the latest issue of the KHQ Super Alert. This week, APRA released notes from a recent superannuation CEO roundtable and the ATO updated a ruling and a guidance note in relation to downsizer contributions. The Bill containing the NALI/NALE reforms has been referred to a Senate committee for report.

ATO – Updates to ATO ruling and guidance note in relation to historic downsizer contribution changes

On 25 October 2023, the ATO issued an addendum to Law Companion Ruling 2018/9 (Housing affordability measures: contributing the proceeds of downsizing to superannuation) (LCR 2018/9) and an update to Superannuation Guidance Note 2018/2 Downsizer contribution (GN 2018/2).

LCR 2018/9 and GN 2018/2 are being updated to reflect the legislative amendments that have occurred since 2020; for example, the lowered age threshold for downsizer contributions.

Click here and here for details.

Treasury – Statement to Senate Economics Legislation Committee

On 25 October 2023, Treasury released the opening statement given by the Secretary to the Treasury, Dr Steven Kennedy PSM, to the Senate Economics Legislation Committee. The speech provided ‘an update on Treasury’s near-term economic and fiscal outlook’. Relevantly to superannuation, it was announced that Treasury expects to release ‘consultation papers in the coming months’ relating to ‘the first tranche of reforms in response to the Quality of Advice Review’.

Click here for details.

APRA – Notes from CEO roundtable with ASIC

On 20 October 2023, APRA released notes from the superannuation CEO roundtable that was hosted jointly with ASIC on 27 September 2023. According to APRA, the discussion focused on ‘sustainable finance disclosures’ and the retirement income covenant.

In particular, ‘APRA and ASIC emphasised that the introduction of mandatory climate-related financial disclosure requirements in Australia aim to enhance transparency and boost informed decision-making by investors’ and that funds should be preparing for this change by ‘implementing systems and processes, [and] establishing governance practices [to] meet any new climate reporting requirements’.

In relation to the retirement income covenant, the media release announced that APRA will soon ‘issue a short survey to all [t]rustees to understand what improvements have been or will soon be undertaken across the key priority areas’ that were identified by the information report outlining the findings from APRA and ASIC’s thematic review on the implementation of the retirement income covenant (see our Super Alert from 21 July 2023 for further information about the report).

Click here for details.

Parliament – Bill exempting large APRA-regulated funds from NALI/NALE provisions

On 19 October 2023, the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 was referred to the Senate Economics Legislation Committee for report (see our Super Alert from 15 September 2023). This Bill contains a number of different measures, including amendments to the non-arm’s length expense rules for APRA-regulated superannuation funds and seeks to clarify the ‘policy intent’ of AFCA’s jurisdiction following the decision in MetLife v Australian Financial Complaints Authority [2022] FCAFC 173.

The report is due on 23 November 2023.

Click here for details.

ASIC – Media release in relation to modifying the reportable situations regime

On 19 October 2023, ASIC issued a media release related to the ASIC Corporations and Credit (Amendment) Instrument 2023/589 (see our Super Alert from 20 October 2023) which modifies the reportable situations regime to exclude certain reportable situations from having to be reported. In the media release, ASIC provides an example of the kind of breach involving misleading conduct that will no longer need to be reported.

Click here for details.

This alert was written by Kiara Leslie (Lawyer), Sanela Osmanovic (Senior Associate), and Natalie Cambrell (Director).

Want KHQ Super Alerts delivered straight to your inbox each week? Click here to subscribe. 

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 - 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