Super Alert – 28 August 2020

Welcome to this week’s issue of the KHQ Super Alert. Several superannuation Bills have been pending before Parliament for some time and one of them finally passed this week, being legislation to allow more employees to choose their super fund. APRA has also been busy with several news updates.

KHQ Lawyers - Super Alert

APRA – Insight newsletter

On 26 August 2020, APRA published issue three of its APRA Insight newsletter for 2020. The key items for superannuation trustees to note are:

  • an article on managing super fund liquidity during COVID;
  • APRA’s learnings on ‘operational resilience’ during COVID; and
  • news that next week APRA will release its Corporate Plan for the next four years, which will set out a ‘longer-term view of APRA’s priorities’.

Click here for details.

Federal Parliament – Superannuation Bills

On 25 August 2020, the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 passed both Houses of Parliament and now awaits Royal Assent. This Bill amends the SG Act ‘to provide that employees under workplace determinations or enterprise agreements have the right to choose their superannuation fund’.

On 25 and 27 August 2020, the Treasury Laws Amendment (More Flexible Superannuation) Bill 2020 was debated in the House of Representatives but has not yet passed the House. This Bill amends the tax laws ‘to enable individuals aged 65 and 66 to make up to three years of non-concessional superannuation contributions under the bring forward rule’.

Click here and here for details.

ASIC – Enhanced regulatory sandbox guidance

On 25 August 2020, ASIC issued Information Sheet 248 which provides ‘guidance to assist innovative financial businesses test their products and services under the Government’s enhanced regulatory sandbox’ which will commence on 1 September 2020. This will allow for up to 24 months of relief from the requirement to hold an AFSL so that proposed financial products and services can be tested.

ASIC’s guidance sets out which financial services and products are eligible, how to apply for the exemption and conditions that apply to the exemption.

Click here and here for details.

APRA – Superannuation statistics

On 25 August 2020, APRA published its quarterly superannuation statistics for the period ending 30 June 2020. According to APRA, the key statistics are that superannuation assets totalled $2.86 trillion, which was a 0.6% decrease from the previous 12 months. This was due to a 31.2% increase in benefit payments compared to this time in 2019, especially payments made under the COVID early release of super scheme.

Click here for details.

APRA – MySuper heatmap FAQs

On 21 August 2020, APRA published additional frequently asked questions in relation to the 2020 MySuper Heatmap which will be released in December. According to APRA, ‘[t]he investment performance and sustainability of member outcomes metrics will be based on data as at 30 June 2020…[and the] fees and costs metrics will be based on Product Disclosure Statements as at 1 October 2020.’

Click here for details.

This alert was written by Natalie Cambrell, Principal Solicitor, and Sanela Osmanovic, Senior Associate, KHQ Lawyers.

KHQ Lawyers - Sanela Osmanovic

Sanela Osmanovic Senior Associate

Sanela is a Senior Associate in the superannuation and financial services team, and has a broad range of experience working with a range of superannuation fund trustees, superannuation administrators,... Read More

KHQ Lawyers - Natalie Cambrell

Natalie Cambrell Principal Solicitor

Natalie Cambrell leads our superannuation and financial services team.  With more than 20 years’ experience, she has an enviable reputation for her in-depth knowledge in these highly regulated and... Read More