Welcome to the latest issue of the KHQ Super Alert. The Senate has released the transcripts from its Budget estimates hearings which provide useful insights into upcoming legislative changes in the industry. The Government is also seeking feedback in relation to its review of the Privacy Act.
Attorney General’s Department – review of Privacy Act
On 30 October 2020, the Attorney- General’s Department announced that as part of its review of the Privacy Act 1988 (Cth), it has released an issues paper seeking feedback from the public ‘to ensure privacy settings empower consumers, protect their data and best serve the Australian economy’.
Several questions have been put forward in the issues paper for consideration, such as the following:
- ‘Should the objects outlined in section 2A of the Act be changed? If so, what changes should be made and why?’;
- ‘Are any other changes required to the Act to provide greater clarity around what information is ‘personal information’?’;
- ‘Would a standardised framework of notice, such as standard words or icons, be effective in assisting consumers to understand how entities are using their personal information?’; and
- ‘Should a ‘right to erasure’ be introduced into the Act? If so, what should be the key features of such a right? What would be the financial impact on entities?’.
Submissions close on 29 November 2020.
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Parliament – Bill for SCT closure referred to Senate
On 28 October 2020, the Senate referred the Treasury Laws Amendment (2020 Measures No. 4) Bill 2020 to the Economics Legislation Committee for inquiry and report by 26 November 2020. As referred to in our Super Alert of 30 October 2020, the Bill proposes to amend the Treasury Laws Amendment (Putting Consumers First—Establishment of the Australian Financial Complaints Authority) Act 2018 ‘to facilitate the closure and any transitional arrangements associated with AFCA replacing the SCT’.
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Senate Economics Legislation Committee – Budget estimates hearing
On 26 and 27 October 2020, the Senate Economics Legislation Committee heard from a number of Government departments in relation to its 2020/21 Budget estimates hearings. The following matters were discussed in relation to Treasury’s portfolio:
- whether the ease at which people could access the early release of super COVID scheme opened it up to financial abuse in situations of domestic violence;
- what the Treasury’s rationale was for introducing the concept of ‘trustee directed products’ as a subset of choice products in the ‘Your Future, Your Super’ Federal Budget announcements;
- the government intends for the outstanding Royal Commission recommendations to be released in Parliament before the end of the year (such as the anti-hawking measures);
- what APRA is doing to address underperformance in cash investment options in super;
- APRA’s view that direct political donations are inconsistent with the sole purpose test and that it will seek information from trustees as to whether there is any such expenditure; and
- amendments to the Taxation Administration Act 1953 (Cth) to facilitate information sharing between the ATO and family law courts about superannuation assets will be introduced to Parliament by mid-next year.
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