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EDITION 10 | 19 MAY 2016

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SUPERANNUATION
NEWS
Spotlight in Super

ASIC updates

Limited Licensing

Government & Parliamentary updates

Chartered Accountants news

Other industry updates

ATO updates

Library

APRA updates

Training & events

Impending dates and deadlines

Blog
Blog with Michael Croker Tax Leader, Leadership &
Advocacy
Reflections on the 2016-17
Federal Budget
The Coalition governments pre-Election
Budget will please those who benefit from the
bracket-creep adjustment and small business
operators.

Tax lodgement and payment dates

Check for the key superannuation related tax
lodgement deadlines approaching in the next
few months. The list of key dates is not
comprehensive and is a guide only. Events or
timelines may change. Unless otherwise
stated, the due dates provided are for 30 June
balancers only.

READ BLOG
READ MORE

Did you know?

According to the latest available figures, poverty rates of people aged over 65 were very high in
Korea (50%), Australia (34%), and Mexico (27%). In contrast, the Netherlands and the Czech

Republic have the lowest poverty rates: 2% and 3% respectively. Poverty rates are close to the
OECD average of 12.4% in Austria, Belgium, Estonia, and the United Kingdom.

For international comparisons, the OECD treats poverty as 50% of median, equivalised
household disposable income.
Source: OECD report, Pensions at a Glance 2015

SPOTLIGHT IN SUPER

Consideration of superannuation implications of new foreign resident

capital gains withholding measures
The former government announced on 14 May 2013 that it would introduce a 10% nonfinal withholding tax on payments made to foreign residents that dispose of certain taxable
Australian property. The Bill for this measure, introduced by the current Government was
passed and received Royal Assent on 25 February 2016.
The new withholding regime will apply to vendors disposing of certain taxable Australian
property under contracts entered into from 1 July 2016. Because of the lead-time for real
estate sales, this new tax development should be considered now by superannuation
funds who invest in property.
Broadly, where a foreign resident disposes of certain taxable Australian property, the
purchaser will be required to withhold 10% of the purchase price and pay that amount to
the Australian Taxation Office (ATO).
CAs in public practice are encouraged to develop their existing networks with local real
estate agents, law firms and conveyancers to discuss the tax aspects of the new regime.
Areas of professional assistance include determining the resident or non-resident status of
the vendor and seeking withholding variations.
The ATO has advised that the following webpages for the foreign resident capital gains
withholding measure are now available:

Foreign resident capital gains withholding and explanation

Clearance certificate application form and instructions
Variation application form and instructions
Purchaser payment notification form and instructions
Common questions

Read further details on this regime >

Federal Election Campaign - Caretaker period starts

The Prime Minister has announced that Australia will hold a double dissolution Federal
Election on Saturday, 2 July 2016. Tax and super policies such as those announced in the
3 May 2016 Federal Budget are now impacted by what is known as the caretaker period,
which begins at the time the House of Representatives is dissolved (9 May 2016) and

continues until the election result is clear or, if there is a change of government, until the
new government is appointed.
During the caretaker period, the business of government continues and ordinary matters of
administration such as the work of the ATO are still addressed. However, practices
known as the caretaker conventions aim to ensure that the actions of the Coalition
government do not bind an incoming government and limit its freedom of action. During
this period the Government avoids:

making major policy decisions that are likely to commit an incoming government;
making significant appointments; and
entering major contracts or undertakings.

View PM's media release >

Guidance on Caretaker Conventions >

The 2016 Australian Federal Election summary of tax and super policies
of the major parties
Chartered Accountants Australia and New Zealand have launched a site for CAs to keep
track of the main tax and superannuation election policies of the Coalition, Australian
Labor Party and the Australian Greens.
The site aims to keep our members informed and help them advise their clients, or the
businesses they work for, on policies that could be implemented once the outcome of the
2 July 2016 Australian Federal Election is known.
Link to CA ANZ site >
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LIMITED LICENSING

Accountants exemption and limited licensing 5 weeks to go!!

As members are aware the end of the transition period is coming to an end as at 30 June
2016 and there are only a few weeks remaining to apply for the a limited licence.
Chartered Accountants ANZ recently met with ASIC to obtain further details of their current
processing procedures. As would be expected ASIC currently have a large number of
applications under assessment.
For those who are about to lodge an application or who have recently lodged an
application the following is an outline of ASICs process.

When an Application is lodged the applicant will receive an electronic confirmation

receipt via email and a reference number. The applicant will not be contacted by
ASIC at this time.
The application is then assessed by an Administration area to ensure all the main
components and Core Proofs have been provided. With the numbers currently
under assessment an applicant may not receive a call or email from ASIC for 3
weeks. Any contact from the Administration area at this stage is usually to indicate
the need for further information.

Once the application has been through this process the Licensing Manager
completes a final check. Where there are potentially issues with the application the
Licensing manager will contact the applicant. (For example if there are no training
certificates for the authorisations selected).
The application is then allocated to an analyst who will usually contact the
applicant within 2 days. The analyst will indicate that the application is being
formally assessed.
Over the next few weeks, depending on the quality of the application and the
number of applications the analyst will inform the applicant whether the licence
application will be approved. When this occurs ASIC will send out a draft licence
with instructions for what is need for the final approval. (E.g. PI Certificate of
Currency and confirmation of the external dispute resolution body)

Members should be aware that the process is likely to take a few weeks from lodgement to
approval.
Common issues ASIC has raised with recent applications include:

Selecting all authorisations but the training not having been completed.
The Business Description proof does not align with the authorisations selected.
Selecting authorisations which are not available under the limited licence services.
Complexity of the structures applying for a limited licence.
Using an incorrect name for the application.

Should you have any queries applicants can email ASIC on:
limitedafslicence@asic.gov.au or to Chartered Accountants ANZ financial Services team:
financial.services@charteredaccountantsanz.com

Register of Financial Adviser requirements: Important information for

those who are licensed
On 31 March 2015, ASIC launched the new Financial Adviser Register.
Members who are current Australian Financial Services Licensees, this includes those
with a limited licence, which authorise individuals to provide personal advice to retail
clients are required to provide information to ASIC. The register includes director and
employee representatives as well as Authorised Representatives.
Reminder: Members who have recently had a limited licence granted by ASIC must add
those staff in the practice who provide financial advice to the Financial Adviser Register.
Guides on adding, updating and removing financial adviser details on the register are
available on the ASICs website.
View guides >

Reminder: Changes to limited licence - supporting document checklist

For those members applying for a limited licence please note that last month ASIC
updated its supporting document checklist. This checklist details all the proof documents
you are required to submit to ASIC as part of your application for applying for a limited
licence. Specifically items to be aware of are:

Under professional body membership point 4 you are required to provide ASIC
written consent to share details of your applications with Chartered Accountants

ANZ as your professional association. There is no standard form or letter for this it
is simply a brief consent letter allowing them to contact us should the need arise.
Under Client monies you will need to provide a letter confirming that you do not
hold client monies as per Division 2 of Part 7.8 of the Corporations Act. Once
again there is no standard form/letter for this.

Also note while the Checklist refers to providing a Professional Indemnity Insurance
certificate of currency and certificate of membership of an external dispute resolution
scheme (EDR) e.g. FOS or CIO these do not need to be provided when an application is
initially lodged but can be provided once ASIC has provided a draft licence. The final
granting of a licence will occur on receipt of the PI and EDR confirmation.

Limited licence applications and available ASIC guidance for applying

A key ongoing issue with limited licence applications is around the name in which
applications are lodged. Specifically applications must be in the name of the Trustees and
cannot be AB and CD as trustees for XYZ family trust.
Members are reminded that ASIC has a range of material available to assist with clarifying
such issues for the limited licence application process on their website.
ASIC has also recently released a podcast (View Episode 5: Limited AFS licences for
accountants providing SMSF advice) with Commissioner Greg Tanzer urging accountants
to get their limited licence applications in as soon as possible.

Complimentary webinars Accountants' exemption and limited licensing

As members and practices are considering how they will operate when the new licensing
regime takes effect we have arranged a series of webinars to provide further insights and
context on this important issue. The following webinars look at a range of issues from
where to start selecting a licensee to using referrals. Recordings of these are list below:

Accountants Exemption Choosing a licensee an independent perspective

Accountants Exemption: how to make licensing and referrals work
Accountants Exemption: How to make licensing and referrals work
Limited License - Expert assistance to complete your application

View recordings >

Support for Members

Chartered Accountants ANZ has resources available to assist members with each step of
the process regarding the removal of the accountants exemption and the introduction of
limited licensing.
The first resource members should read is Financial Advice and Regulations: Guidance for
the accounting profession. This guide gives members guidance on what services you can
and cannot provide if you do not hold or operate under a full Australian Financial Services
licence (full AFSL) or a limited AFSL (limited licence).
For those contemplating considering operating within the limited licensing framework, we
have a range of resources on our website to assist you in your considerations, including:

Information Guide: Accountants exemption reform

Considerations when selecting an Australian Financial Services (AFS) Licensee

Additional resources are also available for members holding a Certificate of Public
Practice. These must be requested from Chartered Accountants ANZ by sending an email
to financial.services@charteredaccountantsanz.com. These resources include:

DIY AFS Licensing kit

Limited Australian Financial Services Licensing: your obligations
Templates for manuals and guides required under licensing

Statement of Advice (SOA) templates and Financial Services Guide (FSG) templates
We have also developed SOA and FSG templates as a part of our ongoing resources in
relation to limited licensing. While PDF versions will be made available now, members who
wish to utilise these templates and be able to customise them are able to request word
versions following approval by ASIC of their licence.
Members can also find additional information in the updates provided in the Insight
monthly bulletin; copies are available on our website.
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CHARTERED ACCOUNTANTS NEWS

Chartered Accountants ANZ media release: Coalitions Federal Budget

superannuation changes need urgent clarification and adjustment
Chartered Accountants Australia and New Zealand issued a media release on 12 May
2016 urging the Turnbull government to reconsider super changes announced in the
Budget. Specifically we noted that the issues are not just of concern for higher income
earners or net worth Australians.
In particular we noted:

The $500,000 lifetime non-concessional contribution (NCC) cap, counting all

NCCs made after June 2007 - We applaud the government for creating a lifetime
non-concessional cap. However the $500,000 threshold is too low. This unfairly
impacts those who had been preparing in many cases for many years to use
the current rules and now find themselves disadvantaged because access has
been blocked. We think a higher lifetime limit should be introduced for those aged
at least 50 years of age before July 2016. In addition, this measure should not
apply for contributions made since 1 July 2007, and similarly a revised start date
should be put in place, such as 1 July 2017, which is the commencement date for
many of the governments proposed super changes.
The $1.6 million pension account balance limit - Members have asked us a
large number of questions about this measure as they seek information on how the
limit will work for their clients. Significant levels of uncertainty arise and practical
consequences flow from such a change, including:
o Who will make the assessment that an investors pensions are within or
exceed the $1.6 million?
o How and when will super funds forward this information?
o At what transaction date will the assessment be done?
Reduction in the concessional contribution caps to $25,000 per annum Many Australians are unable to save significant amounts into super during their

first two decades of work as they focus is on clothing, feeding, educating and
sheltering their families. Retirement funding becomes a focus once these major
expenses begin to decline. Often those in this situation can only make significant
contributions to super for the final 10 years of their working life. Under the
Coalitions policy, total concessional contributions would be limited to $250,000
over that 10 year period. This is clearly inadequate even allowing for the
compulsory employer contributions that may be made during a persons working
life.
View CA ANZ media release >

Updated Summary of superannuation changes

To assist members to stay abreast of the progress of changes in superannuation,
Chartered Accountants ANZ has compiled a summary of key changes. This document has
been updated to reflect more recent announcements made in relation to superannuation.

Updated Superannuation Key Rates and Thresholds

Chartered Accountants ANZs Superannuation Key Rates and Thresholds, a highly
popular tool which summaries the rates and thresholds for key areas of superannuation,
has been updated to reflect recently announced changes and amendments.

Government's proposed changes to education and professional

standards reform in financial advice
Chartered Accountants ANZ is currently reviewing the latest draft legislation and
Explanatory Memorandum released by the Government on their proposed changes to
ensure existing financial advisers are provided with a smooth transition as part of reforms
to raise the education, training and ethical standards of the financial advice industry. The
proposed changes include the establishment of a standard setting body, initially as a
Commonwealth company, to administer the professional standards regime. The body will
be responsible for developing and setting the industry exam, developing the code of
ethics, and determining the education requirements for both new and existing advisers.
The revised draft legislation and accompanying Explanatory Memorandum was released
for further targeted consultation to us and we would encourage members to provide any
feedback you may wish to provide in respect of these changes.
If you would like further details on the changes to the draft legislation or wish to provide
any comments, email the Financial Services team on
financial.services@charteredaccountantsanz.com.

CA SMSF Specialists CA ANZ website listing

The Chartered Accountants ANZ website has a listing of CA SMSF specialists. Is your
name appearing?
CA SMSF specialists must authorise us to publish their name on this list. If your name
does not appear on the list, please send us an email requesting your inclusion.

CA SMSF Specialisation 2016 dates

The CA SMSF specialisation is a program which allows you to build on your Chartered
Accountant designation, gain formal recognition from your professional association and
demonstrate to your clients that you stand out amongst the crowd of SMSF practitioners.
For those interested, there are two pathways available to qualify for the CA SMSF
specialisation, post-graduate studies or the completion of a workshop and assessment,
both of which are run through the University of New South Wales (UNSW). Further
information on the pathways are available on our website.
Course dates for 2016 CA SMSF specialisation workshops are:
Intake 2

Enrolment period 22 August to 30 September 2016

Intensive Workshop: Sydney 12 to 14 October 2016
Intensive Workshop: Melbourne 19 to 21 October 2016
Online learning 17 October to 27 November 2016
Exam Intake 2 will be held on Saturday, 20 November 2016.

Detailed course and fee information can be found via the UNSW website. Training
applications and queries should be made directly to UNSW.

Social Media
ato.gov.au @ato_gov_au
On #LostSockMemorialDay its easier to find your lost super than that lost
sock. Find yours: https://ato.gov.au/superonline
ato.gov.au @ato_gov_au
#SMSF trustees: The transition period for collectables is nearly over.
Review your holdings & comply by 1 July. See https://www.ato.gov.au/taxprofessionals/newsroom/superannuation/collectables---time-is-runningout%21/
Karen McWilliams @mcwilliams_k
Increasing life expectancy - how it impacts on our expectations of work &
retirement. #CABizForum @Chartered_Accts

Tweet with:
Chartered
Accountants
Hugh Elvy

ato.gov.au @ato_gov_au
Keep an ear out for scam phone calls pretending to be from the ATO.
More info @ https://www.ato.gov.au/general/online-services/indetail/online-security/how-to-verify-or-report-a-scam/ #FraudWeekAU
ASIC Media @asicmedia
Media release: South Australian director charged with misappropriating
$1.8 million in SMSF property investments
ASIC Media @asicmedia
Media release: ASIC bans former employee of financial services business
http://goo.gl/Ueh2BD
MoneySmartTeam @MoneySmartTeam
ASIC Deputy Chair Peter Kell explains how investment scams work, how
to identify & avoid them. LISTEN: http://bit.ly/1WAZEi5 #FraudWeekAU
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ATO NEWS

Reminder - Weeks to go until SuperStream deadline for small business

With the 30 June 2016 deadline looming, the ATO has strongly encouraged small
businesses to get on board with SuperStream as soon as possible.
Under SuperStream, you need to pay super contributions for your employees
electronically (EFT or BPAY) and send the associated data electronically.
The data is in a standard format so it can be transmitted consistently across the super
system between employers, funds, service providers and the ATO. It's linked to the
payment by a unique payment reference number.
This means you can make all your contributions in a single transaction, even if they're
going to multiple super funds.
Small employers (19 or fewer employees) must meet the SuperStream standard by 30
June 2016. Larger employers should have been using SuperStream since 31 October
2015.
Read about SuperStream >

SMSF trustees and voluntary disclosure on dividend stripping

arrangements
In November 2015, the ATO made an offer (the Offer) to self-managed super fund
(SMSF) trustees who may have implemented a dividend stripping arrangement
substantially similar to the one described in Taxpayer Alert 2015/1 (TA 2015/1). SMSF
trustees were invited to contact the ATO to make a voluntary disclosure to correct the tax
position resulting from such arrangements. The Offer was opened in November 2015 and
ended on 15 February 2016.
This week the ATO noted they were happy with the response received to date from
affected trustees but warned that there are a number of SMSF trustees they believe have
a dividend stripping arrangement in place and have not decided to take up the Offer. The
ATO has advised them that in order to evaluate their arrangements they will commence
complicance action on the SMSF and associated entitites.
The ATO has encouraged trustees who are uncertain about the arrangements they are
involved in to engage with them and, if necessary, seek an early resolution to any dispute.
For further details view >

ATO Determinations withdrawn

In the last fortnight, the following superannuation related Taxation Determinations were
withdrawn:

TD 2001/15: Income tax: what are the thresholds and limits for superannuation
amounts in 2001-2002?
TD 2002/11: Income tax: what are the thresholds and limits for superannuation
amounts in 2002-2003?

TD 2003/21: Income tax: what are the thresholds and limits for superannuation
amounts in 2003-2004?
TD 2004/18: Income tax: what are the thresholds and limits for superannuation
amounts in 2004-2005?
TD 2005/21: Income tax: what are the thresholds and limits for superannuation
amounts in 2005-2006?
TD 2006/42: Income tax: what are the thresholds and limits for superannuation
amounts in 2006-2007?

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APRA UPDATES

APRA releases General Insurance Institution-level Statistics - December

2015
The Australian Prudential Regulation Authority (APRA) has released the statistics
publication General Insurance Institution-level Statistics for December 2015.
Review statistics >
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ASIC UPDATES

ASIC warns consumers to wise up to investment scams

Following ACCCs release of its Targeting Scams Report (see below in Other industry
updates) ASIC has been warning consumers and investors to Wise Up to Scams and do
some simple checks. As part of their warning ASIC noted that it received 367 reports
about scams in 2015, although in their experience scams are often under reported. The
number of Australians contacted by scammers, and the amounts of money lost, are likely
to be much larger than what is reported to ASIC. In 2015 the top five types of scams
reported to ASIC were:

overseas cold calling about investment opportunities;

overseas calls offering easy credit or loans after payment of an upfront fee;
sports arbitrage or gambling schemes;
money transfer schemes (job opportunity or other fraud); and
fake debt and invoice scams.

Further information regarding scams including case studies of real scams reported to
ASIC can be found on ASICs website.
Read ASIC's media release >

South Australian director charged with misappropriating $1.8 million in

SMSF property investments

Following an ASIC investigation, Mr George John Nowak has appeared in the Adelaide
Magistrates Court charged with thirty one counts of deception and one count of dishonest
dealings with documents.
ASIC investigated Mr Nowak's conduct in dealing with members of self-managed
superannuation funds (SMSFs) who were undertaking property purchases offered by
companies of which he was a director, including EJ Property Developments Pty Ltd. It is
alleged that Mr Nowak misappropriated $1.8 million in SMSF monies by not holding funds
in a designated account and by not applying those funds towards the intended property
purchase.
Read details of this charge >

ASIC accepts enforceable undertaking from Ascentiv Group Pty Ltd in

relation to SMSF advice
ASIC has accepted an enforceable undertaking (EU) from Ascentiv Group Pty Ltd
(Ascentiv) and its sole director, Mr Chris Pappas.
An ASIC surveillance of Ascentiv, the holder of an Australian financial services (AFS)
licence, identified concerns about the appropriateness of Ascentiv's advice to clients to
establish or use a self-managed superannuation fund (SMSF).
In particular, ASIC had concerns about Ascentiv's failure to:

ensure its representatives provide SMSF advice that was appropriate and in the
best interests of their clients
adequately manage conflicts of interest
adequately monitor and supervise its representatives, and
ensure its representatives were adequately trained and competent to provide
SMSF advice.

ASIC's surveillance also found that Ascentiv failed to provide its clients with clear and
concise statements of advice. Under the EU, Ascentiv has agreed to cancel its AFS
licence and write to some of its existing clients to inform them of the EU and the clients'
rights to dispute resolution.
Read Enforceable Undertaking >
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GOVERNMENT & PARLIAMENTARY UPDATES

Treasury Updates
Paper on proposed financial institutions supervisory levies for 2016-17
On 6 May 2016, Treasury, in conjunction with APRA, released a discussion paper seeking
submission on the proposed financial institutions supervisory levies that will apply for the
2016-17 financial year.
The financial industry levies are set to recover the operational costs of APRA and other
specific costs incurred by certain Commonwealth agencies and departments, including the

Australian Securities and Investments Commission, the Australian Taxation Office, and the
Department of Human Services.
The discussion paper sets out information about the total expenses for the activities to be
undertaken by APRA and certain other Commonwealth agencies and departments in
2016/17 to be funded through the commensurate levies revenue to be collected in
2016/17.
The levies fund various superannuation related operations including (but not limited to) the
operation of the SCT; funding ATOs regulatory costs in administering Lost Member
Register and Unclaimed Superannuation Money frameworks; and the administration of the
Early Release of Super Benefits on Compassionate Grounds.
The closing date for submissions is on Friday, 3 June 2016.
Read discussion paper >

Gazettes
Superannuation Industry (Supervision) Act 1993 6, 10, 12, 13, and 17 May 2016
Disqualification from being a trustee or a responsible officer of a body corporate that is a
trustee, investment manager or custodian, of a superannuation entity Liana Timai; Miss
Tracie Connell; Mr Mark Hills; Peter Brose; Sean Lee Drayton; Elenita Leilua; Eric Allen;
Iakimo Leilua; Janine Reynolds; Michael Davey; Sione Ianusi; Trevor Reynolds; John
Ruffo; Michelle McCaskie; Noel McCaskie; Phoebe Neylon; Sean Neylon; Andrew Neil
Forster; Sauileoge Fuiava
Notice of Revocation of Disqualification - Rab Nawaz

Legislation updates
Bills lapsed
With the announcement of double dissolution of Parliament last Monday 9 May, the
Government is now in caretaker mode, and all Bills that were not passed by both Houses
have now lapsed. These include:
Tax and Superannuation Laws Amendment (2016 Measures No 2) Bill 2016 This bill
proposes to establish a remedial power for the Commissioner to allow for a more timely
resolution of certain unforeseen or unintended outcomes in the taxation and
superannuation laws. The power allows the Commissioner to make, by disallowable
legislative instrument, modifications to the operation of a taxation law to ensure the law
can be administered to achieve its intended purpose or object. The Bill also contains
miscellaneous amendments to the taxation, superannuation and other laws. They include
style and formatting changes, the repeal of redundant provisions, the correction of
anomalous outcomes and corrections to previous amending Acts.
Superannuation Legislation Amendment (Choice of Fund) Bill 2016 This bill gives
effect to the Financial System Inquiry (FSI) recommendation to remove the closed shop
arrangements where enterprise agreements prevent an estimated two million employees
from choosing their own fund. These reforms are an important step to allow all APRA
approved MySuper funds to compete on a level playing field for superannuation
consumers. Currently some employees are required to have their compulsory employer
contributions paid to a fund specified in their enterprise agreement or workplace

determination. They cannot choose a different fund. The Bill ensures that, where a
workplace determination or enterprise agreement is made on or after 1 July 2016, an
employer will need to allow employees to choose their own superannuation fund, unless
other circumstances exempt the employer from doing so. The amendments made by the
Bill will commence on 1 July 2016.
Superannuation Legislation Amendment (Transparency Measures) Bill 2016 This
bill makes amendments to the Corporations Act 2001 to increase the quality of information
available to superannuation fund members and employers while ensuring that the current
obligations in the Corporations Act in relation to choice product dashboards and portfolio
holdings disclosure are workable for industry. The amendments made by the Bill will
commence on 1 July 2017.
Superannuation Legislation Amendment (Trustee Governance) Bill 2015 This Bill
proposes to require trustees of registrable superannuation entity licensees to have a
minimum of one-third independent directors and an independent chair on their boards, and
make consequential amendments. It also proposes to restructure the board of the
Commonwealth Superannuation Corporation by reducing the number of directors from
eleven to nine and providing for the majority of the directors to be independent.
Treasury Legislation Amendment (Repeal Day 2015) Bill 2016 This bill containing
provisions on lost and unclaimed superannuation has been passed by the House of
Representatives, but provisions on the superannuation guarantee (SG) charge in that Bill
were removed. The bill contains provisions to:

enable the Commissioner to pay unclaimed money of lost members and other
superannuation amounts directly to persons with a terminal medical condition, and
remove the requirement for superannuation providers to lodge, twice yearly, a lost
members statement with the Commissioner.

The measures relating to the SG charge that were removed from the Bill were:

replacing salary or wages as the current basis for calculating the SG charge and
align this with the base used to calculate SG contributions (ordinary time earnings)
aligning the nominal interest on unpaid or late SG contributions with the period
over which they are actually outstanding, and
removing the additional SG charge penalty imposed under Pt 7 of the
Superannuation Guarantee (Administration) Act 1992 and replacing it with the
general tax penalty provisions imposed under the Taxation Administration Act
1953.

Bill received royal assent

The following superannuation related bills received Royal Assent on 5 May 2016:
Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016
This bill Amends the: A New Tax System (Goods and Services Tax) Act 1999 to ensure
that the goods and services tax (GST) is applied consistently to all supplies of digital
products and other imported services to Australian consumers; and relieve non-resident
suppliers of the obligation to account for GST on certain supplies; A New Tax System
(Australian Business Number) Act 1999, A New Tax System (Goods and Services Tax)
Act 1999 and Taxation Administration Act 1953 to make consequential amendments;
Income Tax Assessment Act 1997 to increase the maximum amount that can be held in
farm management deposits (FMDs) by a primary producer to $800 000; and enable certain
primary producers experiencing severe drought conditions to withdraw an amount that has
been held in an FMD for less than 12 months, Income Tax Assessment Act 1997 and

Taxation Administration Act 1953 to enable FMDs to be used to offset loans or other
debts; and Income Tax Assessment Act 1997 to make a technical amendment.
Tax Laws Amendment (New Tax System for Managed Investment Trusts) Bill 2015
Part of a package of four bills to establish a new tax system for certain managed
investment trusts, the bill amends the: Income Tax Assessment Act 1997 and Taxation
Administration Act 1953 to establish the new class of attribution managed investment
trusts (AMIT); and enable the Commissioner of Taxation to determine an amount of nonarms length income in relation to a managed investment trust (MIT); Income Tax
Assessment Act 1997 to provide that a member of an AMIT will make a capital gain or
capital loss when a capital gains tax event happens to their membership interests; Income
Tax Assessment Act 1936, Income Tax Assessment Act 1997 and Taxation Administration
Act 1953 to provide that fund payment withholding provisions apply when a withholding
MIT makes a fund payment to another entity that has a place of payment or address
outside Australia; Income Tax Assessment Act 1936 and Income Tax Assessment Act
1997 to exclude certain superannuation funds and exempt entities from the application of
the 20 per cent tracing rule for public trading trusts; Income Tax Assessment Act 1936 to
repeal the corporate unit trust rules; and Taxation Administration Act 1953 to extend the
list of entities qualifying as eligible investors for the purpose of the widely held
requirements. Also amends 13 Acts to make consequential amendments.
Superannuation Regulations Registered / Proclaimed
The following superannuation regulations, proclamations, instruments, declarations and
determinations have been registered:
Tax and Superannuation Laws Amendment (2016 Measures No. 2) Regulation 2016
This regulation amends various regulations. It amends the SIS Regulations to allow
trustees of eligible rollover funds (ERFs) to transfer member account balances to active
accounts in other superannuation funds without a member's consent; and provides an
exemption for this type of transfer to the significant event disclosure requirements in the
Corporations Regulations 2001. It also amends the SIS Regs to list the Australian Defence
Force Cover as an exempt public sector scheme. The amendments commenced on
Tuesday 10 May, except for the amendments concerning Australian Defence Force Cover
which will commence on 1 July 2016.

Military Superannuation And Benefits Amendment (Trust Deed - ADF Super

Consequential) Instrument 2016
This instrument amends the Military Superannuation and Benefits Trust Deed so that, after
1 July 2016, ADF members with an MSBS preserved employer benefit and aged 55 or
over must continue to retire from the ADF in order to access their MSBS preserved
employer benefit.
ASIC Corporations (Superannuation And Schemes: Underlying Investments)
Instrument 2016/378
This instrument continues, with minor and technical changes, the relief given under ASIC
Class Orders [CO 02/1161], [CO 02/1073] and [CO 02/1074] in relation to various Chapter
7 requirements that apply to underlying investments in a superannuation fund. It combines
the three Class Orders into one instrument.
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OTHER INDUSTRY UPDATES

ABS releases statistics on personal fraud in focus

The ABS has released statistics on the rising proportion of Australians who have
experienced personal fraud. In the report the ABS notes that in the 12 months prior to
interview in 2014-15, an estimated 1.6 million Australians experienced personal fraud, or
8.5% of the population aged 15 and over. This is an increase from 2010-11 (6.7%). The
majority of persons who experienced personal fraud experienced a single incident (71%).
The most common fraud type was card fraud with 1.1 million persons (or 5.9% of the
population aged 15 and over), an increase from 2010-11 when the rate was 3.7%.
Read statistics >

ACCC releases targeting scams report

This week, the Australian Competition and Consumer Commission (ACCC) released a
Targeting Scams Report.
The report reveals that Australians lost over $229 million to scams in 2015 with $85 million
reported lost to the ACCCs Scamwatch last year, and 105,200 scam complaints. In 2014,
the ACCC received 91,600 scam complaints, with almost $82 million reported lost.
As a result the ACCC is urging the community to Wise Up to Scams following a $3 million
increase in scam losses reported to the ACCC and a 15 % increase in complaints.
In 2015, losses reported to the ACCC for investment scams almost doubled to over $24
million with six people reporting individual losses of over $1 million.
The ACCC is increasingly concerned that scammers will be setting their sights on older
Australians to access their superannuation funds via investment scams and are
encouraging older Australians to wise up and watch out for scams that target them so they
dont have their hard earned savings stolen.
Further information including examples of investment and other types of scams can be
found in the report.
Read Targeting Scams Report >
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LIBRARY
Members services and useful library links below:

What's New in your library

Email a librarian

eBook

Online Journals

Recent articles on superannuation from your Library

Silver lining
by Ian Fryer, Superfunds, April 2016, p. 26-27
This article analyses how Australian corporate funds are faring in the market after the
introduction of MySuper.
Download a copy of this article (Member login required)
SMSF fortress
by James Frost, Smart Investor, April 2016, p 25-31
This article outlines the various Australian market risks to superannuation. Advises of
strategies to protect superannuation funds before the May budget imposes adverse changes.

Download a copy of this article (Member login required)

To view these articles:
1. Click on the download links above
2. Log in with your email address and the password you use to log in to the

Chartered Accountants ANZ website

3. Click the green link under Online Resources to download the articles

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TRAINING & EVENTS

Lifelong Learning Online - 50% off

select webinar packages

SMSF Day
SMSF Day 2016 is your opportunity to be
challenged on what you know about SMSFs
by some of the best SMSF professionals in
Australia.
Read More

From now till 30 June you can save 50% off

selected packages on Lifelong Learning
Online. Our webinars cover a wide range of
interesting and relevant topics that will keep
your team up to date with your continuous
professional education.
Read More

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CONTACT US
Superannuation team

Financial Services
team

Superannuation
webpage

Financial Advisory
Services webpage
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