ED: Further MySuper and Transparency Measures

This submission identifies the key issues that should be further addressed in the third tranche of MySuper legislation before it is tabled in Parliament.  The third tranche has brought MySuper closer to the original idea of simple, transparent, and comparable; and has limited the opportunity or attractiveness of alternate arrangements.  AIST generally supports the exposure draft, however we recommend that some amendments be made.

ED: Amendments to the director penalty regime

This exposure draft amends tax law to extend the directors' penalty regime to unpaid superannuation guarantee amounts, and restricting access to PAYG credits where directors place companies into administration or liquidation.  AIST's position on this exposure draft is unchanged from the previous ED, however we welcome the broadening of the scope to include the SG charge.

Regulation Reg-121647-10 relating to the Foreign Account Tax Compliance Act (USA)

The Foreign Account Tax Compliance Act (FATCA) requires financial institutions who opt-in to the FATCA regime around the world that hold US assets to report account details of US citizens to the US Internal Revenue Service (IRS).  AIST supported submissions made by ASFA and the FSC to the IRS on this matter, detailing the safety and monitoring present in Australia's superannuation system.

AASB: ED 223 Superannuation Entities

In May 2009, the Australian Accounting Standards Board (AASB) published Exposure Draft ED 179 Superannuation Plans and Approved Deposit Funds, containing a proposal for the replacement standard for AAS 25 Financial Reporting by Superannuation Plans (AAS 25). AIST made a submission to ED1791. ED 223 Superannuation Entities (ED 223) includes amendments drawn from feedback on ED 179 and is considered sufficiently different from the original ED as to require further consultation.

ED: Intra fund consolidation of superannuation interests

This measure will provide Funds a framework within which to administer intra fund consolidation. The amendments place a duty on trustees to establish and publish rules setting out a procedure for consolidating a member's inactive interests within their fund on an annual basis.  AIST argues in this submission that the requirements for intra fund consolidation should be as broad as, or broader than consolidation of accounts between funds.

Productivity Commission: Default super funds in modern awards

The Productivity Commission seeks to develop transparent and objective criteria against which funds wishing to be eligible for default fund status in modern awards can be assessed, on an ongoing basis, to ensure that the best interests of members are met if their superannuation contributions are allocated to a default fund under the modern award.  AIST has provided full comment in this submission.

House Economics Committee: Tax and Superannuation Laws Amendment (2012 Measures No. 1) Bill 2012

This Bill includes the freeze in indexation of the concessional contributions cap, the refund of excess concessional contributions up to $10,000, the disclosure of superannuation information measure and the payslip reporting of superannuation contributions. AIST's submission comments on these measures only.

PJC Submission: Trustee Obligations and Prudential Standards

A qualified version of AIST's original submission to Treasury for the inquiry by the PJC - Corporations and Financial Services into the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012.  AIST proposed five amendments to our previous submission, which is attached to this submission.

Super Roundtable Submission: Administration of concessional caps for over 50's

Joint submission from AIST, ISN and WIS support the Government proposal to raise the concessional contribution cap for individuals 50 and over to $50,000pa with total superannuation balances under $500,000 as of 01 July 2012. With regards to administration options, AIST, ISN and WIS support Option B - Do not add withdrawals to the account balance as it is the simplest and most cost effective solution. The submission also recommends that the ATO would provide account balance information through the proposed on-line portal and that account balances would be calculated as at 2 years prior. Further, AIST, ISN, and WIS recommended the introduction of the Bring Forward Rule for concessional caps, indexation of both the contribution cap and the threshold using AWOTE and that indexation should not be reset, and

ED Regulations - GST Financial Supply Provisions

AIST's submission focuses on the items within the Exposure Draft that have direct affect on APRA regulated superannuation funds. AIST supports the proposed regulations and has no further recommendations with regards to the additional items of the ED.

ED: Superannuation data and payment standards

This legislation provides a framework and basis for the SuperStream data and payment standards.  AIST supports this legislation as a key element in the implementation of SuperStream measures to improve the administrative efficiency of the superannuation system.

ED: Disclosure of superannuation information

This legislation supports other SuperStream legislative instruments in that it will enable funds to assist their members to find and consolidate their superannuation interests.  AIST supports this legislation as an element in the implementation of SuperStream measures to encourage superannuation account consolidation.

ED: Payslip reporting of super contributions

AIST supports the legislation requiring payslip reporting of superannuation contributions.  Our key recommendation is that the EM be amended to note forthcoming Regulations to require the reporting of actual contributions paid from 1 July 2013, consistent with the Government's policy announcement of September 2011.

ED: Limiting the Trading Stock Exception for Superannuation Entities

AIST supports the amendments is to ensure that any gains or losses on certain assets of a superannuation fund will be taxed under the capital gains tax (CGT) provisions and to remove any doubt about the extent of the CGT primary code that may arise for the superannuation industry if some superannuation funds treat certain assets as trading stock.  AIST also supports the transitional rules that apply, which effectively mean that the amendments are not retrospective.

Joint submission to ATO with IFSIB: TPD deductibility

AIST's submission on draft tax ruling TR 2011/D6 - Income tax: deductibility under subsection 295-465(1) of the Income Tax Assessment Act 1997 which deals with the deductibility of which parts of insurance premiums are deductible to superannuation funds.

Inquiry: Future of Financial Advice (FOFA) Bills 2011

2012-2013 Commonwealth Budget

Submission to the Treasurer

Cost Recovery Impact Statement

AUSTRAC has released its revised Cost Recovery Impact Statement - Exposure Draft that outlines AUSTRAC's revised supervisory levy model and charging structure. The key revisions relate to the large entity component charging tiers as well as introducing a cap on the transaction reporting component payable by a group of leviable entities.

AIST's main concern relates to the large entity component levy and the applicable earnings measure with respect to superannuation funds. As stated in the ED, the earnings measure for the purposes of this component is earnings before income tax expense, net financing costs, depreciation and amortisation (EBITDA).

Response to Exposure Draft: Refund of Excess Concessional Contributions

Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012

The Government has announced its decisions on key design aspects of its Stronger Super reforms, and is now proposing to implement these reforms in several tranches of legislation: of which this Bill is the second tranche.