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QMV TAX DISCUSSION PAPER

ASFA released its submission to

the tax discussion paper

identifying equity and

adequacy as key principles

guiding reform and promoting

confidence in the system. ASFA

submitted that the super system

should not facilitate estate

planning, and that account

balances should be close to

zero at death, proposing

ceilings above which taxpayer

support ceases ($2.5M for

commencing an income

stream, and a $1M lifetime cap

on non-concessional

contributions). ASFA also

recommends reform of

concessional contribution caps,

so that individuals with broken

work patterns are able to make

sufficient contributions. The

submission also addresses

retention of dividend

imputation, and the setting of

preservation ages.

Source: ASFA

PENSION DRAWDOWN

Assistant Treasurer Josh

Frydenberg has suggested that

changes may be made to the

minimum superannuation

pension drawdown amounts,

despite comments of senior

members of Government that

there will be no changes to

superannuation during the life

of the current Parliament.

Source: Assistant Treasurer

INVESTMENT RETURNS

Investment returns from default

MySuper options dipped to

12.2% for the 12 months to the

end of April but funds are still on

track for another solid,

according to SelectingSuper's

latest performance survey.

The research group noted that

91% of funds are currently sitting

on double-digit returns in their

MySuper or Workplace default

option. Cash investments

delivered just 3% return,

meaning investors with cash-

heavy portfolios are

experiencing very poor returns

in 'real' inflation adjusted terms.

Source: Financial Standard

FUND LIQUIDITY

The Australian Prudential

Regulatory Authority (APRA) has

confirmed that it is

"progressively having a deep-

dive look" at how the

superannuation industry is

implementing heightened

liquidity requirements. APRA

member Helen Rowell stated to

Senate Estimates that APRA

had examined conflicts,

management, and insurance,

and is now moving to

investment governance with a

focus on liquidity.

Source: SuperReview

QROPS

Her Majesty’s Revenue &

Customs (HMRC) has written

recently to all Qualifying

Recognised Overseas Pension

Scheme (QROPS) providers in

Australia asking them to ensure

their schemes remain compliant

with new rules, particularly

around accessing benefits

before age 55 (except for ill

health). Australian schemes

have until 17 June to

acknowledge compliance with

the extended requirements.

The superannuation system

often allows members early

access for financial hardship;

this could be seen as not

complying with strict HMRC

requirements (if HMRC deems

that its rules have been broken,

it can apply a 55% penalty

charge of the amount

transferred).

Source: ASFA (Member's Toolbox)

SIS SECTION 29QC

ASIC confirmed its intention to

issue a class order to protect

superannuation fund trustees

until 1 January 2016 from non-

compliance with section 29QC

of the SIS Act, which requires

consistency between

calculation methodology used

in financial sector (APRA)

reporting and financial product

disclosure.

Source: ASFA

SuperBrief Independent & Concise

Issue #22 of 2015: Friday, 6th June