An ASIC review of communication sent by super funds to members about the Protecting Your Super reforms has found some “common problems”. The ‘Protecting Your Super Package’ (PYSP) reforms were aimed at protecting small superannuation accounts from erosion due to fees and insurance, and reducing the number of unintended small… Read More »ASIC finds “common problems” with PYSP super fund communications
ASIC and APRA have both welcomed proposed changes which would increase ASIC’s role in regulating the superannuation sector. One of the recommendation of the Financial Services (Banking) Royal Commission was for ASIC and APRA to be co-regulators of superannuation. This would involve ASIC becoming the ‘conduct regulator’, while APRA remains… Read More »Regulators welcome larger role for ASIC in super sector
The ATO anticipates that the general Transfer Balance Cap will be indexed in 2021, after it was not indexed for 2020. The eventual indexation of the Transfer Balance Cap to $1.7 million will make the system more complicated. Like many superannuation caps and thresholds, the Transfer Balance Cap is subject… Read More »Transfer Balance Cap expected to be indexed to $1.7 million in 2021
The ATO’s system for notifying SMSF trustees about changes to their SMSF is now live. SMSF trustees will now be notified, by text or email, when details of their SMSF held by the ATO are changed. The notifications will cover changes to the financial institution account details, electronic service address,… Read More »ATO SMSF SMS notification system now live
The RBA, when preparing its forecasts, is working on the basis that 80% of the cost of increased Super Guarantee for private sector workers is passed on as slower wages growth. Appearing before a House of Representatives Committee, Dr Luci Ellis, Assistant Governor (Economic) with the RBA, said the forecasts… Read More »RBA forecasts have 80% of Super Guarantee increases coming out of wages growth
Industry Super Australia has launched a new advertising campaign, in support of increasing the Super Guarantee rate to 12% – a subject of intense current debate. Industry Super Australia (ISA) says the aim of the campaign – which will run through to June across TV, radio, online and other platforms… Read More »Industry Super launches campaign in support of 12% SG rate
The Government’s plan to effectively close Eligible Rollover Funds (ERFs) is estimated to raise $143 million for the Budget. Late last year the Government announced it would move to effectively shut down ERFs by mid-2021. This would be done in three stages, first ERFs would be allowed to voluntarily transfer… Read More »Closing Eligible Rollover Funds to raise $143 million for the Budget
Having the the Superannuation Guarantee rate frozen at 9.5% has cost the median worker more than $4,000 over the past five years, and the losses are likely to continue, analysis by Per Capita has found. The Superannuation Guarantee rate has been frozen at 9.5% for several years, though it’s legislated… Read More »Frozen Super Guarantee rate has cost median worker $4,333 so far
ACOSS has recommended freezing the Super Guarantee rate at 9.5%, while winding back superannuation tax concessions to fund health and aged care services. The Australian Council of Social Service (ACOSS), in a submission to the Review of Retirement Income, and drawing on the work by the Grattan Institute, recommends the… Read More »Keep SG rate at 9.5%, reduce tax concessions to fund health: ACOSS
Software maker BGL has challenged data in ASIC’s fact sheet sent to new SMSF trustees, finding the annual cost of running an SMSF is much lower. Last year ASIC announced it would be trailing sending a fact sheet to new SMSF trustees. This fact sheet included a number of warnings,… Read More »ASIC SMSF fact sheet “misleading”, BGL analysis finds