New economic modelling by the Grattan Institute finds that around 80% of the cost of increasing the Super Guarantee rate is passed on to workers as lower wages. Part of the ongoing debate about increases to the Super Guarantee rate has been about how much, if any, of the cost… Read More »80% of cost of Super Guarantee rate increases passed on as lower wages
The Government has released draft legislation for consultation in response to 22 recommendations, and ‘additional commitments’, from the Banking Royal Commission. Treasurer Josh Frydenberg said the Government is “on track” to have almost 90% of the Royal Commission recommendations at least introduced to Parliament – not necessarily legislated – by… Read More »Draft legislation for 22 Banking Royal Commission recommendations released
Changes to the system of setting default super funds are coming by the end of 2020, according to Assistant Minister Jane Hume, though it’s unclear if the Government has settled on a model to implement. Jane Hume, Assistant Minister for Superannuation, Financial Services and Financial Technology, has flagged changes to… Read More »Changes to default super coming before end of 2020: Assistant Minister
Labor may be more open to expanding super choice rules than unions and industry super funds. There is currently a Bill before Parliament – the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 – which would expand the number of employees who can choose which super fund receives their… Read More »Labor may support super choice expansion, despite union opposition
The unmet financial advice needs of older Australians necessitates a customer centric advice framework, says SMSF Association CEO John Maroney, drawing an analogy to how health care is provided. Maroney raised the issue of unmet financial advice making it harder for older people to plan for their retirement, in a… Read More »Unmet financial advice requires customer centric focus: SMSFA
Treasury has released draft legislation that would expand Single Touch Payroll to allow employers to report child support information. Single Touch Payroll (STP) is the system for employers to electronically report payroll and superannuation information to the ATO. Treasury says the STP platform was set up so it could be… Read More »Single Touch Payroll to be expanded to report child support information
In another class action stemming from the Banking Royal Commission, Shine Lawyers is taking Commonwealth Bank subsidiaries to court alleging that super fund members were overcharged for insurance. It is alleged that Colonial First State Investments Limited – a subsidiary of the Commonwealth Bank – put super fund members into… Read More »Super fund members overcharged for insurance, class action alleges
Super fund AustralianSuper has introduced a new levy to offset the cost the Government’s Protecting Your Super cap on the fees charged to small super accounts, in a move criticised by members of the Government. The Protecting Your Super package of changes included a cap of 3% on the fees… Read More »AustralianSuper adds new Protecting Your Super levy
In the latest class action stemming from the Financial System Royal Commission, NAB is being taken to court over how it transitioned members to MySuper products. Law firm Maurice Blackburn Lawyers has filed a class action against two NAB companies over how super fund members were transitioned to MySuper products,… Read More »MySuper transition class action launched against NAB companies
The Government has started consultation on bringing the Banking Executive Accountability Regime (BEAR) regime to superannuation funds, a recommendation of the Banking Royal Commission. The BEAR was legislated in 2017, in order to impose a new accountability regime on banks. One of the recommendations of the Royal Commission into Misconduct… Read More »Government consults on bringing BEAR regime to super funds