Government Superannuation Reform Announcments
20 January 2012
Productivity Commission Inquiry Into Default Superannuation Funds In Modern Awards
The Federal Government has announced that the Productivity Commission will conduct an inquiry into the selection and ongoing assessment of default superannuation funds in modern awards. The inquiry is expected to begin in early February 2012 and run for up to eight months. For further details of the government announcement, refer here
29 November 2011
Superannuation Guarantee age limit to be abolished
Last week the House of Representatives passing amendments to the Superannuation Guarantee (Administration) Amendment Bill 2011 that abolish the superannuation guarantee age limit.
From 1 July 2013, eligible employees aged 70 and over will receive the superannuation guarantee for the first time. The changes will also ensure that employers will be able to claim income tax deductions for superannuation guarantee contributions made to employees aged 70 and over from 1 July 2013.
Amendments to the Superannuation Guarantee (Administration) Amendment Bill 2011 and the Tax Laws Amendment (Stronger, Fairer, Simpler and Other Measures) Bill 2011 were made to give effect to these reforms and these passed the House of Representatives last week.
Further details about the government announceent can be found here.
3 November 2011
Government introduces Bill into Parliament regarding increase in the superannuation guarantee
The federal government has introduced legislation into the House of Representatives to increase the superannuation guarantee from 9 per cent to 12 per cent.
The Superannuation Guarantee (Administration) Amendment Bill was introduced this morning.
The bill will also get rid of the age limit for when people can make contributions to their super, meaning they can make contributions throughout their working life.
"We are living longer than ever before. Australians are reorganising their lives to adapt to longer life. So we must change our laws to move with the new rhythms of life," Financial Services and Superannuation Minister Bill Shorten said today.
"And this government will abolish the superannuation guarantee age limit."
It is the first step for the legislation to be adopted. The debate on the legislation has been adjourned and is likely to be resumed early next year.
For further infortmation please click here to access the Minister's speech to introduce the Bill.
21 September 2011
Government releases Stronger Super details
The Federal Government announced the details of its proposed Stronger Super reform. The details announced included proposals regarding MySuper and SuperStream.
Minister Shorten indicated that he expects the exposure draft legislation on the core elements of MySuper to be released in the next few weeks. Draft legislation is must still proceed through the Parliament before becoming law.
For further details please refer to the Government website where there is extensive infomation regarding the reform and legislation. You will find the relevant information if you click on the following link - Government website outlining details of Stronger Super proposals
29 August 2011
Government announces draft FOFA legislation
The Federal Government announced elements of the draft legislation for its FOFA reforms today. The details announced included proposals regarding duties for financial planners and financial advice generally.The legislation must still proceed through the Parliament before becoming law.
For further details please refer to the Government website where there is extensive infomation regarding the reform and legislation. You will find the relevant information if you click on the following link Proposed Government Legislation
28 April 2011
Government announces further proposals
Minister Bill Shorten announced the Government's proposals relating to the Future of Financial Advice (FOFA) reform. It is expected that a legislative package of these reforms will be developed by the Government and then presented to Parliament for consideration.
Details of the announcement yesterday can be found here
16 December 2010
Government announces response
The Government announced its response to the Cooper Review today. There are media reports outlining the Government's approach but members should note that this is not law as yet.
For any elements of the Government's response to have effect as law, they will need to be presented to the Parliament and then pass through the normal processes. Therefore there is no impact on members at this stage.
legalsuper will continue to monitor all developments that impact the fund and its members. Whenever any developments affect members, legalsuper with communicate with them directly and in a timely fashion.
Full details of the Government response can be found here.
July 2010 Cooper Review
Final Report
On 5 July 2010 the Federal Government released the Cooper Review’s final report on the governance, efficiency, structure and operation of Australia's Superannuation System.
The Federal Government commissioned the Cooper Review in May 2009. It was led by Jeremy Cooper, who has been supported by a panel of seven industry representatives.
A number of recommendations have been made which will now be considered by the Federal Government. With the federal election campaign now in progress, the government's response is not expected until some time after the 21 August election.
Once the Federal Government has determined its position on the recommendations, those matters requiring legislative change will then need to pass through the Parliamentary process.
legalsuper is carefully examining the recommendations and will closely watch the Federal Government’s response to those recommendations. legalsuper will issue an update for members and stakeholders once the Federal Government’s response to the recommendations is to hand.
In the meantime, should you wish to examine in detail the Cooper Review’s final report, you will find it here.