- ASIC and APRA levies to increase for Hayne Royal Commission changes
- Four other minor super announcements
Five minor superannuation changes were announced in the 2019 Federal Budget.
1. Additional ASIC and APRA resources
Last week the government announced increased funding for ASIC and APRA to help in implementing the Hayne Royal Commission changes. The government awarded ASIC an additional $400m and APRA an additional $150 million. That announcement did not say how this would be paid for.
The Budget 2019 papers say, "this measure will be partially offset by revenue received through ASIC's industry funding model and increases in APRA's supervisory levies".
2. SuperStream Rollover Standard Improved; SMSF rollover start date delayed
From 31 March 2021, the SuperStream Rollover standard will be expanded for the transfer of information and money between employers, super funds and the ATO.
The start date for rollovers to SMSFs will be pushed back to this revised date.
3. Superannuation Consumer Advocate
The Productivity Commission into the efficiency and effectiveness of the super industry recommended a champion looking after and representing consumers. The government have accepted this recommendation. It will "undertake an expression of interest process to identify options to support the establishment" of a Super Consumer Advocate which provide input in policy development and assist consumers navigate the superannuation system. The small allocation for this task will be met from Treasury's existing budget allocation.
4. ATO given cash injection to chase unpaid income tax and super contributions by big business
The ATO will receive more than $40 million to chase unpaid income taxes and employer super contributions from larger businesses. Small businesses will be specifically exempt from this measure.
5. ADF Super member contributions post discharge from ADF
Members of the ADF who join after June 2016 either join the special default fund, ADF Super, or choose their own super fund. At present, if such members leave Defence they are unable to make contributions to ADF Super. The start date for this measure is currently unknown.