The Govt’s unfinished financial services agenda
Yesterday's dissolving of the Parliament ahead of the Federal Election meant a lot of legislation and regulation either did not make it into law or has been left in limbo.
The amount of legislation and regulation affecting the financial services industry which has been impacted by the calling of the election has been detailed by leading consultancy Towers Watson.
In an update to clients today, Towers Watson pointed out that the Superannuation Legislation Amendment (Reducing Illegal Early Release and Other Measures) Bill 2012 — which provided for criminal and civil penalties for promoters of illegal early release schemes — had failed to make it into the Parliament and had lapsed.
Its update said the following measures had been announced by the Government, but not yet introduced to Parliament:
• Capping of the tax exemption for earnings on superannuation assets supporting income streams at $100,000, with a concessional tax rate of 15 per cent applying thereafter — announced to commence on 1 July 2014;
• Extension of the normal deeming rules to superannuation account-based income streams — announced to apply to new account-based income streams commenced on or after 1 January 2015;
• Extension of concessional tax treatment to deferred lifetime annuities — announced to commence from 1 July 2014;
• The Government's proposal to require superannuation funds to report to members as to whether contributions have been received for them either quarterly (in electronic form) or half yearly (via a paper statement) — released in consultation draft only;
• Establishment of the Super Council and the Charter of Superannuation Adequacy and Sustainability; and
• Further increases in the threshold below which small inactive superannuation accounts, including inactive accounts of uncontactable members, are required to be transferred to the Australian Taxation Office, announced last Friday 2 August 2013.
It said all of the measures which had been announced by the Government and not introduced to the Parliament would needed to be introduced or reintroduced to the new Parliament .
The Towers Watson analysis said the new requirements for reporting of superannuation on pay-slips were introduced by the Tax and Super Laws Amendment (2012 Measures No.1) Act, which received Royal Assent in June, last year, "however, the supporting regulations setting out the details of the disclosure requirements have never been made".
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