In this guide
- Underperforming funds now need to tell APRA why
- Re-contributions of COVID-19 early release super withdrawals allowed
- Separating couples can request partner’s super information
- SMSFs numbers rise but members fall
- Retirees experience higher inflation
- SMSF investors fuel growth in ETFs
- Federal Court makes declarations that Colonial First State made false or misleading representations
Underperforming funds now need to tell APRA why
The Australian Prudential Regulation Authority (APRA) will intensify its supervision of the trustees with products that failed its performance test, according to chair Wayne Byres’ opening statement to the House of Representatives Standing Committee on Economics.
APRA announced in late August that 13 funds (full list available here) had failed the performance test, and were required to inform their members that they had been assessed as underperforming.
“Since releasing the performance test results, APRA has intensified its supervision of trustees with products that failed the test and has required they provide a report identifying the causes of their underperformance and how they plan to address them,” Byres said in his statement on 10 September 2021.
Trustees are also now required to monitor these products closely and report relevant information, such as the movement of members and outflow of funds, to APRA.
Re-contributions of COVID-19 early release super withdrawals allowed
Individuals can now re-contribute amounts they withdraw from their super under the COVID-19 early release scheme without those contributions being counted towards their non-concessional contributions (NCC) cap.
Individuals have until 30 June 2030 to make these re-contributions.
The Australian Taxation Office (ATO) says the contributions cannot exceed the total amount of super accessed under the Covid-19 early release scheme and they cannot be claimed as a personal tax deduction.
Individuals who wish to re-contribute the early release amounts need to fill out a form and lodge it with their super fund. The super fund checks the amount does not exceed $20,000 and provides the ATO with the information from members on a monthly basis. The ATO then confirms that the amount matches the original early release withdrawal.
Separating couples can request partner’s super information
Legislation has passed that will allow the ATO to release information about a former partner’s super to a family law court upon request, increasing transparency around this major asset for separating Australian couples.
The Treasury Laws Amendment (2021 Measure No. 6) Bill 2021 (Schedule 5) will allow the ATO to release this information, provided the applicant is a party to a family law property proceeding and has applied to a family law court registry to request their former partner’s super information, held by the ATO.
They will be able to do this from 1 April 2022.
“These amendments will make it harder for parties to hide or under-disclose their superannuation assets in family law property proceedings, and will reduce the time, cost and complexity for parties seeking information about their former partner’s superannuation,” Attorney General Michaelia Cash and Minister for Superannuation, Financial Services and Digital Economy, Jane Hume, said in a joint media release.
The Government hopes the improved access to super information will better support separated couples to divide their property on a just and equitable basis.
“This will help alleviate the financial hardship and negative impact on retirement incomes that women in particular can experience after separation,” Cash and Hume said.
