• SIAG Key Messages July 2014

    The Superannuation Industry Advisory Group (SIAG) met for the third time in Sydney on 30 July 2014 with Second Commissioner Neil Olesen in attendance and guest speakers from the Financial Systems Inquiry.  

    Minutes of the 13 March 2014 meeting were accepted.

    Agenda Topics discussed included:

    • Update on Government reviews
    • Financial System Inquiry –  Craig Dunn and Adam Cagliarini attended to provide the committee with a summary of recommendations/observations from the interim report
    • Re-inventing the ATO presentation
    • Report back from committees
      SuperStream update
    • SIRN - update from previous meetings

    Update on Government reviews

    Treasury

    Robert Donelly from Treasury provided an update on the Government’s upcoming reviews.

    Reviews outlined included the:

    • Financial System Inquiry – updated as part of Agenda Item 2.
    • Tax White paper Final details are yet to be agreed with the Government, but it is expected that the white paper will be divided into three stages and work has commenced internally within Treasury. A discussion paper is expected to be released for community discussion late 2014 with the final white paper to be published towards the end of 2015.
    • Income Stream review paper – Treasury consultation paper that has been released with submissions due 5 September 2014. The review is based on a set of government election commitments, covering three sets of issues - impediments to long term investment products, minimum draw down levels and deferred lifetime annuities.
    • Federation White paper – parallel process to the Tax White paper and is being run by Prime Minister and Cabinet.

    Treasury also advised that the Treasury publication of the inter-generational report (IGR) will be out within the next 6 months. This paper outlines how the Australian economy and government finances will be travelling over the next 50 years based on the current settings.

    The committee noted concerns around the number of reviews being run concurrently and that the macro level outcomes from the FSI would potentially influence the content of submissions from industry in relation micro level issues included in the Income Streams review.

    Financial System Inquiry (FSI)

    Mr Craig Dunn and Mr Adam Cagliarini (FSI) joined the meeting and outlined the FSI Interim Report. The interim report aims to narrow the focus of the Inquiry. Craig advised that they are seeking industry input and further information to support or contest observations made in the report, as well as offering the opportunity for industry to raise relevant issues not observed in the interim report.

    Submissions are requested by 26 August 2014. A final report will be provided to the Government in November.

    Re-Inventing the ATO

    Neil Olesen and Matthew Hay (ATO) provided an outline of a program of work the ATO is undertaking to design and implement improvements to the client experience for the future. This work, known as ‘Reinventing the ATO’ includes:

    • Working with the community to improve the client experience by making interactions with the tax and superannuation systems easier, for example, by leveraging natural systems.
    • Building trust and confidence in the Tax and Superannuation systems which in turn helps improve compliance.

    The committee discussed the focus areas for superannuation and agreed to a proposal to convene meetings of the Superannuation Industry Relationship Network (SIRN). SIRNs will be convened to gain industry input into the design of the future client experience from the perspective of APRA funds, SMSFs and superannuation intermediaries.

    Committee Updates

    SuperStream

    Philip Hind, National Program Manager ATO provided an update on SuperStream and the phases of implementation currently underway. Large and medium employer’s obligations came into effect on 1 July 2014.

    • July to October - APRA funds need to be able to accept payments electronically.
    • 3 November - APRA funds must be able to receive SuperStream contributions (via pure SuperStream standard or employer portals).
    • A flexible approach to start dates has been adopted. Funds have till 30 September to request a delayed start date (of no later than July 2015).
    • Final shape of the Gateway network is bedded down.
    • From 1 July 2015 the focus will be on small business implementation.
    • Currently tracking 150 payroll solutions

    Other business

    Alison Lendon noted the process map which was provided to members as the new way to raise superannuation issues. Any comments on the process map should be sent to the secretariat at super@ato.gov.au

    The map will be provided to members as a final at the end of August.

    Action Items

    Action Item 20140730-1

    The committee raised concerns around submission due dates and the quality of the responses Treasury will receive due to the number of reviews and tight timeframes for submissions. Treasury advised they would consider looking at extending the submission due date for responses to the Income Stream review to later in September.

    Action Item 20140730-2

    The ATO will consult further with industry through targeted meetings of the SIRN to seek input into design of the future client experience for APRA funds, SMSFs and superannuation intermediaries.

    Action Item 20140730-3

    An update on the reducing red tape and regulation work from the February 18 SIRN will be provided to the committee separately.

    Attendees

    Australian Taxation Office

     

     

     

     

    Alison Lendon, Deputy Commissioner, Superannuation (Chair)

    Philip Hind, Deputy Commissioner, Superannuation

    Stuart Forsyth, Assistant Deputy Commissioner, Superannuation

    Nicole Dykstra, Assistant Commissioner, Superannuation

    Neil Olesen, Second Commissioner, Compliance (Guest)

    Matthew Hay, Assistant Commissioner, Service Delivery Support (Guest)

    Catherine Barrett (Secretariat)

    Treasury

    Robert Donelly

    Meghan Quinn

    Australian Prudential Regulation Authority (APRA)

    Helen Rowell

    Australian Securities & Investment Commission (ASIC)

    Gerard Fitzpatrick

    Australian Bankers’ Association (ABA)

    Diane Tate

    Australian Chamber of Commerce and Industry (ACCI)

    Dick Grozier

    Australian Institute of Superannuation Trustees (AIST)

    Tom Garcia

    Association of Super Funds Australia (ASFA)

    Pauline Vamos

    CPA Australia

    Paul Drum

    Financial Planning Association of Australia (FPA)

    Dante De Gori

    Institute of Chartered Accountants in Australia (ICAA)

    Liz Westover

    Industry Super Australia (ISA)

    David Whiteley

    Law Council of Australia

    Pam McAlister

    Industry Expert (Mercer)

    Dr David Knox

    SMSF Professionals’ Association of Australia (SPAA)

    Andrea Slattery

    Financial Services Council (FSC)

    Andrew Bragg

    Financial System Inquiry

    Craig Dunn

    Financial System Inquiry

    Adam Cagliarini

    Financial System Inquiry Secretariat

    Vicki Wilkinson

    Apologies

    Law Council of Australia

    Suzanne MacKenzie

    Financial Planning Association of Australia (FPA)

    Mark Rantall

    AMP

    Melinda Howes

    Treasury

    Paul Tilley

    CPA Australia

    Alex Malley

     

      Last modified: 11 May 2016QC 48954