• SIAG Minutes August 2015

    Meeting details


    ATO Sydney CBD Office

    Goulburn St

    Function Room 12.720




    Wednesday 12 August 2015




    09:30 am


    1:30 pm


    Alison Lendon, Deputy Commissioner, Superannuation



    Contact and Secretariat:  

    Alex Powell and Catherine Barrett

    Contact phone:  

    02 621 61461


    Alison Lendon (Chair)


    Philip Hind


    Nicole Dykstra


    Alex Powell (Secretariat)


    Catherine Barrett (Secretariat)


    Andrew Mills (Guest)


    Greg Tanzer (Guest)


    Paul Tilley


    Vicky Wilkinson


    Penny Sirault


    Greg Brunner

    Australian Prudential Regulation Authority (APRA)

    Ged Fitzpatrick

    Australian Securities & Investment Commission (ASIC)

    Christine Cupitt

    Australian Bankers' Association (ABA)

    Dick Grozier

    Australian Chamber of Commerce and Industry (ACCI)

    Tom Garcia

    Australian Institute of Superannuation Trustees (AIST)

    Glen McCrea

    Association of Super Funds Australia (ASFA)

    Andrew Bragg

    Financial Services Council (FSC)

    Paul Drum

    CPA Australia

    Liz Westover

    Chartered Accountants Australia

    Robbie Campo

    Industry Super Australia (ISA)

    Heather Gray

    Law Council of Australia

    David Knox


    Dante De Gori

    Financial Planning Association of Australia (FPA)

    Andrea Slattery

    The SMSF Association

    Apologies: David Whiteley, Helen Rowell, Alex Malley.

    Key messages

    The Superannuation Industry Advisory Group (SIAG) met in Sydney on 12 August 2015 with ATO Second Commissioner Andrew Mills in attendance and guest speaker ASIC Commissioner Mr Greg Tanzer.

    Minutes of the 19 June 2015 meeting were accepted.

    Agenda topics discussed included:

    • Words from the ASIC Commissioner - Mr Greg Tanzer
    • Treasury Update - Treasury provided an update on the Government reviews
    • Engagement discussion - workshop
    • Consultation committee update and hot topics:
      • Introduction of technical issues meeting
      • Selection process for SIRN consultation meetings
      • Superannuation Guarantee (SG) Superannuation Industry Relationship Network (SIRN) - next meeting to progress actions from 30 April meeting
      • Post Implementation Review of ATO consultative arrangements.

    ASIC - Commissioner Mr Greg Tanzer

    ASIC Commissioner, Greg Tanzer discussed certain aspects of the Financial System Inquiry (FSI) that are of interest for ASIC as well as key items on the ASIC agenda.

    Commissioner Tanzer reflected on three key areas that arose from the enquiry:

    • Regulatory Tool Kit which relates to recommendation 21 & 22 from the Murray enquiry
      • Product intervention power
        - there are times when wholesale reliance on disclosure has not always worked so the product intervention power would be important to support and promote better disclosure. This intervention power could also provide ASIC the power to intervene on certain products.
    • User pays funding model for ASIC
      • ASIC believe this model could be applied more broadly with the advantage being ASIC could provide an obvious and tangible price signal to the market where they see the risks arising in a particular segment of the market.
    • Penalties
      • The FSI recommended that there should be some consideration given to raising penalties ASIC has responded through the release of a white paper where they did some comparative work around the monetary value of the civil penalty.

    Commissioner Tanzer provided the committee with ASIC’s views on the objectives of Superannuation, and expressed that Industry need to start thinking about how they can empower people to make the right decisions about their personal needs when leading up to retirement, if there is no default mechanism.

    Key items on the ASIC agenda

    • Fees and Costs
    • Electronic/Digital disclosure
    • FSI capability review of ASIC; and
    • SMSF’s and how ASIC supporting this segment in the sector

    Treasury Update

    Vicky Wilkinson, Treasury, provided an update on the FSI review and Governance:

    • FSI is with Government under active consideration with plans to respond shortly
    • Cabinet submission of 44 recommendations to be considered
    • Exposure draft legislation on Governance provisions - Treasury have been consulting with a range of stakeholders around feedback on the consultation paper. The AT is actively engaged in the consideration of the feedback on the draft legislation and is hoping to have this piece of legislation debated quickly. Submissions will be available on the website shortly for review
    • Transparency – AT is keen to get draft legislation out in the near term for public comment and consultation on the next reiteration
    • Raising professional standards - Govt and AT considering submissions and views. Hoping to have this finalised in near term - no specific timing

    Paul Tilley, Treasury, provided an update on the Tax White paper and the Review of Retirement Income Stream Products

    • Tax White paper - Rethink discussion paper - 800 submissions were received Treasury are compiling ideas to lead into the green paper
    • Retirement Income Products - consultation process had a 6 week extension. A number of round table discussions were undertaken on retirement income issues. Treasury are currently briefing Government
    • Green paper – No submission date as yet – there will be a focus on retirement issues
    • Review of Retirement Income Stream Products – came out of an election process. Final consultation being held in Melbourne on Monday 16 August 2015.

    Action item  

    20150812-1 – Paul Tilley to provide details of the location and time of the Melbourne consultation to members.

    Forward agenda topic discussion: Engagement

    Julia Donohue of Hoffman Donohue Pty Ltd was engaged to facilitate this session.

    The topic for discussion was around Engagement: How do we improve community engagement in Superannuation?

    This was a new approach for this forum based on feedback received that members would like to workshop key topics rather than just hear from others on a particular topic.

    The purpose of the session was to share views as well as an opportunity for the regulators to hear industries’ issues. Work could be commissioned on particular areas for the SIRN to undertake.

    Members were split into three groups and asked to explore strategies to improve community engagement through both Industry and Government-led activities, based on three questions

    • What does engagement with super look like?
    • Why do we want the community engaged?
    • How do we get individuals engaged and at what point?

    The group agreed:

    • the objective of the retirement system is not clear (further discussion on this will occur at the November meeting with the topic on Vision)
    • there needs to be a clearer understanding of the definition of engagement. The concensus being engagement is more than just super contributions being made it is also about the level of awareness of their super
    • there needs to be an alignment of common messages across funds and regulators (fit for purpose)
    • that sound engagement of someone with their super should not be measured by their level of activity
    • that there are cascading levels of engagement (minimal, somewhat, very active) with competing interests. Compulsion and engagement opportunities are the influencing factors
    • that behavioural economics plays a key role to influence levels of engagement
    • that channel was important when looking to increase awareness and engagement. Digital is the preferred option with a focus on providing goals for income in retirement in a visual way.

    Action item  

    20150812-2 – The ATO to work with members out of session to progress ideas from the 'engagement' workshop to the SIRN for further work.

    Consultation Committee Updates and Hot topics

    Superannuation Industry Relationship Network (SIRN)

    Nicole Dykstra, ATO gave a brief update on the paper that was provided to members at the meeting which outlined:

    • Action item 20150619-1 - process by which technical issues will be raised and dealt with through the introduction of a technical issues meeting. The newly established technical issues meeting will be held bi-annually (based on adequate agenda items being put forward). The first meeting will be held on 10 November 2015 in Canberra.
    • Selection process for SIRN consultation meetings. The SIRN secretariat will continue to work with ATO business areas to select a proposed list of attendees for a particular meeting. The ATO will then circulate that proposed attendee list to SIAG members for comment prior to issuing meeting invites. This will provide Industry with input into the selection process.
    • Superannuation Guarantee Compliance SIRN - next meeting to be held 24 August 2015 in Melbourne to progress actions arising from 30 April 2015 meeting.
    • Post Implementation Review of the ATO Consultative Arrangements. Members were provided with a copy of the review and were encouraged to provide any feedback to the super@ato.gov.au mailbox

    Other business

    Chair, Alison Lendon thanked members for their contribution to the workshop discussion and that it was a good leading for the November meeting.

    Alison thanked our guest attendees for their time and contribution, Julia Donohue for her facilitation of the session and Alex Powell for her support to the SIAG over the last 12 months. Alex is moving to the Integrated Tax Design area of the ATO until late 2015. Catherine Barrett will continue on as secretariat.

    Next Meeting

    The next meeting is scheduled for 30 November 2015 in Sydney with APRA member Helen Rowell presenting. The meeting will also workshop the topic of ‘Vision of the super system’.

    Action items

    Action item  

    20150812-1 – Paul Tilley to provide details of the location and time of the Melbourne consultation to members.

    Action item  

    20150812-2 – The ATO to work with members out of session to progress ideas from the 'engagement' workshop to the SIRN for further work.

      Last modified: 04 Apr 2016QC 48643