• SIAG minutes December 2013

    Meeting details

    Venue:

    ATO Latitude East, 52 Goulburn Street, Sydney NSW 2000

     

     

    Date:  

    Tuesday 3 December 2013

     

     

    Start:  

    10.00 am

    Finish:  

    12:00 pm

    Chair:  

    Alison Lendon

     

     

    Contact and Secretariat:  

    Catherine Barrett

    Contact phone:  

    02 621 61461

    Attendees

    Industry representatives

    Robbie Campo, Industry Super Australia (ISA) – representative for David Whiteley

    Martin Codina, Financial Services Council (FSC)

    Stuart Dignam, CPA Australia – representing Alex Malley

    Dick Grozier, Australian Chamber of Commerce and Industry (ACCI)

    David Haynes, Australian Institute of Superannuation Trustees (AIST) – representative for Tom Garcia

    Melinda Howes, AMP and rep for Actuaries Institute

    Dr David Knox, Industry expert (Mercer)

    Suzanne Mackenzie, Law Council of Australia (LCA)

    Mark Rantall, Financial Planning Association of Australia (FPA)

    Andrea Slattery, SMSF Professional Association of Australia Limited (SPAA)

    Diane Tate, Australian Banker’s Association ( ABA)

    Pauline Vamos, Association of Super Funds Australia (ASFA)

    Liz Westover, Institute of Chartered Accountants in Australia (ICAA)

    Government representatives

    Gerard Fitzpatrick

    Australian Securities & Investment Commission

    Helen Rowell

    Australian Prudential Regulation Authority

    Meghan Quinn

    Treasury

    Paul Tilley

    Treasury

    ATO representatives

    Chris Jordan

    Commissioner of Taxation

    Alison Lendon

    Deputy Commissioner, Superannuation

    Philip Hind

    National Program Manager

    Megan Yong

    Assistant Deputy Commissioner, Superannuation

     

     

    Stuart Forsyth

    Assistant Deputy Commissioner, Superannuation

    Nicole Dykstra

    Assistant Commissioner, Superannuation

    James Savage Director Super Government Liaison

    Catherine Barrett SIAG Secretariat

     

     

     

     

    Apologies

    Tom Garcia

    Australian Institute of Superannuation Trustees (AIST)

    Alex Malley

    David Whitely

    CPA Australia

    Industry Super Australia (ISA)

     

     

    Next Meeting

    March 2014 – date to be confirmed

     

    Agenda Items

    1 Welcome and introductions

    Chair Alison Lendon, Deputy Commissioner Superannuation, opened the meeting and welcomed participants, guest participants and the Commissioner of Taxation Chris Jordan.

    As the first meeting of the new consultation Superannuation committee, Alison stated that the meeting was about the superannuation landscape currently, the role of the SIAG and SIRN, how the ATO and industry will deal with superannuation prospectively, hearing from both the regulators and Industry about the current environment and thinking about headline areas and issues for discussion.

    Alison expressed that her aim/vision is to position the SIAG to be of value to the whole of the superannuation system. Review of action items from 12 June 2013 meeting

    2 Commissioner of Taxation

    Commissioner of Taxation Chris Jordan spoke to the committee about his first year as Commissioner and the direction that he is taking the organisation.

    • Key messages:  
      • the role of the SIAG should be to focus on the entire super system at a strategic level
      • the need to broaden the field of consultation and communication while assisting with short term, meaningful outcome focused consultation when needed
      • the ATO to provide a more contemporary service and assist with reducing red tape for small business
       

    3 The Super System

    Environmental scans were provided by the ATO, APRA and ASIC from the regulator point of view and SMSF Professionals Association of Australia, Association of Super Funds Australia and AMP/Actuaries from an industry perspective.

    Stuart Forsyth, ATO provided a summary of the ATO’s Heath of the System Assessment:

    • the continuing growth in SMSFs
    • key initiatives that have been delivered
    • ongoing implementation of super reform program

    Action item

    out of session

    ATO to provide Industry with words for a targeted message around USM

    Responsibility

    SIAG Secretariat

    Helen Rowell, APRA provided the committee with an overview of headline issues from an APRA perspective:

    • APRA’s message to Industry is around ‘cultural change’
      • Looking to see a culture change in the superannuation industry in its approach, thinking and the way it focuses on the obligation to act in the best interest of members.
       

    Ged Fitpatrick, ASIC briefed the committee on the role of ASIC:

    • ASIC’s particular role in Super is in relation to disclosure and conduct and should be considered in context with the broader financial services that come under ASIC's remit.

    Andrea Slattery, SPAA briefed the committee on the SMSF sector from an Industry perspective.

    • Key messages:  
      • SMSF sector continues to grow at a steady rate and as an industry is continuing to perform well
      • The administration systems are continuing to provide lower cost and increased efficiencies
      • There are more industry players in the market and these are generally committing to raising their competency in SMSFs
       

    Pauline Vamos, ASFA provided a large fund view from an Industry perspective.

    • Key messages
      • Industry going through transformation change due to a number of:
        • Legislative changes
        • Investment management (review of investment strategy - individual accounts in pooled structure – change in what members want)
        • Post retirement delivery of income streams
        • Implementation
         
       

    Melinda Howes, Actuaries spoke to the committee about the superannuation system from a longevity and post retirement lens. The committee were provided with a power point presentation ‘Australia’s Longevity Tsunami – What should we do?‘. The main message was that individuals and wealth managers are underestimating how long we will live. In addition, Dr David Knox, as part of Mercer’s three year analysis, commented that their study provided detail around life expectancy and highlighted a need to revisit how the national average is viewed.

    4 Working with the new Government

    Meghan Quinn and Paul Tilley from Treasury provided an overview of the Government’s policy priorities over the next 6-12 months.

    • Immediate priorities:
      • Financial System Inquiry - draft terms of reference out for consultation until 5 December
      • Discussion paper ‘Better regulation and governance, enhanced transparency and improved competition in superannuation' - open for submissions until 12 February
       
    • Other Priorities:
      • Implementation of Government election commitments
      • Finalising and legislating a sub set of the previous Government's un enacted measures
       

    5 Regulation and Red tape

    The Chair informed the committee that each agency had been asked by Government to look at reducing compliance costs and areas for improvement around reducing red tape.

    The committee agreed this would be a good piece of work for the Superannuation Industry Relationship Network (SIRN) to progress and consult on.

    Action item

    3122013-1

    The SIRN to meet and discuss the Governments request. A submission to be prepared outlining areas for improvement, around red tape reduction for discussion by the SIAG at the March 2014 meeting

    Responsibility

    ATO

    6 Future Landscape for Superannuation

    The Committee discussed a number of forward agenda topics with two clear focus areas for 2014:

    • Regulation of red tape reduction
    • Financial system enquiry discussion paper

    It was agreed by the Committee that the March meeting would have a clear focus on the regulation of red tape reduction.

    Action item

    3122013-2

    Following a committee member request, Megan Quinn will speak to John Lonsdale who is the independent secretariat managing the Financial system enquiry about the possibility of presenting at a future SIAG meeting

    Responsibility  

    Treasury

    In closing, Paul Tilley commented that the Assistant Treasurer had expressed an interest in attending stakeholder meetings in the future.

    Action item

    3122013-3

    ATO will work with Paul Tilley to obtain the Assistant Treasurer availability for a future meeting.

    Responsibility  

    ATO

    The committee discussed the frequency of the SIAG and agreed it would meet three times a year for half a day. Location will rotate between Melbourne and Sydney.

    7 Close

    Alison closed by thanking all guest speakers and attendees and advised that she is looking forward to continuing and strengthening the relationships.

    Next meeting March 2014 - date to be confirmed.

    Meeting closed 12.08 PM.

    Summary of action items from this meeting

    Reference

    Action Item

    Allocated To

    out of session

    ATO to provide Industry with words for a targeted message around USM.

    ATO

    3122013-1

    The SIRN to meet and discuss the Governments request. A submission to be prepared outlining areas for improvement, around red tape reduction for discussion by the SIAG at the March 2014 meeting.

    ATO

    3122013-2

    Following a committee member request, Megan Quinn will speak to John Lonsdale who is the independent secretariat managing the Financial system enquiry about the possibility of presenting at a future SIAG meeting.

    Treasury

    3122013-3

    ATO will work with Paul Tilley to obtain the Assistant Treasurer availability for a future meeting.

    SIAG Secretariat

     

      Last modified: 19 May 2014QC 40209