• SIAG Key Messages June 2015

    The Superannuation Industry Advisory Group (SIAG) met in Melbourne on 19 June 2015 with guest speaker Treasury Secretary Mr John Fraser attending.

    Minutes of the 15 December 2014 meeting were accepted.

    Agenda topics discussed included:

    • Words from the Secretary to Treasury – Mr John Fraser
    • Adequacy and Sustainability- presentation from Mercer and AIST
    • Treasury Update - Treasury provided an update on the Government reviews
    • SIAG year in review and forward agenda planning
    • Consultation committee update and hot topics:
      • Superannuation Guarantee (SG) Superannuation Industry Relationship Network (SIRN) meeting outcomes
      • SIRN - update from previous meetings
    • Improving the client experience with the ATO including:
      • Superannuation Administrators Stakeholders group meeting update
      • Contemporary Digital Services update
      • ATO.gov.au review

    Treasury - Mr John Fraser

    Secretary to Treasury, John Fraser provided his thoughts on the superannuation system and current Government reviews. This agenda item was held under Chatham house rules.

    Adequacy including longevity

    David Haynes (AIST) and David Knox (Mercer) presented the key findings from their joint paper, AIST Mercer Super Tracker-How the super system stacks up on fairness, adequacy and sustainability.

    Key topics from the paper included:

    • How to assess if superannuation is meeting its objectives?
    • There must be an objective assessment before deciding on changes
    • AIST Mercer tracker provides a balanced framework for assessing sustainability, adequacy and fairness
    • Tracker is an appropriate, transparent and evolving tool

    Metrics:

    • Net retirement income for median incomes projected for new entrants
    • Fairness-Equity measure of total government support
    • Gender gap
    • Coverage of super
    • Leverage of voluntary contributions
    • Cost of total support by Government today
    • Cost of age related pensions to Government in 2050
    • Level of super fund assets
    • Labour force participation rates
    • Length of retirement
    • Age related pensioner population
    • Proposed assets test changes

    The group debated some of the models and assumptions in the paper and noted there were also other models in the industry with differing views.

    Treasury noted that while there is no single source of truth in relation to models we need to have informed debate which increases transparency and include models which are inclusive of peer review. Industry need to come to a consensus on values and statistical analysis to enable informed policy debate and to ensure that the right topics are being discussed.

    Treasury Update

    Meghan Quinn Treasury, provided an update on the Government reviews currently underway.

    • FSI- the Government response is being finalised. There will be lots of implementation work. They are conscious of implementation timelines and consultation will be conducted around these.
    • The tax white paper consultation has been extended by 6 weeks.
    • Decisions around governance are still being considered but may be announced before the FSI response.
    • Retirement income streams matters have now been rolled into the tax white paper.

    SIAG year in review and forward agenda planning

    Alison Lendon gave an overview of the proposed topics for the SIAG August and November meetings.

    The August meeting will be co-chaired by ASIC with Greg Tanzer to attend as a guest. The meeting will have an ASIC focus as well as the topic of interest-engagement.

    The November meeting will be co-chaired by member Helen Rowell from APRA as well as topic of interest–stability of the super system.

    Members provided feedback on topics they would like to hear about from ASIC and APRA.

    A round table was held to gain members thoughts on the SIAGs performance over the past year. Overall members were happy with the new consultation arrangements and considered the SIAG to be a valuable forum for sharing of ideas and strategic open discussion around current topics of interest. It was noted that members would like to workshop in more detail, solutions to some of the topics/issues discussed at SIAG meetings with the view to developing a vision of high level principles for the way forward for the superannuation system.

    Members raised concerns around the need for a forum to raise technical issues which were previously dealt with by the former Superannuation NTLG subcommittee.

    Alison noted that the SIAG was due for a review of membership at the end of 2015 and we are looking for continuity in attendance and representation at meetings.

    Consultation Committee Updates and Hot topics

    Superannuation Industry Relationship Network (SIRN)

    Nicole Dykstra, ATO gave an update of SIRN meetings since inception as well as an overview of the recent Superannuation Guarantee Compliance SIRN. The following papers were provided to members:

    • Overview of SIRNs since February 2014- Purpose and Outcomes
    • Red Tape reduction SIRN – update of measures
    • Superannuation Guarantee Compliance SIRN – Outcomes and Actions
    • ANAO report –promoting compliance with super guarantee obligations: All four recommendations made by the ANAO were agreed to by the ATO.

    An overview of the SIRN membership and process for raising meeting topics including selection of members to attend specific SIRNs was provided. Members provided feedback that there have been SIRNs held which were of interest to members who were not included in the invitation list for that meeting. It was noted that a core group of SIRN members be formed to assist in the selection of attendees for future SIRN meetings.

    Other business

    Alison Lendon provided an update on work being undertaken in the ATO to improve the Superannuation client experience with the ATO including a recent meeting of the Superannuation Administrators Stakeholders Group to co-design the APRA funds experience with the ATO.

    Alison also provided an update on ATO –re-inventing work which includes the six strategic programs:

    1. Contemporary Digital Services – contemporary digital integration and services that are easy to understand.
    2. Smarter Data - A future with smarter data to improve services and compliance.
    3. Working with our partners in the tax and super systems to create stronger relationships.
    4. Tailored Engagement and Support to meet individual needs.
    5. Optimised Workforce Capability and Culture – fostering a dynamic workforce and client focused culture.
    6. Governance, design and evaluation – Governance and measuring our success against community values.

    The programs are at various stages of development and members will be kept informed of progress.

    Other changes include:

    • Ato.gov.au is undergoing a significant update with a visual redesign, improved search and navigation, rationalisation of content and the introduction of atoTV.
    • Over 3.3 million Australians have linked their myGov account to the ATO to manage their tax and super affairs.
    • We have been updating the ATO app on a quarterly basis.
    • From August, ATO App release will include:
      • ‘Business performance check’ tool that will allow small business owners to quickly and easily assess their financial position
      • ‘MyDeductions’ tool that will allow users to photograph receipts for uploading to their tax return in 2015/16
      • Voice authentication, enabling individuals to enrol and use their voiceprint to verify their identity to access ATO online services via the app

    ATO Online

    • New services will be made available for individuals (including sole traders):
      • Activity statement functions
      • Improved account payment functions for multiple roles
      • Enhanced IT payment plan functions
      • Management of PAYGI including entry/exit
      • Ability to update client details for multiple roles (e.g. Contact details, financial institution details)
      • Homepage customisation – due dates, targeted messages

    MyTax expansion for individuals to include:

    • Different types of income including superannuation pensions, lump sum payments (employer or super), managed investment funds and foreign pension – previously only online option for recipients of superannuation income types was e-tax.
    • Ability to lodge amendments for 2014 Income Tax returns onwards.

    Next Meeting

    The next meeting is currently scheduled for Wednesday 12 August 2015 in Sydney with guest Greg Tanzer attending from ASIC.

    Action Items

    Action Item 20150619-1

    The ATO will review the process by which technical issues are raised and dealt with and consider the need for a meeting to deal with technical issues.

    Action Item 20150619-2

    The ATO will review the process by which SIRN meetings are established with a view to forming a core group of members to assist in the selection of attendees for SIRNs.

    Attendees

    Australian Taxation Office

     

     

    Alison Lendon, Deputy Commissioner, Superannuation (Chair)

    Philip Hind, Deputy Commissioner, Superannuation

    Nicole Dykstra, Assistant Commissioner, Superannuation

    Alex Powell (Secretariat)

    Treasury

    John Fraser

    Paul Tilley

    Meghan Quinn

    Ian Beckett

    Australian Prudential Regulation Authority (APRA)

    Carolyn Morris

    Australian Securities & Investment Commission (ASIC)

    Alex Purvis

    Australian Bankers’ Association (ABA)

    Christine Cupitt

    Australian Chamber of Commerce and Industry (ACCI)

    Dick Grozier

    Australian Institute of Superannuation Trustees (AIST)

    David Haynes

    Association of Super Funds Australia (ASFA)

    Glen McCrea

    CPA Australia

    Paul Drum

    Financial Planning Association of Australia (FPA)

    Mark Rantall

    Chartered Accountants Australia (CA)

    Liz Westover

    Industry Super Australia (ISA)

    Zac May

    Law Council of Australia

    Heather Gray

    Mercer

    David Knox

    SMSF Professionals’ Association of Australia (SPAA)

    Andrea Slattery

    Apologies

    Australian Institute of Superannuation Trustees (AIST)

    Tom Garcia

    Financial Services Council (FSC)

    Andrew Bragg

    CPA Australia

    Alex Malley

    Australian Prudential Regulation Authority (APRA)

    Helen Rowell

    Australian Securities & Investment Commission (ASIC)

    Gerard Fitzpatrick

    AMP

    Melinda Howes

    Australian Bankers’ Association (ABA)

    Diane Tate

    Association of Super Funds Australia (ASFA)

    Pauline Vamos

    Industry Super Australia (ISA)

    David Whiteley

     

      Last modified: 11 May 2016QC 48956