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  • Superannuation Industry Stewardship Group key messages 22 May 2018

    The Superannuation Industry Stewardship Group (SISG) met on 22 May 2018 in the ATO's Sydney office.

    Welcome

    David Knox (Senior Partner, Mercer) opened the meeting with an acknowledgment of country and welcomed members.

    Budget

    Robert Jeremenko (Division Head, Treasury) led a discussion about the recently announced measures from the 2018–19 Federal Budget that impact the superannuation industry.

    Members shared their comments about a range of measures and the impacts that they would have across the superannuation industry:

    • fees
    • CIPRs and post retirement
    • SMSFs
    • work test exemption
    • SG opt out

    Outcome: Issues raised by members will be considered as part of the law, policy and administrative design of the new measures.

    Next steps: Treasury will be conducting consultation around the Budget measures and welcome feedback to achieve outcomes and to understand the ability for industry to meet the timeframes.

    Life insurance

    David Knox (Senior Partner, Mercer) led a discussion with members providing updates on progress of various activities around insurance in superannuation. The discussion included:

    • Parliamentary Joint Committee report
    • Insurance in superannuation Code of Practice
    • Budget announcements relating to insurance and the legislation released for consultation.

    Outcome: Members were able to provide information on the progress of activities across the industry in this area and the impacts of the changes being proposed.

    Next steps: Submissions for the budget measure legislation closes on 29 May. Members are encouraged to provide submissions covering any issues identified.

    The government response to the Parliamentary Joint Committee report is due on 27 June.

    Superannuation industry overview

    The group reviewed the activities occurring across the superannuation industry into the future by way of reference to the superannuation strategic map with members finding value in this document. This standing item outlines the key government agency programs of work, regulatory and agency reforms across the next 18 months.

    Topics open for discussion included:

    • member outcomes changes
    • Single Touch Payroll
    • SMSF rollovers
    • implementation of prudential requirements PIR
    • portfolio holdings
    • RG97.

    Outcome: Members were more informed on the progress and detail of specific measures of interest.

    Next steps: Strategic map to continue to be updated and time set aside at future meetings to discuss.

    Small Business Superannuation Clearing House (SBSCH)

    James O’Halloran (Deputy Commissioner, Australian Taxation Office) updated the group on the transfer of the Small Business Superannuation Clearing House to the ATO. Members discussed the impacts of the system issues that were experienced as part of the transition and the communication process to keep stakeholders informed.

    Outcome: Members provided feedback on ATO’s handling of the issues.

    Next steps: The ATO will continue to work closely with industry as required.

    Superannuation guarantee (SG) compliance

    James O’Halloran (Deputy Commissioner, Australian Taxation Office) updated the group on the activities the ATO is undertaking to improve SG compliance and the increased visibility the ATO will have on the system. The discussion included:

    • SG Taskforce
    • SG gap
    • Single Touch Payroll and fund reporting
    • Legislation currently before parliament.

    Outcome: Members were more aware of the future direction of the ATO in terms of SG compliance and how the activities will impact across industry.

    Next steps: The ATO will continue to work closely with industry as required.

    Emerging technologies

    Ty Winmill (Director, ATO) and Claire Miller (Director, ATO) presented a discussion about the new digital identity program being developed by ATO, Digital Transformation Agency (DTA), Department of Human Services (DHS) and Department of Home Affairs (DHA). Consultation is underway to create a whole of government solution for digital identity. The first round focuses on individuals, enabling them to verify their identity online.

    Outcome: Members gained an understanding of the tools being developed and explored ways that the digital identity solution can be applied to the superannuation industry.

    Next steps: Members to be kept informed of the progress of the trusted digital identity framework.

    Other business

    James O’Halloran (Deputy Commissioner, Australian Taxation Office) updated members about the implementation of the housing measures from 2017 budget and the transfer of the early release of super on compassionate grounds administration to the ATO.

    An out of session video conference will be held on 13 June to meet with the Productivity Commission and discuss the stage three draft report.

    The next formal meeting is scheduled for Tuesday 21 August 2018 in Melbourne.

    Attendees

    Industry and Community Members

    Association of Super Funds Australia (ASFA)

    • Glen McCrea, Chief Policy Officer
     

    Australian Chamber of Commerce and Industry (ACCI)

    • Dick Grozier, Director Industrial Relations,
      NSW Business Chamber
     

    Australian Institute of Superannuation Trustees (AIST)

    • Ailsa Goodwin, Head of Advocacy
     

    Chartered Accountants Australia and New Zealand (CAANZ)

    • Tony Negline, Head of Superannuation
     

    Industry Super Australia (ISA)

    • Michael Fisher, Policy Analyst
     

    Law Council of Australia

    • Michelle Levy, Partner Allens
     

    Link Group

    • Suzanne Holden, CEO
     

    SMSF Association (SMSFA)

    • John Maroney, CEO
     

    The Tax Institute

    • Phil Broderick, Chartered Tax Adviser
     

    Agency and Departmental Members

    Australian Prudential Regulation Authority (APRA)

    • Heidi Richards, General Manager
    • Stuart Burton, Advisor
     

    Australian Securities & Investments Commission (ASIC)

    • Alex Purvis, Senior Manager
     

    Australian Taxation Office (ATO)

    • James O’Halloran, Deputy Commissioner, Superannuation (Co-Chair)
    • Sarah Kimmorley, Senior Director, Superannuation
    • Dawn Martin, Superannuation (Secretariat)
     

    Treasury

    • Robert Jeremenko, Division Head, Retirement Income Policy Division
    • Ian Beckett, Principal Adviser, Retirement Income Policy Division
     

    Guests

    Australian Taxation Office (ATO)

    • Ty Winmill, Director, Superannuation
    • Claire Miller, Director, Digital Communication & Identity Services
     

    Apologies

    Association of Financial Advisers (AFA)

    • Philip Kewin, CEO
     

    Australian Institute of Superannuation Trustees (AIST)

    • Eva Scheerlinck, CEO
     

    Australian Prudential Regulation Authority (APRA)

    • Helen Rowell, Deputy Chairman
    • Stephen Glenfield, General Manager
     

    Australian Securities & Investments Commission (ASIC)

    • Jane Eccleston, Senior Executive Leader
     
      Last modified: 06 Jul 2018QC 56193