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  • SISG key messages 6 March 2018

    Welcome and introduction

    James O’Halloran (Deputy Commissioner, ATO) welcomed the new members to the group and acknowledged the contributions of the members who have completed their membership on the Committee.

    New Payment Platform (NPP)

    Katrina Stuart (Executive Manager Engagement, New Payment Platforms Australia) provided an update on the functionality available in the newly launched New Payment Platform (NPP) operating across the financial sector and the products launched so far.

    Brett Watson (Partner, KPMG Australia) led a discussion with members on the potential application of the new framework within the superannuation context. The group talked about the potential applications and concerns as well as the impacts on SuperStream and Single Touch Payroll.

    Outcome: The members agreed that the SuperStream Technical Working Group should continue to work through how the NPP will be used to support superannuation.

    Next steps: The SuperStream Technical Working Group continues to meet to work through impacts on superannuation.

    Single Touch Payroll (STP)

    Ian Colhoun (Director, ATO) provided an update on the design of the STP choice of fund form and the next steps. Members had a discussion about potential improvements and highlighted potential issues.

    Outcome: Members were able to contribute their feedback to the final screen design for consideration by the ATO.

    Next steps: An electronic copy of the screens will be provided to members. Further feedback can be sent to SuperConsultation. We will continue to inform this group about the progress of STP as appropriate.

    Early release of superannuation review

    Kylie Bourke (Manager, Treasury) led a discussion on the review being conducted into the early release of superannuation. Members discussed some of the history around the access to superannuation and raised a variety of views on the concepts in the consultation paper.

    Outcome: Treasury and the ATO were more informed about the impacts and implications of proposals being considered by the review.

    Next steps: Treasury will continue to work through the submissions.

    Superannuation industry overview

    The group reviewed the activities occurring across the superannuation industry over the next few years by way of reference to the Superannuation Strategic Map. 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 disclosure and the superannuation guarantee taskforce, the progress of ATO Implementation of 2016 – 2017 Budget Measures, ASIC and APRA Programs of Work and reform agenda.

    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.

    Comprehensive income products for retirement (CIPRS) and means testing rules

    Mary McLarty (Branch Manager, Department of Social Services), David Hayden-Poole (Acting Director, Department of Social Services) and Jane Miao (Actuary, Treasury) led a discussion on the Department of Social Services position paper on the means test rules for lifetime retirement income streams. Members discussed the objectives of the changes and what advice will be available to product providers.

    Darren Kennedy (Principal Adviser, Treasury) updated the members on the status of the Comprehensive income products for retirement (CIPRs) framework development and the creation of the CIPRs consumer and industry advocacy group. The members discussed the key issues including the role of fund trustees and the Treasury processes in place to develop the framework.

    Outcome: DSS and Treasury were more informed about the industry views of the proposals being considered and industry were more informed on the process for finalising the framework.

    Next steps: Further feedback from members can be sent to SuperConsultation. After the government announces the means testing rules to be applied, further consultation may be held on micro policy. The advocacy group will meet to work through the framework.

    Legacy superannuation issues

    David Knox (Senior Partner, Mercer) led a discussion exploring the effects that various superannuation reforms have had on legacy products within the system. Members shared their experiences of issues that they have identified and potential ways of addressing them. Members highlighted the importance of building the closure of products into the CIPRs framework to prevent these issues arising in the future.

    Outcome: Treasury and APRA will take these issues into account when developing the CIPRs framework and member outcomes.

    Next steps: Next meeting include an agenda item on the design and distribution rules.

    Other business

    The group agreed to have an out of session meeting in June to meet with the Productivity Commission and discuss the stage three draft report. The meeting will be held via telepresence in ATO sites in Sydney, Melbourne and Canberra.

    James O’Halloran (Deputy Commissioner, Australian Taxation Office) updated the group on the transfer of the small business superannuation clearing house to the ATO. James also informed members of the release of the inaugural Tax inVoice podcast which features James discussing events across the superannuation industry with David Knox.

    Attendees

    Association of Financial Advisers (AFA)

    • Philip Kewin, CEO
     

    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)

    • Eva Scheerlinck, CEO
     

    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
     

    Mercer

    • David Knox, Senior Partner (Co-Chair)
     

    SMSF Association (SMSFA)

    • Peter Hogan, Head of Technical and Education
     

    The Tax Institute

    • Phil Broderick, Chartered Tax Advisor
     

    Australian Prudential Regulation Authority (APRA)

    • Carolyn Morris, Senior Policy Manager
     

    Australian Securities & Investment Commission (ASIC)

    • Alex Purvis, Senior Manager
     

    Australian Taxation Office (ATO)

    • Sarah Kimmorley, Senior Director, Superannuation
    • Dawn Martin, Superannuation (Secretariat)
     

    Treasury

    • Darren Kennedy, Principal Adviser
    • Kylie Bourke, Manager
     

    Apologies

    SMSF Association (SMSFA)

    • John Maroney, CEO
     

    Australian Prudential Regulation Authority (APRA)

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

    Australian Securities & Investment Commission (ASIC)

    • Jane Eccleston, Senior Executive Leader
     

    Treasury

    • Robert Jeremenko, Division Head
     
      Last modified: 06 Jun 2018QC 55918