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  • Superannuation Industry Stewardship Group key messages 7 December 2018

    Welcome and introduction

    David Knox (Senior Partner, Mercer) opened the meeting with an acknowledgment of country and welcomed Graham Sammells as a new member to the group.

    Royal Commission Reflections

    David Knox (Senior Partner, Mercer) led a discussion with members about reflections on the Royal Commission and the impact it has had on the superannuation industry.

    Outcome: Members had an open discussion about what they have been hearing and potential responses.

    Next steps: Submissions and public hearings of the Royal Commission have now closed. The final report will be submitted to the Governor-General by 1 February 2019.

    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. This standing item outlines the key government agency programs of work, regulatory and agency reforms across the next 18 months.

    Topics discussed included:

    • Super bills before Parliament
    • CIPRS, Means tests and longevity products
    • RG97
    • Limited Recourse Borrowing Arrangements
    • SG Amnesty

    Papers to be made available include:

    • A discussion paper on standardised disclosure about retirement products being prepared to include metrics, methodology and risk measures is due out in December 2018.
    • A consultation paper on RG97 with draft reg guide and document showing what law looks like if proposals were implemented is due out in January 2019. Followed by 12 week consultation period and several round tables.
    • The member outcomes consultation package is due out for consultation late December 2018 or early January 2019.

    2019 conferences mentioned by members include:

    • SMSF National conference in Melbourne 20–22 February 2019.
    • CMSF conference on the Gold Coast 13–15 March 2019.
    • FSC conference at the end of August 2019.

    Outcome: Members were informed on the progress and discussed specific events of interest.

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

    Australian Financial Complaints Authority (AFCA)

    Dr June Smith (Lead Ombudsman Superannuation, Australian Financial Complaints Authority) and Jess Alcantara Legal Counsel, Superannuation Team, Australian Financial Complaints Authority) updated the group on the activities since the commencement of AFCA on 1 November (at the time of the meeting this was 27 working days). Key discussion points included:

    • 6522 complaints have been lodged since commencement
    • 555 superannuation complaints, with 66% of them about service, delays and fees. 400 have been referred back to the trustee as the first step to resolve the issue.
    • Key focus is not just to resolve individual complaints, but also identify system issues.
    • The website contains valuable information about Superannuation Transitional guidelines.
    • Wrap up of existing cases with the Superannuation Complaints Tribunal - Regular meetings that SCT run off (2,000 complaints left) are successful

    Outcome: Members were informed on the progress of AFCA and the processes in place.

    Next steps: Further updates to be provided by AFCA to the group as appropriate.

    Single Touch Payroll (STP)

    John Shepherd (Assistant Commissioner, Australian Taxation Office) and Ian Colhoun (Director, Australian Taxation Office) updated the group on the progress of STP. The second phase of the TFN declaration and choice service is planned to be made available directly to individuals from ATO Online from mid-December 2018. The service will be evaluated in early 2019 prior to broader publicity for the service. This delivers on the Government commitment to enable prefill for super and to show existing accounts when making a choice. ATO is continuing to work with software providers to implement the use of the first phase service.

    Outcome: Members were informed on the progress and sought clarification as necessary.

    Next steps: Members to be kept informed of the progress of Single Touch Payroll and its impacts on superannuation.

    Data Collection

    Robb Preston (A/g Principal Adviser, Treasury) led a group discussion about the collection of data in the superannuation industry and how it could be made more relevant, accurate and timely in light of the Productivity Commission’s review. The discussion covered:

    • understanding the purpose of data collection
    • ways to improve the consistency and scope of data comparison and release across the system with a focus on member outcomes
    • evaluating the costs and benefits of reporting changes, including strategies for better data collection.

    Outcome: Members were able to put forward their perspectives and potential impacts on changes to data collected and made available across the superannuation system.

    Next steps: Treasury to continue to consider future strategies and undertake consultation as appropriate

    Survey findings and next year's meetings

    David Knox (Senior Partner, Mercer) James O’Halloran (Deputy Commissioner, Australian Taxation Office) walked the group through the findings and recommendations from the recent membership survey. After some discussion, the following recommendations were agreed:

    1. Reconfirm the intent of the meeting and to set some expectations around contributions of all members to presenting items on the agenda to ensure the meeting delivers on its intent.

    2. Membership will continue to be reviewed to ensure members are actively contributing and that there is appropriate representation across industry.

    3. Industry members to have time on the agenda on a rotating basis to discuss their organisation’s priorities, issues in their space, things they are doing to improve the super system, or something important to them.

    4. Short term working groups will be created, if required, to work through specific topics.

    5. The agreed times for the 2019 meeting were 10:00am – 3:00pm.

    SISG meeting dates for 2019 are confirmed as follows:

    • Monday 25 February 2019 – Sydney
    • Tuesday 25 June 2019 – Melbourne
    • Tuesday 1 October 2019 – Sydney
    • Tuesday 10 December 2019 – Melbourne

    Outcome: Members were informed on the findings of the review and agreed on the recommendations going forward.

    Next steps: Any feedback or other changes to the meetings operations are to be made to the secretariat.

    Other business

    James O’Halloran (Deputy Commissioner, Australian Taxation Office) tabled the documents in other business noting the Gateway review report extract on the SuperStream project processes and outcomes.

    James O’Halloran (Deputy Commissioner, Australian Taxation Office) and David Knox (Senior Partner, Mercer, Co-Chair) thanked members for their valuable contributions and wished members and their families a happy and restful Christmas.


    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)

    Eva Sheerlinck, CEO

    Chartered Accountants Australia and New Zealand (CAANZ)

    Tony Negline, Head of Superannuation

    Financial Services Council (FSC)

    Jane Macnamara, Policy Manager

    Industry Super Australia (ISA)

    Michael Fisher, Policy Analyst

    Link Group

    Graham Sammells, Chief Operating Officer


    David Knox, Senior Partner, and SISG Co-Chair

    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

    Australian Securities & Investments Commission (ASIC)

    Jane Eccleston, Senior Executive Leader

    Melissa Birks, Senior Specialist

    Australian Taxation Office (ATO)

    James O’Halloran, Deputy Commissioner, Superannuation

    Sarah Kimmorley, Senior Director, Superannuation

    Dawn Martin, Superannuation (Secretariat)


    Robert Jeremenko, Division Head, Retirement Income Policy Division

    Darren Kennedy, Principal Adviser, Retirement Income Policy Division

    Robb Preston, A/g Principal Adviser, Retirement Income Policy Division


    Australian Financial Complaints Authority (AFCA)

    Dr June Smith, Lead Ombudsman Superannuation

    Jess Alcantara, Legal Counsel, Superannuation Team

    Australian Taxation Office (ATO)

    John Shepherd, Assistant Commissioner, Single Touch Payroll

    Ian Colhoun, Director, Single Touch Payroll


    Association of Financial Advisers (AFA)

    Philip Kewin, CEO

    Law Council of Australia

    Michelle Levy, Partner Allens

    Australian Prudential Regulation Authority (APRA)

    Helen Rowell, Deputy Chairman

    Eve Brown, Senior Manager

    Australian Securities & Investments Commission (ASIC)

    Alex Purvis, Senior Manager

      Last modified: 17 Jan 2019QC 57768