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  • Impact on funds due to recent law changes

    On 1 March 2019 Treasury Laws Amendment (2018 Measures No. 4) Bill 2018 passed into law. This means a number of changes for funds.

    • We can now grant a grace period to correct false and misleading statements made under event-based reporting without penalty. This grace period enables funds to assure data and payments from employers, and make corrections.
      • Notice may be given to vary the length of this grace period between different funds (this decision is reviewable). After the grace period has expired, any false or misleading statement may be subject to penalties.
      • This grace period does not change the existing obligation to inform us of a material change or omission in any information provided within 30 days of becoming aware of the change or omission.
       
    • Changes to lost member reporting – CRT Alert 016/2019 outlines how to report lost members now that the biannual requirement to lodge a lost members statement has been removed.

    The following changes apply from 1 July 2017.

    • Following the death of a member, their reversionary transition to retirement income stream (TRIS) automatically transfers to the reversionary beneficiary, irrespective of whether the beneficiary has satisfied a condition of release. This clarification avoids the income stream having to be commuted and a new income stream started.
    • Removal of the unintended double-taxation of deferred annuity income products in retirement.

    While not a direct impact for fund reporting, the Act has also extended Single Touch Payroll (STP) reporting to small business. Currently those employers with 20 or more employees are required to report payroll data and superannuation information each pay event.

    The extension of STP reporting to small business:

    • means employers with 19 or less employees will be required to commence reporting from 1 July 2019 
    • will provide more real time payroll and superannuation data for employees, helping ensure the correct super guarantee obligations are met.

    Next steps:

    • Incorporate these changes in fund procedures and staff training material.
    • Email Super Consultation if you have any questions.

    See also:

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      Last modified: 22 Mar 2019QC 58356