Project update
Outstanding issues arising from the April workshop were discussed including:
- The need for timely and clear guidance on fair and reasonable attribution methods. The Australian Taxation Office will share draft guidance with the group for targeted feedback before publishing draft advice and guidance for public consultation.
- The impact of correcting minor errors or changes in previous Division 296 information reported. We clarified that superannuation providers are required to correct previously reported information where there is a material change or omission, and penalties may apply for failing to do so. As Division 296 earnings amounts are used to calculate an individual's tax liability, they would likely be regarded as material information.
- Planned support for funds responding to requests for information, including a 28-calendar-day response period and an extension of time process.
Out-of-session meetings will be held during September and October to discuss specific topics, including deferred debt and release authority processes.
Public advice and guidance
A targeted consultation process will be undertaken with group members ahead of the general public release of 4 draft Division 296 public advice and guidance products starting 31 August. Consultation will be conducted in stages, commencing with the 2 total super balance products, to provide stakeholders with an opportunity to provide feedback before publication.
Regulations
The group reviewed a range of questions on the better targeted super concessions regulations, including:
- transitional arrangements
- reporting requirements
- deceased members
- family law split reporting
- defined benefit interests
- capital gains tax cost base matters.