02 July 2020
ATO Practical Compliance Guideline PCG 2020/5: Applying the non-arm's length income provisions to 'non arm's length expenditure' – ATO compliance approach for complying superannuation entities (1 June 2020)
The Guideline provides a transitional compliance approach for a complying superannuation entity concerning the application of the amendments to non-arm’s length income (NALI) rules in the Income Tax Assessment Act 1997 (Cth), in respect of the 2019 to 2021 financial years.
The Guideline states that the ATO will not allocate compliance resources to determine whether the NALI provisions apply to a complying superannuation fund for the 2019 to 2021 financial years where the fund incurred certain non-arm's length expenditure of a general nature that has a sufficient nexus to all ordinary and/or statutory income derived by the fund in those respective financial years (for example, non-arm's length expenditure on accounting services).
This transitional compliance approach does not apply where the fund incurred non-arm's length expenditure that is directly related to the fund deriving particular ordinary or statutory income.
ASIC Regulatory Guide 272 Product intervention power (17 June 2020)
The Regulatory Guide provides an overview of ASIC’s product intervention power, under Part 7.9A of the Corporations Act, and sets out:
ASIC frequently asked questions: COVID-19 – Information for superannuation trustees. Frequently asked questions (22 June 2020)
ASIC has updated its COVID-19 frequently asked questions by including the following questions:
“1F. How should trustees communicate with members about the Government’s temporary reduction to the minimum drawdown rates for the 2020-21 financial year?”
“2D. How can I find out about how COVID-19 has affected other ASIC activities?”
ATO updated Successor fund transfer reporting protocol is available (26 June 2020)
The ATO updated its Successor fund transfer (SFT) reporting protocol in order to provide more detailed guidance for funds undertaking an SFT. These updates include:
Superannuation Guarantee (Administration) Amendment (Jobkeeper Payment) Regulations 2020 (3 June 2020)
The Regulations amend the Superannuation Guarantee (Administration) Regulations 2018 (Cth) to exclude the requirement for employers to make superannuation guarantee contributions on JobKeeper payments.
ASIC Corporations (Amendment) Instrument 2020/565 (12 June 2020)
The Instrument amends ASIC Corporations (COVID-19—Advice-related Relief) Instrument 2020/355, which provides certain relief in respect of advice during the COVID-19 pandemic, in order to repeal that relief in November 2020.
Superannuation Supervisory Levy Imposition Amendment Act 2020 (19 June 2020)
The Act amends the Superannuation Supervisory Levy Imposition Act 1998 (Cth) to:
Treasury Laws Amendment (2019 Measures No. 3) Act 2020 (22 June 2020)
The Act has the following effects:
Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 (22 June 2020)
The Act requires all directors to verify their identity in order to be issued a permanent director identification number (DIN) which will act as a unique identifier that traces each director’s professional profile, official positions and corporate relationships over time.
ASIC Corporations, Superannuation and Credit (Amendment) Instrument 2020/99 (26 June 2020)
The Instrument amends the application of the ASIC Corporations and Credit (Internal Dispute Resolution—Transitional) Instrument 2019/965 (Transitional Instrument) to complaints received before 5 October 2021.
On 24 September 2019, ASIC made ASIC Corporations and Credit (Repeal) Instrument 2019/966 (Repeal Instrument) and the Transitional Instrument.
The Repeal Instrument repealed a number of ASIC Class Orders that implemented ASIC’s existing policy in relation to internal dispute resolution for (among others) superannuation fund trustees.
The Transitional Instrument preserved the existing internal dispute resolution policy for a short transitional period, until 30 June 2020, pending the expected finalisation of ASIC’s new internal dispute resolution standards and requirements. The release of ASIC’s new internal dispute resolution standards and requirements was delayed due to the impacts of COVID-19. The new standards and requirements will be publicly released in July 2020 and will apply to complaints received by a financial firm on or after 5 October 2021.
Author: Luke Hooper
The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this newsletter is accurate at the date it is received or that it will continue to be accurate in the future.