Welcome to the latest issue of the KHQ Super Alert. There were a handful of smaller news items this week including APRA’s release of a service provider template for the purpose of CPS 230, and a new version of SPS 114 released which is more aligned with CPS 230. The ATO also published its data in relation to the early release of superannuation applications received in the past year.

Treasury – Annual report

On 17 October 2024, Treasury published its annual report for 2023-24. In relation to Treasury’s superannuation-related work during 2023–24, it noted that it:

• ‘continued to progress work on the Government’s commitment to increase frequency of payment for employees’ superannuation guarantee entitlements and to reduce tax concessions on superannuation balances exceeding $3 million’; and
• ‘consulted on how the superannuation system can best provide the security and income Australians need as they live longer and healthier lives in retirement’.

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APRA – Amended SPS 114 registered

On 17 October 2024, an amended version of Prudential Standard SPS 114 Operational Risk Financial Requirement was registered on the Federal Register of Legislation. As referred to in our Super Alert of 23 February 2024, APRA had proposed to amend SPS 114 to make clarifying changes and ‘introduce a clear and direct relationship with CPS 230’. These amendments will commence on 1 July 2025 when CPS 230 also takes effect.

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APRA – Material service provider template released

On 17 October 2024, APRA announced that it has released a ‘material service provider register template’. Prudential Standard CPS 230 Operational Risk Management comes into effect for superannuation trustees on 1 July 2025. Paragraph 51 of CPS 230 requires each APRA-regulated entity to annually submit to APRA its register of material service providers. This template has been provided for that purpose.

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ASIC – Changes to executive leadership team

On 17 October 2024, ASIC announced that it has made two appointments to its executive leadership team. The current deputy CEO of Regulation at AUSTRAC, Peter Soros, will join ASIC as the Executive Director Regulation and Supervision. Meanwhile, Chris Savundra has been announced as the new Executive Director Enforcement and Compliance (promoted from ASIC General Counsel and Executive Director Legal Services).

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APRA – Annual report

On 16 October 2024, APRA published its annual report for 2023-24. In relation to superannuation, the report summarises the areas that APRA focused on during the year, including:

• ‘driving trustees to improve outcomes for their members’;
• ‘rectifying sub-standard practices across the sector through robust supervision, strengthening of prudential standards and reinforcing minimum expectations’;
• engaging with trustees ‘regarding the adequacy of their valuation policies’ in relation to unlisted assets; and
• investigating ‘how trustees’ liquidity management practices responded to stress scenarios’.

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ATO – Early release of superannuation data published

On 15 October 2024, the ATO released its latest data in relation to the number of applications that were made and approved for the compassionate release of superannuation. An additional 15,000 applications were made in the 2023/24 financial year compared to the 2022/23 financial year. Funds were requested for matters such as medical treatment, to accommodate a disability, funeral expenses or to prevent foreclosure of a home.

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ATO – MATS reporting reminder

On 14 October 2024, the ATO issued a reminder to all APRA-regulated entities that ’30 June 2024 account balance[s]’ need to be reported to the ATO by 31 October 2024. The matters to be reported include ‘any applicable phase values, notional taxed contributions, and defined benefit contributions’. Any errors in the data reported to ATO need to be corrected within 30 days of the trustee becoming aware of the error.

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