Parliament – Climate-related financial disclosure Bill passed

On 22 August 2024, the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Cth) was passed by both Houses of Parliament. As reported in our Super Alert of 5 April 2024, this legislation introduces a requirement for ‘entities that lodge financial reports under Chapter 2M of the Corporations Act…to make disclosures relating to climate in accordance with relevant sustainability standards made by the [Australian Accounting Standards Board]’. The changes only apply to superannuation trustees ‘where the value of assets at the end of the financial year (including the entities it controls) is equal to or greater than $5 billion’ (referred to as Group 2 entities).

In an associated media release, the Treasurer, the Hon Dr Jim Chalmers MP, explained that these ‘reforms provide investors and companies the clarity and certainty they need to support the net zero transformation and further strengthen Australia’s reputation as an attractive destination for international capital’.

Parliament – Bill to include superannuation on paid parental leave introduced

On 22 August 2024, the Paid Parental Leave Amendment (Adding Superannuation for a More Secure Retirement) Bill 2024 was introduced in the House of Representatives. The Bill seeks to add superannuation contributions to payments received via the Commonwealth-funded Paid Parental Leave Scheme on or after 1 July 2025.

According to the Explanatory Memorandum, these contributions will be made up of two components:

• ‘[a] core component, which will be calculated by multiplying the total amount of [Parental Leave Pay] paid for the person in an income year by the superannuation guarantee rate for that income year’; and
• ‘[a] nominal interest component to address the foregone returns resulting from the annual payment of the [Paid Parental Leave Superannuation Contribution]’.

It is proposed that payments will be calculated and disbursed by the ATO annually; individuals will not need to make a claim to access the contributions.

ASIC – Corporate plan released for the financial year 

On 22 August 2024, ASIC released its corporate plan for the 2024-25 financial year, outlining its objectives aimed at strengthening Australia’s financial markets for the next year. According to the plan, the priorities and key activities for the upcoming financial year include:

• ‘acting against misconduct resulting in the inappropriate erosion of superannuation’ (eg, cold-calling to switch funds);
• ‘acting against member services failures in the superannuation sector’ (such as ‘harms arising from complaints handling and claims handling’); and
• ‘driving industry progress towards improving retirement outcomes’.

In an accompanying media release, ASIC Chair Joe Longo said ‘[w]hile the overarching themes of our existing strategic priorities remain consistent, our updated Corporate Plan demonstrate [sic] how we are evolving and adapting to the changing needs of our operating environment’.

ASIC – Takedown action on scam websites 

On 19 August 2024, ASIC issued a media release announcing that since July 2023, more than 7,300 scam-related websites have been taken down. These websites mainly related to phishing and investment scams, including fake investment platforms, phishing hyperlinks and cryptocurrency investment scams.

Despite these takedown measures, ASIC has reaffirmed the importance of remaining vigilant against these types of scams. Deputy Chair Sarah Court said that ‘[s]cammers will continue to adapt and find new ways to lure consumers, and ASIC remains proactive in detecting and disrupting investment scams’.

Legislation – Updated tax-related regulations to take effect

On 16 August 2024, the Income Tax Assessment Amendment (Transfer Balance Account Value for Certain Superannuation Income Streams) Regulations 2024 were registered on the Federal Register of Legislation.

According to the Explanatory Statement, the purpose of these new regulations is to ‘prescribe rules for dealing with certain superannuation income streams for the purpose of the transfer balance account provisions in Division 294 of the [Income Tax Assessment Act 1997]’ and that they ‘prescribe a special value for transfer balance account reporting purposes and provide for a transfer balance debit to arise when these superannuation income streams cease and the cessation does not otherwise result in a transfer balance debit’. The superannuation income streams that are impacted are ‘certain non-lifetime permanent incapacity pensions’.

Senate – New inquiry into financial regulatory framework and home ownership

On 14 August 2024, the Senate referred to the Senate Economics References Committee an inquiry into the country’s financial regulatory framework and home ownership. The terms of reference explain that this will be a broad inquiry as to whether the regulatory framework is adequate in prioritising ‘the goal of home ownership for Australians’, with a particular focus on tax matters and the involvement of institutional funds.

Submissions for the inquiry close on 26 September 2024 with the final report being due to the Senate on 5 December 2024.

ATO – Corporate plan released for the financial year

On 13 August 2024, the ATO released its corporate plan for the 2024-25 financial year. In relation to superannuation, the corporate plan outlines that the ATO’s focus includes ‘strengthening debt collection’ (for example superannuation guarantee) and ‘enhancing counter fraud measures’.

The plan also includes performance measures and targets on key areas such as the time taken to pay a Low Income Superannuation Tax Offset contribution.

AFCA – Protecting superannuation accounts from scammers

On 12 August 2024, AFCA published an article highlighting the important measures trustees can take to protect superannuation from scammers. This comes after it was reported that the average loss claimed from scam-related superannuation complaints was ‘$88,736 and ranged as high as $344,000-plus’. The article also lays out practical measures both superannuation trustees and members can adopt to minimise the risk of being targeted.