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National

SG survives mining tax deal
2 July 2010
The government and large miners have negotiated a breakthrough compromise deal on the mining tax that not only keeps the broad structure of the tax in place but saves most of its benefits, especially the SG uplift. The increase in the SG from 9 to 12 per cent has however been protected, as has most of the infrastructure spending initiatives contained in the original tax proposal.   More...

SMSFs in ATO’s early release spotlight
2 July 2010
Illegal early release superannuation scams remain a problem, with the Australian Taxation Office (ATO) revealing it has finalised 317 audits of such schemes in the past financial year, raising an additional $839,000 in income tax assessments.   More...

Cooper Review
5 July 2010
The Cooper Report has been released and will be addressed shortly in a separate Update.

Government extends drawdown relief for account-based pensions
1 June 2010
Drawdown relief for account-based superannuation pensions has been extended for the 2010-11 financial year. Retirees will be afforded a 50 per cent reduction in the minimum drawdown amounts for account-based, allocated and market-linked pensions for the 2010-11 financial year.   More...

APRA recommends improved investments classification
30 June 2010
The Australian Prudential Regulation Authority has recommended superannuation trustees adopt a suitable classification process to ensure members can distinguish between the characteristics of each investment strategy on offer.   More...

IFSA rebranded as Financial Services Council
25 June 2010
The Investment & Financial Services Association is changing its name to the Financial Services Council. The peak body represents retail and wholesale funds management institutions spanning superannuation, life insurance and investment, but wants a mandate to speak out on more issues, from tax reform to government macroeconomic policy, population and national infrastructure.   More...

Government welcomes short disclosure documents
24 June 2010
(Short form PDS, for amending regulations see Legislation section of this Update, see separate Update on short form PDS)
The Government has welcomed regulations prescribing short and simple product disclosure documents for margin loans, superannuation and simple managed investment schemes. Bowen said the shorter product disclosure documents would make it more likely that investors would read the information and make better investment decisions.   More...

ATO quiet on controversial deduction
24 June 2010
After examining a Macquarie Bank-structured finance product for the best part of a year, the Australian Taxation Office has made no ruling on the most controversial aspect of the structure. A tax ruling released yesterday about the Macquarie Flexi 100 product found certain investors who took the full risk in financing their investments in the product could receive a 100 per cent tax deduction on their interest bill.   More...

Austrade: Australian reforms to benefit Managed Investment Trusts
23 June 2010
Amendments to the definition of Managed Investment Trusts will widen the scope of trusts so that investors can benefit from taxation concessions through the capital account and withholding tax arrangements. Last month, the Government announced a new $120 million tax system for Managed Investment Trusts which included significant reductions in MIT withholding tax rates, from 30 per cent to 7.5 per cent by 2010-11.   More...

Speech: How well is the Australian financial system meeting community needs?
30 June 2010
John Trowbridge speech to the International Institute of Actuaries of Australia 5th Financial Services Forum in Sydney on Friday 14 May has been published on the APRA website.   More...

Practice Notes

ASIC amends Class Order [CO 08/1] and its policy regarding group purchasing bodies
ASIC today announced that Regulatory Guide 195 Group purchasing bodies for insurance and risk products (RG 195) has been amended to clarify when ASIC may grant relief from the Australian financial services licensing and disclosure regime and Ch 5C of the Corporations Act 2001 for some group purchasing bodies and to also give additional guidance on how the conditions for relief operate. The changes are set out in Class Order [CO 10/177], which amends Class Order [CO 08/1] Group purchasing bodies.   More...

Good practice guidance for RSE licensees - Letter to Trustees
29 June 2010
APRA has released good practice guidance for RSE licensees on the labelling of investment options offered by superannuation funds.   More...

Australian consumer law unfair contract terms
From 1 July, 2010, ASIC will administer new law to deal with unfair terms in consumer contracts for financial products and financial services.   More...

New National Consumer Credit Laws
The Commonwealth Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen, and Victorian Minister for Consumer Affairs, Tony Robinson, launched the National Consumer Credit Code, to improve consumer protection in credit and loan transactions, make financial institutions more responsible and to reduce red-tape for lenders and brokers. The national credit reform package is effective from 1 July 2010 replacing the State-and Territory-based credit laws www.treasury.gov.au/consumercredit or www.asic.gov.au/credit

Federal Court Changes to filing and other fees
The Attorney-General’s Department has provided details of the filing and other fees that will apply to proceedings in the Federal Court from 1 July 2010.   More…

ASIC Fee changes effective 1 July 2010
March quarter CPI figures, released on 28 April 2010 have resulted in an increase to fees chargeable under the Corporations (Fees) Act 2001 and Corporations (Review Fees) Act 2003.   More...

APRA Superannuation Form
The Approved Audit Report Form for reporting periods commencing on or after 1 July 2009 has been released. The Audit Report under SIS Act (pdf version with Notes) for reporting periods commencing on or after 1 July 2009. 

ASIC starts reporting of short positions
22 June 2010
ASIC has started daily reporting of aggregated short positions. In these reports, short sellers disclose to ASIC the size of their overall short positions in specified listed financial products. More...

Legislation

Commonwealth

Acts
International Monetary Agreements Amendment Act (No. 1) 2010 Act
Number: No. 58, 2010|
2 July 2010
An Act to amend the International Monetary Agreements Act 1947, and for related purposes.   More...

Legislative Instruments
Superannuation Supervisory Levy Imposition Determination 2010
Legislative Instrument - F2010L01905
2 July 2010
This Determination relates to a levy imposed by the Superannuation Levy Imposition Act 1998 on superannuation entitities.   More...

Superannuation Industry (Supervision) Amendment Regulations 2010 (No. 2)
Legislative Instrument - F2010L01814 Number: SLI 2010 No. 187
30 June 2010
These Regulations amend the Superannuation Industry (Supervision) Regulations 1994 to include Farm Family Support Scheme payments as eligible income support payments for the purpose of early release of superannuation on severe financial hardship grounds.   More...

National Consumer Credit Protection Legislation Amendment Regulations 2010 (No. 1)
Number: SLI 2010 No. 185
30 June 2010
These Regulations amend the National Consumer Credit Protection Regulations 2010 and the National Consumer Credit Protection (Transitional and Consequential Provisions) Regulations 2010 and relates to the transition from the current state-based regulatory framework for consumer credit to the national consumer credit protection regime.   More...

Financial Management and Accountability Legislation Amendment Regulations 2010 (No. 1)
Number: SLI 2010 No. 172
30 June 2010
These Regulations amend the Financial Management and Accountability Amendment Regulations 2009 (No. 2) and the Financial Management and Accountability Amendment Regulations 2009 (No. 4) to provide ceasing dates for both regulations.   More...

Financial Management and Accountability Amendment Regulations 2010 (No. 3)
Number: SLI 2010 No. 171
30 June 2010
Brief Description: These Regulations amend the Financial Management and Accountability Regulations 1997 to improve administrative efficiency.   More...

Corporations Amendment Regulations 2010 (No. 5) – Short Form PDS
Number: SLI 2010 No. 135
21 June 2010 (See separate Update on short form PDS)
These Regulations amend the Corporations Regulations 2001 to prescribe the form and contents of short and simplified Product Disclosure Statements for margin loans, superannuation products and simple managed investment schemes. The amending Regulations commenced on 22 June 2010.   More...

Australian Prudential Regulation Authority instrument fixing charges No. 3 of 2010
Legislative Instrument - F2010L01709
23 June 2010
The instrument imposes a charge for certain services provided by APRA relating to the on-going supervision of banks which have adopted the models-based approach under the New Basel Capital Framework (Basel II) for ADIs and to the accreditation of other ADIs which have applied to APRA to utilise that approach to determine their capital adequacy requirements.   More...

Australian Prudential Regulation Authority (confidentiality) determination No. 13 of 2010
Number: No. 13 of 2010
23 June 2010
This Determination specifies information provided by locally-incorporated banks and foreign ADIs under Reporting Standard ARS 320.0.   More...

ASIC Class Order [CO 10/517]
Number: CO 10/517
1 July 2010
This Class Order approves standards and requirements for an internal dispute resolution procedure for unlicensed carried over instrument lenders.   More...

ASIC Class Order [CO 10/177]
Number: CO 10/177
29 June 2010
This Class Order varies the ASIC Class Order [CO 08/1] to make technical amendments.   More...

Cases

Care Provider and Commissioner of Taxation [2010] AATA 475
Taxation –  Superannuation guarantee – section 12(11) of the Superannuation Guarantee (Administration) Act 1992  – Employer and Employee – Work principally of a domestic or private nature – workers not “employees” - no individual superannuation guarantee shortfall - Decision remitted.  The central issue before the Tribunal is whether the superannuation guarantee assessment made by the Commissioner is excessive.   More…

JTMJ and Australian Securities and Investments Commission [2010] AATA 471
Corporations Law – Practice and procedure – confidentiality order made pending hearing of application to review banning order – decision varied but banning order remained in place for shorter period - whether confidentiality order should be revoked or varied – relevance of Privacy Principles – confidentiality order varied - applicant be prohibited from providing a financial service for a period of ten years – decision set aside on appeal.   More…

Disclaimer

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.

Disclaimer

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.