CHOICE OF SUPERANNUATION fund compliance efforts will focus on assistance and education for the next year, according to the Australian Taxation Office (ATO) and the Australian Securities and Investments Commission (ASIC)
CHOICE OF SUPERANNUATION fund compliance efforts will focus on assistance and education for the next year, according to the Australian Taxation Office (ATO) and the Australian Securities and Investments Commission (ASIC).
They have joined forces with the Australian Prudential Regulatory Authority (APRA), the Financial Planning Association (FPA) and the Investment & Financial Services Association (IFSA) to ensure a smooth transition to the new super regime.
Taking a supportive stance, the ATO has released Choice of Superannuation Fund: Meeting your obligations, a booklet for employers, super trustees and financial advisers.
“Where employers make a genuine effort to comply, the Tax Office and ASIC will work with them to rectify any issues,” said Michael Carmody, tax commissioner.
“However, a firm approach will be taken with those who set out to deliberately avoid meeting their obligations.”
Throughout July employers will have “to identify eligible employees for super choice, provide them with a standard choice form and arrange for their super guarantee to be paid to the chosen fund – either the employee’s fund of choice or the employer’s fund if the employee waives their right to choose in the first instance,” he said.
Meanwhile, ASIC has been working closely with the financial services industry to ensure it understands its obligations and acts responsibly.
“We expect super funds and financial advisers to be ready to comply with their obligations so that they operate in the best interests of their members and clients,” said Jeffrey Lucy, ASIC chairman.
ASIC has issued a guide for advisers to help them comply with the Corporations Act when they give personal advice about switching super funds.
ASIC has also prepared the Super Choices consumer booklet with the ATO and Treasury, and developed the www.superchoice.gov.au website.
ASIC will be tolerant with those genuinely trying to do the right thing; however, Lucy said, it will take a tougher approach where breaches are deliberate, relate to long-standing legal obligations or could cause detriment to consumers.
The breathing space won’t last forever, of course, and the ATO’s compliance approach is expected to harden from 1 July 2006, with non-compliance being penalised in line with normal penalty guidelines.
