Payday Super
Payday Super – first floated in 2023/24 Federal Budget – received an important update in September 2024. The Federal government have yet to introduce any legislation into the Parliament and are still working on administrative details. However, it has released a Treasury fact sheet providing further details about the proposed Payday Super. The latest update states that employees must receive their contributions in their super account within 7 calendar days of payday, and the introduction of an SG charge if funds aren’t received by the super fund within that time frame.
The announcement also revealed that the ATO’s Small Business Superannuation Clearing House will be retired from 1 July 2026.
Superannuation on Paid Parental Leave
The long-awaited (and widely supported by Industry) Super on Paid Parental Leave (PPL) Bill passed Parliament in September 2024. From 1 July 2025, eligible families can receive up to $3,000 for each birth or adoption. The government funded program will make payments automatically into the super accounts of eligible parents at the end of the financial year in which they received PPL.
More information is available here.
Delivering Better Financial Outcomes
The Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024, received Royal Assent on 9 July 2024. The Act delivers via Schedule 1, tranche 1 of the Quality of Advice review and amends to ensure all members of regulated superannuation funds can automatically maintain their insurance following a successor fund transfer.
This Act also covers:
- How adviser fees are deducted from superannuation
- The timing of consent for ongoing fees
- Flexibility for FSG disclosure
- Simplification of conflicted remuneration definitions
- Client consent for insurance commissions
Tranche 2 of the Quality of Advice review will be developed in the second half of 2024.
Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 received Royal Assent on 17 September 2024. This Bill introduces climate related financial reporting for Australian businesses and will mean reporting requirements may commence from 1 January 2025.
ASIC Corporate Plan
ASIC’s corporate plan for 2024/25 was released in August detailing key activities for the year ahead. Five focus areas affecting superannuation include:
- Improve consumer outcomes
- Address financial system climate change risks
- Better retirement outcomes and member services
- Advance digital and data resilience and safety
- Drive consistency and transparency across markets and products