News and legislation

Recent developments —

July technical roundup

This technical roundup will give you an update on reforms and announcements for the month of June 2021.

Over the past month, in addition to the introduction of the Better Advice Bill, new legislation was passed to extend the bring forward rule for non-concessional contributions, increase the maximum allowable members in a self-managed superannuation fund, and the implementation of Your Future, Your Super measures.

Read more about the latest legislative and regulatory updates.

Learn more

Industry hot topics

Working out a savings plan with a calculator at a desk

Changes to advice fee arrangements

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry identified an issue in ongoing advice fee arrangements, particularly where clients were charged fees for advice that was not provided.

Little black book

Access technical information and expertise in the one place, without having to search the web for industry facts and figures.

Termination of employment: technical tips to help your clients

Mature aged Asian man sitting on sofa with a digial tablet in hand and smiling

FASEA and the Adviser Professional Standards

This article summaries the most recent Adviser Professional Standards set by the Financial Adviser Standards and Ethics Authority (FASEA).

Anti-detriment benefit phase out

As part of the 2017 super reforms the law was amended to completely remove the payment of the anti-detriment benefit from 1 July 2019. Although the anti-detriment benefit is being phased out, it remains available in some circumstances.

Image of phone with little black book screenshot

Big Black Book 2020/21

The most comprehensive reference guide for financial advisers, available now.

Download PDF

Technical news and resources

Latest news

Article	Link
Retirement income covenant Treasury releases superannuation retirement income covenant position paper for consultation.	View article
Registration Relief – Financial Advisers Exam Advisers yet to pass the Financial Adviser exam will all have the option to sit the November exam.	View article
Better Advice Bill Introduced to Parliament Better Advice Bill creates single disciplinary body, new registration system, one-time extension of adviser exam and more.	View article
Your Future Your Super Superannuation reforms designed to address the underperformance of superannuation products, limiting the creation of multiple super accounts and increasing trustee accountability.	View article
SMSF member limit to increase to 6 Member limit to increase to six	View article
Extension of bring forward rule Individuals aged 65 and 66 to be able to make up to three years of non-concessional superannuation contributions under the bring forward rule.	View article
Extension to the temporary reduction super minimum drawdown rates Extension of the reduced super minimum drawdown rate by another year to 30 June 2022 now law.	View article
Termination of employment: technical tips to help your clients When a client’s employment has been terminated, learn about the implications that will impact their financial situation.	View article
Changes to advice fee arrangements The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry identified an issue in ongoing advice fee arrangements, particularly where clients were charged fees for advice that was not provided.	View article
Financial Sector Reform Two Financial Sector Reform Bills have recently been introduced to Parliament to implement recommendations made in the Financial Services Royal Commission Final Report.	View article
Federal Budget 2020: What it means for financial services professionals The Federal Treasurer, the Hon. Josh Frydenberg MP, delivered the 2020 Federal Budget on 6 October 2020.	View article
Economic & fiscal update - Early super access extended On 23 July 2020, the Government released an Economic and Fiscal Update to address the effects of COVID-19 on the Australian economy and provide revised estimates for the budget position for 2019/20 and 2020/21.	View article
Updated Division 7A Calculator and decision tool The ATO has updated its Division 7A calculator and decision tool for the 2019-20 financial year	View article
CRT Alert 040/2019 - Final low income super contribution determinations have issued The ATO have issued a CRT alert regarding low income super contributions (LISC).	View article
Compensation received by super funds from financial instituions and insurance providers The ATO has published a fact sheet outlining the super (eg contribution), income tax and goods and services tax (GST) consequences for super funds receiving compensation payments from financial institutions and insurance providers.	View article
Cuts to deeming rates On 14 July 2019 the Minister for Families and Social Services Senator Anne Ruston announced cuts to the Centrelink deeming rates.	View article
Bill to increase SMSF members A bill has been tabled in Parliament to increase the maximum number of members permitted within a self managed superannuation fund (SMSF) from four to six.	View article

Adviser guides

Article	Link
Non-concessional contribution capacity flowcharts These charts provide a visual tool to assist advisers in determining a client’s non-concessional contribution cap capacity for a specific income year	View article
Contribution cap companion The Contribution Cap Companion is a comprehensive guide to super contributions..	View article
Insuring through super This guide focuses on the tax and benefit access issues to provide key principles or 'rules of thumb' for insurance arrangements.	View article
Superannuation death benefits This chart is a visual tool for advisers regarding the payment and tax treatment of superannuation death benefits.	View article

Articles

Article	Link
Federal Budget 2021: What it means for financial services professionals The Federal Treasurer, the Hon. Josh Frydenberg MP, delivered the 2021 Federal Budget on 11 May 2021.	View article
Year end strategies Technical tips for financial services professionals to help with some of the key year-end planning matters that may need to be considered for clients	View article
Rethinking ongoing professional development In the past, Financial Advisers may have viewed continuing professional development (CPD) as an administrative obligation that needed to be ticked off at the end of each year. However, developments over the past few years challenge that notion.	View article
Federal Budget 2020: What it means for financial services professionals The Federal Treasurer, the Hon. Josh Frydenberg MP, delivered the 2020 Federal Budget on 6 October 2020.	View article
Super contribution options in 2019-20 From a legislative development perspective, the Federal election result on 18 May 2019 has provided a more stable outlook for financial services professionals, at least over the short term.	View article
SMSFs: The importance of being an ASF Being an ‘Australian superannuation fund’ (ASF) is one of the requirements to be considered a ‘complying superannuation fund’. Although this concept is relevant for all funds, it is most likely an issue for self managed superannuation funds (SMSFs).	View article
Main residence tax changes may impact expats Expatriates who own property in Australia that is, or was, their main residence may now be subject to tax when the property is sold. This follows royal assent on 12 December 2019 of legislation to remove the main residence capital gains tax (CGT) exemption for individuals who are foreign residents for Australian tax purposes.	View article
Downsizing: a once-in-a-lifetime 90-day opportunity The measure gives those age 65 and over the opportunity to contribute up to $300,000 as a result of selling a qualifying property without the standard contribution eligibility rules applying.	View article
Maximising FHSSS benefits The maximum value for participants in the First Home Super Saver Scheme (FHSSS) will generally arise from making voluntary concessional contributions (CCs) to their super fund.	View article
Top 10 NCC tips Legislation implementing the reforms not only introduced a number of new concepts that advisers need to be familiar with, but also created added complexity in determining a client’s NCC capacity in an income year.	View article
Anti-detriment benefit phase out The anti-detriment benefit is an increase to the amount of a lump sum benefit payable on death.	View article
Federal Budget 2019: what it means for financial services professionals The Federal Treasurer, the Hon. Josh Frydenberg MP, delivered the 2019 Federal Budget on 2 April 2019.	View article
5 important super estate planning considerations Helping clients with their estate planning needs is a vital aspect of the financial planning process with superannuation being an important component of the plan.	View article
FASEA issues drafts of Adviser Professional Standards On Friday 16 November 2018, the Financial Adviser Standards and Ethics Authority (FASEA) began to release the much-anticipated final draft standards to give effect to the new Adviser Professional Standards Framework.	View article
A fine balance between personal and corporate tax Tighter super contribution criteria, especially for non-concessional contributions, has meant greater focus by financial services professionals on alternative, non-super investment opportunities, including personal investment, corporate structures and investment bonds.	View article
Catching up on concessional contributions Clients with lower superannuation balances may have the opportunity to boost their retirement savings by making additional concessional contributions (CCs) above the standard CC cap.	View article
The CGT sting in the tail when leasing out a room More and more Australians are considering the opportunity of leasing part of their homes to supplement their income. The ‘share economy’ presents easy and flexible access to the short-term rental market through simple-to-use apps such as Airbnb.	View article
Federal Budget 2018: what it means for financial services professionals The Federal Treasurer, the Hon. Scott Morrison MP, delivered his third Federal Budget on 8 May 2018.	View article
Franking matters... but less than before Recently the leader of the Labor party announced a proposal to reverse the Howard-era policy of refunds for excess franking credits. It came as quite a surprise to the market, which moved to discount stocks that carry a premium for franking credits versus those that don’t.	View article
The Aussiegolfa case – substance prevails over form The decision in Aussiegolfa1 was handed down by the Federal Court of Australia on 14 December 2017.	View article
Adviser education pathways and Code of Ethics Legislation was passed by Parliament on 09 February 2017 that aims to raise the education, training and ethical standards of financial advisers who provide personal advice to retail clients.	View article

Technical roundup

Monthly technical roundup	Link
July 2021 In June, in addition to the introduction of the Better Advice Bill, new legislation was passed to extend the bring forward rule for non-concessional contributions, increase the maximum allowable members in a self-managed superannuation fund, and the implementation of Your Future, Your Super measures.	View article
June 2021 In May 2021, in addition to handing down the 2021 Federal Budget, the Government handed down its response to the Final Report of the Royal Commission into Aged Care Quality and Safety, and ASIC has released its findings on the ‘general advice’ label.	View article
May 2021 This month ASIC extended the relief measure which allows financial advisers to provide ROAs rather than SOAs to existing clients who have been impacted by the COVID-19 pandemic. Included is the release of the FSC’s Green Paper on financial advice, which proposes fundamental changes to the regulatory financial advice framework, in the context of rising compliance requirements and cost pressures.	View article
April 2021 This month, ASIC made three legislative instruments relating to the lack of independence disclosure and consent to deduct advice fees, and the final report of the Royal Commission into Aged Care Quality and Safety was released.	View article
March 2021 The Financial Sector Reform (Hayne Royal Commission Response No.2) Bill 2020, received royal assent. Other items of note include the indexation of the concessional and non-concessional contribution caps and the introduction to Parliament of the Treasury Laws Amendment Bill 2021, which will limit the creation of multiple super accounts.	View article
January 2021 The Financial Sector Reform (Hayne Royal Commission Response) Bill 2020 received royal assent. Other items of note include the extension of the Coronavirus Supplement and the indexation of the Transfer Balance Cap, which will apply from 1 July 2021.	View article
November 2020 A large omnibus Bill was introduced to Parliament to implement a range of financial sector reforms recommended by the Royal Commission. The Government also released an exposure draft of various superannuation measures announced in the Federal Budget 2020.	View article
October 2020 The Government handed down the 2020 Federal Budget, driving much of the legislative development during October. A revised draft of the Financial Planners and Adviser Code of Ethics 2019 Guide was also released by FASEA.	View article
September 2020 The Government and Regulators’ response to Coronavirus continued to evolve during the month of September, with a bill to increase the maximum number of SMSF members to six also introduced.	View article
August 2020 The August technical roundup will give you an update on Coronavirus response packages, and a measure relating to superannuation choice.	View article
July 2020 The July technical roundup will give you an update on reforms and announcements for the month of July 2020.	View article
June 2020 The June technical roundup will give you an update on reforms and announcements from the beginning of February through to the end of June 2020.	View article
February 2020 Several exposure drafts were released towards the end of January as part of the Government’s commitment to implement the Hayne recommendations following the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission).	View article
December 2019 Several Bills have been introduced to Parliament in the last month, including provisions in response to recommendations from the Hayne Royal Commission.	View article
November 2019 A number of Acts were assented to and several Bills have been introduced to Parliament in the last month, including provisions to improve the taxation of testamentary trusts as announced in the 2018 Federal Budget.	View article
October 2019 A number of Bills have received Royal Assent and more have been introduced to Parliament in the last month, including the provisions to implement the first home loan deposit scheme announced in the 2019 Federal Budget.	View article
August 2019 The Australian Tax Office (ATO) has published information on the LRBA safe harbor interest rate, how it will handle inactive low-balance super accounts and guidance fact sheets on the super and GST implications of a super fund receiving compensation payments from financial institutions and insurance providers.	View article
July 2019 A number of Bills have received Royal Assent and more have been introduced to Parliament in the last month, including the provisions to implement the first home loan deposit scheme announced in the 2019 Federal Budget.	View article
June 2019 Over the past month, the Australian Tax Office (ATO) has issued a practical compliance guideline that outlines the safe harbour approach and what factors are considered when extending the two-year period for the disposal of a dwelling acquired from a deceased estate.	View article

Fast facts

Fast Facts provide you with bite-size technical information when you need answers fast.

These short, sharp resources cover specifically targeted issues to help you with financial planning related topics, such as superannuation, tax and social security.

Social security & Aged care

Article	Link
Social security treatment of complying pension transfers	View article
Special Disability Trusts	View article
Pension loans scheme	View article

Superannuation

Article	Link
Claiming a tax deduction for personal super contributions	View article
Contribution considerations when approaching age 65	View article
De facto couples access to federal family law regime	View article
Impact of service period on insurance in super	View article
Meaning of child for super and tax purposes	View article
Meaning of dependant for super and tax purposes	View article
Meaning of spouse for super and tax purposes	View article
Reportable Employer Superannuation Contributions	View article
Super contribution acceptance rules	View article
Super death benefits nominations	View article
Transition to retirement pensions	View article

Taxation & investment

Article	Link
An overview of the main residence CGT exemption	View article
Partial main residence CGT exemption	View article
Main residence CGT exemption - dwellings acquired from deceased estates	View article
Employment termination payments	View article
Private Ancillary Funds	View article

Technical news and resources

Recent developments —

July technical roundup