POWERED BY MOMENTUM MEDIA
ASFA urges urgent roundtable on TRIS transition
The Government should convene an urgent industry roundtable to deal with the significant problems around transition-to-retirement income streams (TRIS), according to the Association of Superannuation Funds of Australia (ASFA).
ASFA has urged the roundtable as a means of workshopping potential solutions to significant timing and transitional issues around the changes flowing from the May Budget.
ASFA has warned the Government that superannuation funds will need at least 12 months lead time to put in place changes to the TRIS and new transfer balance cap.
It said the measures posed a considerable challenge if they were to be implemented by the proposed 1 July, 2017 commencement date.
The superannuation industry needs, as a minimum, a 12-month lead time from the time that legislative requirements have been finalised to settle the administrative design, determine the information technology specifications, and build and test system changes," the submission said.
It said a shorter period "introduces significant risk and imposes additional, unnecessary cost".
"There are a number of extensive and complex regulatory reforms scheduled for commencement over the coming 12 months, including changes to SuperStream and fee and cost disclosure," the submission said.
"Accordingly, project resourcing capacity is extremely limited and there are finite windows for system releases."
It said funds had indicated there was little likelihood of their being able to meet the commencement date of 1 July 2017 with respect to the changes to TRIS and the transfer balance cap as currently drafted.
"With respect to the changes to TRIS, a number of funds have indicated that it will take them up to 18 to 24 months to build the new tax engine that will be required to implement this measure. The alternative — to close their existing products — would take at least nine months to complete."
Recommended for you
Generation Life has backed new voluntary best practice principles aimed at improving retirement income solutions for Australians, despite opposition from parts of the financial services sector.
Australia’s pension assets pool is set to surpass other key economies, new research from the Super Members Council (SMC) has shown.
The Federal Court has ordered AustralianSuper to pay $27 million for failures to address multiple member accounts.
The country’s fourth-largest fund is targeting the “missing middle” of members with a new digital advice service in partnership with Ignition Advice.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.78 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
30.80 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
28.31 3 y p.a(%)
