Super funds will face increased costs as a result of the portability of superannuation between Australia and New Zealand, the Association of Superannuation Funds of Australia (ASFA) has warned.
In a submission to Treasury, ASFA said that although it recognised the economic benefit to individuals of the (proposed) measures, all funds would face increasing costs as a result.
Federal Parliament passed the Trans-Tasman retirement savings portability scheme last November under the Superannuation Legislation Amendment (New Zealand Arrangement) Bill 2012.
ASFA noted three high-level concerns with the regulations, including integrating the requirements into the existing framework rather than creating a new Part.
It said there was a lack of clarity around whether a super fund could prohibit the transfer of a member's benefit to a KiwiSaver Scheme in lieu of rolling it into an Australian-regulated fund.
Trustees also had a complete lack of visibility in terms of the implementation date to which they are working, ASFA said.
ASFA cited a number of other concerns with the regulations, including the complexity of administering the provisions and also of the requirements for a trustee to be "satisfied" with before processing a transfer request.
It said Treasury should reassess the contradiction contained in the reforms regarding additional information, as well as clarify the applicability of data standards to the rollover, when a member benefit contains a New-Zealand sourced component.
ASFA has also expressed concern at the levy being proposed on super funds to fund the Australian Transaction Reports and Analysis Centre (AUSTRAC).
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