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Super funds face Trans-Tasman cost imposition
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).
Australian Prudential Regulation Authority (APRA)-regulated entities will also have to foot $266 million in APRA levies in 2012-13, up from $127 million in 2011-12.
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