On Mar. 27, AST PRL issued bill re financial outcomes, other measures.
AST PRL introduced Treasury laws amendment (delivering better financial outcomes and other measures) bill 2024, to amend law re super, tax, firms, financial services.
In addition, AST PRL published an explanatory memorandum regarding the same.
Follows AST GVT Dec. 2023 unveiled its financial advice reform package, see #193577.
Delivering Better Financial Outcomes
Schedule 1 makes various amendments to the ASTCA, SISA 1993 (AST) and other acts in order to increase accessibility as well as affordability of personal financial advice.
It delivers tranche 1 of the AST GVT's Delivering better financial outcomes package, including initial response to Quality of advice review (QoA review), see #162617.
Tranche 1 includes amendments that will provide legal certainty for the payment of financial adviser fees from a member’s superannuation fund account and remove red tape that currently adds to the cost of financial advice with no benefit to consumers.
This measure will support increased access to affordable financial advice for millions of Australians; will particularly benefit 5mn Australians at or approaching and planning for their retirement that need assistance navigating the pension and super systems.
Schedule 3 to bill makes amendments in relation to capital allowances for mining; quarrying or prospecting rights; clarifying the meaning of exploration for petroleum.
Specifically, in order to streamline process under which amendments to the ADB agreement, EBRD agreement, International Bank for Reconstruction and Development (IBRD) agreement, IMF agreement are incorporated into domestic legislation.
Amendments incorporate the agreements into legislation by reference; this will ensure any future amendments to the agreements are automatically incorporated, including amendments currently being progressed to the EBRD agreement and IBRD agreement.
Miscellaneous, Technical Amendments, Other
Schedule 5 to the bill makes a number of miscellaneous and technical amendments to Treasury portfolio legislation; the amendments demonstrate the AST GVT's ongoing commitment to the care as well as maintenance of Treasury portfolio legislation.
Schedule 6 to the bill amends Income tax assessment act 1997 (also known as the ITAA 1997) to make changes to the location tax offset and producer tax offset.
Next Steps
The bill, currently at second reading stage, will follow the required legislative process.
Committee Inquiry and Report
On the same day, AST PRL said Senate referred the provisions of the Treasury laws amendment (delivering better financial outcomes and other measures) bill 2024 to the Senate Economics Legislation Committee for inquiry and report by Jun. 20, 2024.
Committee invites opinions and proposals in writing (submissions) to be submitted.
In Jun. 2024, AST GVT proposed regs about better financial outcomes, see #215078.
Jun. 2024 AST PRL Committee Report
On Jun. 21, 2024, AST PRL tabled report which is titled The Senate Economics Legislation Committee Treasury laws amendment (delivering better financial outcomes and other measures) bill 2024 [provisions], regarding the inquiry discussed above.
Committee only made one recommendation (rec), that the bill above be passed.
Report also includes Coalition Senators' dissenting report which made one rec.
Recommended part 1 schedule 1 of bill be removed and provisions re-consulted on by AST GVT ahead of tranche 2 of AST GVT's legislation implementing QoA review recs.
In Jul. 2024, AST GVT issued instrument to amend several instruments, see #218557.
Section 2 provides sections 1-3 and anything in act not elsewhere covered by this table commenced on Jul. 9, 2024, being the day the act received the Royal Assent.
Schedule 1, part 1, division 1, and schedule 1, parts 2 and 3, all commenced Jul. 10, 2024; schedule 1, part 4, schedule 4, schedule 5, part 1 all commenced Jul. 10, 2024.
Schedule 1, part 1, division 2 commence on Oct. 1, 2024; and schedules 2 and 3, schedule 5, part 1, along with schedule 6, all commence on Oct. 1, 2024 as well.
Schedule 1, part 5 (regarding insurance commissions) commences on Jul. 9, 2025.
Schedule 5, part 3 re other amendments - duty of superannuation trustees to notify of significant adverse events - commences on a single day to be fixed by Proclamation; however, if they do not commence by Jan. 9, 2025, they commence Jan. 10, 2025.
The act, as registered, reflects amendments made by Senate on Jul. 4, including to s99FA regarding cost of financial product advice, fees charged to member concerned.
On the same day, AST ASIC acknowledged that the act received the Royal Assent; and it said industry should be aware of the reforms, i.e. transitional periods if applicable, and have, or be in the process of updating, systems and processes as required.
AST ASIC explained that it has also amended condition 52 of Pro forma 209 Australian financial services licence conditions (PF 209) to ensure tech neutrality, #104311.
Namely, in financial services guide record keeping requirements; PF 209 changes will apply only to entities applying for Australian financial services licence going forward; over coming months, AST ASIC will update regulatory guidance impacted by the act.
Regulators
AST ASIC; AST GVT; AST PRL
Entity Types
CNSM; Corp; IA; Ins; Pension
Reference
Act 67/2024, RF C2024A00067, PR 7/11/2024; Info, Rp 2024-001853, 6/21/2024; Bill, Info 3/27/2024; Citation: Income tax assessment act 1936; International Monetary Agreements act; Asian Development Bank act 1966; Petroleum resource rent tax assessment act; European Bank for Reconstruction and Development act 1990; Income tax assessment act 1997; SISA 1993 (AST); ASTCA; Treasury laws amendment (delivering better financial outcomes and other measures) act 2024;
