Don’t blame super funds for downsizer breaches says ASFA

Superannuation funds should not be held accountable for member breaches resulting from the Government’s home downsizer Budget measure, according to the Association of Superannuation Funds of Australia (ASFA).

ASFA has used its submission to the Treasury responding to the legislative proposals intended to underpin the Budget measures to state that its members had “expressed a strong concern” about elements of the legislation which would see super funds held responsible for breaches by members utilising the downsizing regime.

The draft legislation states that it is “expected that if an APRA-regulated superannuation provider is aware that a downsizer contribution that it received does not meet the definition of a downsizer contribution in section 292-102, it must report this as a serious breach on its breach register”.

Related News:

The ASFA submission stated: “Superannuation providers feel strongly that – as this would not represent a breach on the part of the fund itself, but instead would represent a breach of the regulatory requirements by the member - funds should not be liable to record this as a breach”.

The submission pointed out that a superannuation fund did not have access to the necessary information to determine the eligibility of the contribution and, accordingly, was only in a position to accept a contribution on the basis of a member’s self-assessment/declaration.

“Provided the member has used the approved form the fund should not be held accountable/responsible for any error, omission or deception on the part of the member and it should not be considered to be a breach by the fund,” the ASFA submission said.

Related Content

MLC Life picks up industry fund mandate

MLC Life has picked up a key industry fund mandate from Vision Super, as it rolls out its growth strategy.The superannuation fund announced that MLC L...more

28 super funds under APRA scrutiny

The Australian Prudential Regulation Authority (APRA) has confirmed there are 28 superannuation funds which it is subjecting to heightened scrutiny on...more

DAC launches ‘goals based’ super options

Dynamic Asset Consulting (DAC) has launched ‘goals based’ retail superannuation portfolios, in a move that they say is an Australian first.The spe...more



Add new comment