Sean Fannin, GBST’s Technical Legislation Consultant reviews the latest legislation that could affect wealth management administration platforms.
On 9 August 2022, The Treasury Laws Amendment (2022 Measures No. 1) Bill 2022 became law. This Act makes amendments rectifying the unintended consequences of previous amendments.
The original amendments allow for a partial commutation of excess transfer balance amounts via commutation authorities issued by the Australian Taxation Office (ATO). These amendments resulted in certain income streams losing their asset–test exempt status for the social security means tests.
The 9 August 2022 amendments means that the asset–test exempt status for the social security means tests is maintained and is backdated to apply from 5 April 2022.
Therefore, for a superannuation fund trustee with these financial products, it may need to update its back-office technology systems so the ATO commutation authority can be exercised without the income stream losing its asset–test exempt status. Now would be a great time to speak with vendors about this. Legislative specialists should be able to discuss the changes required for platforms, and how they are implementing those changes to ensure systems remain compliant.
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Posted in: Legislation, Treasury, Wealth Management Administration
