In December’s Spotlight we announced the Australian Federal Government passed legislation on 24 November 2016 to implement the May 2016 budgetary superannuation changes. Most of these changes will come into effect 1 July 2017, creating a short timeframe for their successful implementation.
These changes are the most significant changes to superannuation in almost a decade, therefore Mercer has assembled a dedicated project team to ensure a smooth transition.
The team has been working hard behind the scenes to analyse the changes and have completed a detailing of all known requirements from a broader operational perspective. As there are many changes with varying degrees of complexity, we are at different stages of completeness depending on the priority we have assigned to them. We will continue to advise clients on our progress.
Mercer is a member of the ATO Superannuation Administration Stakeholders Group. The Group has been meeting regularly since November and its purpose is to discuss these significant changes and the impact they will have on the administrative processes and reporting. At a wider level, Mercer’s Dr David Knox is providing ongoing recommendations to industry through his role on the Superannuation Industry Stewardship Group.
Mercer is also a member of the ATO’s Superannuation Measures Communication Committee. During the last month it has created information for members and their advisers about the new measures and how they will be implemented. The ATO is keen to provide a good client and member-experience that complements what funds like the Mercer Super Trust are already planning to communicate. Mercer Super Trust will provide broad information through Mercer magazine and the website, concept-specific campaigns to members likely to be affected by certain changes, and Significant Event Notices for some member groups that require them. The ATO will also contact targeted audiences during the next three months and provide information online with overviews, decision tables and calculators. Part of this content is a Q&A document, containing 200 responses to common queries that may help you and your members understand the detail of these changes.
We will continue to update clients on this important change implementation through next month’s edition of Mercer Spotlight.