ASIC Class Order [CO 13/1420]

Overview

ASIC Class Order [CO 13/1420], enacted under the Corporations Act 2001, provides interim relief from the requirement for trustees of regulated superannuation funds (excluding self-managed funds) to separately report low income superannuation contributions in members’ periodic statements. This Class Order was introduced to address the administrative burden on trustees in providing detailed reports while still ensuring members have access to necessary information regarding their contributions. The order was prepared by the Australian Securities and Investments Commission (ASIC) and came into effect on 15 November 2013. The policy objective is to balance the need for transparency in superannuation reporting with the practicality of administrative requirements, ensuring that trustees can provide sufficient information without excessive detail in periodic statements. Trustees must comply with specific conditions, such as including total contribution amounts and offering to disclose separate contribution details upon member request. This transitional relief applies to reporting periods ending on or before 30 June 2015.

Scope and Application

ASIC Class Order [CO 13/1420] applies to trustees of regulated superannuation funds, excluding self-managed superannuation funds, by providing them with an exemption from the requirement to separately report low income superannuation contributions in members' periodic statements as mandated by section 1017D of the Corporations Act 2001. This exemption is applicable to reporting periods ending on or before 30 June 2015, and is subject to certain conditions. Specifically, the trustee must include either the total amount of Government co-contributions and low income superannuation contributions in the periodic statement and refer to it as a "Government contribution," or alternatively, refer to it as a "Co-contribution" or "Government co-contribution." Additionally, the trustee must provide a clear statement and offer to disclose the separate amounts of these contributions upon member request, along with a telephone number for this purpose. This class order is a Commonwealth instrument, operating under the authority granted by the Corporations Act 2001 and is further defined and regulated by the Corporations Regulations 2001. The order has been amended through subsequent class orders, as noted in the legislative instrument.

Key Provisions

The ASIC Class Order [CO 13/1420] primarily provides an exemption from the requirement for trustees of regulated superannuation funds (excluding self-managed funds) to separately report low income superannuation contributions in members' periodic statements. This exemption is provided under section 1020F(1) of the Corporations Act 2001 (section 1). The instrument, titled ASIC Class Order [CO 13/1420], came into effect on the day it was registered under the Legislative Instruments Act 2003 (section 3). The exemption applies to periodic statements for reporting periods ending on or before 30 June 2015 (section 6). The terms "Government co-contribution," "low income superannuation contribution," "regulated superannuation fund," and "self-managed superannuation fund" are defined as per the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 and the Superannuation Industry (Supervision) Act 1993 (section 7). Trustees of regulated superannuation funds are obligated to either include the total amounts of Government co-contributions and low income superannuation contributions in their periodic statements and label it as a "Government contribution" or a "Co-contribution" or "Government co-contribution," and provide the total amount of these contributions (section 5(a)(i)). Additionally, they must include a statement clarifying that the total amount is the sum of the Government co-contributions and low income superannuation contributions, and another statement indicating that they will provide separate details upon request by a member. They must also include a telephone number that members can use to make such requests free of charge or at the cost of a local call (section 5(a)(ii)). Alternatively, trustees may refer to the total amount as either a "Co-contribution" or "Government co-contribution" and include the necessary statements and telephone number in a prominent position and style (section 5(b)). There are no specific offences, penalties, or civil/criminal consequences mentioned for breaches of this Class Order. However, the overarching framework of the Corporations Act 2001 provides for potential penalties for non-compliance with legislative requirements. Trustees who fail to comply with the conditions set out in the Class Order may face sanctions under the Corporations Act, including fines and imprisonment, depending on the severity of the breach.