Financial Sector (Collection of Data) (Reporting Standard) determination No. 134 of 2023
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Financial Sector (Collection of Data) Act 2001, sections 13 and 15
Acts Interpretation Act 1901, section 33
Under subsection 13(1) of the Financial Sector (Collection of Data) Act 2001 (the Act), APRA has the power to determine Reporting Standards, in writing, with which financial sector entities must comply. Such standards relate to reporting financial or accounting data and other information regarding the business or activities of the entities. Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to issue an instrument the power shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to revoke any such instrument.
On 29 November 2023, APRA made the Financial Sector (Collection of Data) (revocation) determination No. 134 of 2023 which revokes Reporting Standard SRS 410.0 Accrued Default Amounts (SRS 410.0) made under Financial Sector (Collection of Data) (Reporting Standard) determination No. 10 of 2015 (the old Reporting Standard).
The instrument commences at the start of the day after it is registered on the Federal Register of Legislation.
1. Background
The old Reporting Standard required registrable superannuation entities (RSEs) to provide information to APRA relating to Accrued Default Amounts (ADAs) which was relevant while the industry transitioned to MySuper products between 2014 and 2017. The old Reporting Standard is no longer required for collection.
2. Purpose and operation of the Legislative Instrument
The purpose of the Legislative Instrument is to revoke the old Reporting Standard. The information collected under the old Reporting Standard was transitional in nature and is no longer required for collection.
Operation of the instrument
The first paragraph of the instrument identifies the source of the power that is being exercised by the delegate and is the operative paragraph that revokes the old reporting standard.
The second paragraph provides for the instrument to commence on the day after it is registered on the Federal Register of Legislative Instruments. This is the day that would apply under subsection 12(1) of the Legislation Act 2003 (Cth), if no commencement provision were made.
3. Documents incorporated by reference
Under paragraph 14(1)(a) of the Legislation Act 2003, the Reporting Standard revocation determination incorporates parts of the Legislation Act 2003 (Cth) by reference as in force from time to time. This document can be freely obtained at www.legislation.gov.au.
4. Consultation
SRS 410.0 collected data of a transitional nature. Reporting entities have been informed that SRS 410.0 is no longer required for collection.
5. Regulation Impact Statement
A Regulation Impact Statement was prepared and lodged in connection with the wider Superannuation Data Transformation project which contemplates the revocation of Reporting Standards. SRS 410.0 is not specifically mentioned in the RIS as it has not been replaced by a new Reporting Standard, APRA no longer requires this information to be collected.
6. Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
A Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is provided at Attachment A to this Explanatory Statement.
7. Legislative instrument – disallowance and sunsetting
The instrument is a legislative instrument for the purposes of the Legislation Act 2003 (Legislation Act). In accordance with section 44 of the Legislation Act and item 3 in paragraphs 9 and item 6 in paragraph 11 of the Legislation (Exemptions and Other Matters) Regulation 2015 (Legislation Regulation), the instrument is not subject to disallowance or sunsetting under the Legislation Act on the grounds that the instrument relates to superannuation. The instrument is a determination which revokes a Reporting Standard. The Explanatory Statement to the Legislation Regulation states:
“Item 3 is an instrument (other than regulations) relating to superannuation. This item preserves the exemption in item 39 of the table in subsection 44(2) of the Legislative Instruments Act. This exemption exists because exposure of superannuation instruments to disallowance would cause commercial uncertainty, as well as uncertainty for superannuation fund members and providers. These instruments are intended to have enduring operation and are not suitable for the disallowance process.”
“Item 6 is an instrument (other than a regulation) relating to superannuation. This item preserves the exemption in item 42 of the table in subsection 54(2) of the Legislative Instruments Act. Sunsetting of instruments relating to superannuation could cause commercial uncertainty, as well as uncertainty for superannuation fund members and providers. These instruments are intended to have enduring operation and it would not be appropriate to subject them to sunsetting.”
As detailed above, extensive consultation with industry stakeholders occurred prior to the finalisation of the instrument. APRA conducts regular reviews on its Reporting Standards, which range from post-implementation reviews to targeted reviews of specific standards or aspects of standards.
ATTACHMENT A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Financial Sector (Collection of Data) (Reporting Standard) determination No. 134 of 2023
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instrument listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (HRPS Act).
Overview of the Legislative Instrument
The purpose of the Legislative Instrument is to revoke the following instrument:
(1) Reporting Standard SRS 410.0 Accrued Default Amounts made under Financial Sector (Collection of Data) (Reporting Standard) determination No. 10 of 2015
Human rights implications
APRA has assessed the Legislative Instrument and is of the view that it does not engage any of the applicable rights or freedoms recognised or declared in the international instruments listed in section 3 of the HRPS Act. Accordingly, in APRA's assessment, the Legislative Instrument is compatible with human rights.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.