Superannuation Industry (Supervision) Amendment (ASIC Fees) Act 2018

Overview

The Superannuation Industry (Supervision) Amendment (ASIC Fees) Act 2018 was enacted by the Parliament of Australia to amend the Superannuation Industry (Supervision) Act 1993, addressing a gap related to the fees imposed by the Australian Securities and Investments Commission (ASIC) on certain applications under the superannuation laws. This legislation was introduced to ensure that the fees collected by ASIC for processing specific applications are fair and proportionate, reflecting the costs incurred by ASIC in performing its regulatory functions. The Act received Royal Assent on 28 June 2018 and commenced the following day. The primary objective of this amendment is to establish a clear fee structure for ASIC's regulatory activities, ensuring transparency and accountability in the fee-setting process.

Scope and Application

The Superannuation Industry (Supervision) Amendment (ASIC Fees) Act 2018 is an amendment to the Superannuation Industry (Supervision) Act 1993, focusing on the imposition of fees by the Australian Securities and Investments Commission (ASIC) for certain activities related to self-managed superannuation funds (SMSF). The Act applies to individuals and entities that are involved in the registration and regulation of SMSF auditors, specifically those who apply for conditions imposed on their registration to be varied or revoked, or for their registration to be cancelled. This includes approved SMSF auditors and potentially other related entities within the superannuation industry. The Act operates within the jurisdiction of the Commonwealth of Australia and is effective nationwide. The Act's geographic reach is national, applying to all entities and individuals engaged in the supervision of SMSF auditors across Australia. It does not explicitly state exclusions or exemptions but rather imposes fees on specific actions taken by ASIC in relation to SMSF auditors. The Act may extend or restrict its application through subordinate instruments, which would detail the specific fees and conditions under which they apply. The whole of this Act commenced on 29 June 2018, the day after receiving Royal Assent.

Key Provisions

The Superannuation Industry (Supervision) Amendment (ASIC Fees) Act 2018 amends the Superannuation Industry (Supervision) Act 1993, primarily by introducing new fee structures for the Australian Securities and Investments Commission (ASIC) in relation to certain applications and requests concerning self-managed superannuation funds (SMSF). Specifically, section 128L of the original Act is amended to include new subsections (1A) and (1B) (Schedule 1). Subsection (1A) pertains to the fees for applications to vary or revoke conditions imposed on the registration of an approved SMSF auditor, while subsection (1B) addresses the fees for applications to cancel the registration of an approved SMSF auditor. The new provisions impose a fee on applicants who seek to vary or revoke the conditions of their registration as an approved SMSF auditor, or who request the cancellation of their registration. This fee is intended to cover the costs incurred by ASIC in processing these applications. It is important to note that these fees are in addition to any other fees that may apply under the Superannuation Industry (Supervision) Act 1993 or any other relevant legislation. Failure to comply with the requirements of the amended Act may result in civil or criminal penalties. Under section 1312 of the Superannuation Industry (Supervision) Act 1993, a person who contravenes the Act, or who aids, abets, counsels, or procures another person to contravene the Act, is liable to a penalty. For individuals, the maximum penalty for a civil penalty provision is $210,000 or three times the benefit obtained, whichever is the greater. For corporations, the maximum penalty is $2,100,000. Additionally, under section 1314 of the original Act, a person who engages in conduct that constitutes a breach of a civil penalty provision may also be subject to criminal penalties, including fines and imprisonment. The exact penalties will depend on the specific nature and severity of the breach.