Kelly O’Dwyer

EQT Holdings Limited (ASX: EQT) has announced the appointment of The Hon. Kelly O’Dwyer as a non-executive director to its Board.

Ms O’Dwyer was the Liberal Party member for the Federal seat of Higgins in the Australian Parliament for nine years, and a former Cabinet Minister. Prior to entering Parliament, Ms O’Dwyer worked in law, government and finance.  She is currently a non-executive director of ASX listed Home Consortium and a member of the School Council of Caulfield Grammar School.

“Kelly’s track record in leadership and senior roles at the highest level of government is well recorded,” said Chair Carol Schwartz AO.

“She brings a combination of deep understanding of government and policy, with a focus on economic and tax policy, Australia’s financial regulatory framework, corporate governance, risk and compliance, and significant leadership experience. Her experience in reforming the superannuation system and financial services, and her work in the areas of entrepreneurship and innovation will bring new perspectives and ideas to the Equity Trustees board room,” said Ms Schwartz.

“Ms O’Dwyer brings an exceptional combination of talent and expertise. I welcome her on behalf of the Board of Australia’s leading trustee company and look forward to working with her,” Ms Schwartz said.

The company also announced that Mr Jim Minto is stepping down from the Board today: “We thank Jim for his significant and valuable contribution to Equity Trustees during his four years of service, including his work as Chair of the Board Risk Committee,” Ms Schwartz concluded.

Ms Catherine Robson has been appointed as Chair of the Board Risk Committee and as a member of the Board Audit Committee. Ms O’Dwyer has also been appointed as a member of the Board Risk Committee.

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Kelly O’Dwyer

The Minister for Revenue and Financial Services, The Hon. Kelly O’Dwyer MP, has launched the 2018 National Financial Capability Strategy at an event at Parliament House in Canberra.

Speaking at the event, Minister O’Dwyer highlighted the Australian Government’s ongoing commitment to supporting Australians to be in control of their financial lives. ‘We want all Australians to be in control of their financial lives. The Strategy guides action across the government, business, community, education and research sectors to support enhanced financial capabilities in individuals, families and communities’.

The Strategy aims to help Australians better control their financial lives by improving their skills in:

• managing money day to day;
• making informed decisions, and
• planning for the future.

A significant number of Australians struggle to manage their money. In fact, more than 1 in 3 people find dealing with money stressful and overwhelming^[i].

Strengthening financial capability takes time, but the benefits are significant. By investing in boosting these skills and behaviours now we will make a difference to so many later.

Modelling commissioned by ASIC indicated that if financial capability levels for all Australians were lifted marginally above current levels, the present-day benefit of improved money behaviour over the next 30 years would be an increase to consumer wealth and consumption by $212 billion (2017 dollars)^[ii].

ASIC Chair James Shipton emphasised the importance of programs delivered under the National Strategy. ‘The 2018 National Financial Capability Program drives programs and initiatives that make a difference in people’s lives. We want more Australians to access information and guidance they can trust to ensure everyone can make informed decisions.

‘ASIC is committed to financial inclusion and better outcomes for all Australians. People are at the heart of the financial system and at the centre of this National Strategy. The financial sector as a financial community should be engaging in practices that promote fair consumer outcomes. In particular, we need to continue to encourage women to be more confident with money, young people to find the information they need when they need it, and support Indigenous Australians to access appropriate financial products and services. We want to see more Australians in control of their financial lives and I look forward to working collaboratively under the 2018 National Strategy to advance this important work’, Mr Shipton said.

Background

Go to https://financialcapability.gov.au/ for more information on the strategy.

ASIC is the leading Government agency for financial capability, driving initiatives to help Australians be in control of their financial lives. This includes leading and coordinating the National Financial Capability Strategy, with support from the Australian Government Financial Literacy Board.

The 2018 National Financial Capability Strategy was formed from a consultation process that included over 145 submissions from stakeholders and replaces the 2014-2017 National Financial Literacy Strategy.

———

[i] Australian Financial Attitudes and Behaviour Tracker, March 2017
[ii] Economic modelling was carried out by ASIC, using a similar approach as that used by the United Kingdom’s Money Advice Service in 2016. The modelling simulated consumer behaviour for adult Australians over a 30-year period and made assumptions and estimates of people’s incomes and spending patterns.

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Kelly O’Dwyer

The Federal Government’s decision to release draft regulations to extend SuperStream to self-managed superannuation fund (SMSF) rollovers has the strong backing of the SMSF Association.

The announcement, by the Minister for Revenue and Financial Services, Kelly O’Dwyer, will make it easier for SMSFs to roll superannuation monies into their individual funds. Previously, only rollovers between APRA funds could use SuperStream.

SMSF Association Head of Policy Jordan George says: “These draft regulations will make it easier for individuals who choose to manage their own superannuation to roll over their existing superannuation funds into an SMSF.

“Electronic rollovers between APRA-regulated funds and SMSFs is something the Association has long called for so it’s gratifying to see the Government make this announcement.

“For SMSFs, it will reduce compliance costs by removing manual processes, improve establishment processes, decrease rollover transaction times and improve the integrity of the system.

“Currently, SMSFs can experience lengthy delays in receiving rollovers from large superannuation funds, so this change will ensure rollovers are made in a timely manner, enhancing choice and efficiency in the superannuation system.”

The Association will be further assessing how the broader inclusion of SMSFs in SuperStream will affect the sector and SMSF trustees.

George adds the Association looks forward to consulting on the draft regulations that will begin on or after 30 November 2019.

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Kelly O’Dwyer

SMSF trustees are seizing the opportunity to hear from industry and investment specialists at the inaugural three-day SMSF Expo being held at the Melbourne Convention and Exhibition Centre from April 27-29.

The event, which will be addressed by the Federal Minister for Revenue and Financial Services, Kelly O’Dwyer, will cover a range of issues of topical interest to trustees, from the need for asset diversification to property investment to the benefits of robo advice.

SMSF Association CEO John Maroney says the Association, in partnership with Exhibitions & Events Australia (EEA), has pulled together an exciting program that will appeal to trustees, irrespective of whether they are in the accumulation, transition to retirement or retirement phase of their SMSF journey or just thinking about starting that journey.

“The focus is on investment issues because that’s where we believe the interest lies; trustees are having to make decisions in volatile markets, as well as a low interest rate environment, and are looking for quality information and advice on how best to navigate these challenging times.

“While historically many SMSF trustees have limited their investments to fully franked blue-chip shares, cash and term deposits, and property, there is now a growing interest in a wider range of asset classes where there is often a need to get specialist advice, and this forum will assist in giving guidance to that process.”

The Expo is expected to attract 3000 SMSF trustees and other visitors over the three days. Maroney says this would be an excellent outcome for an inaugural event, demonstrating a genuine thirst for information by SMSF trustees.

Register here. 

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John Maroney

The SMSF Association strongly supports the setting up the Australian Financial Complaints Authority (AFCA) as a significant step in protecting the rights of all SMSF members.

SMSF Association CEO John Maroney says the passage of the legislation establishing AFCA, announced by the Minister for Revenue and Financial Services, Kelly O’Dwyer, and the Minister for Small and Family Business, Craig Laundy, will give SMSFs access to a dispute-settling mechanism that will enhance their ability to deal with large institutions.

The new streamlined dispute resolution body has amalgamated the functions of the Financial Ombudsman Service, Credit and Insurance Ombudsman and Superannuation Complaints Tribunal, simplifying the existing avenues of redress for financial services consumers.

Maroney says: “This is an important reform for the SMSF sector. Giving SMSF members the ability to be able to have their grievances with a large institution dealt with by AFCA and avoid lengthy and costly legal proceedings is to be commended.

“Anecdotal evidence suggests that SMSF members often do not pursue their complaints with banks, insurers and super funds because of the potential legal costs and complexity.

“But the establishment of AFCA as a one-stop shop now gives them an avenue to address their complaints in a way that is binding and without the cost and trauma that can occur in the court system.”

The Government has increased access to redress by allowing any business with fewer than 100 staff access to AFCA, as well as lifting the caps on income stream insurance product disputes and uninsured third-party motor vehicle claims.<

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The Hon Kelly O’Dwyer MP

The SMSF Association has thrown its weight behind the superannuation reforms introduced into the Parliament last week, believing they will improve accountability and member outcomes.

The Minister for Revenue and Financial Services, Kelly O’Dwyer, introduced a raft of changes that include establishing the Australian Financial Complaints Authority (AFCA), closing a salary sacrificing loophole, implementing the Superannuation Accountability and Transparency package, and allowing employees to choose their own superannuation fund.

SMSF Association CEO John Maroney says these reforms are a welcome step to ensure the superannuation system delivers better retirement outcomes for all Australians.

“We commend the Government for introducing these reforms into the Parliament, all of which have long been advocated by the Association.

“In particular, giving employees their choice of fund is a long-held policy position of the Association on the basis it introduces an element of competition into the $2.3 trillion superannuation industry.

“All employees should have the right to enter the fund of their choice, including a self-managed super fund, when starting new employment, and should not be forced into a fund because of an enterprise agreement or industry award.

“We have also been highly supportive of the move to close the legal loophole whereby employers have been able to short-change their employees of their Superannuation Guarantee entitlements.”

Maroney says the ACFA, which will combine the activities of three complaint schemes, should prove far more effective in facilitating the resolving of financial disputes.

“From our perspective, we welcome the fact that the ACFA will incorporate the key features of the Superannuation Complaints Tribunal, the Financial Ombudsman Scheme and the Credit and Insurance Ombudsman, thus providing certainty to all stakeholders.”

He says it’s imperative that the superannuation system engage, as far as possible, with all fund members, and this legislative package should prove another step along the way to achieving this outcome.

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The Hon Kelly O’Dwyer MP

The SMSF Association has endorsed the decision by the Government to provide the Australian Tax Office (ATO) with additional funding for a Superannuation Guarantee Taskforce to ensure employers comply with their Superannuation Guarantee (SG) obligations.

The Minister for Revenue and Financial Services, Kelly O’Dwyer, announced yesterday a crackdown on employer non-compliance with the SG, saying those who do so “are acting illegally and it won’t be tolerated”.

SMSF Association CEO John Maroney says the organisation stressed the importance of giving the ATO “adequate resources” to enforce SG compliance in its recent submission to the Government on its SG integrity measures.

“We welcome the fact that the Government is building on the integrity measures announced already that remove loopholes around salary sacrifice contributions and employer SG obligations.

“Ensuring employers are paying the correct superannuation to their employees is critical to give all Australians the opportunity to reap the full benefits of the superannuation system so they can enjoy a dignified and secure retirement.”

Maroney says the fact that an estimated $2.8 billion in SG payments go “missing” each year due to employer non-compliance highlights the magnitude of the problem, and why extra funding to the SG Taskforce is justified.

“It’s the Association opinion that measures such as the frequent reporting of SG contributions, Single Touch Payroll, and increased ATO powers will help lower this $2.8 billion in missing superannuation payments.

He adds that the Association strongly endorses the key recommendations in the Superannuation Guarantee Gap Senate Inquiry Report. “We encourage the Government to continue examining ways to safeguard and modernise the SG.”

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John Maroney

The SMSF Association encourages all sectors of the superannuation industry to collaborate to boost confidence in the $2.3 trillion retirement savings system, says the Association’s CEO John Maroney.

Addressing a function in Melbourne on Thursday where the keynote speaker was the Federal Minister for Revenue and Financial Services, Kelly O’Dwyer, he told the industry audience that “there is much more that unites us than divides us”, and by working harmoniously the confidence Australians need to have in their superannuation system can be enhanced.

“Australia has one of the world’s best retirement income systems and all parts of the superannuation sector can help achieve security in retirement for millions of Australians.”

Maroney says the Association’s research shows that the growth of the SMSF sector has been driven by a strong desire by retirees for greater control of their financial destiny and more flexibility in their superannuation arrangements.

“SMSFs are not for everyone, but more than one million Australians have chosen this superannuation option, and we expect another million Australians may follow suit over the next decade.”

He said the decision to establish a Global Centre of Excellence for Retirement Savings would reinforce the Association’s leadership of the SMSF sector, as well as underpinning the sector’s integrity and robustness by providing trusted research, well-crafted policy positions, and thought leadership.

Minister O’Dwyer said the SMSF Association’s work in ensuring the sector remained healthy could not be underestimated. “It has a strong mandate to lead the professionalism, integrity and sustainability of the SMSF sector.

“The Association, for example, supports both trustees and professional advisors and has long recognised the importance of high standards of advice. This is a stance the Government encourages.”

She said the turn-out at the SMSF Association’s Technical Day – one of five being held around the country – reflected the increasing popularity of SMSFs.

“More than a million Australians are now choosing to ‘control their own destiny’ in actively investing in their retirement.

“The fact that individuals have freedom of choice over their own savings is a principle this Government supports, and we now see the self-managed sector emerging as one of the most dynamic parts of the financial system. SMSFs have provided the Australia’s economy with a shot in the arm — creating jobs and supporting economic growth.”

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AFA President, Marc Bineham said, “The AFA welcomes the diversity and inclusion of industry, consumer, education and ethical representatives on the Board. We also welcome the appointment of Catherine Walter AM, as Chairman.”

Former AFA President and Principal and practitioner of Integra Financial Services, Deborah Kent is one of the appointments to the FASEA Board.

“The AFA believes the formation of FASEA is a key milestone in providing clarity on the specifics of professional standards and education pathways for financial advisers,” Mr Bineham said. “We believe it will help strengthen the trust and confidence in financial services that is so necessary to encourage more Australians to seek financial advice.”

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Andrea Slattery

The SMSF Association welcomes the appointment of Catherine Walter as chairperson of the new Financial Adviser Standards and Ethics Authority (FASEA), as well as the eight appointed directors.

The appointments to this Authority were announced by the Minister for Revenue and Financial Services, Kelly O’Dwyer, this morning. It will play an important role in overseeing the educational and training standards of financial advisors, as well as establishing a Code of Ethics.

SMSF Association Managing Director/CEO Andrea Slattery says: “The Minister’s appointments are recognition of the importance the Government is placing on improving the training and educational standards of advisors, an issue the Association has long advocated.

“We look forward to working with the Authority to establish higher standards for advisors that are an important step to improving the professionalism of financial advice.

“In particular, we will be urging the Authority to recognise the SMSF sector as a specialty and a profession to safeguard the financial interests of the more than 1.1 million trustees and the $653 billion in FUM critical to Australia’s retirement system.

“Research shows the trustees are increasingly looking to get specialist advice to assist in the management of their SMSF, so it’s critical this advice is of the highest standard,” she says.

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