TheAustralian Tax Office(ATO) and theAustralian Prudential Regulation Authority(APRA) have launched a new online registration system to streamline the starting up of new superannuation funds.
The new system, effective as of yesterday, will offer a number of advantages for new funds including quicker processing of applications and a significant reduction in application fees, APRA says.
“The main thing is that it’s a much quicker way of doing it. Applying for registration used to take four to six weeks but now it’s online funds will receive a letter from the ATO within a week saying they are registered,” APRA deputy chairman, Ross Jones says.
According to Jones, the regulator is also assessing what changes need to be made in response the Government’s Royal Commission into the HIH debacle, however he adds that “it’s still early days”.
However with regard to the online system, it will issue fledgling funds with an Australian Business Number (ABN) and enable new entities to commence immediate operation.
According to APRA, ‘The Application to Register for the New Tax System Superannuation Entity’ will increase the security and integrity of the superannuation system.
It will do this by making it mandatory to include the provision and verification of trustee details and their compliance with obligations under the Superannuation Industry (Supervision) Act 1993, the peak regulator argues.
The online process will also enable funds to change their registration details including contact and other details relating to trustees, with funds also able to cancel their ABN.
