With an increase in the number of available advisers, superannuation refunds, and predicted rate rises, there has been a lot coming out of the news cycle over the past few weeks.

ATO to crack down on false property claims – Kate Aubrey, The Adviser

The ATO has announced its focus on rental deductions and capital gains tax for the next financial year.

They found that many rental property owners were making mistakes in their tax returns, such as omitting rental income or incorrectly claiming property-related deductions.

The aim is to crack down on these errors and increase compliance by encouraging tax agents and property owners to review their lodgings and take extra care.

The ATO’s increased funding will support the Personal Income Tax Compliance Program, which will expand its scope and address areas of non-compliance, including short-term rental properties.

They will also focus on interest expenses and ensuring the correct apportionment of loan interest expenses for rental properties.

Additionally, the ATO emphasises the need to correctly report capital gains tax, especially for properties used to generate income. They encourage taxpayers to keep records of the income-producing period and declare any capital gains.

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Adviser number see first quarterly rise since 2018 – Laura Dew, Money Management

According to the latest quarterly report from Adviser Ratings, adviser numbers have increased for the first time in five years.

In the first quarter of 2023, the adviser universe grew by 24 advisers, marking the first positive growth since 2018. While 90 advisers joined the profession, just over 200 ceased, resulting in one new entrant for every two exits.

This is a significant improvement compared to one new entrant for every 30 exits two years ago.

The report indicates a trend of increased stability in adviser numbers, with fewer departures and a record low in the number of advisers leaving the industry quarterly.

The number of diversified-licensee advisers slightly decreased, but gains were observed in the boutique, privately owned market segment.

Industry super funds and large privately owned firms also saw modest gains in adviser numbers.

Looking ahead, 90% of advisers anticipate raising fees due to the impact of inflation and interest rates on businesses.

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AFCA tallies up COVID-19 complaints – Jamie Williamson, Financial Standard

The Australian Financial Complaints Authority (AFCA) received nearly 1,500 complaints related to superannuation funds during the COVID-19 pandemic.

From March 12, 2020, to May 6, 2023, AFCA received over 17,000 COVID-19-related complaints in total. Of these complaints, 8% were related to superannuation, primarily due to the Early Release of Super Scheme.

Complaints regarding investments accounted for 3%, while life insurance complaints made up 0.9%. The majority of complaints were about credit (48%) and general insurance (30%).

The most common reasons for complaints were failure to respond to assistance requests, denial of insurance claims, delays in claims handling, and service quality.

Despite the challenges of the pandemic, AFCA received fewer complaints than expected, with financial firms being responsive and providing emergency support during the crisis.

AFCA hopes that firms will continue to maintain a similar mindset as they face new challenges such as rising interest rates and cost of living pressures.

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More rate rises to come – NAB – Ryan Smith, Australian Broker

NAB economists have revised their interest rate predictions, now forecasting that the cash rate will reach a peak of at least 4.1%.

They believe the Reserve Bank’s rate-hiking cycle will continue, with rates potentially hitting this peak in July or August.

NAB stated that their initial prediction from February, based on strong inflation, resilient economy, and tight labour market, remains valid.

They emphasised that the RBA’s monetary policy strategy has shown mixed signals but highlighted the upside risks to inflation and the need for at least one more rate increase to maintain the timeline for inflation to return to target levels.

NAB’s rate projection is not a response to the recent federal budget and they anticipate economic slowdown in the second half of 2023 and into 2024, with annual GDP growth falling below 1% and the unemployment rate rising to around 4.7% in 2024.

NAB still expects the cash rate to decline to 3.1% by mid-2024.

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AusSuper issues $70m refund to around 100,000 members – Laura Dew, Money Management

AustralianSuper, the country’s largest superannuation fund, has acknowledged a failure to identify all cases of multiple member accounts and has taken steps to remediate around 100,000 affected members.

Following a comprehensive review of its processes, the fund identified areas for improvement and will refund approximately $70 million to impacted members. The average payment per member is expected to be $650.

They will cover the cost of remediation from its Operational Risk Financial Reserve and stated that there would be no increase in administration fees.

The fund plans to contact impacted members to explain the issue and the actions being taken. It aims to restore members to their intended financial position, including refunding administration fees, insurance costs, and lost earnings.

AustralianSuper has also strengthened its processes to better manage multiple accounts and ensure timely actions are taken.

The fund has self-reported the issue to regulators and expressed its apologies to members.

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