Submission – Proposed extension of relief for intra-fund transfers

SMC welcomes ASIC’s proposal to extend the current relief under ASIC Corporations (Superannuation: Accrued Default Amount and Intra-Fund Transfers) Instrument 2016/64 which is set to expire on 1 April 2026. The relief enables trustees to transfer members between investment options or divisions within the same fund without the full operation of section 1016A1 application requirements and section 1019A2 cooling‑off rights. The relief allows super trustees to process internal transfers (for example, switching investment options within the same fund) without treating the transaction as a new financial product. The relief provides members flexibility and reduces administration costs and burdens. While SMC supports the proposed extension of the relief to 1 April 2031 as an interim, stability‑promoting measure, we consider that the period to 2031 should be used to develop a more permanent solution. In the longer term, the subject matter of this relief would be more appropriately addressed through amendments to primary legislation or regulations, rather than by ongoing reliance on time‑limited legislative instruments.