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18-071MR ASIC extends the transition period for superannuation and retirement calculators
ASIC has extended, to 1 July 2019, the time that providers of retirement and superannuation calculators have to comply with the requirement that generic financial calculators must account for inflation.
If a generic financial calculator makes an estimate of a future return or payment, it must adjust for inflation using an assumed rate of inflation of 2.5% (being the mid-point of the Reserve Bank of Australia's target range for inflation over the cycle). As a result of the extension, this requirement will not apply to retirement and superannuation calculators until 1 July 2019.
ASIC has postponed the commencement of this requirement for superannuation and retirement calculators because there are superannuation reforms that may impact on how superannuation calculators should present and calculate estimates in the future. These reforms have been deferred until 1 July 2019. During this period, ASIC will further review the suitability of the prescribed discount rate for calculators that produce retirement estimates, taking into account the interests and further views of consumers, superannuation and retirement calculator providers, and actuaries.
ASIC will monitor the impact of these reforms to assess the ongoing appropriateness of the requirement to account for inflation.
This extension does not affect other provisions of our relief for calculators.
- RG 167
- ASIC Corporations (Generic Calculators) Instrument 2016/207
- ASIC Corporations (Amendment) Instrument 2018/40
A generic financial calculator is a facility, device or table that:
- is used to make a general numerical calculation about a financial product; and
- does not advertise or promote one or more specific financial products.