{"id":"F2022L00895","name":"ASIC Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603","slug":"asic-corporations-superannuation-calculators-and-retirement-estimates-instrument-2022-603","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":102507,"registerId":"commonwealth-F2022L00895-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603","content":"![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603\n\nmade under paragraphs 926A(2)(a) and 951B(1)(a) of the Corporations Act 2001\n\nCompilation No. 1\n\nCompilation date: 11/09/2024\n\nIncludes amendments up to: ASIC Corporations (Amendment) Instrument 2024/733 F2024L01117\n\nAbout this compilation\n\nThis compilation\n\nThis is a compilation of the ASIC Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603 that shows the text of the law as amended and in force on 11/09/2024 (the compilation date).\n\nThe notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.\n\nUncommenced amendments\n\nThe effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.\n\nApplication, saving and transitional provisions for provisions and amendments\n\nIf the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.\n\nModifications\n\nIf the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.\n\nSelf‑repealing provisions\n\nIf a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.\n\nContents\n\n[Part 1—Preliminary](#_Toc178071020)\n\n[1 Name of legislative instrument](#_Toc178071021)\n\n[3 Authority](#_Toc178071022)\n\n[4 Definitions](#_Toc178071023)\n\n[Part 2—Exemptions](#_Toc178071024)\n\n[5 Exemption for providers of superannuation calculators](#_Toc178071025)\n\n[6 Exemption for providers of retirement estimates](#_Toc178071026)\n\n[7 Conditions](#_Toc178071027)\n\n[Part 3—Repeal](#_Toc178071028)\n\n[8 Repeal](#_Toc178071029)\n\n[Endnotes](#_Toc178071030)\n\n[Endnote 1—About the endnotes](#_Toc178071031)\n\n[Endnote 2—Abbreviation key](#_Toc178071032)\n\n[Endnote 3—Legislation history](#_Toc178071033)\n\n[Endnote 4—Amendment history](#_Toc178071034)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603.\n\n3 Authority\n\nThis instrument is made under paragraphs 926A(2)(a) and 951B(1)(a) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nadjusted current contributions means, in relation to a retirement estimate for a member of a superannuation entity, the total contributions (or alternatively, total compulsory contributions) paid into the member’s account with the superannuation entity, less contributions tax, and excluding amounts transferred into the member’s account with the superannuation entity from an account with another superannuation entity.\n\nadministration fee has the same meaning as in section 29V of the Superannuation Industry (Supervision) Act 1993.\n\nage pension means an age pension under Part 2.2 of Chapter 2 of the Social Security Act 1991.\n\nage pension amount has the meaning given to that term in subsection 6(3).\n\nassumed drawdown period means, in relation to a retirement estimate or numerical calculation in relation to a person:\n\n(a) if it is known that the person has a superannuation product that is in the retirement phase—a period commencing on the date of the retirement estimate or numerical calculation and ending on, or within 12 months before, the later of:\n\n    (i) the person reaching 92 years of age; and\n    (ii) 5 years after the date of the retirement estimate or numerical calculation; and\n    (b) otherwise—a period commencing on the date of the person reaching the assumed retirement age and ending on, or within 12 months before, the later of:\n    (i) the person reaching 92 years of age; and\n    (ii) 5 years after the date of the person reaching the assumed retirement age.\n\nassumed retirement age, in relation to a person, means:\n\n    (a) if the person has inputted a retirement age, the greater of:\n    (i) the inputted retirement age; and\n    (ii) if known, the preservation age for the person; and\n    (b) if the person has not inputted a retirement age:\n\n(i) if it is known that the person has a superannuation product in the retirement phase—their current age; and\n\n(ii) otherwise:\n\n(A) if the age of the person is less than 67 years, or the age of the person is not known—67 years of age; or\n\n(B) if the age of the person is 67 years or greater—the age of the person on their next birthday.\n\ncalculation means the result of a numerical calculation performed by a superannuation calculator.\n\ncurrent balance means, in relation to a retirement estimate for a member of a superannuation entity, the balance of the member’s account with the superannuation entity at the date of the retirement estimate.\n\ndate, in relation to a retirement estimate for a member of a superannuation entity, means:\n\n(a) if the retirement estimate is included in or with a periodic statement—the date of the last day of the reporting period covered by the periodic statement; and\n\n(b) otherwise—the date specified by the trustee for the purpose of the retirement estimate.\n\ndefault age pension assumptions mean, in relation to the age pension amount for a member of a superannuation entity, the following assumptions:\n\n(a) upon reaching pension age (within the meaning of the Social Security Act 1991), the member qualifies for an age pension under section 43 of the Social Security Act 1991;\n\n(b) the member has a partner;\n\n(c) the member and their partner jointly own their own home;\n\n(d) at the assumed retirement age for the member, the member and their partner each have a single superannuation fund retirement benefit equal to the estimated lump sum amount for the member;\n\n(e) the member and their partner have no other assets or income affecting the amount of the age pension payable to the member or their partner including any other superannuation accounts.\n\ndefined benefit interest has the same meaning as in regulation 1.03AA of the Superannuation Industry (Supervision) Regulations 1994.\n\ndrawdown assumptions means, in relation to a retirement estimate for a member of a superannuation entity:\n\n(a) if the estimate does not include an age pension amount— the estimated lump sum amount is converted into a series of annual income payments in a manner that, to the extent that is reasonably possible:\n\n(i) results in the present value of each annual income payment being constant for each year over the assumed drawdown period, or a drawdown period inputted by the member; and\n\n(ii) takes into account the statutory assumptions; and\n\n(iii) results in the member’s account being drawn down to zero at the end of the drawdown period; and\n\n(b) if the estimate includes an age pension amount—the following assumptions:\n\n(i) if the retirement estimate is not an interactive retirement estimate—the default age pension assumptions;\n\n(ii) the assumption that the estimated lump sum amount is converted into a series of annual income payments in a manner that, to the extent that is reasonably possible:\n\n(A) results in the present value of the sum of the annual income payment and age pension amount for the member being maximised and constant for each year over the assumed drawdown period, or a drawdown period inputted by the member; and\n\n(B) takes into account the statutory assumptions; and\n\n(C) results in the member’s account being drawn down to zero at or before the end of the period; and\n\n(iii) if the estimate is worked out on the assumption that the member has a partner—the following assumptions or, if the member has changed any of those assumptions, the assumptions inputted by the member:\n\n    (A) the estimate is calculated assuming that the partner has the same estimated lump sum amount as the member which is converted to a series of annual income payments in the same manner as for the member; and\n    (B) the age pension amount for the member is half of the age pension amount for the member and their partner.\n\nestimated lump sum amount: see the definition of retirement estimate.\n\ninputted means, in relation to a person, inputted by or with the consent of the person.\n\ninteractive retirement estimate means, in relation to a member of a superannuation entity, a retirement estimate provided by an electronic facility or device which:\n\n(a) may initially provide a retirement estimate that is not based on information inputted by the member; and\n\n    (b) in any case, allows the member to input information for the purpose of the retirement estimate.\n\nmember data means, in relation to a retirement estimate of a member of a superannuation entity, the member’s age, current balance held with the fund, adjusted current contributions, insurance premiums (if insurance is held at the date of the estimate) and total administration fees.\n\nmember’s online portal means an electronic facility provided by the trustee of a superannuation entity in relation to a member’s superannuation product.\n\nperiodic statement has the same meaning as in subsection 1017D(1) of the Act.\n\npresent value of a calculation or estimate of an amount payable or accruing to a person at a future time is the amount worked out using the following formula:\n\n(a) where the amount is payable or accrues to the person before they reach the assumed retirement age:\n\nC\n\n(1+r) n\n\nwhere:\n\nC is the estimate of the amount payable or accruing at the future time.\n\nn is the number of years and part years between the present date and the future time that the amount is payable or accrues.\n\nr is:\n\n(i) if this formula is used between the date ASIC Corporations (Amendment) Instrument 2024/733 commences and 31 December 2024—either 0.037 or 0.04; or\n\n(ii) if this formula is used on or after 1 January 2025—0.037; or\n\n(iii) in any case—such other assumed rate (expressed as a decimal fraction) as is inputted by the person;\n\nNote: The default number for r in subparagraph (ii) assumes an inflation rate of 3.7% per year (which reflects the long‑term forecast of nominal wage growth in the Government’s 2023 Intergenerational Report). A transitional default number for r is included in subparagraph (i) to accommodate the fact that the previous default number assumed an inflation rate of 4% per year (based on the long-term forecast of nominal wage growth in the Government’s 2021 Intergenerational Report).\n\n(b) where the amount is payable or accrues to the person on or after they reach the assumed retirement age and the person has not yet reached that age:\n\n\\_ C \\_\\_\\_\\_\n\n(1+r) a (1+s) b\n\nwhere:\n\nC is the estimate of the amount payable or accruing at the future time.\n\na is the number of years and part years between the present date and the assumed retirement age.\n\nb is the number of years and part years between the assumed retirement age and the future time that the amount is payable or accrues (zero if the amount is payable or accrues on the date of retirement).\n\nr is:\n\n(i) if this formula is used between the date ASIC Corporations (Amendment) Instrument 2024/733 commences and 31 December 2024—either 0.037 or 0.04; or\n\n(ii) if this formula is used on or after 1 January 2025—0.037; or\n\n(iii) in any case—such other assumed rate (expressed as a decimal fraction) as is inputted by the person;\n\nNote: The default number for r in subparagraph (ii) assumes an inflation rate of 3.7% per year (which reflects the long‑term forecast of nominal wage growth in the Government’s 2023 Intergenerational Report). A transitional default number for r is included in subparagraph (i) to accommodate the fact that the previous default number assumed an inflation rate of 4% per year (based on the long-term forecast of nominal wage growth in the Government’s 2021 Intergenerational Report).\n\ns is 0.025 or such other assumed inflation rate (expressed as a decimal fraction) for the purpose of the period between the assumed retirement age and the future time that the amount is payable or accrues as is inputted by the person;\n\n> Note: The default number assumes an inflation rate of 2.5% per year (being the mid-point of the Reserve Bank of Australia’s target range for consumer price inflation).\n\n(c) where the person has already reached the assumed retirement age:\n\n\\_ C\n\n(1+s) b\n\nwhere:\n\nC is the estimate of the amount payable or accruing at the future time.\n\nb is the number of years and part years between the present date and the future time that the amount is payable or accrues.\n\ns is 0.025 or such other value inputted by the person.\n\n> Note: The default number assumes an inflation rate of 2.5% per year (being the mid-point of the Reserve Bank of Australia’s target range for consumer price inflation).\n\npreservation age has the same meaning as in regulation 6.01 of the Superannuation Industry (Supervision) Regulations 1994.\n\nretirement estimate in relation to a member of a superannuation entity:\n\n    (a) means an estimate by the trustee of the following amounts, worked out using any relevant statutory assumptions and the member data and specified as amounts in dollars rounded to the nearest three significant figures:\n\n(i) an amount (the estimated lump sum amount) representing\n\n(A) if the member does not have a superannuation product that is in the retirement phase—the present value of the estimated balance of the member’s account with the superannuation entity when the member is at the assumed retirement age; or\n\n(B) if the member has a superannuation product that is in the retirement phase—their current balance;\n\n(ii) either:\n\n(A) an amount representing the present value of the estimated average annual income payment the member will get if the drawdown assumptions are applied in relation to the estimated lump sum amount; or\n\n(B) amounts representing the present value of each estimated annual income payment the member will get if the drawdown assumptions are applied in relation to the estimated lump sum amount; and\n\n> Note: A retirement estimate may include an age pension amount: subsection 6(3).\n\n    (b) in the case of a retirement estimate that is an interactive retirement estimate, may include a numerical confidence level or interval relating to the estimate.\n\nretirement phase has the same meaning as in section 995-1 of the Income Tax Assessment Act 1997.\n\nstatutory assumption means an assumption that reflects a rate or amount fixed by legislation.\n\n> Note: Statutory assumptions include a rate of taxation, the minimum drawdown rules for payments of superannuation pensions and the rate of compulsory superannuation contributions.\n\nsuperannuation calculator means a facility, device, table or other thing provided by a person (the provider) that works out a numerical calculation or finds out the result of a numerical calculation relating to a superannuation product, but does not use information the provider knows about a user unless the information has been inputted by the user.\n\n> Note 1: The facility, device, table or other thing will not be a superannuation calculator to the extent that its output goes beyond the numerical result of a calculation and a description of what that result is. For example, an electronic facility will not be a superannuation calculator to the extent that it makes a recommendation about a particular financial product.\n\n> Note 2: A superannuation calculator may relate to something else (whether or not a financial product) in addition to relating to a superannuation product (e.g. a superannuation calculator may also relate to the age pension).\n\ntotal administration fees means, in relation to a retirement estimate for a member of a superannuation entity, the amount of administration fees payable in relation to the member’s account with the superannuation entity.\n\ntransition to retirement income stream has the same meaning as in subregulation 6.01(2) of the Superannuation Industry (Supervision) Regulations 1994.\n\ntrustee means the trustee of a superannuation entity.\n\nuser means:\n\n(a) in relation to a superannuation calculator—a person who uses the calculator; and\n\n(b) in relation to a retirement estimate for a member of a superannuation entity—the member.\n\nPart 2—Exemptions\n\n5 Exemption for providers of superannuation calculators\n\nExemption\n\n(1) A person who provides financial product advice through, or through making available, a superannuation calculator does not have to comply with:\n\n    (a) the requirement in subsection 911A(1) of the Act to hold an Australian financial services licence covering the provision of that advice; and\n    (b) where the person is a financial services licensee—Divisions 2, 3 and 4 of Part 7.7 of the Act in relation to that advice.\n\nExclusion\n\n(2) The exemption in subsection (1) does not apply to a person if 30 days have elapsed since the person knew or was reckless with respect to whether there are reasonable grounds to believe that the person has failed, other than in an immaterial respect, to comply with a condition of this instrument without full particulars of the failure having been notified to ASIC (to the extent that the person knows those particulars or would have known them if they had undertaken reasonable enquiries).\n\n6 Exemption for providers of retirement estimates\n\nExemption\n\n1.  A trustee of a superannuation entity who provides financial product advice in, or through making available, a retirement estimate to a member of the superannuation entity does not have to comply with:\n\n    (a) the requirement in subsection 911A(1) of the Act to hold an Australian financial services licence covering the provision of that advice; and\n    (b) where the trustee is a financial services licensee—Divisions 2, 3 and 4 of Part 7.7 of the Act in relation to that advice.\n\nWhere exemption applies\n\n(2) Subject to subsection (4), the exemption in subsection (1) applies to a trustee in relation to a member of the superannuation entity if:\n\n(a) the member has been a member of the superannuation entity for the year ending on the date of the estimate; and\n\n    (b) the member is not receiving a transition to retirement income stream in relation to the superannuation entity at the date of the estimate; and\n    (c) in the case of a retirement estimate that is not an interactive retirement estimate—the superannuation product held by the member is not in the retirement phase at the date of the estimate; and\n\n(d) where the superannuation product held by the member is not in the retirement phase at the date of the estimate, a contribution has been made into the member’s account with the superannuation entity in the 16 months before the date of the estimate; and\n\n(e) the member has an account balance with the superannuation entity equal to or greater than $6000 at the date of the estimate; and\n\n(f) the member does not hold a superannuation product that is a defined benefit interest in the superannuation entity.\n\nRetirement estimate may include an age pension amount\n\n(3) A retirement estimate may include an amount (age pension amount) representing the amount (if any) that would be payable to the member as an age pension on an annual basis.\n\nExclusion\n\n(4) The exemption in subsection (1) does not apply to a trustee if 30 days have elapsed since the trustee knew or was reckless with respect to whether there are reasonable grounds to believe that the trustee has failed, other than in an immaterial respect, to comply with a condition of this instrument without full particulars of the failure having been notified to ASIC (to the extent that the trustee knows those particulars or would have known them if they had undertaken reasonable enquiries).\n\n7 Conditions\n\n(1) A person who relies on an exemption in subsection 5(1) or 6(1) in relation to a superannuation calculator or retirement estimate must take reasonable steps to ensure the following:\n\n    (a) in the case of a superannuation calculator—the superannuation calculator must use the following assumptions:\n    (i) if the calculator uses a retirement age for the user—the assumed retirement age;\n    (ii) if the calculator uses a period over which a superannuation account of the user is drawn down—the assumed drawdown period or a drawdown period inputted by the user;\n    (b) in the case of a superannuation calculator—the superannuation calculator does not advertise or promote a specific financial product;\n    (c) in the case of a retirement estimate—the retirement estimate does not advertise or promote a specific financial product other than to the extent necessary to provide the retirement estimate;\n    (d) if the superannuation calculator is an electronic facility or device, or the retirement estimate is an interactive retirement estimate, the facility or device, or interactive retirement estimate:\n      (i) enables the user to input or change any and all of the assumptions that are applied in working out the calculation or estimate relating to a financial product other than:\n      (A) in the case of an interactive retirement estimate—statutory assumptions and drawdown assumptions; and\n      (B) in the case of a superannuation calculator—statutory assumptions and assumptions about the manner in which the balance of the user’s superannuation account is drawn down (other than assumptions about the retirement age of the user or the length of the drawdown period); and\n\n> Note 1: If the calculator applies any assumptions about the retirement age of the user or the length of the drawdown period, the calculator must enable the user to input or change those assumptions.\n\n> Note 2: The calculator or interactive retirement estimate may allow the user to change the assumptions referred to in sub-subparagraphs (A) and (B) but is not required to.\n\n      (ii) works out or enables the user to work out a calculation or estimate on the basis of the changed assumptions;\n    (e) the assumptions applied by the superannuation calculator or retirement estimate, unless inputted or changed by the user, are reasonable for the purpose of working out the calculation or estimate;\n    (f) the superannuation calculator or retirement estimate displays to the user in the ordinary course of its use or has printed on it all of the following:\n      (i) a clear and prominent statement about the purpose and limitations of the calculator or estimate;\n      (ii) a clear and prominent explanation of the impact of any significant limitation of the calculator or estimate;\n      (iii) a clear and prominent statement of the assumptions;\n\n(iv) a clear and prominent statement setting out the present value of the calculation or estimate and identifying that the amount is the present value of the calculation or estimate;\n\n      (v) a clear and prominent statement to the effect that the superannuation calculator or retirement estimate is not intended to be relied on for the purpose of making a decision in relation to a financial product and that users should consider obtaining advice from a financial services licensee before making any financial decisions;\n    (g) the superannuation calculator or retirement estimate displays to the user (including because of a step taken by the user) or has printed on it an explanation of why the assumptions (unless inputted or changed by the user) are reasonable for the purpose of working out the calculation or estimate;\n    (h) if the superannuation calculator is an electronic facility or device or the retirement estimate is an interactive retirement estimate—the calculator or estimate does not prevent the user from readily printing or electronically storing the calculation or estimate;\n    (i) the person keeps a functioning copy of the superannuation calculator or facility, device, table or other thing that is used to calculate the retirement estimate for 7 years from when the superannuation calculator or retirement estimate is last made available;\n    (j) in the case of a retirement estimate—the retirement estimate must:\n    (i) either:\n    (A) be included in or with a periodic statement given to the member; or\n    (B) be included on the member’s online portal; and\n    (ii) other than a numerical confidence level or interval relating to an interactive retirement estimate, not specify other amounts or figures representing or purporting to represent the member’s expected retirement benefit (however described).\n\n(2) A statement or explanation required under paragraph (1)(f) or (g) must contain as much detail as a retail client using the superannuation calculator or retirement estimate would reasonably expect to find having regard to the nature of the calculator or estimate.\n\nPart 3—Repeal\n\n8 Repeal\n\nThis instrument is repealed on 1 July 2027.\n\nEndnotes\n\nEndnote 1—About the endnotes\n\n> Note: The endnotes provide information about this compilation and the compiled law.\n\n> Note: The following endnotes are included in every compilation:\n\n> Note: Endnote 1—About the endnotes\n\n> Note: Endnote 2—Abbreviation key\n\n> Note: Endnote 3—Legislation history\n\n> Note: Endnote 4—Amendment history\n\n> Note: Abbreviation key—Endnote 2\n\n> Note: The abbreviation key sets out abbreviations that may be used in the endnotes.\n\n> Note: Legislation history and amendment history—Endnotes 3 and 4\n\n> Note: Amending laws are annotated in the legislation history and amendment history.\n\n> Note: The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.\n\n> Note: The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.\n\n> Note: Misdescribed amendments\n\n> Note: A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.\n\n> Note: If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.\n\nEndnote 2—Abbreviation key\n\n| ad = added or inserted                         | orig = original                     |\n| ---------------------------------------------- | ----------------------------------- |\n| am = amended                                   | par = paragraph(s)/subparagraph(s)  |\n| amdt = amendment                               | /sub‑subparagraph(s)                |\n| c = clause(s)                                  | pres = present                      |\n| C[x] = Compilation No. x                       | prev = previous                     |\n| Ch = Chapter(s)                                | (prev…) = previously                |\n| def = definition(s)                            | Pt = Part(s)                        |\n| Dict = Dictionary                              | r = regulation(s)/rule(s)           |\n| disallowed = disallowed by Parliament          | reloc = relocated                   |\n| Div = Division(s)                              | renum = renumbered                  |\n| exp = expires/expired or ceases/ceased to have | rep = repealed                      |\n| Effect                                         | rs = repealed and substituted       |\n| F = Federal Register of Legislation            | s = section(s)/subsection(s)        |\n| gaz = gazette                                  | Sch = Schedule(s)                   |\n| LA = Legislation Act 2003                      | Sdiv = Subdivision(s)               |\n| LIA = Legislative Instruments Act 2003         | SLI = Select Legislative Instrument |\n| (md not incorp) = misdescribed amendment       | SR = Statutory Rules                |\n| cannot be given effect                         | Sub‑Ch = Sub‑Chapter(s)             |\n| mod = modified/modification                    | SubPt = Subpart(s)                  |\n| No. = Number(s)                                | underlining = whole or part not     |\n| o = order(s)                                   | commenced or to be commenced        |\n| Ord = Ordinance                                |                                     |\n\nEndnote 3—Legislation history\n\n| Name                                                                                        | Registration                 | Commencement | Application, saving and transitional provisions |\n| ------------------------------------------------------------------------------------------- | ---------------------------- | ------------ | ----------------------------------------------- |\n| ASIC Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603 | 30/06/2022 (see F2022L00895) | 01/07/2022   |                                                 |\n| ASIC Corporations (Amendment) Instrument 2024/733                                           | 10/09/2024 (see F2024L01117) | 11/09/2024   |                                                 |\n\nEndnote 4—Amendment history\n\n| Provision affected                                | How affected |\n| ------------------------------------------------- | ------------ |\n| s 2                                               | rep LA s 48D |\n| s 4 par (a) of the def of present value           | rs 2024/733  |\n| s 4 par (b) of the def of present value           | rs 2024/733  |\n| s 4 def of superannuation entity                  | rep 2024/733 |\n| s 4 def of superannuation product                 | rep 2024/733 |\n| s 4 def of transition to retirement income stream | am 2024/733  |","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The 2024 amendment updated numerical parameters (the default discount/inflation rates used in the present value calculation) and made some definitional adjustments; it did not materially expand the classes of activity that are exempted or add new categories of persons covered. In other words, the instrument’s core scope—exempting certain calculator providers and trustees from AFSL requirements subject to conditions—remains the same; the changes are technical refinements rather than a substantive scope expansion (see definitions and present value amendments in section 4 and the amendment history)."},"complexity_factors":["Extensive definitions section with ~30 core defined terms (e.g. assumed retirement age, assumed drawdown period, present value) (s4)","Conditional present value formula with three alternative formulae and transitional discount rate logic (including amendment changing default rate and transitional option) (s4 definition of present value)","Multiple layered eligibility conditions for trustee exemption (membership duration, account balance ≥ $6,000, recent contribution if not in retirement phase, no defined benefit interest, not receiving transition to retirement stream) (s6(2))","Exemption exclusions tied to knowledge/recklessness and notification to ASIC — introduces offence/triggering condition and reporting linkage (s5(2), s6(4))","Detailed operational conditions for calculators and interactive estimates (user inputability, disclosure particulars, ability to print/store, record retention for 7 years) (s7(1)(d),(f),(h),(i))","Mixed quantitative requirements (rounding to three significant figures; present value requirement; default and user‑inputtable rates) combined with qualitative ‘reasonable for purpose’ and ‘as much detail as a retail client would reasonably expect’ standards (s4, s7(1)(e), s7(2))","Time‑limited instrument with self‑repeal (expires 1 July 2027) (s8)"],"plain_english_summary":"**What this instrument does (mechanically)**\n\n- It creates exemptions from the requirement to hold an Australian financial services licence (AFSL) for two classes of activity: 1) providers who offer “superannuation calculators” and 2) trustees who provide “retirement estimates” to their members. (Exemptions: sections 5 and 6.)\n\n- Those exemptions are conditional. A provider or trustee relying on an exemption must meet a list of conditions about the assumptions the tool uses, how users can change inputs, disclosure to users, record‑keeping, and how retirement estimates are delivered. (Conditions: section 7.)\n\n- The instrument defines key terms (for example, “superannuation calculator”, “retirement estimate”, “assumed retirement age”, “present value”) and fixes how certain numbers must be calculated (including a default discount/inflation rate for present value). (Definitions and present value formula: section 4.)\n\n- The instrument is time‑limited: it repeals itself on 1 July 2027. (Repeal: section 8.)\n\n**Who this affects**\n\n- Providers of online or offline superannuation calculators that only use information a user has input (not information the provider already knows). If those providers comply with the conditions, they do not need an AFSL for providing financial product advice through the calculator. (See definition of superannuation calculator and exemption: sections 4, 5.)\n\n- Trustees of superannuation funds who supply retirement estimates to their members. The trustee exemption applies only where a set of eligibility criteria are met (e.g. member has been with the fund for the year ending on the estimate date, account balance ≥ $6,000, no defined benefit interest, no transition‑to‑retirement income stream, recent contribution if account not in retirement phase). (Exemption conditions: section 6(2).)\n\n- Fund members and users of calculators: they receive numerical calculations or retirement estimates, subject to the instrument’s required disclosures and user input capabilities. (Definitions and conditions: sections 4, 7.)\n\n**Why it matters (stated purpose and practical implications)**\n\n- Stated purpose (as reflected in the instrument): to allow calculators and routine retirement estimates to be made available without each provider or trustee having to hold an AFSL, while imposing rules to protect users from misleading or incomplete outputs. (See exemptions: sections 5–6 and conditions: section 7.)\n\n- Practical effect: it lowers a regulatory barrier (the AFSL requirement) for certain automated numerical tools and for trustees providing routine, standardised retirement estimates to their own members. At the same time it sets minimum standards for assumptions, user control, disclosures, record‑keeping, and delivery.\n\n**Costs, incentives, trade‑offs and implementation issues**\n\n- Who pays and who decides:\n  - Providers and trustees decide whether to rely on the exemption. To do so they must implement the required functionality, disclosures and record retention (7 years for the working copy). These are direct compliance costs and operational decisions for them. (Record keeping: section 7(1)(i).)\n  - ASIC bears enforcement responsibility if conditions are breached. (Exclusions in sections 5(2) and 6(4) make the exemption lapse where a provider or trustee is aware of a significant non‑compliance and has not notified ASIC.)\n\n- Compliance burden and implementation risk:\n  - Trustees must check member eligibility rules before issuing an exempt retirement estimate (e.g. balance threshold, membership period, no defined benefit). That requires system checks and possible segmentation of members. (Eligibility: section 6(2).)\n  - Electronic calculators and interactive estimates must let users change assumptions (with some statutory and drawdown assumptions excepted) and must allow printing or storage. Building this user interface and audit trail is an operational cost. (Conditions: section 7(1)(d), (h).)\n  - The instrument requires clear, prominent statements of purpose, limitations, assumptions and present value. The level of “as much detail as a retail client would reasonably expect” introduces judgment and therefore some compliance uncertainty. (Disclosure standard: section 7(2); content: section 7(1)(f)–(g).)\n\n- Effects on private enterprise, competition and choice:\n  - Lowers a licensing barrier for calculator creators and for trustees providing member estimates, which reduces regulatory costs and can increase the supply of non‑advice calculators and fund‑provided estimates. (Exemptions: sections 5–6.)\n  - The instrument forbids calculators and estimates from advertising or promoting specific financial products beyond what is necessary to provide the estimate. That limits the ability to use calculators as direct marketing vehicles while still allowing product providers to publish calculators. (Condition: section 7(1)(b)–(c).)\n\n- Consumer protection trade‑offs and possible substitution effects:\n  - The rule explicitly states calculators/estimates are not intended to be relied on as financial advice and must recommend obtaining professional advice. That addresses some consumer risk, but automated tools can still substitute for paid personal advice in practice; the net consumer outcome will depend on how the tools are presented and used. (Condition: section 7(1)(f)(v).)\n  - Requiring disclosure of present value and assumptions helps comparability, but differences in default assumptions (or user inputs) can still produce materially different outcomes across calculators, risking user confusion.\n\n- Concentrated benefits, diffuse costs, and capture risk:\n  - Concentrated benefits accrue to calculator providers and trustees who avoid licensing costs. The costs (potentially confusing or misleading outputs) are dispersed across many users. The instrument’s safeguards narrow, but do not eliminate, the risk that calculators are used to steer behaviour subtly without being treated as advice.\n\n**Important operational details and numerical rules**\n\n- Present value formula: the instrument prescribes how to calculate present value of future amounts and sets default rates. The default discount/inflation rate was adjusted in the 2024 amendment: the long‑term default is 0.037 (3.7%) from 1 Jan 2025, with a transitional option to use 0.04 (4%) until 31 Dec 2024. Users may input a different rate if they choose. (Definition: present value in section 4.)\n\n- Retirement‑estimate content rules: a retirement estimate must be expressed as dollar amounts rounded to three significant figures and present either an estimated lump sum and an estimated series of income payments (or their present values). Interactive estimates may include confidence intervals. (Definition: retirement estimate in section 4.)\n\n- Delivery requirement for retirement estimates: trustees must include the estimate in or with the member’s periodic statement or make it available on the member’s online portal. (Condition: section 7(1)(j).)\n\n**Net practical takeaway**\n\n- The instrument permits widespread use of calculators and fund‑provided retirement estimates without an AFSL so long as providers/trustees implement specified guardrails: transparent assumptions, user control over inputs, non‑promotion of products, printable outputs, record retention and member eligibility checks. It reduces licensing friction (benefit to providers and trustees) while placing operational and disclosure responsibilities on them (costs and compliance risk). (Exemptions: sections 5–6; conditions: section 7; definitions and numerical rules: section 4.)"},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The instrument remains focused on its original purpose of exempting superannuation calculators and retirement estimates from financial services licensing requirements. The 2024 amendments updated only the default inflation assumptions (changing from 4% to 3.7%) to reflect updated Intergenerational Report forecasts, and removed redundant definitions ('superannuation entity', 'superannuation product') that were already defined in primary legislation. The scope has not expanded beyond facilitating consumer access to retirement projection tools while maintaining appropriate safeguards."},"complexity_factors":["19 defined terms in section 4, many with nested sub-definitions (e.g., 'assumed retirement age' has 4 branching conditions; 'present value' contains 3 separate mathematical formulas with transitional rate variations)","Mathematical complexity: Three distinct present value formulas with variables (C, r, s, n, a, b) and transitional provisions changing default rates between September-December 2024 (0.037 or 0.04) versus post-January 2025 (0.037)","Conditional logic in exemptions: Section 6(2) contains 6 cumulative conditions (a)-(f) for retirement estimate exemptions, including temporal requirements (16-month contribution window), balance thresholds ($6,000), and product phase restrictions","Nested exceptions: Section 5(2) and 6(4) contain 'recklessness' knowledge standards and 30-day notification requirements that create exceptions to the exemptions","Cross-referencing: Definitions import concepts from 5 external statutes (Corporations Act 2001, Superannuation Industry (Supervision) Act 1993, Superannuation Industry (Supervision) Regulations 1994, Social Security Act 1991, Income Tax Assessment Act 1997)","Dual regime structure: Parallel but slightly different conditions for superannuation calculators (section 5) versus retirement estimates (section 6), with section 7 imposing 10 separate condition paragraphs (a)-(j) with multiple sub-bullets"],"plain_english_summary":"This instrument creates a limited exemption letting superannuation funds and third‑party providers offer online superannuation calculators and retirement estimates without a full financial services licence. It requires standardised assumptions, clear disclosure of limits, user interactivity to change key inputs, prohibition on product promotion, 7‑year recordkeeping, and allows inclusion of projected Age Pension amounts.\n\nThe aim is easier public access to consistent, transparent retirement projections while protecting users; the rules expire on 1 July 2027."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-superannuation-calculators-and-retirement-estimates-instrument-2022-603","history":"/api/acts/asic-corporations-superannuation-calculators-and-retirement-estimates-instrument-2022-603/history","analysis":"/api/acts/asic-corporations-superannuation-calculators-and-retirement-estimates-instrument-2022-603/analysis","conflicts":"/api/acts/asic-corporations-superannuation-calculators-and-retirement-estimates-instrument-2022-603/conflicts","importantCases":"/api/acts/asic-corporations-superannuation-calculators-and-retirement-estimates-instrument-2022-603/important-cases","documents":"/api/acts/asic-corporations-superannuation-calculators-and-retirement-estimates-instrument-2022-603/documents"}}