ASIC has extended to 1 July 2018 the time that providers of retirement and superannuation calculators have to comply with the new 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 current mid-point of the Reserve Bank of Australia's target range for inflation over the cycle) from 1 April 2017. As a result of the extension, this requirement will not apply to retirement and superannuation calculators until 1 July 2018.

ASIC has deferred the commencement of this requirement for superannuation and retirement calculators because there are a number of current superannuation reforms that may impact on how superannuation calculators should present and calculate estimates in the future. For example, the regulations have not yet been made to refine the content and presentation requirements for a Choice product dashboard, including the use of a 'super estimator'.

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.

 For reference:

• RG 167
• ASIC Corporations (Generic Calculators) Instrument 2016/207
• ASIC Corporations (Amendment) Instrument 2016/1090

Background

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.