Explanatory Memorandum
(Circulated by authority of the Acting Minister for Revenue and Financial Services, Senator the Hon Mathias Cormann)General outline and financial impact
Amendments relating to superannuation reform package
The amendments in Schedule 1 make changes to measures enacted through the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 to support the integrity of the measures and ensure the law operates as intended.
The amendments relate to the following measures that were included in that Act:
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- the transfer balance cap;
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- changes to the concessional contribution rules;
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- changes to the non-concessional contribution rules;
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- objective of superannuation;
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- changes to the transition to retirement income stream rules;
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- capital gains tax relief for superannuation funds; and
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- streamlining of administrative processes.
Date of effect : Most of the amendments apply from the same time that the provisions that they are amending apply (predominantly 1 July 2017 or the 2017-18 income year).
However, the changes that facilitate the transfer of assets by life insurance companies bring forward the application of those provisions to the time that the Bill containing these amendments was introduced into the House of Representatives.
Proposal announced : The Minister for Revenue and Financial Services advised stakeholders on 28 March 2017. Draft legislation was released for public consultation on 12 and 27 April 2017.
Financial impact : The measures will protect revenue raised from the Superannuation Reform Package.
Human rights implications : Schedule 1 does not raise any human rights issue. See Statement of Compatibility with Human Rights - paragraphs 1.178 to 1.182.
Compliance cost impact : The measures have varying compliance costs and some will reduce compliance cost for individuals and superannuation funds.
Amendments relating to insolvency
Schedule 2 to this bill amends the Bankruptcy Act 1966 and Corporations Act 2001 so that a single approval will cover a profit or advantage received by an external administrator or trustee even when the benefit is passed on to multiple related entities.
This Schedule will also amend the Corporations Act 2001 to ensure that annual and end-of-control returns by controllers are included on ASIC's public register and make some minor technical corrections required as a result of amendments in the Insolvency Law Reform Act 2016 .
Date of effect : The amendments take effect from Royal Assent.
Proposal announced : The amendments have not been announced separately to the public consultation process which commenced on 3 May 2017.
Financial impact : There are no financial impacts from the amendments.
Human rights implications : This Schedule does not raise any human rights issue.
Compliance cost impact : The amendments will lower compliance costs for insolvency practitioners.