Explanatory Memorandum
(Circulated by authority of the Minister for Housing and Assistant Treasurer, the Hon Michael Sukkar MP)Chapter 4 - Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Schedule 1 - Superannuation - employees with multiple employers
4.1 This Schedule is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
4.2 Schedule 1 amends the Superannuation Guarantee (Administration) Act 1992 to allow individuals to avoid unintentionally breaching their concessional contributions cap when they receive superannuation contributions from multiple employers. Instead of receiving contributions into superannuation, an employee may apply to the Commissioner to opt out of the superannuation guarantee regime in respect of an employer and negotiate with the employer to receive additional cash or non-cash remuneration.
4.3 The amendments achieve this outcome by allowing certain employees with multiple employers to apply to the Commissioner for an 'employer shortfall exemption certificate', which prevents their employer from having a superannuation guarantee shortfall if they do not make superannuation contributions for a period.
Human rights implications
4.4 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
4.5 This Schedule is compatible with human rights as it does not raise any human rights issues.
Schedule 2 - Non-arm's length income of superannuation entities
4.6 Schedule 2 is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
4.7 This Schedule ensures that the non-arm's length income rules for superannuation entities apply in situations where a superannuation entity incurs non-arm's length expenses in gaining or producing the income.
Human rights implications
4.8 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
4.9 Schedule 2 is compatible with human rights as it does not raise any human rights issues.
Schedule 3 - Limited recourse borrowing arrangements
4.10 Schedule 3 is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
4.11 This Schedule amends the total superannuation balance rules to ensure that, in certain circumstances involving limited recourse borrowing arrangements, the total value of a superannuation fund's assets is taken into account in working out individual members' total superannuation balances.
Human rights implications
4.12 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
4.13 Schedule 3 is compatible with human rights as it does not raise any human rights issues.