Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Josh Frydenberg MP)Chapter 7 Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Schedule 1 - Removing the monthly minimum threshold for salary or wages to count towards the superannuation guarantee
7.1 Schedule 1 to the Bill 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
7.2 Schedule 1 to the Bill amends the SGAA to remove the $450-a-month threshold before an employee's salary or wages count towards the Superannuation Guarantee.
7.3 Removing the $450-a-month threshold will expand the coverage of the Superannuation Guarantee to eligible employees earning salary or wages less than $450 in a calendar month from a single employer.
Human rights implications
7.4 Schedule 1 to the Bill does not engage any of the applicable rights or freedoms.
Conclusion
7.5 Schedule 1 to the Bill is compatible with human rights as it does not raise any human rights issue.
Schedule 2 - First home super saver scheme maximum releasable amount
7.6 Schedule 2 to the Bill 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
7.7 Schedule 2 to the Bill amends the TAA 1953 to increase the limit on the maximum amount of voluntary contributions made over multiple financial years that can be released under the First Home Super Saver Scheme from $30,000 to $50,000.
7.8 This amendment ensures that the First Home Super Saver Scheme continues to help first home buyers save more quickly for the purpose of purchasing or constructing their first home.
Human rights implications
7.9 Schedule 2 to the Bill does not engage any of the applicable rights or freedoms.
Conclusion
7.10 Schedule 2 to the Bill is compatible with human rights as it does not raise any human rights issues.
Schedule 3 - Reduced eligibility age for downsizer contributions
7.11 Schedule 3 to the Bill 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
7.12 Schedule 3 to the Bill amends the ITAA 1997 to extend access for individuals to make downsizer contributions to their superannuation plan from the proceeds of selling their home by reducing the eligibility age from 65 to 60 years.
Human rights implications
7.13 Schedule 3 to the Bill does not engage any of the applicable rights or freedoms.
Conclusion
7.14 Schedule 3 to the Bill is compatible with human rights as it does not raise any human rights issues.
Schedule 4 - Repealing the work test for superannuation contributions
7.15 Schedule 4 to the Bill 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
7.16 Schedule 4 to the Bill amends the ITAA 1997 to apply the work test to individuals aged between 67 to 75 years who claim a deduction for personal superannuation contributions.
7.17 Schedule 4 to the Bill also amends the ITAA 1997 to allow such individuals to make or receive non-concessional superannuation contributions under the bring forward rule.
Human rights implications
7.18 Schedule 4 to the Bill does not engage any of the applicable rights or freedoms.
Conclusion
7.19 Schedule 4 to the Bill is compatible with human rights as it does not raise any human rights issues.
Schedule 5 - Segregated current pension assets
7.20 Schedule 5 to the Bill 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
7.21 Schedule 5 to the Bill amends the ITAA 1997 to allow superannuation trustees to choose their preferred method of calculating exempt current pension income when they have interests in both accumulation and retirement phases during the income year.
7.22 These amendments will provide superannuation trustees with greater choice in how they calculate exempt current pension income and minimise the complexity and cost in a fund's reporting.
Human rights implications
7.23 Schedule 5 to the Bill does not engage any of the applicable rights or freedoms.
Conclusion
7.24 Schedule 5 to the Bill is compatible with human rights as it does not raise any human rights issues.
Schedule 6 - Extension of temporary full expensing of depreciating assets
7.25 Schedule 6 to the Bill 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
7.26 Schedule 6 to the Bill amends the temporary full expensing provisions in the income tax law to extend the tax incentive by 12 months. This allows businesses with an aggregated turnover of less than $5 billion (and corporate tax entities that meet the alternative eligibility test) to deduct the full cost of eligible depreciating assets that are first held, and first used or installed ready for use for a taxable purpose, between the 2020 budget time and 30 June 2023. Businesses are also able to deduct the full cost of improvements to these assets and to existing eligible depreciating assets made during this period.
Human rights implications
7.27 Schedule 6 to the Bill does not engage any of the applicable rights or freedoms.
Conclusion
7.28 Schedule 6 to the Bill is compatible with human rights as it does not raise any human rights issues.