Explanatory Memorandum
(Circulated by authority of Senator the Hon Jane Hume, Assistant Minister for Superannuation, Financial Services and Financial Technology)General outline and financial impact
Reuniting More Superannuation
This Bill amends the SIS Act, RSA Act and SUMLM Act, to facilitate the closure of eligible rollover funds by 30 June 2021 and allow the Commissioner to reunite amounts he or she receives from eligible rollover funds with a member's active account.
Date of effect: The amendments in this Bill commence the day after Royal Assent.
Proposal announced: This Bill fully implements the measure Superannuation - facilitating closure of eligible rollover funds from the 2019-20 MYEFO.
Financial impact: This measure is estimated to have a gain to the budget of $143.0 million in fiscal balance terms over the forward estimates period. In underlying cash balance terms this measure is estimated to have a gain to the budget of $199.0 million over the forward estimates period. The difference between the fiscal and cash estimates reflects the time taken to reunite amounts with individuals.
Human rights implications: This Bill does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.1-2.14.
Compliance cost impact: The amendments in this Bill are consistent with recommendation 5 of the Productivity Commission inquiry into Superannuation: Assessing Efficiency and Competitiveness and are estimated to have a minor regulatory impact on business and individuals.
The Superannuation: Assessing Efficiency and Competitiveness inquiry report was certified by the Department of the Treasury as a process and analysis equivalent to a Regulation Impact Statement.
The Superannuation: Assessing Efficiency and Competitiveness inquiry report can be found at this link:
https://www.pc.gov.au/inquiries/completed/superannuation/assessment/report