Senate

Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018

Supplementary Explanatory Memorandum

(Circulated by authority of the Assistant Treasurer, the Hon Stuart Robert MP)
Amendments to be moved on behalf of the Government

General outline and financial impact

Fees charged to superannuation members (Schedule 1)

Amendment 1 amends Schedule 1 to the Bill to clarify that the fee cap applies to members that have a final balance of less than $6,000 for their MySuper or choice product in an income year, even where they stop holding the product during the year.

Date of effect: 1 July 2019.

Proposal announced: Amendment 1 has not previously been announced.

Financial impact: Nil.

Human rights implications: This Amendment does not raise any human rights issue.

Compliance cost impact: This Amendment does not alter the compliance cost impact of the measure as previously presented to the Parliament.

Insurance for superannuation members (Schedule 2)

Amendments 2 to 4 amend Schedule 2 to the Bill to allow trustees to provide opt out insurance to new members aged under 25 years and new members with balances below $6,000 where the member is engaged in a dangerous occupation.

Date of effect: 1 July 2019.

Proposal announced: Amendments 2 to 4 have not previously been announced.

Financial impact: The financial impact of Amendments 2 to 4 is estimated to be a cost of $9.4 million over four years to 2021-22.

Human rights implications: These Amendments do not raise any human rights issue.

Compliance cost impact: These Amendments alter the compliance cost impact of the measure as previously presented to the Parliament.

Summary of regulation impact statement

Regulation impact on business

Impact: The original Amendments had an estimated annual compliance cost impact of $28.5 million averaged over 10 years. The revised annual compliance cost impact of $28.8 million averaged over 10 years reflects the cost of implementing the dangerous occupation exception.

Inactive low-balance accounts and consolidation into active accounts (Schedule 3)

Amendment 5 amends Schedule 3 to the Bill requiring the Commissioner of Taxation to use all best endeavours to unite inactive account balances transferred to the ATO with an active superannuation account of the member within 28 days.

Amendment 6 amends Schedule 3 to the Bill to correct a reference error in the Application and Transitional provisions of the Schedule.

Date of effect: 1 July 2019.

Proposal announced: Amendments 5 and 6 have not previously been announced.

Financial impact: Nil.

Human rights implications: These Amendments do not raise any human rights issue.

Compliance cost impact: These Amendments do not alter the compliance cost impact of the measure as previously presented to the Parliament.


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