Bill Shorten (Maribyrnong, Australian Labor Party, Minister for Financial Services and Superannuation) Share this | Hansard source

I would like to thank all the members who have contributed to this debate, including the member for Casey. Whilst I cannot always convince the member for Casey of the strength of my arguments, I always know he listens carefully, and for that much I am grateful.

Schedule 1 of the MySuper reforms will require superannuation funds not offering a MySuper product to transfer their default members' account benefits to a fund offering a MySuper product by 1 July 2017. Schedule 1 amends the Income Tax Assessment Act 1997 to allow such a superannuation fund to transfer losses and deferred tax liabilities for the assets transferred. This means default members of superannuation funds will not be adversely affected if their account balances are compulsorily transferred to a MySuper product in another fund as a result of the MySuper reforms.

Schedule 2 makes consequential amendments to the Defence Force Retirement and Death Benefits Act 1973. The changes relate to sustaining the superannuation contribution concession and are necessary to ensure the treatment of Defence personnel in defined benefit funds is consistent with the treatment of very high-income earners with defined benefit interests in non-Defence superannuation schemes. The amendments will enable the trustee of the Defence Force Retirement and Death Benefits Scheme to release a lump sum for the purposes of meeting a debt account discharge liability and to reduce the benefit as a consequence of that payment.

The government will move amendments to this bill. These amendments implement changes to default superannuation arrangements for employees to whom a modern award applies. I acknowledge the cooperation of the opposition in this matter. I commend this bill to the House.

Question agreed to.

Bill read a second time.

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