Daniel Mulino (Fraser, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I move:

That this bill be now read a second time.

This bill introduces a number of important reforms to the superannuation and tax laws to implement our election commitments, streamline systems and processes and reduce compliance costs for taxpayers.

Schedule 1 to the bill amends the Superannuation Guarantee (Administration) Act 1992 to streamline the superannuation choice of fund process during employee onboarding.

Australians deserve to make an informed choice about their superannuation fund when they start a new job.

'Stapling' was introduced to ensure employers pay superannuation contributions to an employee's existing super fund if they do not make a choice. If an employee does not make a choice of fund, their employer can request stapled fund details from the ATO to pay contributions to. This prevents employees unintentionally opening new superannuation accounts every time they start a new job.

This amendment provides greater flexibility for employers, or their agents, to request an employee's existing stapled fund details from the ATO earlier in the onboarding process. That way, if a stapled fund exists, the employer can provide those details to the employee during onboarding to help inform their choice of fund.

This amendment supports the government's commitment to empower employees to make informed choices by making it easier to see, consider and select their existing super fund when they start a new job, if they choose to do so. As under existing choice-of-fund rules, employees will still be able to choose any available super fund.

This amendment supports the government's commitment to reduce unintended duplicate accounts, which can erode retirement savings through duplicate fees and insurance premiums. It will also give employers more timely and accurate superannuation details, supporting their readiness for the government's payday super reforms.

Schedule 2 to the bill amends the Corporations Act 2001 to impose a ban on advertising superannuation products to employees during onboarding, with certain exceptions.

Australians deserve protection from inappropriate advertising when they provide their superannuation details to an employer during onboarding.

A review of the Your Future, Your Super laws uncovered inappropriate behaviour where software providers are undermining stapling and directing employees towards advertised products, including those associated with the software provider. The government committed to stop this inappropriate behaviour.

This amendment introduces a ban on advertising superannuation products to an employee, specifically at the point of employee onboarding when starting a new job. This is a key moment when employees engage with their superannuation and should be able to do so in an informed and safe way.

The following exceptions will apply so that only certain types of superannuation products can be shown or advertised to employees:

MySuper products are default superannuation products which are subject to strict regulation and the annual performance test. And the condition to show an employee their stapled fund is an important consumer protection that will provide the necessary information and context to make a better-informed decision.

The ban also does not apply to a person advertising in the ordinary course of business.

The government has consulted with stakeholders on this amendment, and there was broad support for the changes and an understanding of the benefits that superannuation stapling brings to reducing unintended duplicate accounts.

By requiring stapling as a condition of advertising a MySuper product during onboarding, the bill strikes the right balance in giving employees as much transparency as possible while providing flexibility for service providers to ensure their systems are ready and aligns with the implementation of Payday Super. This amendment reinforces the government's commitment to supporting Australians to make an informed choice about their superannuation while providing strong consumer protections. It will protect employees from being unduly influenced to make uninformed decisions, open inappropriate products and unintentionally create duplicate accounts. As under existing choice-of-fund rules, employees will still be able to choose any available super fund.

Schedule 3 provides targeted tax exemptions to help Australia host the men's and women's Rugby World Cup in 2027 and 2029.

These games aren't just two events on a calendar.

They're part of a long national tradition of hosting sports that brings people together.

World Rugby chose Australia in 2022 for a good reason.

We're a country that competes.

The men's and women's World Cups will draw hundreds of thousands of international visitors, fill hotels, put bums on seats in our pubs and restaurants, pack out our stadiums and showcase Australia on the world stage in the lead-in to Brisbane 2032.

The amendments will provide income tax exemptions for event delivery companies and joint venture partners and a withholding tax exemption for certain payments to foreign entities through to 30 June 2031.

These settings align with what we've put in place for other major global sporting events hosted here, including the 2023 FIFA Women's World Cup and the 2020 ICC T20 World Cup. They're critical to ensuring Australia remains a competitive and attractive destination for global events.

Schedule 4 puts Australia's new tax treaty with Portugal into law, adding to the attractiveness of Australia as an investment destination.

This is the first agreement of its kind between our countries. It opens the door to deeper commercial, investment and innovation links by cutting withholding tax rates on dividends, interest and royalties. That means fewer tax barriers, cheaper access to foreign capital and stronger incentives for Australian and Portuguese businesses to invest.

It also strengthens tax integrity. The treaty reinforces the Albanese government's agenda to ensure multinationals pay their fair share by enabling information-sharing between tax authorities and improving cooperation on debt collection. That reduces opportunities for evasion and avoidance and helps to protect the Australian tax base.

Schedule 5 to the bill amends the income tax law to specifically list the following entities as deductible gift recipients: Coaxial Foundation, Community Foundations Australia, Equality Australia, Foundation Broken Hill, Partnerships for Local Action and Community Empowerment, Paul Ramsay Foundation, Social Enterprise Australia, St Patrick's Cathedral Melbourne Restoration Fund, Sydney Chevra Kadisha, the Great Synagogue Foundation and the Parenthood Project.

Specifically listing an organisation encourages philanthropic giving and supports the not-for-profit sector as donors may claim income tax deductions for donations to organisations with DGR status.

To maintain trust and integrity in the DGR system, the schedule also removes entities that have either voluntarily requested removal or no longer operate for the purpose for which they were originally provided DGR status.

I finish with a topic close to my heart: wine.

When we introduced legislation last month to freeze draught beer excise increases, we wanted the rest of the alcohol industry to know there was a place in our hearts for them too.

Schedule 6 delivers on the Albanese government's 2025-26 budget commitment to provide tax relief for Australia's wine producers.

Currently, all eligible wine producers can receive a rebate of wine equalisation tax up to a cap of $350,000. These changes will increase the cap to $400,000 per financial year from 1 July 2026.

And we didn't stop at wine.

Through regulations, we're making matching changes for brewers and distillers too. From 1 July 2026, the excise remission cap for eligible alcohol manufacturers will also rise from $350,000 to $400,000 a year for beer and spirits entered for home consumption. That keeps support for wine, beer and spirits in step.

Together, these changes back local producers, keep money flowing through regional towns and support investment and jobs.

In the spirit of these changes, I welcome recommendations of your favourite drop.

Full details of the measure are contained in the explanatory memorandum.

Debate adjourned.

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