Peter Dutton (Dickson, Liberal Party, Minister for Revenue and Assistant Treasurer) Share this | Link to this | Hansard source

by leave—I present the supplementary explanatory memorandum to the bill and move government amendments (1) to (14) together:

(1)    Schedule 1, item 53, page 17 (line 12), after “Part III”, insert “(other than a provision of Division 3A of that Part)”.

(2)    Schedule 1, page 26 (after line 14), after item 65, insert:

65A  Section 49D

Repeal the section.

(3)    Schedule 1, page 28 (after line 6), after item 71, insert:

71A  Subsection 16C(4)

After “Prudential Rules”, insert “or in the prudential standards”.

(4)    Schedule 1, item 149, page 44 (lines 25 and 26), omit the item.

(5)    Schedule 1, item 150, page 45 (after line 2), after paragraph (a) of the definition of modifiable provision, insert:

           (aa)    section 35C (except so far as it applies in relation to self-managed superannuation funds);

(6)    Schedule 1, item 150, page 45 (lines 7 and 8), omit paragraph (f) of the definition of modifiable provision.

(7)    Schedule 1, item 154, page 52 (line 17), after “under”, insert “section 129 or 130 or under”.

(8)    Schedule 1, item 154, page 52 (after line 18), after subsection 336F(3), insert:

Note 1:  See section 130B in relation to requirements under section 129 or 130.

(9)    Schedule 1, item 154, page 52 (line 19), after “Note”, insert “2”.

(10)  Schedule 1, page 60 (after line 20), after item 172, insert:

Income Tax Assessment Act 1936

172A  Paragraph 121AO(2)(a)

Omit “the Life Insurance Actuarial Standards Board established under the Life Insurance Act 1995 issued a capital reserve adequacy standard applicable to the company”, substitute “a prudential standard made under section 230B of the Life Insurance Act 1995 in relation to capital adequacy applied to the company”.

(11)  Schedule 1, page 72 (after line 33), after item 207, insert:

207A  Paragraph 87(1)(c)

Omit “prescribed by the regulations”, substitute “specified in the prudential standards”.

(12)  Schedule 1, page 75 (after line 7), after item 212, insert:

212A  Paragraph 95(1)(d)

Omit “prescribed by the regulations”, substitute “specified in the prudential standards”.

(13)  Schedule 1, item 238, page 81 (lines 25 to 27), omit the item.

(14)  Schedule 1, item 260, page 88 (lines 12 to 13), omit the item, substitute:

260  Subsection 16C(4)

Omit “Prudential Rules or in”.

These proposed amendments to the bill are minor in nature and generally result from drafting errors. The amendments will ensure that the reforms being introduced by the bill operate as intended. Amendment (1) excludes division 3A of part III of the Insurance Act, which deals with the transfer and amalgamation of insurance business, from the list of provisions for which the Australian Prudential Regulation Authority can grant an exemption. This ensures that the list of modifiable provisions is consistent with the proposals announced in ‘Streamlining prudential regulation: response to Rethinking regulation’.

Amendment (2) repeals section 49D of the Insurance Act dealing with self-incrimination as new section 38F of the Insurance Act will provide protection from self-incrimination. Collectively, amendments (3) and (14) give effect to the phasing out of prudential rules in subsection 16C(4) of the Life Insurance Act 1995, the life act, by 30 June 2011. Amendment (4) ensures that use immunity provided under section 130B is retained.

Amendment (7) ensures that section 336F dealing with self-incrimination does not apply to sections 129 or 130 of the Superannuation Industry (Supervision) Act 1993, the SI(S) Act, as self-incrimination in respect of these sections as dealt with by section 130B. Amendment (8) inserts a note to clarify that section 130B, which deals with self-incrimination, applies to sections 129 and 130. Amendment (9) renumbers the note that already exists as a result of amendment (8). The bill currently includes section 113 of the SI(S) Act in the list of modifiable provisions. However, section 113 is being repealed and replaced by the new section 35C. Amendments (5) and (6) ensure that the correct section is included in the list of modifiable provisions under the SI(S) Act.

Amendment (10) makes a consequential amendment to paragraph 121AO(2)(a) of the Income Assessment Act 1936 as a result of schedule 1 of the bill, abolishing the Life Insurance Actuarial Standards Board and removing the concept of actuarial standards from the life act from 1 January 2008. Sections 87 and 95 of the life act respectively require a life company to notify APRA when it appoints an auditor and actuary for the company. Amendments (11) and (12) ensure that additional matters to be included in the notice are dealt with in prudential standards rather than prescribed under the Life Insurance Regulations Act 1995. This is consistent with the principles based approach adopted in the bill, which provides that specific requirements relating to auditors and actuaries be set out in prudential standards. Amendment (13) ensures that regulations and prudential rules made under the life act are considered part of the act. Full details of the amendments can be found in a supplementary explanatory memorandum. I commend the bill to the House.

Question agreed to.

Bill, as amended, agreed to.

Bill reported to the House with amendments.