Scott Ryan (Victoria, Liberal Party, Parliamentary Secretary to the Minister for Education and Training) Share this | Hansard source

This bill implements the government's commitment to cut the superannuation compliance costs for small businesses. The bill reduces red tape for small business by simplifying when a standard choice form has to be offered by an employer. Employers will no longer have to of provide a standard choice form to a temporary resident within 28 days of the employee starting the job. This change simplifies the choice regime for businesses and will be especially beneficial for employers that are relying on large numbers of temporary residents for seasonal and intermittent work.

Another key change the bill makes to the superannuation guarantee regime is that employers will not need to re-offer a standard choice form to an employee if their superannuation fund merges with another fund. This is an unreasonable obligation on employers that many may not be aware of. Importantly, the bill will not remove any employee's right of choice. Whether an employee is a temporary resident or an employee whose fund has merged, they will still be able to nominate a fund they wish their contributions to be sent to, and employers must honour that choice. Removing these requirements simplifies the superannuation guarantee regime. Because of the government's measure to reduce red tape employers will no longer risk liability for the choice shortfall penalty if they do not provide a choice of fund form in these two circumstances. I thank senators for their contributions, and I commend the bill to the Senate.

Question agreed to.

Bill read a second time.