Jane Hume (Victoria, Liberal Party, Minister for Superannuation, Financial Services and the Digital Economy) Share this | Link to this | Hansard source

I table a supplementary memorandum relating to the government amendments and a request for amendments to be moved to this bill.

Pauline Hanson (Queensland, Pauline Hanson's One Nation Party) Share this | Link to this | Hansard source

I advise the chamber that One Nation will not be proceeding with the amendments on sheet 8892.

Jenny McAllister (NSW, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

Can I get clarity from the minister: in tabling the material relating to the amendment, are you seeking to move your amendments now, Minister?

Jane Hume (Victoria, Liberal Party, Minister for Superannuation, Financial Services and the Digital Economy) Share this | Link to this | Hansard source

by leave—I move government amendments (2) to (15) on sheet SH137:

(2) Schedule 1, item 15, page 5 (line 7), omit "1 May 2020", substitute "1 May 2021".

(3) Schedule 1, item 17, page 5 (line 21), omit "1 May 2020", substitute "1 May 2021".

(4) Schedule 1, item 22, page 6 (line 22), omit "30 June 2020 and 30 June 2021", substitute "30 June 2021 and 31 January 2022".

(5) Schedule 1, item 22, page 6 (lines 27 and 28), omit "30 June 2020 (for accounts that had balances of less than $6,000 on 1 June 2020) and 30 June 2021", substitute "30 June 2021 (for accounts that had balances of less than $6,000 on 1 June 2021) and 31 January 2022".

(6) Schedule 1, item 38, page 10 (line 17), omit "1June 2020", substitute "1June 2021".

(7) Schedule 1, item 38, page 10 (line 19), omit "30 June 2020", substitute "30 June 2021".

(8) Schedule 1, item 38, page 10 (line 23), omit "1 June 2020", substitute "1 June 2021".

(9) Schedule 1, item 38, page 11 (lines 8 and 9), omit "1 June 2020", substitute "1 June 2021".

(10) Schedule 1, item 38, page 11 (line 11), omit "1 June 2020", substitute "1 June 2021".

(11) Schedule 1, item 38, page 11 (line 18), omit "1 June 2020", substitute "1 June 2021".

(12) Schedule 1, item 38, page 11 (line 23), omit "30 June 2021", substitute "31 January 2022".

(13) Schedule 1, item 38, page 11 (line 27), omit "1 June 2020", substitute "1 June 2021".

(14) Schedule 1, item 38, page 13 (line 26), omit "30 June 2020", substitute "30 June 2021".

(15) Schedule 1, item 38, page 13 (line 28), omit "30 June 2021", substitute "31 January 2022".

by leave—I move:

That the House of Representatives be requested to make the following amendments:

(1) Clause 2, page 2 (at the end of the table), add:

(16) Page 22 (after line 9), at the end of the Bill, add:

Schedule 2—Payment of other amounts to the Commissioner

Income Tax Assessment Act 1997

1 Section 301 -125

After "21E(2)", insert ", 22B(2)".

2 After subparagraph 301 -225(2 ) ( b ) ( ia)

Insert:

  (ib) under subsection 22B(2) of that Act in a case covered by paragraph (d) of that subsection; or

3 Subsection 307 -5(1) (table item 5, column 2)

After "subsection 21E(2) or (5),", insert "section 22 or subsection 22B(2) or (5),".

4 Subsection 307 -5(1) (table item 5, column 3)

After "21E(2), (5) or (6)", insert ", 22B(2), (5) or (6)".

5 Paragraph 307 -120(2 ) ( e)

After "21E(2), (5) or (6)", insert ", 22B(2), (5) or (6)".

6 Subsection 307 -142(1)

After "21E(2), (5) or (6)", insert ", 22B(2), (5) or (6)".

7 Subsection 307 -142(2) (method statement, step 1, note)

After:

A payment under subsection 21E(2) of that Act is attributable to a single unclaimed amount set out in item 3B of the table.

insert:

A payment under subsection 22B(2) of that Act is attributable to a single unclaimed amount set out in item 3C of the table.

8 Subsection 307 -142(3) (after table item 3B)

Insert:

9 Subsection 307 -142(3B)

After "21E(5) or (6)", insert ", 22B(5) or (6)".

10 Subsection 307 -300(1)

After "21E(2)", insert ", 22B(2)".

11 Subsection 307 -300(2) (method statement, step 1, note)

After:

A payment under subsection 21E(2) of that Act is attributable to a single unclaimed amount set out in item 3B of the table.

insert:

A payment under subsection 22B(2) of that Act is attributable to a single unclaimed amount set out in item 3C of the table.

12 Subsection 307 -300(3) (after table item 3B)

Insert:

13 Subsection 307 -300(3A) (note)

After "21E(5) or (6)", insert ", 22B(5) or (6)".

14 Subsection 307 -350(2B)

After "21E(2)", insert ", 22B(2)".

Superannuation (Unclaimed Money and Lost Members) Act 1999

15 After subparagraph 6(a ) ( iib)

Insert:

  (iic) certain amounts voluntarily paid to the Commissioner by superannuation providers; and

16 After paragraph 6(db)

Insert:

(dc) the matching of amounts voluntarily paid to the Commissioner by superannuation providers and persons entitled to them; and

17 At the end of paragraph 6(e)

Add:

  (vi) other amounts paid by superannuation providers on a voluntary basis; and

18 After subparagraph 6(eb ) ( iv)

Insert:

and (v) other amounts paid by superannuation providers on a voluntary basis;

19 Section 7

Omit:

Reunification of amounts held by the Commissioner

If, having taken the steps required in relation to unclaimed amounts, or amounts held by the Commissioner for lost members, inactive low-balance members or eligible rollover fund members, the Commissioner still holds an amount, the Commissioner must pay that amount to a fund in which the member for whom the Commissioner holds the amount is active, or in accordance with the regulations.

substitute:

Voluntary payments by superannuation providers

A superannuation provider may pay to the Commissioner of Taxation any amount it holds on behalf of a member, former member or non-member spouse if it reasonably believes paying the amount to the Commissioner is in the best interests of the member, former member or non-member spouse.

Later, the Commissioner must, if satisfied that it is possible to do so, pay an amount the Commissioner has received in respect of a person:

(a) to a fund identified by the person; or

(b) if the person has reached eligibility age or the amount is less than $200—to the person; or

(c) if the person has died—to the person's death beneficiaries or legal personal representative.

Reunification of amounts held by the Commissioner

If, having taken the steps required in relation to unclaimed amounts, amounts held by the Commissioner for lost members, inactive low-balance members or eligible rollover fund members or amounts paid by superannuation providers on a voluntary basis, the Commissioner still holds an amount, the Commissioner must pay that amount to a fund in which the person for whom the Commissioner holds the amount is active, or in accordance with the regulations.

20 After paragraph 19(1 ) ( dd)

Insert:

(de) amounts paid to the Commissioner under section 22 (other amounts paid by superannuation providers); and

(df) each person in respect of whom there is an amount referred to in paragraph (de) of this subsection; and

21 After subparagraph 20H(1 ) ( b ) ( iiab)

Insert:

  (iiac) the amounts (if any) paid to the Commissioner under section 22 in respect of the person; and

22 After subparagraph 20H(1 ) ( b ) ( vb)

Insert:

  (vc) the amounts (if any) paid by the Commissioner under subsection 22B(2) in respect of the person; and

23 Paragraph 20H(2B ) ( a)

After "subsection 21E(2),", insert "section 22 or subsection 22B(2),".

24 Subsection 20H(3)

After "(iiab)", insert ", (iiac)".

25 Subsection 20QF(8) (note)

After "21C(1)", insert ", 22(1)".

26 Subsection 21E(8) (note)

After "21C(1)", insert ", 22(1)".

27 After Part 3C

Insert:

Part 3D—Payment of other amounts to the Commissioner

Division 1—Payments by superannuation providers

22 Superannuation provider may pay amounts to Commissioner

(1) A superannuation provider may pay to the Commissioner an amount that it holds if:

(a) it holds the amount on behalf of:

  (i) a member of the superannuation fund, approved deposit fund or RSA for which the superannuation provider is the trustee or RSA provider; or

  (ii) a former member of that superannuation fund, approved deposit fund or RSA; or

  (iii) a non-member spouse of that member or former member; and

(b) it reasonably believes that paying the amount to the Commissioner would be in the best interests of the member, former member or non-member spouse; and

(c) at the same time as making the payment, it gives the Commissioner a statement that complies with subsection (2).

(2) The statement must be a statement, in the approved form, of information relevant to either or both of the following:

(a) the amount;

(b) the administration of any of the following in connection with the amount:

  (i) this Part;

  (ii) the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007;

  (iii) the Income Tax Assessment Act 1997, Part 3AA of this Act, and Chapters 2 and 4 in Schedule 1 to the Taxation Administration Act 1953, so far as they relate to this Part or the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007.

(3) The amount paid must be the amount that would have been payable by the superannuation provider if:

(a) the amount had constituted an account that the superannuation provider held for the member, former member or non-member spouse; and

(b) the member, former member or non-member spouse had requested that the balance held in the account be rolled over or transferred to a complying superannuation fund (within the meaning of the SIS Act).

(4) For the purposes of subsection (3):

(a) assume that the request were made before the time of the payment; and

(b) assume that the member, former member or non-member spouse had not died before the time of the payment.

(5) This section does not apply to:

(a) an amount that is unclaimed money, and that was unclaimed money on the most recent unclaimed money day; or

(b) an amount payable to a person identified in a notice the Commissioner has given the provider under section 20C; or

(c) an amount that is held in an inactive low-balance account, and that was held in such an account on the most recent unclaimed money day; or

(d) an amount that is held in an account of an eligible rollover fund member, unless the payment under this section is made before 1 June 2021; or

(e) an amount that is held in a lost member account, and that was held in such an account on the most recent unclaimed money day.

Note 1: Unclaimed money is payable to the Commissioner under subsection 17(1).

Note 2: An amount mentioned in paragraph (5) (b) is payable to the Commissioner under section 20F.

(6) Upon payment to the Commissioner of an amount under this section, the superannuation provider is discharged from further liability in respect of that amount.

22A Errors or omissions in statements

(1) A superannuation provider who becomes aware of a material error, or material omission, in any information in a statement of the superannuation provider under subsection 22(2) must give the corrected or omitted information to the Commissioner.

(2) The corrected or omitted information must be given:

(a) in the approved form; and

(b) no later than 30 days after the superannuation provider becomes aware of the error or omission.

Note 1: The Commissioner may defer the time for giving the information: see section 388-55 in Schedule 1 to the Taxation Administration Act 1953.

Note 2: The Taxation Administration Act 1953 provides for offences and administrative penalties if the information is not given when it must be: see sections 8C and 8E of that Act and Division 286 in Schedule 1 to that Act.

Division 2—Payments by Commissioner

22B Payments by Commissioner in respect of persons for whom amounts have been paid to Commissioner

(1) This section applies in relation to a person if:

(a) a superannuation provider paid an amount to the Commissioner under section 22 in respect of the person; and

(b) the Commissioner is satisfied, on application in the approved form or on the Commissioner's own initiative, that it is possible for the Commissioner to pay the amount in accordance with subsection (2).

(2) The Commissioner must pay the amount:

(a) to a single fund if:

  (i) the person has not died; and

  (ii) the person directs the Commissioner to pay to the fund; and

  (iii) the fund is a complying superannuation plan (within the meaning of the Income Tax Assessment Act 1997); or

(b) in accordance with subsection (4) if:

  (i) the person has died; and

  (ii) the Commissioner is satisfied that, if the superannuation provider had not paid the amount to the Commissioner, the provider would have been required to pay an amount or amounts (death benefits) to one or more other persons (death beneficiaries) because of the deceased person's death; or

(c) to the person's legal personal representative if the person has died but subparagraph (b) (ii) does not apply; or

(d) to the person if this paragraph applies (see subsection (3)).

Note: Money for payments under this subsection is appropriated by section 16 of the Taxation Administration Act 1953.

(3) Paragraph (2) (d) applies if:

(a) subparagraph (2) (a) (ii) does not apply; and

(b) any of the following subparagraphs apply:

  (i) the person has reached the eligibility age;

  (ii) the amount is less than $200;

  (iii) a terminal medical condition (within the meaning of the Income Tax Assessment Act 1997) exists in relation to the person; and

(c) the person has not died.

(4) In a case covered by paragraph (2) (b), the Commissioner must pay the amount under subsection (2) by paying to each death beneficiary the amount worked out using the following formula:

Note: If there is only one death beneficiary, the whole of the amount is payable to that beneficiary.

(5) If:

(a) the Commissioner makes a payment under subsection (2) to a fund, a legal personal representative or a person; and

(b) the payment is in accordance with paragraph (2) (a), (c) or (d);

the Commissioner must also pay to the fund, legal personal representative or person the amount of interest (if any) worked out in accordance with the regulations.

Note: Money for payments under this subsection is appropriated by section 16 of the Taxation Administration Act 1953.

(6) If:

(a) the Commissioner makes a payment under subsection (2) to a death beneficiary; and

(b) the payment is in accordance with paragraph (2) (b);

the Commissioner must also pay to the death beneficiary the amount of interest (if any) worked out in accordance with the regulations.

Note: Money for payments under this subsection is appropriated by section 16 of the Taxation Administration Act 1953.

(7) Regulations made for the purposes of subsection (5) or (6) may prescribe different rates for different periods over which the interest accrues. For this purpose, rate includes a nil rate.

(8) This section does not apply to an amount that is to be, is or has been, taken into account in determining whether the Commissioner must make a payment under subsection 20H(2) or (3).

Note: Subsections 20H(2) and (3) provide for payment by the Commissioner of amounts equal to amounts paid to the Commissioner under subsections 17(1), 20F(1), 20QD(1), 21C(1), 22(1) and 24E(1) in respect of a person who:

(a) is identified in a notice under section 20C; or

(b) used to be the holder of a temporary visa.

22C Refund of overpayment made by superannuation provider

If the Commissioner is satisfied that an amount a superannuation provider for a fund (the first fund) has paid to the Commissioner under section 22 in respect of a person exceeded the amount (if any) that was payable under that section in respect of the person, the Commissioner must pay the excess:

(a) to the superannuation provider; or

(b) to a superannuation provider for another fund if the Commissioner is satisfied that:

  (i) the first fund no longer exists; and

  (ii) the other fund provides rights relating to the person equivalent to those provided by the first fund.

Note: Money for payments under this section is appropriated by section 16 of the Taxation Administration Act 1953.

Division 3—Various rules for special cases

22D Prescribed public sector superannuation schemes

Section 6, subsections 19(1) to (3), this Part and subsection 25(3A) apply as if:

(a) a public sector superannuation scheme that:

  (i) is prescribed for the purposes of this section; and

  (ii) in the case of a Commonwealth public sector superannuation scheme—is not a fund;

were a fund; and

Note: The regulations may prescribe a scheme by reference to a class of schemes: see subsection 13(3) of the Legislation Act 2003.

(b) the trustee of the scheme were the superannuation provider; and

(c) a member of the scheme were a member of the fund.

22E Commissioner may recover overpayment

(1) If:

(a) the Commissioner makes a payment in respect of a person under, or purportedly under, this Part; and

(b) the amount paid exceeds the amount (if any) properly payable under this Part in respect of the person;

the Commissioner may recover all or part of the excess from a person (the debtor) described in subsection (2) as a debt due by the debtor to the Commonwealth if the conditions specified in subsection (3) are met.

(2) The persons from whom the Commissioner may recover are as follows:

(a) the person to whom the payment was made (whether the payment was made to the person in the person's own right or as the legal personal representative of someone else who had died);

(b) the superannuation provider for the fund to which the payment was made;

(c) if the payment, or an amount wholly or partly attributable to that payment, was transferred to another fund—the superannuation provider for that other fund.

(3) The conditions for recovery are that:

(a) the Commissioner gave the debtor written notice, as prescribed by the regulations, of the proposed recovery and the amount to be recovered; and

(b) at least 28 days have passed since the notice was given; and

(c) the amount recovered is not more than the amount specified in the notice.

(4) Despite subsections (1) and (2), if the Commissioner gives a notice described in paragraph (3) (a) to a superannuation provider for a fund, and the fund does not hold an amount attributable to the payment, the Commissioner cannot recover from the superannuation provider.

(5) The Commissioner may revoke a notice described in paragraph (3) (a).

(6) The total of the amounts recovered from different debtors in relation to the same excess must not be more than the excess.

(7) A notice described in paragraph (3) (a) is not a legislative instrument.

22F Superannuation provider to return payment from Commissioner that cannot be credited

(1) If:

(a) a payment (the Commissioner's payment) is made to a fund under subsection 22B(2) or (5) in accordance with a person's direction; and

(b) the superannuation provider for the fund has not credited the payment to an account for the benefit of the person by the time (the repayment time) that is the end of the 28th day after the day on which the Commissioner's payment was made;

the superannuation provider is liable to repay the Commissioner's payment to the Commonwealth. The repayment is due and payable at the repayment time.

Note: The amount the superannuation provider is liable to repay is a tax-related liability for the purposes of the Taxation Administration Act 1953. Division 255 in Schedule 1 to that Act deals with payment and recovery of tax-related liabilities.

(2) The superannuation provider must give the Commissioner, in the approved form, information relating to the Commissioner's payment when repaying it.

Note: The Taxation Administration Act 1953 provides for offences and administrative penalties if the form is not given when it must be or includes false or misleading information: see sections 8C, 8K and 8N of that Act and Divisions 284 and 286 in Schedule 1 to that Act.

(3) If any of the amount the superannuation provider is liable to repay under subsection (1) remains unpaid by the superannuation provider after the repayment time, the superannuation provider is liable to pay general interest charge on the unpaid amount for each day in the period that:

(a) starts at the repayment time; and

(b) ends at the end of the last day on which either of the following remains unpaid:

  (i) the amount unpaid at the repayment time;

  (ii) general interest charge on any of the amount.

28 Section 24N

After "3C", insert ", 3D".

29 After subparagraph 24NA(1 ) ( a ) ( iia)

Insert:

  (iib) a superannuation provider has paid an amount to the Commissioner under section 22 (an amount paid by a superannuation provider on a voluntary basis) and, after applying Part 3D and section 20H, the Commissioner holds an amount under that Part in respect of the person (a superannuation amount); or

30 After subsection 25(3)

Insert:

Statement about payments by superannuation providers on a voluntary basis

(3A) The approved form of statement by a superannuation provider for the purposes of subsection 22(2) may require the statement to contain the tax file number of:

(a) the superannuation provider; and

(b) the fund; and

(c) a member or former member of the fund, or a non-member spouse of such a member or former member, if:

  (i) the statement relates to an amount, in the fund, held on behalf of the member, former member or non-member spouse; and

  (ii) the member, former member or non-member spouse has quoted the tax file number of the member, former member or non-member spouse to the superannuation provider.

31 Paragraph 29(1 ) ( aa)

After "21E(1)", insert ", 22B(1)".

Taxation Administration Act 1953

32 Subsection 8AAB(4) (after table item 33D)

Insert:

33 Subsection 250 -10(2) in Schedule 1 (after table item 69AD)

Insert:

PARLIAMENTARY COUNSEL

Treasury Laws Amendment (Reuniting More Superannuation) Bill 2020

SH137

Statement of reasons: why certain amendments should be moved as requests

Section 53 of the Constitution is as follows:

Powers of the Houses in respect of legislation

53. Proposed laws appropriating revenue or moneys, or imposing taxation, shall not originate in the Senate. But a proposed law shall not be taken to appropriate revenue or moneys, or to impose taxation, by reason only of its containing provisions for the imposition or appropriation of fines or other pecuniary penalties, or for the demand or payment or appropriation of fees for licences, or fees for services under the proposed law.

The Senate may not amend proposed laws imposing taxation, or proposed laws appropriating revenue or moneys for the ordinary annual services of the Government.

The Senate may not amend any proposed law so as to increase any proposed charge or burden on the people.

The Senate may at any stage return to the House of Representatives any proposed law which the Senate may not amend, requesting, by message, the omission or amendment of any items or provisions therein. And the House of Representatives may, if it thinks fit, make any of such omissions or amendments, with or without modifications.

Except as provided in this section, the Senate shall have equal power with the House of Representatives in respect of all proposed laws.

Amendment (16)

The effect of this amendment is to provide for additional circumstances in which the Commissioner of Taxation must make payments under the Superannuation (Unclaimed Money and Lost Members) Act 1999. This will increase the amount of expenditure out of the Consolidated Revenue Fund under the standing appropriation in section 16 of the Taxation Administration Act 1953. It is covered by section 53 because it would increase a proposed burden on the people.

Consequential amendments

The following amendment(s) are consequential on the amendments mentioned above:

Amendment (1).

Treasury Laws Amendment (Reuniting More Superannuation) Bill 2020

SHEET RV137

Statement by the Clerk of the Senate pursuant

to the order of the Senate of 26 June 2000

Amendment (16)

If the effect of the amendment is to increase expenditure under the standing appropriation in section 16 of the Taxation Administration Act 1953 then it is in accordance with the precedents of the Senate that the amendment be moved as a request.

Amendment (1)

Amendment (1) is consequential on the request. It is the practice of the Senate that amendments that are consequential on amendments framed as requests may also be framed as requests.

The government amendments update the required time frames for when eligible rollover funds need to comply with the requirements of this bill to ensure that the bill doesn't operate retrospectively. The amendments also provide for a mechanism for superannuation funds to voluntarily transfer amounts to the ATO, where it is in the person's best interest for those amounts to be transferred—for example, where they may have otherwise been sent to ineligible rollover funds. The ATO will proactively reunify these amounts wherever they possibly can.

An eligible rollover fund is a holding account that's designed to receive superannuation benefits of lost members and accounts with low balances that are no longer receiving contributions. The unclaimed superannuation regime, together with the recent passage of the Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019—which redirects to the ATO small and inactive accounts that may have otherwise been paid to an ERF—means that the role of eligible rollover funds in the superannuation system has significantly diminished.

This bill facilitates the exit of eligible rollover funds from the industry. But, as a result of the timing changes in the amendments, eligible rollover funds will be required to transfer all accounts below $6,000 to the ATO by 30 June 2021, which was previously 30 June 2020, and all remaining accounts to the ATO by 31 January 2022, which was previously 30 June 2021. The removal of eligible rollover funds from the market means that superannuation funds will need a mechanism to voluntarily transfer to the ATO funds that previously may have been directed to an eligible rollover fund. These amendments allow for such transfers. These amendments are needed to avoid small and unclaimed amounts held by trustees being eroded by fees. Importantly, the ATO will work proactively to reunify these amounts where possible, together with interest, to members' superannuation accounts or, in some cases, directly to the individual.

The bill is consistent with recommendation 5 of the Productivity Commission's 2018 final report, Superannuation: assessing efficiency and competitiveness, which recommended the closure of eligible rollover funds within three years. The bill also builds on the policy intent of the Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019, which ensures that members' lost and inactive accounts are consolidated with active accounts.

I want to thank Senator Hanson for her work with the government on these changes. Through these changes the government is building a stronger and more efficient superannuation system and improving outcomes for members.

Jenny McAllister (NSW, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

I want to indicate that the opposition will be supporting the government amendments to this bill. As a broad principle, we are of course supportive of measures that target duplicate accounts and make the system stronger, fairer and more efficient. We consider that these are small but important changes that will improve the operation of the regime, as outlined in the bill. We thank all of the participants in the debate for bringing this forward.