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senate vote 2019-02-14#13
Edited by
mackay staff
on
2019-03-14 14:11:05
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Title
Bills — Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018; in Committee- Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 - in Committee - Oppose the items
Description
<p class="speaker">Peter Whish-Wilson</p><p>I withdraw the amendments on sheet 8557 revised. I seek leave to move the Greens amendments on sheet 8635 revised together.</p><p>Leave granted.</p>- The majority voted against a [motion](https://www.openaustralia.org.au/senate/?gid=2019-02-14.252.1) to keep particular items in the [bill](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/r6141) unchanged, which means those items were successfully opposed.
- ### Which items were opposed?
- > *(6) Schedule 2, item 1, page 12 (line 6) to page 14 (line 24), [sections 68AAB and 68AAC](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;db=LEGISLATION;id=legislation%2Fbills%2Fr6141_first-reps%2F0002;query=Id%3A%22legislation%2Fbills%2Fr6141_first-reps%2F0000%22;rec=0), TO BE OPPOSED.*
- > *(14) Schedule 2, [items 4 and 5](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;db=LEGISLATION;id=legislation%2Fbills%2Fr6141_first-reps%2F0002;query=Id%3A%22legislation%2Fbills%2Fr6141_first-reps%2F0000%22;rec=0), page 17 (line 23) to page 19 (line 35), TO BE OPPOSED.*
- These items deal with low-balance accounts and members under 25 years of age.
- ### What does the bill do?
- According to the [bills digest](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd1819a/19bd032):
- > *The Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 contains three Schedules, the purpose of which is to make amendments to the* [Superannuation Industry (Supervision) Act 1993] *and the* [Superannuation (Unclaimed Money and Lost Members) Act 1999] *to:*
- >
- >> * *limit the amount of fees that can be charged by a trustee of a superannuation fund for MySuper or choice products to three per cent of the balance of the account if the balance is less than $6,000*
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- >> * *prohibit superannuation funds and approved deposit funds from imposing exit fees when a member disposes of all or part of their interest in a fund*
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- >> * *prevent superannuation funds from providing insurance such as death, total and permanent disability or income protection insurance on an opt-out basis where:*
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- >>> * *the member is under the age of 25 years and begins to hold a new superannuation account on or after 1 July 2019*
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- >>> * *the member’s account balance falls below $6,000 or*
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- >>> * *the member’s account has not received a contribution for 13 months and is inactive*
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- >> * *require retirement savings account providers and superannuation providers to pay the balance of MySuper or choice accounts to the Commissioner of Taxation, where the account is inactive and the balance is less than $6,000 and*
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- >> * *require the Commissioner to consolidate any amounts received into a person’s superannuation account that will have a balance of $6,000 or more once consolidated.*
<p>I move Greens amendments (1) to (5), (7) to (13) and (15) to (22) on sheet 8635 together:</p><p class="italic">(1) Schedule 2, item 1, page 10 (line 14), omit "13", substitute "16".</p><p class="italic">(2) Schedule 2, item 1, page 10 (line 19), omit "13", substitute "16".</p><p class="italic">(3) Schedule 2, item 1, page 10 (line 28), omit "13", substitute "16".</p><p class="italic">(4) Schedule 2, item 1, page 11 (line 8), omit "13", substitute "16".</p><p class="italic">(5) Schedule 2, item 1, page 11 (line 11), omit "13", substitute "16".</p><p class="italic">(7) Schedule 2, item 1, page 14 (line 25), omit "Sections 68AAA, 68AAB and 68AAC do", substitute "Section 68AAA does".</p><p class="italic">(8) Schedule 2, item 1, page 14 (line 27), omit "Sections 68AAA, 68AAB and 68AAC do", substitute "Section 68AAA does".</p><p class="italic">(9) Schedule 2, item 2, page 15 (lines 22 and 23), omit the heading to subsection 68AA(8A), substitute:</p><p class="italic"> <i>Inactive accounts</i></p><p class="italic">(10) Schedule 2, item 2, page 15 (line 28), omit ", 68AAB or 68AAC".</p><p class="italic">(11) Schedule 2, item 2, page 15 (line 33), omit ", 68AAB or 68AAC".</p><p class="italic">(12) Schedule 2, item 3, page 16 (line 25), omit "13", substitute "16".</p><p class="italic">(13) Schedule 2, item 3, page 16 (line 33), omit "13", substitute "16".</p><p class="italic">(15) Schedule 2, item 6, page 20 (line 5), omit "items 3 and 4", substitute "item 3".</p><p class="italic">(16) Schedule 3, item 21, page 25 (lines 12 and 13), omit the definition of <i>inactive low</i><i>-</i><i>balance account</i> in section 8, substitute:</p><p class="italic"><i>inactive low</i> <i>-</i> <i>balance account</i>: see subsections 20QA(1) and (1A).</p><p class="italic">(17) Schedule 3, item 30, page 27 (line 13), omit "13", substitute "16".</p><p class="italic">(18) Schedule 3, item 30, page 27 (line 29 to 34), omit subparagraph 20QA(1)(a)(ix).</p><p class="italic">(19) Schedule 3, item 30, page 28 (line 2), omit "13", substitute "16".</p><p class="italic">(20) Schedule 3, item 30, page 28 (after line 15), after subsection 20QA(1), insert:</p><p class="italic">(1A) However, an account in a fund that is a regulated superannuation fund is taken not to be an <i>inactive low</i><i>-</i><i>balance account</i> if:</p><p class="italic">(a) the account is held on behalf of a member of the fund; and</p><p class="italic">(b) any of the following occurred in relation to the member in the last 16 months:</p><p class="italic">(i) the member changed the member's investment options under the fund;</p><p class="italic">(ii) the member made changes in relation to the member's insurance coverage under the fund;</p><p class="italic">(iii) the member made or amended a binding beneficiary nomination;</p><p class="italic">(iv) the member, by written notice given to the Commissioner, declared that the member was not a member of an inactive low-balance account;</p><p class="italic">(v) the superannuation provider was owed an amount in respect of the member.</p><p class="italic">(21) Schedule 3, item 30, page 28 (line 21), omit "(v), (viii) and (ix)", substitute "(v) and (viii)".</p><p class="italic">(22) Schedule 3, item 32, page 42 (after line 18), after subsection 24NA(1), insert:</p><p class="italic">(1A) The Commissioner must pay the superannuation amount in accordance with subsection (2) within 28 days after the Commissioner is satisfied it is possible to pay that amount in accordance with that subsection.</p><p>The Greens oppose schedule 2 in the following terms</p><p class="italic">(6) Schedule 2, item 1, page 12 (line 6) to page 14 (line 24), sections 68AAB and 68AAC, TO BE OPPOSED.</p><p class="italic">(14) Schedule 2, items 4 and 5, page 17 (line 23) to page 19 (line 35), TO BE OPPOSED.</p><p>Very quickly, in the few minutes that we have left: this retains group insurance as an opt-out for people under 25 and for people with account balances of less than $6,000. It amends the definition of 'inactivity' to a continuous period of 16 months. It amends the definition of 'inactivity' so that people who change their investment options, alter their insurance cover or nominate a beneficiary are considered active. It requires the ATO to consolidate accounts within 28 days. We originally had a delay of commencement to 1 January 2020, but that has been removed in the revised amendment.</p> <p class="speaker">Alex Gallacher</p><p>It being 7.30, the time allotted for consideration of the Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 and other bills listed in the variation to routine of business agreed to this morning has expired.</p><p>The CHAIR: The question is that sections 68AAB and 68AAC in item 1 and items 4 and 5 of schedule 2 stand as printed.</p>
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