25th Aug 2020, 1:10 PM – Senate Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 - in Committee - Choice of funds

The majority voted against amendments introduced by NSW Senator Jenny McAllister (Labor), which means they failed.

What is the main idea of the bill?

According to the bills digest:

The purpose of the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 (the Bill) is to amend the Superannuation Guarantee (Administration) Act 1992 (SGAA) to ensure employees under new workplace determinations or enterprise agreements have an opportunity to choose the superannuation fund for their compulsory employer contributions.

Amendments text

(1) Schedule 1, page 3 (before line 5), before the heading specifying Superannuation Guarantee (Administration) Act 1992, insert:

Fair Work Act 2009

1A At the end of section 187

Add:

Requirement relating to restrictions of choice of superannuation fund

(7) If the agreement includes a restriction on the choice of superannuation fund or funds available to employees, the FWC must be satisfied that the restriction is in the interests of the employees who will be covered by the agreement.

(8) For the purposes of considering whether the restriction is in the interests of the employees, the FWC must consider:

(a) the extent to which the employers who will be covered by the agreement have complied, or are likely to comply, with the requirements of the Superannuation Guarantee (Administration) Act 1992; and

(b) the features of the proposed default superannuation fund or funds, including matters such as insurance; and

(c) any other relevant matters.

(2) Schedule 1, item 6, page 4 (lines 3 and 4), omit the item, substitute:

6 Paragraph 32C(6 )( h)

Repeal the paragraph, substitute:

(h) an enterprise agreement:

(i) made before 1 January 2021; or

(ii) if the agreement includes a restriction on the choice of superannuation funds—made on or after 1 January 2021.

(3) Schedule 1, page 4 (after line 16), at the end of the Schedule, add:

8 Subsection 32NA(2)

After "An employer is not required under section 32N to give an employee", insert "or a person who is eligible to become an employee".

9 Paragraph 32NA(2)(a)

After "the employer is making", insert "or will make".

10 Paragraph 32NA(2)(b)

After "the contributions are made", insert "or will be made".

11 Subsection 32NA(9)

After "An employer is not required under section 32N to give an employee", insert "or a person who is eligible to become an employee".

12 Paragraph 32NA(9 )( a)

After "the employee is", insert "or will become".