The Government has introduced three superannuation Bills to the House of Reps, which include measures from the 2016 Budget and enacting an objective for superannuation.
The Government has introduced the following Bills to Parliament:
- Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016
- Superannuation (Objective) Bill 2016
- Superannuation (Excess Transfer Balance Tax) Imposition Bill 2016
Draft versions of these Bills were released in three tranches for consultation, which did result in changes.
- First tranche of Budget 2016 superannuation draft legislation released
- Second tranche of Budget 2016 super draft legislation released
- Third tranche of draft super bills: lower non-concessional contributions cap
The Treasurer Scott Morrison said in a press conference on Tuesday: “These Bills summarise the Government’s changes to make superannuation fairer more sustainable and more flexible for all Australians. These are the measures that we outlined in the Budget earlier this year and that we took to the election, in a very upfront and very honest and very transparent way.”
“Over the course of the period of time that has elapsed since the Budget, people have expressed their views on that package. While, overwhelmingly, the package has been supported, to the extent that changes were necessary to that package of the election, we have worked with our Government team to ensure that we introduced changes to those measures that now form the complete package that we are bringing into the Parliament tomorrow.”
“It was a comprehensive process. Since the election exposure draft legislation has been released in a series of tranches since September and we’ve had over 150 submissions in response to that consultation, and received very good feedback, technical feedback, on the construction of these Bills.”
“And in a number of cases you’ll see in the Bill, we’ve improved the transition measures to provide more time for transition in particular cases, extending some of those interim timeframes for people to make the adjustments when it all comes into place next year.”
One such extension to a transition provision is for excesses of the Transfer Balance Cap. The explanatory materials to the current Bill says: “Transitional rules apply to transfer balance cap breaches of less than $100,000 that occur on 30 June 2017. Such breaches do not give rise to notional earnings or an excess transfer balance tax liability if they are rectified within 6 months.” The draft Bill only allowed 60 days.
The Bills were introduced, a second reading moved and then debate adjourned. After today, eight Parliamentary sitting days remain in this calendar year.
The Treasurer was asked if the Government was trying to avoid attention on the Bills by introducing them on the same day as the US election.
“No, not at all,” he answered.
“What I am endeavouring to do is to ensure the Senate has the opportunity by introducing it this week to have their Senate Inquiry and to have that resolved in good time for them to be able to consider the matter before the Parliament rises at the end of the year.”
Update: The Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 and Superannuation (Excess Transfer Balance Tax) Bill 2016 have been referred to a Senate committee. The committee is due to report by the 23rd of November, after which the Parliament is only scheduled to sit for five more days in 2016. The first scheduled sitting day of 2017 is the 7th of February.