The Government has put its Bill to expand super choice and close a salary sacrifice ‘loophole’ up for debate in the Senate in Budget week.
The Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 2) Bill 2017 is scheduled for debate in the Senate on Thursday. The Bill would expand choice of super fund provisions to include more employees and stop employers reducing their Super Guarantee liability using the salary sacrificed super contributions of employees.
This is one of the three superannuation Bills the Government had up for votes late in 2017. Another of these Bills would make governance changes to large super funds while the other changes MySuper and reporting requirements. However the Government pulled the votes when it became clear the Bills wouldn’t pass.
Minister for Revenue and Financial Services Kelly O’Dwyer said at the time that the Bills were “certainly not dead”.
These other two Bills – the Superannuation Laws Amendment (Strengthening Trustee Arrangements) Bill 2017 and Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Bill 2017 – don’t appear on the Draft legislation programme for the Senate for debate this week.
The changes to Salary Sacrifice rules would likely pass easily if it was in a separate Bill, give the measure has the support of at least the ALP and Centre Alliance (formerly the Nick Xenophon Team).
The Government’s Superannuation (Objective) Bill 2016 – which, in part, would require other Bills to have a Statement of Compatibility with the objective of superannuation – was last debated in November 2016.