Commonwealth of Australia Bills Commonwealth of Australia Bills[Index] [Search] [Download] [Related Items] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
2016-2017
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Treasury Laws Amendment (Improving
Accountability and Member Outcomes in
Superannuation Measures No. 2) Bill
2017
No. , 2017
(Treasury)
A Bill for an Act to amend the law relating to
superannuation, and for related purposes
No. , 2017
Treasury Laws Amendment (Improving Accountability and Member
Outcomes in Superannuation Measures No. 2) Bill 2017
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Choice of fund for workplace determinations and
enterprise agreements
3
Superannuation Guarantee (Administration) Act 1992
3
Schedule 2--Salary sacrifice integrity
5
Superannuation Guarantee (Administration) Act 1992
5
No. , 2017
Treasury Laws Amendment (Improving Accountability and Member
Outcomes in Superannuation Measures No. 2) Bill 2017
1
A Bill for an Act to amend the law relating to
1
superannuation, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act is the Treasury Laws Amendment (Improving
5
Accountability and Member Outcomes in Superannuation
6
Measures No. 2) Act 2017.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
column 2 of the table. Any other statement in column 2 has effect
11
according to its terms.
12
2
Treasury Laws Amendment (Improving Accountability and Member
Outcomes in Superannuation Measures No. 2) Bill 2017
No. , 2017
1
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedules 1
and 2
The day after this Act receives the Royal
Assent.
Note:
This table relates only to the provisions of this Act as originally
2
enacted. It will not be amended to deal with any later amendments of
3
this Act.
4
(2) Any information in column 3 of the table is not part of this Act.
5
Information may be inserted in this column, or information in it
6
may be edited, in any published version of this Act.
7
3 Schedules
8
Legislation that is specified in a Schedule to this Act is amended or
9
repealed as set out in the applicable items in the Schedule
10
concerned, and any other item in a Schedule to this Act has effect
11
according to its terms.
12
Choice of fund for workplace determinations and enterprise agreements Schedule 1
No. , 2017
Treasury Laws Amendment (Improving Accountability and Member
Outcomes in Superannuation Measures No. 2) Bill 2017
3
Schedule 1--Choice of fund for workplace
1
determinations and enterprise
2
agreements
3
4
Superannuation Guarantee (Administration) Act 1992
5
1 Paragraph 19(2B)(c)
6
Omit "(which deals with certain cases where no contributions are
7
required)", substitute "(which deals with certain cases where defined
8
benefit members cannot choose another fund)".
9
2 Section 20 (heading)
10
Repeal the heading, substitute:
11
20 Defined benefit schemes--certain cases where members cannot
12
choose another fund
13
3 Subsection 20(1)
14
Omit "either subsection (2) or (3) is satisfied", substitute
15
"subsection (2), (3) or (3A) is satisfied".
16
4 After subsection 20(3)
17
Insert:
18
Member's benefit not affected
19
(3A) This subsection is satisfied if the employee would be entitled, on
20
the employee's retirement, resignation or retrenchment, to the same
21
amount of benefit from the defined benefit superannuation scheme,
22
whether or not the employee had contributions:
23
(a) for the quarter; and
24
(b) made by the employer for the benefit of the employee;
25
to a fund (within the meaning of Part 3A) other than the defined
26
benefit superannuation scheme.
27
Schedule 1 Choice of fund for workplace determinations and enterprise agreements
4
Treasury Laws Amendment (Improving Accountability and Member
Outcomes in Superannuation Measures No. 2) Bill 2017
No. , 2017
5 Paragraph 32C(6)(g)
1
After "determination", insert "made before 1 July 2018".
2
6 Paragraph 32C(6)(h)
3
After "agreement", insert "made before 1 July 2018".
4
7 After subsection 32C(6)
5
Insert:
6
Contributions previously covered by paragraphs (6)(g) and (h)
7
(6AA) A contribution to a fund by an employer for the benefit of an
8
employee is also made in compliance with the choice of fund
9
requirements if:
10
(a) at the time the contribution is made, there is no chosen fund
11
for the employee; and
12
(b) the fund is a fund to which the employer has previously made
13
contributions, in compliance with the choice of fund
14
requirements under paragraph (6)(g) or (h), for the benefit of
15
the employee.
16
Salary sacrifice integrity Schedule 2
No. , 2017
Treasury Laws Amendment (Improving Accountability and Member
Outcomes in Superannuation Measures No. 2) Bill 2017
5
Schedule 2--Salary sacrifice integrity
1
2
Superannuation Guarantee (Administration) Act 1992
3
1 Subsection 6(1)
4
Insert:
5
quarterly salary or wages base, for an employer in respect of an
6
employee, for a quarter has the meaning given by subsection 19(1).
7
sacrificed contribution means a contribution to a complying
8
superannuation fund or an RSA made under a salary sacrifice
9
arrangement.
10
sacrificed ordinary time earnings amount has the meaning given
11
by subsection 15A(2).
12
sacrificed salary or wages amount has the meaning given by
13
subsection 15A(2).
14
salary sacrifice arrangement has the meaning given by
15
subsection 15A(1).
16
2 At the end of Part 2
17
Add:
18
15A Interpretation: salary sacrifice arrangements
19
Salary sacrifice arrangement
20
(1) An arrangement under which a contribution is, or is to be, made to
21
a complying superannuation fund or an RSA by an employer for
22
the benefit of an employee is a salary sacrifice arrangement if the
23
employee agreed:
24
(a) for the contribution to be made; and
25
(b) in return, for either or both of the following amounts to be
26
reduced (including to nil):
27
(i) the ordinary time earnings of the employee;
28
(ii) the salary or wages of the employee.
29
Schedule 2 Salary sacrifice integrity
6
Treasury Laws Amendment (Improving Accountability and Member
Outcomes in Superannuation Measures No. 2) Bill 2017
No. , 2017
Sacrificed amounts
1
(2) If an amount mentioned in subparagraph (1)(b)(i) or (ii) is reduced
2
under a salary sacrifice arrangement, the amount of that reduction
3
is:
4
(a) if ordinary time earnings for a quarter are reduced--a
5
sacrificed ordinary time earnings amount of the employee
6
for the quarter in respect of the employer; and
7
(b) if salary or wages for a quarter are reduced--a sacrificed
8
salary or wages amount of the employee for the quarter in
9
respect of the employer.
10
Excluded salary or wages
11
(3) In working out the amount of a reduction for the purposes of
12
subsection (2), disregard any amounts that, had they been paid to
13
the employee (instead of being reduced), would have been
14
excluded salary or wages.
15
(4) For the purposes of this section, excluded salary or wages are
16
salary or wages that, under section 27 or 28, are not to be taken
17
into account for the purpose of making a calculation under
18
section 19.
19
3 Subsection 19(1) (formula)
20
Repeal the formula, substitute:
21
Charge percentage for
the employer
Quarterly salary or wages base,
for the quarter
for the employer in respect of the employee,
100
for the quarter
22
4 At the end of subsection 19(1)
23
Add:
24
quarterly salary or wages base, for an employer in respect of an
25
employee, for a quarter means the sum of:
26
(a) the total salary or wages paid by the employer to the
27
employee for the quarter; and
28
(b) any sacrificed salary or wages amounts of the employee for
29
the quarter in respect of the employer.
30
Salary sacrifice integrity Schedule 2
No. , 2017
Treasury Laws Amendment (Improving Accountability and Member
Outcomes in Superannuation Measures No. 2) Bill 2017
7
5 Subsection 19(3)
1
Repeal the subsection, substitute:
2
(3) For the purposes of the definition of quarterly salary or wages
3
base in subsection (1), disregard an amount in a quarter if:
4
(a) the amount would be covered by paragraph (a) of that
5
definition for the quarter (about amounts paid to the
6
employee); but
7
(b) the amount is taken into account under paragraph (b) of that
8
definition (about sacrificed salary or wages amounts) for any
9
quarter.
10
Note:
This prevents double counting if a sacrificed salary or wages amount
11
is later paid as salary or wages, instead of being contributed to
12
superannuation.
13
(4) If the quarterly salary or wages base, for an employer in respect of
14
an employee, for a quarter exceeds the maximum contribution base
15
for the quarter, the employer's quarterly salary or wages base to be
16
taken into account for the purposes of the application of
17
subsection (1) in relation to the quarter is the amount equal to the
18
maximum contribution base.
19
6 Subsection 23(2)
20
Omit "contributes", substitute "makes a contribution (other than a
21
sacrificed contribution)".
22
7 Subsection 23(2) (formula)
23
Repeal the formula, substitute:
24
Contribution
100
Ordinary time earnings base
25
8 Subsection 23(2) (definition of ordinary time earnings)
26
Repeal the definition.
27
9 Subsection 23(2)
28
Insert:
29
ordinary time earnings base is the number of dollars in the sum of:
30
Schedule 2 Salary sacrifice integrity
8
Treasury Laws Amendment (Improving Accountability and Member
Outcomes in Superannuation Measures No. 2) Bill 2017
No. , 2017
(a) the ordinary time earnings of the employee for the quarter in
1
respect of the employer; and
2
(b) any sacrificed ordinary time earnings amounts, of the
3
employee for the quarter in respect of the employer.
4
10 After subsection 23(7)
5
Insert:
6
Sacrificed ordinary time earnings amounts taken into account in a
7
quarter not to be taken into account for any other quarter
8
(7A) For the purposes of the definition of ordinary time earnings base
9
in subsection (2), disregard an amount in a quarter if:
10
(a) the amount would be covered by paragraph (a) of that
11
definition for the quarter (about ordinary time earnings of the
12
employee); but
13
(b) the amount is taken into account under paragraph (b) of that
14
definition (about sacrificed ordinary time earnings amounts)
15
for any quarter.
16
Note:
This prevents double counting if a sacrificed ordinary time earnings
17
amount is later paid as ordinary time earnings, instead of being
18
contributed to superannuation.
19
11 Subsection 23(12) (heading)
20
Repeal the heading, substitute:
21
Reduction of ordinary time earnings base if amount excluded from
22
employee's salary or wages
23
12 Subsection 23(12)
24
After "ordinary time earnings", insert "base".
25
13 Subsection 23(12)
26
Omit "are", substitute "is".
27
14 Subsection 23A(1)
28
After "A contribution", insert "(other than a sacrificed contribution)".
29
Salary sacrifice integrity Schedule 2
No. , 2017
Treasury Laws Amendment (Improving Accountability and Member
Outcomes in Superannuation Measures No. 2) Bill 2017
9
15 Section 23B
1
Before "For", insert "(1)".
2
16 Section 23B
3
Omit "sections 23 and 23A", substitute "a provision covered by
4
subsection (2)".
5
17 At the end of section 23B
6
Add:
7
(2) The provisions are as follows:
8
(a) section 15A (which deals with salary sacrifice arrangements);
9
(b) section 23 (which deals with reduction of charge percentage);
10
(c) section 23A (which deals with offsetting late payments
11
against an employer's liability to pay superannuation
12
guarantee charge).
13
18 Application
14
The amendments made by this Schedule apply in relation to working
15
out an employer's superannuation guarantee shortfall for quarters
16
beginning on or after 1 July 2018.
17