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This is a Bill, not an Act. For current law, see the Acts databases.
2019
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Treasury Laws Amendment (Putting
Members' Interests First) Bill 2019
No. , 2019
(Treasury)
A Bill for an Act to amend the law relating to
superannuation, and for related purposes
No. , 2019
Treasury Laws Amendment (Putting Members' Interests First) Bill
2019
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Low-balance accounts and members under 25
3
Part 1--Amendments
3
Superannuation Industry (Supervision) Act 1993
3
Superannuation (Unclaimed Money and Lost Members) Act 1999
6
Part 2--Application
7
No. , 2019
Treasury Laws Amendment (Putting Members' Interests First) Bill
2019
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 (Putting Members'
5
Interests First) Act 2019.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2
Treasury Laws Amendment (Putting Members' Interests First) Bill
2019
No. , 2019
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act
The day after this Act receives the Royal
Assent.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedules
7
Legislation that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Low-balance accounts and members under 25 Schedule 1
Amendments Part 1
No. , 2019
Treasury Laws Amendment (Putting Members' Interests First) Bill
2019
3
Schedule 1--Low-balance accounts and
1
members under 25
2
Part 1--Amendments
3
Superannuation Industry (Supervision) Act 1993
4
1 After section 68AAA
5
Insert:
6
68AAB Benefits provided by taking out insurance--low-balance
7
accounts
8
(1) Each trustee of a regulated superannuation fund must ensure that a
9
benefit is not provided by the fund to, or in respect of, a member of
10
the fund under a choice product or MySuper product held by the
11
member by taking out or maintaining insurance if:
12
(a) the member has an account balance with the fund that relates
13
to the product that is less than $6,000; and
14
(b) on or after 1 July 2019, the member has not had an account
15
balance with the fund that relates to the product that was
16
equal to or greater than $6,000; and
17
(c) the member has not elected under subsection (2) that the
18
benefit will be provided to, or in respect of, the member
19
under the product by taking out or maintaining insurance,
20
even if the member has an account balance with the fund that
21
relates to the product that is less than $6,000.
22
Note:
This section does not apply in relation to regulated superannuation
23
funds with fewer than 5 members (see section 68AAD).
24
(2) Each trustee of the regulated superannuation fund must ensure that
25
each member of the fund who holds a choice product or MySuper
26
product offered by the fund may elect, in writing, that a benefit
27
specified in the election is to be provided to, or in respect of, the
28
member under the product by taking out or maintaining insurance,
29
even if the member has an account balance with the fund that
30
relates to the product that is less than $6,000.
31
Schedule 1 Low-balance accounts and members under 25
Part 1 Amendments
4
Treasury Laws Amendment (Putting Members' Interests First) Bill
2019
No. , 2019
(3) The member is taken to have made an election under subsection (2)
1
if the member makes an election under subsection 68AAC(2).
2
(4) This section does not apply to:
3
(a) a defined benefit member; or
4
(b) an ADF Super member (within the meaning of the Australian
5
Defence Force Superannuation Act 2015); or
6
(c) a person who would be an ADF Super member apart from the
7
fact that the regulated superannuation fund is or was, for the
8
purposes of Part 3A of the Superannuation Guarantee
9
(Administration) Act 1992, a chosen fund for contributions
10
for the person's superannuation by the Commonwealth; or
11
(d) a member to whom the employer-sponsor contribution
12
exception applies (see section 68AAE).
13
(5) Nothing in this section affects a right of a member of a regulated
14
superannuation fund if:
15
(a) the right relates to insurance cover; and
16
(b) in compliance with this section, an insurance premium in
17
relation to the member for that insurance cover ceases to be
18
paid; and
19
(c) the right exists because of insurance premiums paid in
20
relation to the member before insurance premiums cease to
21
be paid as mentioned in paragraph (b).
22
(6) Nothing in this section affects a right of a member of a regulated
23
superannuation fund if:
24
(a) the right is a right to insurance cover for a fixed term, subject
25
only to the payment of insurance premiums; and
26
(b) that fixed term begins before the time at which a trustee of
27
the fund is required under subsection (1) to ensure that a
28
benefit is not provided to, or in respect of, the member under
29
a choice product or MySuper product held by the member by
30
taking out or maintaining insurance.
31
68AAC Benefits provided by taking out insurance--members under
32
25 years old
33
(1) Each trustee of a regulated superannuation fund must ensure that a
34
benefit is not provided by the fund to, or in respect of, a member of
35
Low-balance accounts and members under 25 Schedule 1
Amendments Part 1
No. , 2019
Treasury Laws Amendment (Putting Members' Interests First) Bill
2019
5
the fund under a choice product or MySuper product held by the
1
member by taking out or maintaining insurance if:
2
(a) the member is under the age of 25 years; and
3
(b) the member has not elected under subsection (2) that the
4
benefit will be provided to, or in respect of, the member
5
under the product by taking out or maintaining insurance,
6
even if the member is under the age of 25 years.
7
Note:
This section does not apply in relation to regulated superannuation
8
funds with fewer than 5 members (see section 68AAD).
9
(2) Each trustee of the regulated superannuation fund must ensure that
10
each member of the fund who holds a choice product or MySuper
11
product offered by the fund and who is under the age of 25 years
12
may elect, in writing, that a benefit specified in the election is to be
13
provided to, or in respect of, the member under the product by
14
taking out or maintaining insurance, even if the member is under
15
the age of 25 years.
16
(3) The member is taken to have made an election under subsection (2)
17
if the member makes an election under subsection 68AAB(2).
18
(4) This section does not apply to:
19
(a) a defined benefit member; or
20
(b) an ADF Super member (within the meaning of the Australian
21
Defence Force Superannuation Act 2015); or
22
(c) a person who would be an ADF Super member apart from the
23
fact that the regulated superannuation fund is or was, for the
24
purposes of Part 3A of the Superannuation Guarantee
25
(Administration) Act 1992, a chosen fund for contributions
26
for the person's superannuation by the Commonwealth; or
27
(d) a member to whom the employer-sponsor contribution
28
exception applies (see section 68AAE).
29
2 Section 68AAD (heading)
30
Omit "Section 68AAA does not apply", substitute "Sections 68AAA,
31
68AAB and 68AAC do not apply".
32
3 Section 68AAD
33
Omit "Section 68AAA does not apply", substitute "Sections 68AAA,
34
68AAB and 68AAC do not apply".
35
Schedule 1 Low-balance accounts and members under 25
Part 1 Amendments
6
Treasury Laws Amendment (Putting Members' Interests First) Bill
2019
No. , 2019
4 Subsection 68AA(8A) (heading)
1
Repeal the heading, substitute:
2
Inactive accounts, low-balance accounts and members under the
3
age of 25 years
4
5 Subsections 68AA(8A) and (8B)
5
After "section 68AAA", insert ", 68AAB or 68AAC".
6
Superannuation (Unclaimed Money and Lost Members) Act
7
1999
8
6 At the end of paragraph 20QA(1)(a)
9
Add:
10
(ix) no benefit that despite section 68AAB of the SIS Act
11
could, because of the application of
12
subsection 68AAB(5) or (6) of that Act, be provided to,
13
or in respect of, the member under the product by taking
14
out or maintaining insurance is provided in that way;
15
and
16
7 Subsection 20QA(3)
17
Omit "subparagraphs (1)(a)(iv), (v) and (viii)", substitute
18
"subparagraphs (1)(a)(iv), (v), (viii) and (ix)".
19
Low-balance accounts and members under 25 Schedule 1
Application Part 2
No. , 2019
Treasury Laws Amendment (Putting Members' Interests First) Bill
2019
7
Part 2--Application
1
8 Application of section 68AAB
2
Application
3
(1)
Section 68AAB of the Superannuation Industry (Supervision) Act 1993,
4
as inserted by item 1 of this Schedule, applies on and after 1 October
5
2019 (the commencement day).
6
Notice to members who have a low balance on 1 July 2019
7
(2)
Each trustee of a regulated superannuation fund that offers a choice
8
product or MySuper product under which a benefit may be provided by
9
taking out or maintaining insurance must ensure that:
10
(a) on 1 July 2019, each member of the fund who has an account
11
in relation to one or more of those products with a balance
12
that is less than $6,000 is identified; and
13
(b) on or before 1 August 2019, each of the members of the fund
14
identified under paragraph (a) is given notice in writing in
15
accordance with subitem (3).
16
(3)
The notice must:
17
(a) state that, on and after 1 October 2019, a benefit will not be
18
provided to the member under the product by taking out or
19
maintaining insurance if:
20
(i) the member has an account balance with the fund that
21
relates to the product that is less than $6,000; and
22
(ii) on or after 1 July 2019, the member has not had an
23
account balance with the fund that relates to the product
24
that was equal to or greater than $6,000; and
25
(iii) the member has not elected that the benefit will be
26
provided to, or in respect of, the member under the
27
product by taking out or maintaining insurance, even if
28
the account balance with the fund that relates to the
29
product is less than $6,000; and
30
(b) set out the method by which the member can make such an
31
election in writing.
32
Schedule 1 Low-balance accounts and members under 25
Part 2 Application
8
Treasury Laws Amendment (Putting Members' Interests First) Bill
2019
No. , 2019
(4)
An election under paragraph (3)(b) has effect on and after the
1
commencement day as if it were an election made under
2
subsection 68AAB(2) of the Superannuation Industry (Supervision) Act
3
1993.
4
(5)
Despite subitem (2), a trustee of a regulated superannuation fund that
5
offers a choice product or MySuper product does not have to ensure that
6
a notice is given to a member of the fund to whom it would otherwise
7
be required to be given under that subitem if:
8
(a) before 1 July 2019, the member has given the fund notice
9
that the member elects to have one or more benefits provided
10
under the product or the products held by the member by
11
taking out or maintaining insurance; and
12
(b) the only benefits provided to the member under the product
13
or products held by the member by taking out or maintaining
14
insurance are covered by the election.
15
The notice mentioned in paragraph (a) has effect on and after the
16
commencement day as if it were an election made under
17
subsection 68AAB(2) of the Superannuation Industry (Supervision) Act
18
1993.
19
Notice to members who begin to hold product after 1 July 2019
20
(6)
Each trustee of a regulated superannuation fund that offers a choice
21
product or MySuper product under which a benefit may be provided by
22
taking out or maintaining insurance must ensure that each person who
23
acquires an interest in the product after 1 July 2019 and before the
24
commencement day is given notice in writing:
25
(a) stating that the benefit will not be provided on and after
26
1 October 2019 if:
27
(i) the member has an account balance with the fund that
28
relates to the product that is less than $6,000; and
29
(ii) on or after 1 July 2019, the member has not had an
30
account balance with the fund that relates to the product
31
that was equal to or greater than $6,000; and
32
(iii) the member has not elected that the benefit will be
33
provided to, or in respect of, the member under the
34
product by taking out or maintaining insurance, even if
35
the account balance with the fund that relates to the
36
product is less than $6,000; and
37
Low-balance accounts and members under 25 Schedule 1
Application Part 2
No. , 2019
Treasury Laws Amendment (Putting Members' Interests First) Bill
2019
9
(b) setting out the method by which the member can make such
1
an election in writing.
2
(7)
An election under paragraph (6)(b) has effect on and after the
3
commencement day as if it were an election made under
4
subsection 68AAB(2) of the Superannuation Industry (Supervision) Act
5
1993.
6
9 Application of section 68AAC
7
Section 68AAC of the Superannuation Industry (Supervision) Act 1993,
8
as inserted by item 1 of this Schedule, applies in relation to a benefit
9
provided by a regulated superannuation fund to, or in respect of, a
10
member of the fund under a choice product or MySuper product held by
11
the member, if the member begins to hold the product on or after
12
1 October 2019.
13
10 Administration of the application and transitional
14
provisions
15
Despite subparagraph 6(1)(a)(iv) of the Superannuation Industry
16
(Supervision) Act 1993, ASIC not APRA has the general administration
17
of items 8 and 9 of this Schedule.
18