Treasury Laws Amendment (2017 Measures No 2) Bill 2017 [2017] AUSStaCSBSD 189 (14 June 2017)

• Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
• Retrospective application 101

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Treasury Laws Amendment (2017 Measures No. 2) Bill 2017

Purpose	This bill seeks to amend various Acts relating to taxation, superannuation, personal insolvency and corporate insolvency Schedule 1 includes amendments relating the superannuation reform package, including amendments to: - the transfer balance cap; - concessional and non-concessional contribution rules; - the objective of superannuation; - the transition to retirement income stream rules; - capital gains tax relief for superannuation funds; and - administrative processes Schedule 2 includes amendments relating to insolvency
Portfolio	Treasury
Introduced	House of Representatives on 25 May 2017
Scrutiny principle	Standing Order 24(1)(a)(i)

Retrospective application ^[101]

1.155 Item 27 of Schedule 1 is an application provision that provides that the amendment made by item 5 of Schedule 1 (relating to assumptions about income streams in relation to superannuation) applies in relation to non-concessional contributions for the 2013-2014 financial year and later years.

1.156 The explanatory memorandum explains that this 'change aligns the application of the updated review rules with that for the review rights for the discretion for concessional contributions, which applies from the 2013-2014 financial year'.^[102]

1.157 No further explanation is given and it is unclear why these amendments are intended to apply retrospectively. The committee has a long-standing scrutiny concern about provisions that apply retrospectively, as it challenges a basic value of the rule of law that, in general, laws should only operate prospectively. The committee has a particular concern if the legislation will, or might, have a detrimental effect on individuals.

1.158 Generally, where proposed legislation will have a retrospective effect the committee expects the explanatory materials should clearly set out the reasons why retrospectivity is sought, and whether any persons are likely to be adversely affected and the extent to which their interests are likely to be affected.

1.159 The committee requests the Treasurer's advice as to why this measure is intended to apply retrospectively from the 2013-2014 financial year and whether this will cause any detriment to any individual.

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[101] Schedule 1, item 27. The committee draws Senators' attention to this provision pursuant to principle 1(a)(i) of the committee’s terms of reference.

[102] Explanatory memorandum, p. 25.