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2019-2020-2021
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
Superannuation Guarantee (Administration) Amendment Bill 2021
EXPLANATORY MEMORANDUM
and
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Circulated by authority of
Craig Kelly
Member for Hughes
Superannuation Guarantee (Administration) Amendment Bill 2021
OUTLINE
Superannuation policies are more than just saving & investment accounts, as they also generally
contain a life insurance policy component to cover the worker for the risk of workplace death or
permanent disability.
The current provisions of the Superannuation Guarantee (Administration) Act 'staple' the
Superannuation Policy (and therefore also 'staple' the worker's life insurance policy) if the worker
changes jobs.
Under the current legislation, there is the real risk that workers transferring occupations from a 'low risk
occupation' (such as office work or retail) to a 'dangerous occupation' (such as road transport or fishing)
may find themselves unknowingly stapled to, and paying a premium for, a life insurance policy that is
totally unsuitable for that new occupation.
Therefore under the existing legislation, there is the real risk that an Australian worker who has
transferred into a 'dangerous occupation', that if they were to suffer a catastrophic injury, they may not
be adequately insured because their life insurance has been stapled to them from their previous low
risk job.
The policy intent of the Bill is to amend the Superannuation Guarantee (Administration) Act to 'unstaple'
the Superannuation Policies of workers when they transfer employment into a 'dangerous occupation'
(defined as an occupation where the rate of death in workplace is more than 2.5 in 100,000 per year).
The intent is to ensure that workers have a life insurance policy (as part of their Superannuation Policy)
that is suitable for such a dangerous occupation immediately they commence work in that new job
FINANCIAL IMPACT
The bill will have no financial impact.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
.
Superannuation Guarantee (Administration) Amendment Bill 2021
This bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the bill
The Bill amends the Superannuation Guarantee (Administration) Act 1992 be removing the
stapling provision for workers transferring employment into a 'dangerous occupation'.
Human rights implications
This bill does not engage any of the applicable rights or freedoms.
Conclusion
This bill is compatible with human rights because it does not raise any human rights
issues.
Craig Kelly
Member for Hughes