Commonwealth of Australia Explanatory Memoranda

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SUPERANNUATION LEGISLATION AMENDMENT (MYSUPER CORE PROVISIONS) BILL 2012

                             2010-2011-2012



   THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                                 SENATE




SUPERANNUATION LEGISLATION AMENDMENT (MYSUPER CORE
                PROVISIONS) BILL 2012




         SUPPLEMENTARY EXPLANATORY MEMORANDUM




           Amendments to be moved on behalf of the Government



                       (Circulated by the authority of the
Minister for Financial Services and Superannuation, the Hon Bill Shorten MP)
Table of contents

Glossary .................................................................................................. 1

General outline and financial impact ....................................................... 3

Chapter 1               Explanation of amendments .......................................... 5

Chapter 2               Statement of compatibility with human rights................. 7
Glossary
     The following abbreviations and acronyms are used throughout this
     explanatory memorandum.


              Abbreviation                          Definition
      APRA                         Australian Prudential Regulation Authority
      Bill                         Superannuation Legislation Amendment
                                   (MySuper Core Provisions) Bill 2011
      RSE                          registrable superannuation entity




                                                                                1
General outline and financial impact

Outline
          On 3 November 2011, the Minister for Superannuation and Financial
          Services, the Hon Bill Shorten MP, introduced the Superannuation
          Legislation Amendment (MySuper Core Provisions) Bill 2011 (Bill).

          The Bill establishes the framework for registrable superannuation entity
          (RSE) licensees to be authorised by the Australian Prudential Regulation
          Authority (APRA) to offer a MySuper product. Trustees may offer
          MySuper products from 1 July 2013.

          Currently, the provisions in the Bill that permit APRA to accept
          applications for authorisation of a fund to offer a MySuper product
          commence on a single day fixed by Proclamation or, if the provisions
          have not commenced before 1 January 2013, they commence on that day.

          This will be amended so that the provisions establishing the application
          and authorisation process for MySuper products commence on a single
          day fixed by Proclamation.

          Date of effect: The provisions allowing APRA to accept application for
          authorisation of a fund to offer a MySuper product will be a single day
          fixed by Proclamation.

          Proposal announced: On 16 December 2010, the Assistant Treasurer and
          Minister for Financial Services and Superannuation, the
          Hon Bill Shorten MP, announced the Stronger Super reforms. On
          21 September 2011, he announced the Government's decisions on the key
          design aspects of the Stronger Super reforms.

          Financial impact: The amendments to the Bill have no significant
          financial impact on Commonwealth expenditure or revenue.

          Human rights implications: The amendments to the Bill do not engage
          any of the applicable rights or freedoms.




                                                                                     3
Chapter 1
Explanation of amendments

Outline of chapter
         1.1      This chapter explains the amendment to the Bill.



Commencement
         1.2       The Bill establishes the framework for RSE licensees to be
         authorised by the APRA to offer a MySuper product, including the criteria
         that must be satisfied in order to be authorised.

         1.3      Currently, these provisions commence on a single day fixed by
         Proclamation or, if the provisions have not commenced before
         1 January 2013, they commence on 1 January 2013.

         1.4       The commencement of these provisions is amended to be a
         single day fixed by Proclamation. This will avoid any uncertainty that
         may arise if the Superannuation Legislation Amendment (Further
         MySuper and Transparency Measures) Bill 2012 has not received Royal
         Assent by 1 January 2013.




                                                                                  5
Chapter 2
Statement of compatibility with
human rights

Prepared in accordance with Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011

Superannuation Legislation Amendment (MySuper Core Provisions)
Bill 2011

           2.1       The amendments to the Superannuation Legislation Amendment
           (MySuper Core Provisions) Bill 2011 are 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

           2.2       The Bill will be amended so that the provisions establishing the
           application and authorisation process for MySuper product commence on
           a single day fixed by Proclamation.

Human rights implications

           2.3        The amendments to the Bill do not engage any of the applicable
           rights or freedoms.

Conclusion

           2.4      The amendments to the Bill are compatible with human rights as
           they do not raise any human rights issues.




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