Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2010-2011-2012
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SUPERANNUATION LEGISLATION AMENDMENT (STRONGER SUPER)
BILL 2012
SUPERANNUATION SUPERVISORY LEVY IMPOSITION AMENDMENT
BILL 2012
EXPLANATORY MEMORANDUM
(Circulated by the authority of the
Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)
Table of contents
Glossary .................................................................................................. 1
General outline and financial impact ....................................................... 3
Chapter 1 Data and payment standards relating to
superannuation and retirement savings ......................... 7
Chapter 2 Costs of implementing SuperStream measures .......... 27
Chapter 3 Amendment to the Superannuation Supervisory
Levy Imposition Act 1998 ............................................. 33
Index ..................................................................................................... 37
Glossary
The following abbreviations and acronyms are used throughout this
explanatory memorandum.
Abbreviation Definition
APRA Australian Prudential Regulation Authority
APRA Act Australian Prudential Regulation Authority
Act 1998
ASIC Australian Securities and Investments
Commission
ATO Australian Taxation Office
BECS Bulk Electronic Clearing System
Commissioner Commissioner of Taxation
DHS Department of Human Services
ITAA 1997 Income Tax Assessment Act 1997
LIA 2003 Legislative Instruments Act 2003
Regulators Commissioner of Taxation and Australian
Prudential Regulatory Authority
RSA Act Retirement Savings Accounts Act 1997
RSA provider Retirement Savings Account provider
SIS Act Superannuation Industry (Supervision)
Act 1993
SIS regulations Superannuation Industry (Supervision)
Regulations 1994
SMSFs Self-Managed Superannuation Funds
TAA 1953 Taxation Administration Act 1953
1
General outline and financial impact
Data and payment standards relating to superannuation and
retirement savings
Schedule 1 of the Superannuation Legislation Amendment (Stronger
Super) Bill 2012 amends the Superannuation Industry (Supervision)
Act 1993 (SIS Act) and the Retirement Savings Accounts Act 1997
(RSA Act) to introduce a framework to support the implementation of
superannuation data and payment regulations and standards that will apply
to specified superannuation transactions undertaken by superannuation
entities/retirement savings account providers (RSA providers) and
employers.
Date of effect: These amendments apply to:
· trustees of a superannuation entity/RSA providers in relation
to conduct that occurs on or after 1 July 2013;
· an entity that is a medium to large employer (20 or more
employees) on 1 July 2014 in relation to conduct that occurs
on or after 1 July 2014; and
· an entity that is a small employer (fewer than 20 employees)
on 1 July 2014 in relation to conduct that occurs on or after
1 July 2015, unless the regulations prescribe an alternate
application date after 1 July 2015.
Proposal announced: This measure was announced in the then Assistant
Treasurer and Minister for Financial Services and Superannuation's
Media Release No. 131 of 21 September 2011.
Financial impact: Nil.
Human rights implications: This Schedule does not raise any human
rights issue. See Statement of Compatibility with Human Rights --
Chapter 1, paragraphs 1.107 to 1.111.
Compliance cost impact: This measure is expected to temporarily impose
additional compliance costs on employers, regulated superannuation
entities and RSA providers that engage in the superannuation industry.
Compliance costs will vary across these stakeholders depending on the
3
Superannuation Legislation Amendment (Stronger Super) Bill 2012
Superannuation Supervisory Levy Imposition Amendment Bill 2012
role they perform in the system and the manner that engagement with the
data and payment regulations and standards occurs. Ongoing compliance
costs will reduce over the medium to long term for all stakeholders.
Summary of regulation impact statement
Regulation impact on business
Impact: A Regulation Impact Statement (RIS) has been finalised for the
implementation of the Stronger Super reforms and can be found on the
Office of Best Practice Regulation's website. The relevant section of the
Stronger Super RIS covered in this Bill is the chapter on SuperStream.
Schedule 1 of the Superannuation Legislation Amendment (Stronger
Super) Bill 2012 amends the SIS Act and the RSA Act to introduce a
framework to support the implementation of superannuation data and
payment standards that will apply to specified superannuation transactions
undertaken by superannuation entities, Retirement Savings Account
providers and employers.
The SuperStream Advisory Council will oversee the implementation and
the ongoing effectiveness of the SuperStream changes.
Main points:
· Estimates undertaken by the Superannuation industry have
identified that SuperStream will save in the order of
$1 billion each year in processing costs. Averaged over the
approximate 33 million accounts existing today, this saving
is in the order of $30 per account each year.
· The cost of implementing the SuperStream reforms is
$467 million in total (from 2012-13 to 2017-18) and
$121 million in 2012-13 to be paid for by a new SuperStream
levy on Australian Prudential Regulatory Authority regulated
funds. If you averaged the full levy increase of $121 million
to apply in 2012-13 (and the highest amount of levy to be
collected) across the approximate 33 million accounts
existing today, the cost is in the order of $4 per account.
· These amendments will temporarily increase compliance
costs for superannuation funds, Approved Deposit Funds,
RSA providers and employers, though the impact will vary
considerably and is dependent on whether compliance with
the data and payment standards is outsourced to a third party
4
General outline and financial impact
provider (such as a clearing house or administrator) or an
information system upgrade is undertaken (and the extent
that the data and payment standards are integrated into
payroll and human resource systems). In the longer term, the
costs of administration will reduce significantly as a result of
these reforms.
· These amendments will improve the quality of data across
superannuation transactions by removing the multitude of
different data and system requirements across the
superannuation industry that employers need to interact with
significantly improving the employer experience.
· For superannuation entities and RSA providers, these
amendments will simplify the processing of superannuation
transactions by introducing standardised formats and
e-commerce that will reduce the number of multiple, inactive
or lost member accounts.
· A new penalty regime will be introduced to ensure that
superannuation entities, RSA providers and employers
comply with the superannuation data and payment standards.
Costs of implementing SuperStream measures
Schedule 2 of the Superannuation Legislation Amendment (Stronger
Super) Bill 2012 amends the Australian Prudential Regulation Authority
Act 1998 to enable costs associated with the implementation of the
SuperStream measures to be included in the determination specifying the
amount of the levy that is payable to the Commonwealth.
Date of effect: 1 July 2012.
Proposal announced: This measure was announced on
10 December 2010 as part of the Government's Stronger Super package
of reforms.
Financial impact: Commonwealth costs associated with the
implementation with SuperStream is $467 million over 7 years.
SuperStream costs of $467 million will be collected through the
Superannuation Supervisory Levy from 2012-13 to 2017-18.
Human rights implications: This Schedule does not raise any human
rights issue. See Statement of Compatibility with Human Rights --
Chapter 2, paragraphs 2.24 to 2.28.
5
Superannuation Legislation Amendment (Stronger Super) Bill 2012
Superannuation Supervisory Levy Imposition Amendment Bill 2012
Compliance cost impact: Nil.
Amendment to the Superannuation Supervisory Levy
Imposition Act 1998
Schedule 1 of the Superannuation Supervisory Levy Imposition
Amendment Bill 2012 amends the Superannuation Supervisory Levy
Imposition Act 1998 to enable the Treasurer to make more than one
determination for a financial year.
Date of effect: 1 July 2012.
Proposal announced: A levy on funds regulated by the Australian
Prudential Regulation Authority (APRA) to collect costs associated with
SuperStream was announced on 10 December 2010 as part of the
Government's Stronger Super package of reforms.
Financial impact: Nil.
Human rights implications: This Bill does not raise any human rights
issue. See Statement of Compatibility with Human Rights -- Chapter 3,
paragraphs 3.11 to 3.15.
Compliance cost impact: Nil.
6
Chapter 1
Data and payment standards relating to
superannuation and retirement savings
Outline of chapter
1.1 Schedule 1 of the Superannuation Legislation Amendment
(Stronger Super) Bill 2012 amends the Superannuation Industry
(Supervision) Act 1993 (SIS Act) and the Retirement Savings Accounts
Act 1997 (RSA Act) to introduce a framework to support the
implementation of superannuation data and payment regulations and
standards that will apply to specified superannuation transactions
undertaken by superannuation entities, retirement savings account
providers (RSA providers) and employers.
1.2 For the purposes of this explanatory memorandum, references to
superannuation data and payment regulations and standards and associated
provisions will also apply to the RSA Act.
1.3 Schedule 1 also amends the Taxation Administration Act 1953
(TAA 1953) to introduce an administrative penalty framework for
non-compliance with the superannuation data and payment regulations
and standards.
1.4 Schedule 1 of this Bill:
· enables superannuation data and payment regulations and
standards to be made relating to superannuation entities, RSA
providers and employers;
· provides the Commissioner of Taxation (Commissioner) with the
ability to issue mandatory superannuation data and payment
standards for superannuation entities, RSA providers and
employers;
· enables superannuation data and payment regulations and
standards to deal with payments and information related to
superannuation transactions and reports; and
· introduces a new penalty framework to ensure trustees of
superannuation entities, RSA providers and employers comply
with the superannuation data and payment regulations and
standards.
7
Superannuation Legislation Amendment (Stronger Super) Bill 2012
Context of amendments
1.5 Currently, there are no mandated data, payment or transmission
requirements for transactions within the superannuation system (apart
from some specification of reports and forms). As a result, the
superannuation system is dominated by paper based transactions that are
inefficient in both processing costs and the time taken for transactions to
occur, and superannuation to be deposited into member accounts.
1.6 The implementation of data and payment regulations and
standards will allow participants in the superannuation system to
communicate by using standardised business terms in a consistent and
reliable format, while electronic transmission (using agreed transport and
security protocols) will allow for a more automated and timely processing
of transactions with fewer errors. This will result in improved efficiency
(particularly the processing of contributions and roll-overs by
superannuation entities and RSA providers), an easier system for
employers to use, fewer lost accounts and more timely flow of money to
member accounts.
1.7 The superannuation data and payment regulations and standards
will be mandated for superannuation entities (including Approved Deposit
Funds), RSA providers and for employers.
1.8 The Regulators (being the Commissioner and Australian
Prudential Review Authority (APRA)) will support the roll-out of the new
data and payment regulations and standards through help and education
activities but this will need to be supported by a new compliance
framework. The compliance framework will address breaches of the data
and payment regulations and standards and is designed to allow flexibility
for the Regulators in dealing with transgressions.
Summary of new law
1.9 Schedule 1 of this Bill:
· permits superannuation data and payment regulations and
standards to be made relating to superannuation entities, RSA
providers and employers;
· amends the SIS Act and RSA Act to provide the
Commissioner with the ability to issue mandatory
superannuation data and payment standards;
8
Data and payment standards relating to superannuation and retirement savings
· enables superannuation data and payment regulations and
standards to deal with payments and information related to
superannuation transactions and reports;
· enables the Commissioner to specify a unique identifier for
use with any payment or information related to
superannuation transactions;
· implements a compliance regime for the superannuation data
and payment regulations and standards that applies to trustees
of regulated superannuation entities, RSA providers and
employers;
· introduces a new penalty framework to ensure employers,
trustees of superannuation entities and RSA providers
comply with the superannuation data and payment
regulations and standards. The Commissioner will
administer an administrative penalty regime that will apply to
employers and self-managed superannuation funds (SMSFs),
and APRA-regulated superannuation entities and RSA
providers when reporting to the Commissioner. APRA will
administer an infringement notices regime that will apply to
APRA-regulated superannuation entities and RSA providers;
· provides the Regulators with the power to give directions to
superannuation trustees, RSA providers and employers in
certain situations where there is reason to believe
contraventions of the superannuation data and payment
regulations and/or standards have occurred or are likely to
occur; and
· amends the SIS Act and RSA Act to enable the
Commissioner to correct and rectify information in the
Commissioner's possession for the purpose of ensuring the
information complies with the superannuation data and
payment regulations and/or standards.
Comparison of key features of new law and current law
New law Current law
The Commissioner has general No equivalent.
administration of superannuation data
and payment standards.
9
Superannuation Legislation Amendment (Stronger Super) Bill 2012
New law Current law
Regulations may be made in relation No equivalent.
to superannuation data and payment
matters.
Regulations may deal with payments No equivalent.
and information related to
superannuation transactions and
reports.
Regulations may specify different No equivalent.
requirements to be complied with by
different classes of regulated
superannuation entities, RSA
providers and employers.
The Commissioner may issue No equivalent.
superannuation data and payment
standards by legislative instrument.
Data and payment standards may No equivalent.
specify different requirements to be
complied with by different classes of
superannuation entities/RSA
providers and employers.
Other third-party standards may be No equivalent.
adopted or incorporated, with or
without modification, by the
regulations or the superannuation data
and payment standards.
The superannuation data and payment No equivalent.
regulations or standards may specify
the format of one or more unique
identifiers to be included in
superannuation payments and
information.
The Commissioner must consult with No equivalent.
APRA in preparing the
superannuation data and payment
standards.
The Commissioner and APRA will No equivalent.
ensure compliance with the
superannuation data and payment
regulations and standards in
alignment with existing regulatory
responsibilities.
An administrative penalty regime will No equivalent.
be introduced and administered by
the Commissioner.
10
Data and payment standards relating to superannuation and retirement savings
New law Current law
An infringement notice regime will No equivalent.
be introduced and administered by
APRA.
Regulators will have the power to No equivalent.
give directions to superannuation
trustees/RSA providers and
employers in certain situations where
there is reason to believe
contraventions of the superannuation
data and payment regulations and/or
standards have occurred or are likely
to occur.
The Commissioner may correct No equivalent.
information the Commissioner holds
to ensure information complies with
the superannuation data and payment
regulations and/or standards.
Detailed explanation of new law
System of standards for superannuation data and payments
1.10 Schedule 1 inserts a new Part 4A into the RSA Act and Part 3B
into the SIS Act.
1.11 The object of these Parts is to further the interests of
beneficiaries of superannuation entities and RSA providers by improving
the superannuation system. The Parts do this by providing for a system of
superannuation data and payment regulations and standards applicable to
RSA providers, superannuation entities (regulated superannuation funds,
Approved Deposit Funds and pooled superannuation trusts) and
employers in their dealings with RSA providers and superannuation
entities. [Schedule 1, item 1, section 45 of the RSA Act and item 2, section 34H of the
SIS Act]
1.12 To ensure that the data and payment regulations and standards
within the RSA Act and SIS Act will apply to employers and is
constitutional, a provision has been included that states that the incidental
aspect of the corporations power contained in section 51(xx) of the
Constitution applies. [Schedule 1, item 1, section 45A of the RSA Act and item 2,
section 34J of the SIS Act]
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Superannuation Legislation Amendment (Stronger Super) Bill 2012
1.13 Schedule 1 implements the legislative framework that will
support the operation of the superannuation data and payment regulations
and standards. This framework:
· enables the Commissioner to determine mandatory
superannuation data and payment standards;
· enables regulations relating to superannuation data and
payment matters to be made; and
· introduces a new penalty framework.
1.14 The regulations will inform superannuation entities and RSA
providers and employers of their key obligations under the standards,
specify the operational and information requirements that apply and
prescribe those activities/behaviours that support the general operation of
the superannuation data and payment standards framework.
General administration of the superannuation data and payment
regulations and standards
1.15 The Commissioner has general administration of Part 3B of the
SIS Act to the extent it relates to SMSFs and employers. [Schedule 1,
item 12, subparagraph 6(1)(e)(ia) and item 13, subparagraph 6(1)(fa)(ii) of the SIS Act]
1.16 The Commissioner has general administration of the
superannuation data and payment regulations and standards to the extent
they relate to superannuation entities and employers. [Schedule 1, item 13,
subparagraph 6(1)(fa)(i) of the SIS Act]
1.17 The Commissioner has general administration of compliance
with the superannuation data and payment regulations and standards to the
extent it relates to SMSFs and employers and to information and
payments given to the Commissioner. [Schedule 1, item 13,
subparagraphs (6)(1)(e)(ia), 6(1)(fa)(ii) and (iii) of the SIS Act]
1.18 APRA has general administration of compliance with the
superannuation data and payment regulations and standards, and the
giving of infringement notices to the extent they relate to APRA regulated
superannuation entities. [Schedule 1, item 11, subparagraph (6)(1)(a)(ib) of the
SIS Act]
1.19 The Commissioner has general administration of Part 4A of the
RSA Act to the extent it relates to the making of data and payment
standards relating to RSA providers and employers, employer compliance
with the data and payment regulations and standards and to information
and payments given to the Commissioner. [Schedule 1, item 5,
subparagraphs 3(1)(f)(i), (ii)and (iii) of the RSA Act]
12
Data and payment standards relating to superannuation and retirement savings
1.20 APRA has general administration of compliance with the
superannuation data and payment regulations and standards, and the
giving of infringement notices to the extent they relate to RSA providers.
[Schedule 1, item 4, paragraph 3(1)(bb) of the RSA Act]
1.21 The Commissioner will be able to enforce compliance with the
superannuation data and payment regulations and standards for
superannuation entities and RSA providers when reporting member
related information (such as Member Contributions Statement) to the
Australian Taxation Office (ATO). The Commissioner also has general
administration of the correction and rectification of information in his
possession. [Schedule 1, item 5, subparagraph 3(1)(f)(iv) of the RSA Act and item 13,
subparagraph 6(fa)(iv) of the SIS Act]
1.22 Schedule 1 also makes further minor amendments to reflect this
division of general administration. [Schedule 1, item 10, paragraph 6(1)(a)(fa) of
the SIS Act]
Framework for the superannuation data and payment regulations and
standards
1.23 Reference in this explanatory memorandum to the
superannuation data and payment regulations and standards also means
data and payment regulations and standards relating to retirement savings
accounts (RSAs).
1.24 The Commissioner may issue superannuation data and payment
standards in the form of legislative instruments, supported by the
provisions in Part 4A of the RSA Act and Part 3B of the SIS Act.
Additional requirements will be specified in the regulations.
1.25 The legislative instrument for the superannuation data and
payment standards will contain technical specifications (such as required
data items and message format) that superannuation entities, RSA
providers and employers will need to comply with.
1.26 The regulations may require RSA providers, trustees of
superannuation entities and employers in their dealings with RSA
providers and superannuation entities to comply with superannuation data
and payment matters. [Schedule 1, item 1, paragraphs 45B(1)(a) and (b) of the
RSA Act and item 2, paragraphs 34K(1)(a) and (1)(b) of the SIS Act]
1.27 A superannuation data and payment matter refers to information
and payments that relate to an RSA account holder or a member of a
superannuation entity (or an employee for whose benefit a contribution to
an RSA provider or a superannuation entity is to be made by the
employer) and are connected with the operation of the RSA provider or
13
Superannuation Legislation Amendment (Stronger Super) Bill 2012
superannuation entity. [Schedule 1, item 1, paragraphs 45B(5)(a) and (b) of the
RSA Act and item 2, paragraphs 34K(5)(a) and (b) of the SIS Act]
1.28 The regulations may prescribe different requirements in relation
to superannuation data and payment matters for different classes of RSA
providers, superannuation entities or employers. This provides the
flexibility to tailor the application of certain requirements to different
classes. [Schedule 1, item 1, subsection 45B(2) of the RSA Act and item 2,
subsection 34K(2) of the SIS Act]
1.29 The Commissioner may, by legislative instrument, determine
standards relating to superannuation data and payment matters that are
applicable to RSA providers, trustees of superannuation entities and
employers in their dealings with RSA providers and superannuation
entities. [Schedule 1, item 1, paragraphs 45B(3)(a) and (b) of the RSA Act and item 2,
paragraphs 34K(3)(a) and (b) of the SIS Act]
1.30 The superannuation data and payments standards may specify
different requirements to be complied with by a class of RSA provider,
superannuation entity or employer. The inclusion of additional flexibility
within the superannuation data and payment standards will enable specific
data or payment items to be tailored to certain classes to ensure
appropriate administration occurs. [Schedule 1, item 1, subsection 45B(4) of the
RSA Act and item 2, subsection 34K(4) of the SIS Act]
1.31 The ability to specify different requirements that must be
complied with by certain classes of RSA provider, superannuation entity
or employers will enable the Commissioner to customise the
superannuation data and payment standards to the characteristics of
particular classes of RSA provider or superannuation entities, such as self-
managed superannuation funds. This will also provide scope for more
flexibility.
1.32 The regulations will specify superannuation transactions, reports
and records that will need to comply with the superannuation data and
payment standards. Transactions include both data (information) and
payments of superannuation.
1.33 Payments and transactions that are covered by the
superannuation data and payment regulations and standards include:
· transactions between two RSA providers or superannuation
entities (such as a roll-over of superannuation benefits);
· transactions between an employer and an RSA provider or a
superannuation entity (such as contributions and the registration
of members); and
14
Data and payment standards relating to superannuation and retirement savings
· reporting from an RSA provider or a superannuation entity to the
Commissioner (such as Member Contribution Statement
reporting).
[Schedule 1, item 1, paragraphs 45B(6)(a), (b) and (c) of the RSA Act and item 2,
paragraphs 34K(6)(a), (b) and (c) of the SIS Act]
1.34 The regulations enable any other kind of payment or information
relating to superannuation data and payment matters to be prescribed. For
example, the regulations may prescribe the performance standards
(processing timeframes) that will apply to certain transactions (such as
roll-overs or contributions). [Schedule 1,item 1, paragraph 45B(6)(e) of the
RSA Act and item 2, paragraph 34K(6)(e) of the SIS Act]
1.35 The superannuation data and payment regulations and standards
may also apply to payments or information made or provided by the
Commissioner. For example, payments and information relating to
unclaimed superannuation or roll-overs initiated by members through an
online service provided by the Commissioner. [Schedule 1, item 1,
paragraph 45B(6)(f) of the RSA Act and item 2, paragraph 34K(6)(f) of the SIS Act]
1.36 The superannuation data and payment regulations and standards
may specify a format for a unique identifier for use with any
superannuation data and payment matter connected with the operation of
an RSA provider or superannuation entity. [Schedule 1, item 1,
paragraph 45B(6)(d) of the RSA Act and item 2, paragraph 34K(6)(d) of the SIS Act]
1.37 Such a unique identifier would link a payment with the relevant
transaction's member information. For example, a unique identifier
would link the transfer of money and the transfer of information between
superannuation entities when a member's benefits are rolled over or
transferred. This will result in improved processing outcomes for the
superannuation entities and more timely allocation of payments for
beneficiaries.
1.38 To simplify the operation of the superannuation data and
payment regulations and standards, the regulations and/or standards may
adopt or incorporate other third party standards that exist at a particular
time or from time to time. For example, the ability to use existing
payment standards, such as the Bulk Electronic Clearing System (BECS)
Direct Credit Standard will ensure alignment with existing payment
channels. [Schedule 1, item 1, paragraphs 45B(7)(a) and (b) of the RSA Act and
item 2, paragraphs 34K(7)(a) and (b) of the SIS Act]
1.39 The incorporation of third party standards that exist from time to
time is an exception to subsection 14(2) of the Legislative Instruments
Act 2003 (LIA 2003). Paragraph 34K(7)(b) has been incorporated to
future proof the interactions between the superannuation data and
15
Superannuation Legislation Amendment (Stronger Super) Bill 2012
payment regulations and standards and third party standards that are
adopted or incorporated, such as the BECS, that may be updated. Without
this flexibility, the superannuation and data payment regulations and
standards would be compromised as it could only reference a third party
standard that existed at a point in time.
1.40 Despite provisions in the LIA 2003, the standards may adopt or
incorporate components of third party standards, or other matters
contained in any other instrument or writing. [Schedule 1, item 1,
subsection 45B(8) of the RSA Act and item 2, subsection 34K(8) of the SIS Act]
1.41 Although the superannuation data and payment standards will be
issued by the Commissioner, the Commissioner must consult with APRA
when preparing the standards. [Schedule 1, item 1, subsection 45B(9) of the
RSA Act and item 2, subsection 34K(9) of the SIS Act]
1.42 The requirement to consult with APRA is in addition to further
consultation requirements contained in section 17 of the LIA 2003.
1.43 However, superannuation data and payment standards are not
invalidated or rendered unenforceable by a failure to consult with APRA
during their preparation. [Schedule 1, item 1, subsection 45B(10) of the RSA Act
and item 2, subsection 34K(10) of the SIS Act]
Interaction between data and payment standards and regulations
1.44 The superannuation data and payment standards made by the
Commissioner may elaborate, supplement or otherwise deal with any
aspect of the regulations made under Part 4A of the RSA Act or Part 3B
of the SIS Act. This approach is intended to provide maximum flexibility
in the application of the standards. [Schedule 1, item 1, subsection 45C(1) of the
RSA Act and item 2, subsection 34L(1) of the SIS Act]
1.45 However, if the standards made by the Commissioner are
inconsistent with the provisions in Part 4A of the RSA Act or Part 3B of
the SIS Act or provisions in the regulations under those parts, they will
have no effect. [Schedule 1, item 1, subsection 45C(2) of the RSA Act and item 2,
subsection 34L(2) of the SIS Act]
Compliance with superannuation data and payment regulations and
standards
1.46 A compliance regime is to be introduced that provides the
Regulators with flexibility as to an appropriate penalty. An administrative
penalty/infringement notice regime will be introduced that operates as an
alternative to a new strict liability offence.
16
Data and payment standards relating to superannuation and retirement savings
1.47 Offences of strict liability will apply to contraventions of the
superannuation data and payment regulations and standards and failure to
comply with Regulators' directions. The development of a compliance
framework that incorporates an administrative penalty regime and a strict
liability offence regime provides a graduated approach to dealing with
contraventions of these provisions.
1.48 The strict liability offences do not carry penalties of
imprisonment and most of the maximum penalties are 20 penalty units,
except in the case of a failure to comply with a direction of a Regulator in
which case the maximum penalty is 50 penalty units given the more
serious nature of failing to comply with a direction.
1.49 In framing these offences, consideration was given to the
principles contained in Report 6/2002 of the Senate Scrutiny of Bills
Committee on the Application of Absolute and Strict Liability Offences in
Commonwealth Legislation.
1.50 For a Regulator, the requirement to prove `intent' of a
superannuation entity, RSA provider or an employer to not comply with
the superannuation data and payment regulations and standards would be
problematic and make the provisions difficult to enforce.
1.51 The underlying nature of these provisions is to benefit
beneficiaries of RSA providers and superannuation entities. The failure to
comply with these provisions will have an impact on the beneficiaries of
RSA providers and superannuation entities in receiving superannuation
payments.
1.52 Contraventions of the superannuation data and payment
regulations and/or standards will result in a strict liability offence as this is
the most efficient means of administering regulatory penalties and
maintaining confidence in the regime. The adherence to the
superannuation data and payment regulations and standards by all
participants in the superannuation system is essential to meeting the policy
outcome of standardised transactions within the superannuation industry.
1.53 It is a reasonable expectation that RSA Providers,
superannuation entities and employers will implement appropriate
processes to deal with superannuation transactions for their members and
employees to ensure their compliance with the superannuation data and
payment regulations and standards.
1.54 RSA providers and trustees of superannuation entities are
required to comply with regulations made under Part 4A of the RSA Act
and Part 3B of the SIS Act, and any superannuation data and payment
standards that are applicable to RSA providers or superannuation entities.
17
Superannuation Legislation Amendment (Stronger Super) Bill 2012
[Schedule 1, item 1, paragraphs 45D(1)(a) and (b) of the RSA Act and item 2,
paragraphs 34M(1)(a) and (b) of the SIS Act]
1.55 Section 288-110 of the TAA 1953 provides the option of an
administrative penalty where RSA providers or superannuation entities
have not complied with the superannuation data and payment regulations
and/or standards required to be complied with when reporting to the
Commissioner. [Schedule 1, item 1, subsection 45D(1) of the RSA Act and item 2,
subsection 34M(1) of the SIS Act]
1.56 An offence of strict liability will occur where an RSA provider
or a trustee of a superannuation entity has not ensured that the
superannuation data and payment regulations and standards are complied
with. Penalty -- 20 penalty units. [Schedule 1, item 1, subsection 45D(2) of the
RSA Act and item 2, subsection 34M(2) of the SIS Act]
1.57 A contravention of any superannuation data and payment
regulations and/or standards by an RSA provider or a trustee of a
superannuation entity does not affect the validity of the transaction. For
example, if a roll-over is received by a superannuation entity and does not
contain all data elements required, the roll-over as a transaction may be
valid but does not comply with the standards. [Schedule 1, item 1, subsection
45D(3) of the RSA Act and item 2, subsection 34M(3) of the SIS Act]
1.58 Employers dealing with payments and information relating to an
employee, for whose benefit a contribution of superannuation is to be
made, must comply with regulations made under Part 4A of the RSA Act
and Part 3B of the SIS Act and any superannuation data and payment
regulations and standards that are applicable to employers. [Schedule 1, item
1, paragraphs 45E(1)(a) and (b) of the RSA Act and item 2, paragraphs 34N(1)(a) and
(b) of the SIS Act]
1.59 Section 288-110 of the TAA 1953 provides an administrative
penalty where employers have not complied with the superannuation data
and payment regulations and/or standards. [Schedule 1, item 1, subsection
45E(1) of the RSA Act and item 2, subsection 34N(1) of the SIS Act]
1.60 An offence of strict liability will occur where an employer has
not complied with the superannuation data and payment regulations
and/or standards. Penalty -- 20 penalty units. [Schedule 1, item 1,
subsection 45E(2) of the RSA Act and item 2, subsection 34N(2) of the SIS Act]
1.61 A contravention of any superannuation data and payment
regulation and/or standard by an employer does not affect the validity of
the transaction. For example, if a contribution is received by a
superannuation entity that does not contain all data elements required, the
contribution as a transaction may be valid but does not comply with the
standards. [Schedule 1, item 1, subsection 45E(3) of the RSA Act and item 2,
subsection 34N(3) of the SIS Act]
18
Data and payment standards relating to superannuation and retirement savings
Regulator's power to give directions in certain circumstances
1.62 APRA will be able to give directions to APRA-regulated
superannuation entities and RSA providers where there is reason to
believe that contraventions of the superannuation data and payment
regulations and/or standards has or is likely to occur. [Schedule 1, item 4,
paragraph 3(1)(bb) of the RSA Act and item 12, subparagraph 6(1)(a)(ib) of the SIS Act]
1.63 The Commissioner will be able to give directions to RSA
providers and APRA-regulated superannuation entities (for payments and
information given to the Commissioner), and SMSFs and employers
where there is reason to believe that contraventions of the superannuation
data and payment regulations and/or standards has or is likely to occur.
[Schedule 1, item 5, subparagraphs 3(1)(f)(ii) and (iii) of the RSA Act and, item 12,
subparagraph (6)(1)(e)(ia) and item 13, subparagraphs 6(1)(fa)(ii) and (iii) of the
SIS Act]
1.64 The Regulator will be able to issue a written direction to an RSA
provider or a trustee of a superannuation entity, if the Regulator
reasonably believes that the RSA provider or superannuation entity may
have or is likely to contravene a superannuation data and payment
regulation and/or standard. [Schedule 1, item 1, paragraphs 45F(1)(a) and (b) of
the RSA Act and item 2, paragraphs 34P(1)(a) and (b) of the SIS Act]
1.65 In determining whether to give a direction, the Regulator must
consider the extent to which the RSA provider or superannuation entity is
operating in a way that is contrary to the object of the relevant Part as well
as any other relevant matter. [Schedule 1, item 1, paragraphs 45F(2)(a) and (b) of
the RSA Act and item 2, paragraphs 34P(2)(a) and (b) of the SIS Act]
1.66 The Regulator may give a direction to an RSA provider or a
trustee of a superannuation entity that requires the RSA provider or trustee
to either do a specified act to rectify the contravention, or refrain from
doing an act to rectify the contravention (or prevent the likely
contravention from occurring). [Schedule 1, item 1, paragraphs 45F(4)(a) and (b)
of the RSA Act and item 2, paragraphs 34P(4)(a) and (b) of the SIS Act]
1.67 The RSA provider or the trustee of a superannuation entity will
have a minimum of 21 days after the direction is issued to ensure the RSA
provider or superannuation entity complies with the direction. The
timeframe will be determined by the Regulator. [Schedule 1, item 1,
subsections 45F(5)and (6) of the RSA Act and item 2, subsections 34P(5) and (6) of the
SIS Act]
1.68 Section 288-110 of the TAA 1953 provides an administrative
penalty where an RSA provider or a trustee of a superannuation entity has
not complied with a direction within the specified time period. [Schedule 1,
item 1, subsection 45F(6) of the RSA Act and item 2, subsection 34P(6) of the SIS Act]
19
Superannuation Legislation Amendment (Stronger Super) Bill 2012
1.69 An offence of strict liability will occur where an RSA provider
or a trustee of a superannuation entity has not complied with the direction
within the time specified. Penalty -- 50 penalty units. [Schedule 1, item 1,
subsection 45F(7) of the RSA Act and item 2, subsection 34P(7) of the SIS Act]
1.70 The Regulator may (through written notification) vary the
direction given to an RSA provider or a trustee of the superannuation
entity. The direction may be revoked if the Regulator determines the
direction is no longer necessary or appropriate. [Schedule 1, item 1,
subsections 45F(8) and (9) of the RSA Act and item 2, subsections 34P(8) and (9) of the
SIS Act]
1.71 The Commissioner will be able to issue a written direction to an
employer if the Commissioner has reasonable grounds to believe that the
employer may have or is likely to contravene a superannuation data and
payment regulation and/or standard. [Schedule 1, item 1, paragraphs 45G(1)(a)
and (b) of the RSA Act and item 2, paragraphs 34Q(1)(a) and (b) of the SIS Act]
1.72 In determining whether to give a direction, the Commissioner
must consider the extent to which the employer is operating in a way that
is contrary to the object of the relevant Part as well as any other relevant
matter. [Schedule1, item 1, paragraphs 45G(2)(a) and (b) of the RSA Act and item 2,
paragraphs 34Q(2)(a) and (b) of the SIS Act]
1.73 The Commissioner may give a direction to an employer that
requires the employer to either do a specified act to rectify the
contravention, or refrain from doing an act to rectify the contravention (or
prevent the likely contravention from occurring). [Schedule 1, item 1,
paragraphs 45G(4)(a) and (b) of the RSA Act and item 2, paragraphs 34Q(4)(a) and (b)
of the SIS Act]
1.74 The employer will have a minimum of 21 days after the
direction is issued to ensure the employer comply with the direction. The
timeframe will be determined by the Commissioner. [Schedule 1, item 1,
subsections 45G(5) and (6) of the RSA Act and item 2, subsections 34Q(5) and (6) of the
SIS Act]
1.75 Section 288-110 of the TAA 1953 provides an administrative
penalty where the employer has not complied with direction within the
specified time period. [Schedule 1, item 1, subsection 45G(6) of the RSA Act and
item 2, subsection 34Q(6) of the SIS Act]
1.76 An offence of strict liability will occur where the employer has
not complied with the direction within the time specified. Penalty --
50 penalty units. [Schedule 1, item 1, subsection 45G(7) of the RSA Act and item 2,
subsection 34Q(7) of the SIS Act]
1.77 The Regulator may (through written notification) vary the
direction given to the employer. The Regulator may revoke the direction
20
Data and payment standards relating to superannuation and retirement savings
if it is determined the direction is no longer necessary or appropriate.
[Schedule 1, item 1, subsections 45G(8) and (9) of the RSA Act and item 2,
subsection 34Q(8) and (9) of the SIS Act]
Infringement notices
1.78 APRA will have the general administration of the Division
covering infringement notices. The issuing of infringement notices will
therefore be restricted to APRA regulated superannuation entities and
RSA providers. [Schedule 1, item 4 paragraph 3(1)(bb) of the RSA Act and item 11,
subparagraph 6(1)(a)(ib) of the SIS Act]
1.79 APRA may issue an infringement notice where they have
reasonable grounds that a contravention of a provision governing
compliance with the superannuation data and payment regulations or
standards or directions to comply with the superannuation data and
payment regulations and/or standards has occurred. [Schedule 1, item 1,
subsection 45H(1) of the RSA Act and item 2, subsection 34R(1) of the SIS Act]
1.80 An infringement notice is to be issued within 12 months after
the day on which the contravention occurred. [Schedule 1, item 1,
subsection 45H(2) of the RSA Act and item 2, subsection 34R(2) of the SIS Act]
1.81 The infringement notice must include prescribed information
and state that, if the infringement is paid within 28 days, and the provision
is a strict liability offence the person is not liable be prosecuted in court.
If the infringement is not paid within 28 days, and the provision is also a
strict liability offence, the RSA provider or trustee of the superannuation
entity may be prosecuted in a court. [Schedule 1, item 1, subsection 45J(1) of the
RSA Act and item 2, subsection 34S(1) of the SIS Act]
1.82 The maximum amount of the infringement notice must be equal
to one-fifth of the maximum penalty that a court could impose on a person
for the contravention. [Schedule 1, item 1, subsection 45J(2) of the RSA Act and
item 2, subsection 34S(2) of the SIS Act]
1.83 A person to whom an infringement notice is issued may request
APRA to extend the timeframe for payment of the notice. [Schedule 1,
item 1, subsection 45K(1) of the RSA Act and item 2, subsection 34T(1) of the SIS Act]
1.84 A person to whom an infringement notice is issued may write to
APRA seeking the withdrawal of the notice within 21 days of the notice
being issued. [Schedule 1, item 1, subsection 45L(1) of the RSA Act and item 2,
subsection 34U(1) of the SIS Act]
1.85 APRA may withdraw the infringement notice, whether the result
of representation or not, and take into account the circumstances outlined.
[Schedule 1, item 1, subsections 45L(2) and (3) of the RSA Act and item 2,
subsections 34U(2) and (3) of the SIS Act]
21
Superannuation Legislation Amendment (Stronger Super) Bill 2012
1.86 APRA must notify the person of the withdrawal of the notice
and refund to the person an amount equal to the amount paid. [Schedule 1,
item 1, subsections 45L(4) and (5) of the RSA Act and item 2, subsections 34U(4) and
(5) of the SIS Act]
1.87 If a person pays the amount of the infringement notice within the
specified period any liability for the contravention will be discharged and
if the provision is a strict liability offence provision the person may not be
prosecuted in court. [Schedule 1, item 1, subsection 45M (1) of the RSA Act and
item 2, subsection 34V(1) of the SIS Act]
1.88 APRA is not required to issue an infringement notice to a person
for an alleged contravention of provisions governing compliance with the
superannuation data and payment regulations and/or standards. [Schedule 1,
item 1, subsection 45N(a) of the RSA Act and item 2, subsection 34W(a) of the SIS Act]
1.89 APRA can issue two or more infringement notices to a person
for alleged infringement of provisions contraventions of the
superannuation data and payment regulations and/or standards. [Schedule 1,
item 1, subsection 45N(c) of the RSA Act and item 2, subsection 34W(c) of the SIS Act]
1.90 The issuing of an infringement notice does not limit a court's
discretion to determine the amount of a penalty to be imposed for
contraventions of the superannuation data and payment regulations and/or
standards. [Schedule 1, item 1, subsection 45N(d) of the RSA Act and item 2,
subsection 34W(d) of the SIS Act]
Correction and rectification of information
1.91 The Commissioner may correct information in the
Commissioner's possession to ensure that the information complies with
the superannuation data and payment regulations and/or standards.
[Schedule 1, item 1, paragraphs 45P(1)(a) and (b) of the RSA Act and item 2,
paragraphs 34X(1)(a) and (b) of the SIS Act]
1.92 The correction of any information by the Commissioner does not
remove a person's liability for any contraventions of the superannuation
data and payment regulations and/or standards. [Schedule 1, item 1,
subsections 45P(2) of the RSA Act and item 2, subsection 34X(2) of the SIS Act]
1.93 This provision will provide the Commissioner with the
flexibility to rectify information that may be provided incorrectly or
missing. For example, the Commissioner would be able to correct
missing member details or fund details that would otherwise compromise
the information.
22
Data and payment standards relating to superannuation and retirement savings
Administrative penalties
1.94 A new miscellaneous administrative penalty will be inserted into
the TAA 1953 for contraventions of the superannuation data and payment
regulations and/or standards. [Schedule 1, item 3, subsection 288-110 of the
TAA 1953]
1.95 The administrative penalties will only apply to those parts of the
RSA Act and the SIS Act where the Commissioner has general
administration. [Schedule 1, item 5, subparagraphs 3(1)(f)(ii) and (iii) of the
RSA Act and item 13, subparagraphs 6(1)(fa)(ii) and (iii) of the SIS Act]
1.96 RSA Providers and trustees of superannuation entities are liable
for an administrative penalty if the entity has not complied with the
superannuation data and payment regulations and/or standards, and/or
have not complied with the Regulator's direction to comply. [Schedule 1,
item 3, paragraphs 288-110(1)(a) and (b) and (2)(a) and (b) of the TAA 1953]
1.97 Employers are liable for an administrative penalty if the entity
has not complied with superannuation data and payment regulations
and/or standards, and/or have not complied with the Regulator's direction
to comply.
1.98 The amount of administrative penalty is equal to one-fifth of the
maximum penalty that a court could impose on a person for the
contravention. [Schedule 1, item 3, paragraphs 288-110(3)(a) and (b) and (4)(a) and
(b) of the TAA 1953]
1.99 The base penalty amount for an administrative penalty for not
complying with the superannuation data and payment regulations and/or
standards is 4 penalty units. [Schedule 1, item 3, paragraph 288-110(6)(a) of the
TAA 1953]
1.100 The base penalty amount for an administrative penalty for not
complying with the Regulator's direction to comply with the
superannuation data and payment regulations and/or standards is
10 penalty units. [Schedule 1, item 3, paragraph 288-110(6)(b) of the TAA 1953]
1.101 The insertion of the administrative penalty regime in the
TAA 1953 will also enable the Commissioner to use existing remission
provisions.
Application and transitional provisions
1.102 The amendments in this schedule apply to RSA providers and
trustees of a superannuation entity in relation to conduct that occurs on or
23
Superannuation Legislation Amendment (Stronger Super) Bill 2012
after 1 July 2013. [Schedule 1, item 20, subsections (1)(a) and (b) of the RSA Act
and SIS Act]
1.103 The amendments in this schedule apply to an entity that is a
medium to large employer on 1 July 2014 in relation to conduct that
occurs on or after 1 July 2014. [Schedule 1, item 20, subsection (2) of the
RSA Act and SIS Act]
1.104 The amendments in this schedule apply to an entity that is a
small employer on 1 July 2014 in relation to conduct that occurs on or
after 1 July 2015, unless the regulations prescribe an alternate application
date after 1 July 2015. [Schedule 1, item 20, subsection (3) of the RSA Act and
SIS Act]
1.105 A medium to large employer means an employer that employs
20 or more employees as at 1 July 2014. A small employer means an
employer that employs fewer than 20 employees as at 1 July 2014.
[Schedule 1, item 20, subsection (4) of the RSA Act and SIS Act]
1.106 All employees employed at 1 July 2014 are to be counted for the
purpose of calculating whether an employer is a medium to large or small
employer to determine the date from which the superannuation data and
payment regulations and standards will apply. [Schedule 1, item 20,
subsection (4) of the RSA Act and SIS Act]
24
Data and payment standards relating to superannuation and retirement savings
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011
Data and payment standards relating to superannuation and retirement
savings
1.107 This Schedule 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
1.108 Schedule 1 to the Superannuation Legislation Amendment
(Stronger Super) Bill (No.1) 2012 amends the SIS Act and the RSA Act to
introduce a framework to support the implementation of superannuation
data and payment standards that will apply to specified superannuation
transactions undertaken by superannuation entities and employers.
1.109 The purpose of the new schedule is to improve the
administration and management of super accounts making the processing
of everyday transactions easier, cheaper and faster for members and
employers.
Human rights implications
1.110 This Schedule does not engage any of the applicable rights or
freedoms.
Conclusion
1.111 This Schedule is compatible with human rights as it does not
raise any human rights issues.
Minister for Superannuation, the Hon Bill Shorten
25
Chapter 2
Costs of implementing SuperStream
measures
Outline of chapter
2.1 Schedule 2 to this Bill amends section 50 of the Australian
Prudential Authority Act 1998 (APRA Act).
2.2 The amendments enable costs associated with the
implementation of the SuperStream measures to be included in the
Minister's determination specifying the amount of the levy that is payable
to the Commonwealth.
2.3 The amendments also enable the Minister to make a
determination that specifies the proportion of levy money paid to
Australian Prudential Regulation Authority (APRA) that is to be credited
to the APRA Special Account.
Context of amendments
2.4 As part of the Stronger Super reform package, the Government
announced that expenditure associated with the introduction of
SuperStream would be financed by a temporary levy on industry.
2.5 Government costs associated with the implementation of
SuperStream will be recovered through the Superannuation Supervisory
levy that applies to APRA-regulated funds.
2.6 Costs associated with the implementation of SuperStream will
be collected through the existing collection mechanism that exists for the
Superannuation Supervisory levy.
2.7 APRA is primarily funded through industry levies known as the
Financial Sector Levies. The total funding requirement is determined by
the annual Portfolio Budget Statement submitted to, and approved by, the
Government.
2.8 Under subsection 50(1) of the APRA Act, the Minister is to
make, for each financial year, a determination specifying the amount of
levy money payable to the Commonwealth, in respect of levy (or each
27
Superannuation Legislation Amendment (Stronger Super) Bill 2012
class of levy) for that financial year. The amount specified in the
determination is to cover the costs to the Commonwealth of providing
market integrity and consumer protection functions for prudentially
regulated institutions and administering the function of making
determinations about the release on compassionate grounds of benefits
that are in a superannuation entity or retirement savings account.
2.9 The amendments in Part 1 of Schedule 2 provide that the
Minister's determination under subsection 50(1) of the APRA Act will
include an amount of levy money to also cover the costs to the
Commonwealth of implementing SuperStream.
2.10 The APRA Act currently requires APRA to collect and return
the proportions collected on behalf of Australian Securities and
Investments Commission (ASIC), Department of Human Services (DHS)
and the Australian Taxation Office (ATO) to the Commonwealth in the
first instance. Once the ATO, DHS and ASIC amounts have been met in
consolidated revenue, the APRA Act provides that APRA receives the
residual amounts collected through the levy to fund it supervisory
activities.
2.11 This disbursement method and the variation in the timing that
levies are paid by regulated institutions can cause cash flow difficulties
for APRA.
2.12 The amendment in Part 2 of Schedule 2 to this Bill will provide
an amendment to the APRA Act to ensure that levies collected by APRA
are allocated on a proportionate basis between the Commonwealth and
APRA's special account. This revised process will enable a more timely
allocation of revenue to support APRA's regulatory functions.
Summary of new law
2.13 Schedule 2 to this Bill amends the APRA Act to enable costs
associated with the implementation of the SuperStream measures to be
included in the Minister's determination specifying the amount of the levy
that is payable to the Commonwealth.
2.14 The amendments enable the Minister to make a determination
that specifies the proportion of levy money paid to APRA that is to be
credited to the APRA Special Account.
2.15 Schedule 2 also inserts a definition for SuperStream measures.
28
Costs of implementing SuperStream measures
Comparison of key features of new law and current law
New law Current law
The Minister is able to include costs Costs related to the implementation
associated with the implementation of of SuperStream cannot be included in
SuperStream in the determination the Minister's determination that
made that specifies the amount of specifies the amount of levy money
levy money payable to the payable to the Commonwealth.
Commonwealth.
The Minister is able to make a Amounts of levy money can only be
determination specifying the credited to the APRA Special
proportion of amounts of levy money Account when the amount collected
that is to be credited to the APRA exceeds the Commonwealth costs of
Special Account. providing market integrity and
consumer protection functions and
administering the release of benefits
on compassionate grounds total of the
amount collected
Definition of SuperStream measures. No equivalent.
Detailed explanation of new law
Amendments to the APRA Act
2.16 Subsection 50(1) of the APRA Act enables the Minister to make
by legislative instrument, for each financial year, a determination
specifying the amount of levy money payable to the Commonwealth in
respect of the levy (or each class of levy) for that financial year, to cover
the costs to the Commonwealth of providing market integrity and
consumer protection functions for prudentially regulated institutions and
administering the function of making determinations about the release on
compassionate grounds of benefits that are in a superannuation entity or
retirement savings account.
2.17 An amendment will be made to subsection 50(1) that enables the
Minister's determination to specify the amount of levy money that is
payable to the Commonwealth to cover the costs to the Commonwealth of
implementing the SuperStream measures until 30 June 2018. [Schedule 2,
items 1 and 2, subparagraphs 50(1)(a)(iii) and 50(1)(b)(iii) of the APRA Act]
2.18 The Minister will be able to make a determination for each
financial year specifying the proportion of amounts of levy money that is
to be credited to the APRA Special Account on an ongoing basis.
[Schedule 2, item 4, section 50(1)(A) of the APRA Act]
29
Superannuation Legislation Amendment (Stronger Super) Bill 2012
2.19 Currently, subsection 50(2) provides that a levy amount
collected to cover the costs to the Commonwealth of providing market
integrity and consumer protection functions for prudentially regulated
institutions and administering the function of making determinations
about the release on compassionate grounds is not to be credited to the
APRA Special Account. Further, subsection 50(3) provides that if levy
amounts collected exceed the costs to the Commonwealth, these amounts
can be credited to the APRA Special Account.
2.20 Existing subsections 50(2) and 50(3) will be repealed and
replaced by new subsections 50(2) and 50(3)(a) and (b) that determine the
proportion of amount of levy money paid to APRA on behalf of the
Commonwealth and to be credited to the APRA Special Account, and
states that levy money paid to APRA, that exceeds the amount included in
the Minister's determination to be credited to the APRA Special Account,
will also be credited to the APRA Special Account. [Schedule 2, item 4,
subsection 50(2) and paragraphs 50(3)(a) and (b) of the APRA Act]
2.21 An amendment will be made to subsection 50(6) to insert a
definition of the measures covered by SuperStream. [Schedule 2, item 5,
section 50(6) of the APRA Act]
Application and transitional provisions
2.22 The amendments in this schedule apply from 1 July 2012, and to
the 2012-13 financial year.
Consequential amendments
2.23 Nil.
30
Costs of implementing SuperStream measures
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011
Cost of Implementing SuperStream measures
2.24 This Schedule 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
2.25 Schedule 2 of this Bill amends the Australian Prudential
Regulation Authority Act 1998 to enable costs associated with the
implementation of the SuperStream measures to be included in the
determination of Commonwealth costs.
2.26 These amendments will enable the determination specifying the
amount of levy money payable to the Commonwealth to include costs
associated with the implementation of SuperStream and also to determine
the proportion of levy money paid to APRA that is to be credited to the
APRA Special Account.
Human rights implications
2.27 This Schedule does not engage any of the applicable rights or
freedoms.
Conclusion
2.28 This Schedule is compatible with human rights as it does not
raise any human rights issues.
Minister for Superannuation, the Hon Bill Shorten
31
Chapter 3
Amendment to the Superannuation
Supervisory Levy Imposition Act 1998
Outline of chapter
3.1 Schedule 1 of the Superannuation Supervisory Levy Imposition
Amendment Bill 2012 amends the Superannuation Supervisory Levy
Imposition Act 1998 to enable the Treasurer to make more than one
determination for a financial year.
Context of amendments
3.2 As part of the Stronger Super reform package, the Government
announced that expenditure associated with the introduction of
SuperStream would be financed by a temporary levy on industry.
3.3 Government costs associated with the implementation of
SuperStream will be recovered through the Superannuation Supervisory
Levy that applies to APRA-regulated funds.
3.4 The amendment made in Schedule 1 is to provide the Treasurer
the ability to make a subsequent determination, for a financial year, of the
restricted and unrestricted levy amounts, restricted and unrestricted levy
percentages and the superannuation entity levy base.
3.5 This amendment will provide flexibility for the Treasurer in the
event that amendments to the Australian Prudential Regulation Authority
Act 1998 (APRA Act), that provide for costs associated with the
implementation of SuperStream to be included in the Minister's
determination that specifies the amount of levy money payable to the
Commonwealth, are delayed beyond 30 June 2012.
Summary of new law
3.6 Schedule 1 amends the Superannuation Supervisory Levy
Imposition Act 1998 to enable the Treasurer to make more than one
determination for a financial year.
33
Superannuation Legislation Amendment (Stronger Super) Bill 2012
Supervisory Levy Imposition Amendment Bill 2012
3.7 The amendment enables the Treasurer to make more than one
determination, for a financial year, on any or all of the components
included in the determination, being -- the restricted levy amount, the
unrestricted levy amounts, the restricted levy percentage, the unrestricted
levy percentages and the superannuation entity levy base.
Comparison of key features of new law and current law
New law Current law
The Treasurer is able to make more No equivalent.
than one determination for a financial
year.
Detailed explanation of new law
Treasurer able to make multiple determinations for a financial year
3.8 An amendment will be made to insert at the end of subsection 7,
a provision that provides the ability for the Treasurer to make more than
one determination, for a financial year, on any or all of the components
included in the determination. [Schedule 1, item 1, section 7 of the
Superannuation Supervisory Levy Imposition Act 1998]
Application and transitional provisions
3.9 The amendment in this Schedule applies from 1 July 2012.
Consequential amendments
3.10 Nil.
34
Amendment to the Superannuation Supervisory Levy Imposition Act 1998
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011
Amendment to the Superannuation Supervisory Levy Imposition Act 1998
3.11 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
3.12 Schedule 1 of this Bill amends the Superannuation Supervisory
Levy Imposition Act 1998 to enable the Treasurer to make a subsequent
determination, for a financial year, of the restricted and unrestricted levy
amounts, restricted and unrestricted levy percentages and the
superannuation entity levy base.
3.13 This amendment will provide flexibility for the Treasurer in the
event that amendments to the APRA Act, that provide for costs associated
with the implementation of SuperStream to be included in the Minister's
determination that specifies the amount of levy money payable to the
Commonwealth, are delayed beyond 30 June 2012.
Human rights implications
3.14 This Bill does not engage any of the applicable rights or
freedoms.
Conclusion
3.1 This Bill is compatible with human rights as it does not raise any
human rights issues.
Minister for Superannuation, the Hon Bill Shorten.
35
Index
Superannuation Legislation Amendment (Stronger Super)
Bill 2012
Schedule 1: Data and payment standards relating to
superannuation and retirement savings
Bill reference Paragraph number
Item 1, section 45 of the RSA Act and item 2, section 34H of the 1.11
SIS Act
Item 1, section 45A of the RSA Act and item 2, section 34J of the 1.12
SIS Act
Item 1, paragraphs 45B(1)(a) and (b) of the RSA Act and item 2, 1.26
paragraphs 34K(1)(a) and (1)(b) of the SIS Act
Item 1, subsection 45B(2) of the RSA Act and item 2, 1.28
subsection 34K(2) of the SIS Act
Item 1, paragraphs 45B(3)(a) and (b) of the RSA Act and item 2, 1.29
paragraphs 34K(3)(a) and (b) of the SIS Act
Item 1, subsection 45B(4) of the RSA Act and item 2, 1.30
subsection 34K(4) of the SIS Act
Item 1, paragraphs 45B(5)(a) and (b) of the RSA Act and item 2, 1.27
paragraphs 34K(5)(a) and (b) of the SIS Act
Item 1, paragraphs 45B(6)(a), (b) and (c) of the RSA Act and item 2, 1.33
paragraphs 34K(6)(a), (b) and (c) of the SIS Act
Item 1, paragraph 45B(6)(d) of the RSA Act and item 2, 1.36
paragraph 34K(6)(d) of the SIS Act
Item 1, paragraph 45B(6)(e) of the RSA Act and item 2, 1.34
paragraph 34K(6)(e) of the SIS Act
Item 1, paragraph 45B(6)(f) of the RSA Act and item 2, 1.35
paragraph 34K(6)(f) of the SIS Act
Item 1, paragraphs 45B(7)(a) and (b) of the RSA Act and item 2, 1.38
paragraphs 34K(7)(a) and (b) of the SIS Act
Item 1, subsection 45B(8) of the RSA Act and item 2, 1.40
subsection 34K(8) of the SIS Act
Item 1, subsection 45B(9) of the RSA Act and item 2, 1.41
subsection 34K(9) of the SIS Act
Item 1, subsection 45B(10) of the RSA Act and item 2, 1.43
subsection 34K(10) of the SIS Act
37
Superannuation Legislation Amendment (Stronger Super) Bill 2012
Supervisory Levy Imposition Amendment Bill 2012
Bill reference Paragraph number
Item 1, subsection 45C(1) of the RSA Act and item 2, 1.44
subsection 34L(1) of the SIS Act
Item 1, subsection 45C(2) of the RSA Act and item 2, 1.45
subsection 34L(2) of the SIS Act
Item 1, subsection 45D(1) of the RSA Act and item 2, 1.55
subsection 34M(1) of the SIS Act
Item 1, paragraphs 45D(1)(a) and (b) of the RSA Act and item 2, 1.54
paragraphs 34M(1)(a) and (b) of the SIS Act
Item 1, subsection 45D(2) of the RSA Act and item 2, 1.56
subsection 34M(2) of the SIS Act
Item 1, subsection 45D(3) of the RSA Act and item 2, 1.57
subsection 34M(3) of the SIS Act
Item 1, subsection 45E(1) of the RSA Act and item 2, 1.59
subsection 34N(1) of the SIS Act
Item 1, paragraphs 45E(1)(a) and (b) of the RSA Act and item 2, 1.58
paragraphs 34N(1)(a) and (b) of the SIS Act
Item 1, subsection 45E(2) of the RSA Act and item 2, 1.60
subsection 34N(2) of the SIS Act
Item 1, subsection 45E(3) of the RSA Act and item 2, 1.61
subsection 34N(3) of the SIS Act
Item 1, paragraphs 45F(1)(a) and (b) of the RSA Act and item 2, 1.64
paragraphs 34P(1)(a) and (b) of the SIS Act
Item 1, paragraphs 45F(2)(a) and (b) of the RSA Act and item 2, 1.65
paragraphs 34P(2)(a) and (b) of the SIS Act
Item 1, paragraphs 45F(4)(a) and (b) of the RSA Act and item 2, 1.66
paragraphs 34P(4)(a) and (b) of the SIS Act
Item 1, subsections 45F(5)and (6) of the RSA Act and item 2, 1.67
subsections 34P(5) and (6) of the SIS Act
Item 1, subsection 45F(6) of the RSA Act and item 2, 1.68
subsection 34P(6) of the SIS Act
Item 1, subsection 45F(7) of the RSA Act and item 2, 1.69
subsection 34P(7) of the SIS Act
Item 1, subsections 45F(8) and (9) of the RSA Act and item 2, 1.70
subsections 34P(8) and (9) of the SIS Act
Item 1, paragraphs 45G(1)(a) and (b) of the RSA Act and item 2, 1.71
paragraphs 34Q(1)(a) and (b) of the SIS Act
Item 1, paragraphs 45G(4)(a) and (b) of the RSA Act and item 2, 1.73
paragraphs 34Q(4)(a) and (b) of the SIS Act
Item 1, subsections 45G(5) and (6) of the RSA Act and item 2, 1.74
subsections 34Q(5) and (6) of the SIS Act
38
Index
Bill reference Paragraph number
Item 1, subsection 45G(6) of the RSA Act and item 2, 1.75
subsection 34Q(6) of the SIS Act
Item 1, subsection 45G(7) of the RSA Act and item 2, 1.76
subsection 34Q(7) of the SIS Act
Item 1, subsection 45G(8) and (9) of the RSA Act and item 2, 1.77
subsection 34Q(8) and (9) of the SIS Act
Item 1, subsection 45H(1) of the RSA Act and item 2, 1.79
subsection 34R(1) of the SIS Act
Item 1, subsection 45H(2) of the RSA Act and item 2, 1.80
subsection 34R(2) of the SIS Act
Item 1, subsection 45J(1) of the RSA Act and item 2, 1.81
subsection 34S(1) of the SIS Act
Item 1, subsection 45J(2) of the RSA Act and item 2, 1.82
subsection 34S(2) of the SIS Act
Item 1, subsection 45K(1) of the RSA Act and item 2, 1.83
subsection 34T(1) of the SIS Act
Item 1, subsection 45L(1) of the RSA Act and item 2, 1.84
subsection 34U(1) of the SIS Act
Item 1, subsections 45L(2) and (3) of the RSA Act and item 2, 1.85
subsections 34U(2) and (3) of the SIS Act
Item 1, subsections 45L(4) and (5) of the RSA Act and item 2, 1.86
subsections 34U(4) and (5) of the SIS Act
Item 1, subsection 45M (1) of the RSA Act and item 2, 1.87
subsection 34V(1) of the SIS Act
Item 1, subsection 45N(a) of the RSA Act and item 2, 1.88
subsection 34W(a) of the SIS Act
Item 1, subsection 45N(c) of the RSA Act and item 2, 1.89
subsection 34W(c) of the SIS Act
Item 1, subsection 45N(d) of the RSA Act and item 2, 1.90
subsection 34W(d) of the SIS Act
Item 1, subsections 45P(1)(a) and (b) of the RSA Act and item 2, 1.91
subsection 34X(1)(a) and (b) of the SIS Act
Item 1, subsection 45P(2) of the RSA Act and item 2, 1.92
subsection 34X(2) of the SIS Act
Item 3, subsection 288-110 of the TAA 1953 1.94
Item 3, paragraphs 288-110(1)(a) and (b) and (2)(a) and (b) of the 1.96
TAA 1953
Item 3, paragraphs 288-110(3)(a) and (b) and (4)(a) and (b) of the 1.98
TAA 1953
Item 3, paragraph 288-110(6)(a) of the TAA 1953 1.99
Item 3, paragraph 288-110(6)(b) of the TAA 1953 1.100
39
Superannuation Legislation Amendment (Stronger Super) Bill 2012
Supervisory Levy Imposition Amendment Bill 2012
Bill reference Paragraph number
Item 4, paragraph 3(1)(bb) of the RSA Act 1.20
Item 4, paragraph 3(1)(bb) of the RSA Act and item 11, 1.78
subparagraph 6(1)(a)(ib) of the SIS Act
Item 4, paragraph 3(1)(bb) of the RSA Act and item 12, 1.62
subparagraph 6(1)(a)(ib) of the SIS Act
Item 5, subparagraphs 3(1)(f)(i), (ii)and (iii) of the RSA Act 1.19
Item 5, subparagraphs 3(1)(f)(ii) and (iii) of the RSA Act and 1.95
item 13, subparagraphs 6(1)(fa)(ii) and (iii) of the SIS Act
Item 5, subparagraphs 3(1)(f)(ii) and (iii) of the RSA Act and, 1.63
item 12, subparagraph (6)(1)(e)(ia) and item 13,
subparagraphs 6(1)(fa)(ii) and (iii) of the SIS Act
Item 5, subparagraph 3(1)(f)(iv) of the RSA Act and item 13, 1.21
subparagraph 6(fa)(iv) of the SIS Act
Item 10, paragraph 6(1)(a)(fa) of the SIS Act 1.22
Item 11, subparagraph (6)(1)(a)(ib) of the SIS Act 1.18
Item 12, subparagraph 6(1)(e)(ia) and item 13, 1.15
subparagraph 6(1)(fa)(ii) of the SIS Act
Item 13, subparagraphs (6)(1)(e)(ia), 6(1)(fa)(ii) and (iii) of the 1.17
SIS Act
Item 13, subparagraph 6(1)(fa)(i) of the SIS Act 1.16
Item 20, subsections (1)(a) and (b) of the RSA Act and SIS Act 1.102
Item 20, subsection (2) of the RSA Act and SIS Act 1.103
Item 20, subsection (3) of the RSA Act and SIS Act 1.104
Item 20, subsection (4) of the RSA Act and SIS Act 1.105
Item 20, subsection (4) of the RSA Act and SIS Act 1.106
Schedule 2: Costs of implementing SuperStream measures
Bill reference Paragraph number
Items 1 and 2, subparagraphs 50(1)(a)(iii) and 50(1)(b)(iii) of the 2.17
APRA Act
Item 4, section 50(1)(A) of the APRA Act 2.18
Item 4, subsection 50(2) and paragraphs 50(3)(a) and (b) of the 2.20
APRA Act
Item 5, section 50(6) of the APRA Act 2.21
40
Index
Supervisory Levy Imposition Amendment Bill 2012
Schedule 1: Amendment to the Superannuation Supervisory
Levy Imposition Act 1998
Bill reference Paragraph number
Item 1, section 7 of the Superannuation Supervisory Levy Imposition 3.8
Act 1998
41