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1998-1999-2000-2001
The
Parliament of the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Superannuation
(Entitlements of same sex couples) Bill
2001
Explanatory
Memorandum
Circulated by Mr
Albanese
ISBN: 0642 460515
OUTLINE
This
bill overcomes discrimination against same sex couples in the payment of
superannuation benefits.
The Commonwealth has moved in recent years to
ensure that superannuation is compulsory for all Australian workers and
superannuation is increasingly becoming a significant element of
employees’ wage packages.
Couples of the same sex in a relationship
that would be considered a de facto relationship if the partners were of
opposite sexes may not enjoy the same superannuation benefits as heterosexual
couples, while making identical superannuation
contributions.
Discrimination includes:
• On retirement of
the contributor, refusal to pay a joint pension for the contributor and his or
her same sex partner;
• On retirement of the contributor, refusal to
pay a lump sum benefit in respect of a same sex partner;
• On the death
of the contributor, refusal to pay death benefits to a same sex partner, either
by reversionary pension or lump sum benefit;
• On the death of the
contributor, failure to investigate or acknowledge the claim to dependency of a
child of a same sex couple when the contributor is not the biological parent of
the child; and
• On the death of the contributor, payment of death
benefits to the estate of the contributor rather than to the same sex partner as
a dependant.
This discrimination is inconsistent with other Commonwealth
and State legislation and international undertakings.
This bill seeks to
remedy the scope for such discrimination by amending the Superannuation
Industry (Supervision) Act
1993.
BACKGROUND
FINANCIAL IMPACT
STATEMENT
The provisions of this bill will have no impact on
government expenditure. Item 5 of Schedule 1 ensures that the provisions of the
bill do not increase the charge or burden on the people.
NOTES ON
CLAUSES
Clause 1 — This cites the short title of the
bill.
Clause 2 — This specifies that the bill commences on the day on
which it receives the Royal Assent.
Clause 3 — This provides that the
Act listed in the schedule is amended as set out in the
schedule.
Schedule 1 — Amendment of
the Superannuation Industry (Supervision) Act 1993
Item 1
— This item amends the definition of dependant to include a
de facto partner in addition to a spouse and any child of the
person or of the person’s partner.
Item 2 — This item repeals
the definition of spouse. The effect of the repeal is to remove
the extension of the meaning of the term spouse to include a de
facto partner.
Item 3 — This item inserts a definition for the term
de facto partner. The definition includes any person, including a
person of the same sex, who lives with the person on a genuine domestic basis as
the partner of the person. This definition, when read in conjunction with the
amended definition of dependant, has the effect of allowing a same
sex partner to be considered as a dependant for the purposes of the
Act.
Item 4 — This item inserts a new provision in section 52
(Covenants to be included in governing rules) which introduces a requirement not
to discriminate on the basis of race, colour, sex, sexual preference,
transgender status, marital status, family responsibilities, religion, political
opinion or social origin.
Item 5 — This item provides that the
amendments do not apply to certain public sector superannuation schemes. The
purpose of this provision is to ensure that the amendments contained in this
bill do not result in an increase in government expenditure through the payment
of increased benefits to members of public sector superannuation schemes. This
item has been inserted only because of the restrictions preventing private
Members from introducing bills which will cause an increase in government
expenditure.