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Friday, 13 December 1996
Page: 8734


Mr PETER BALDWIN(2.46 a.m.) —by leave—I move:

(1)   Schedule 1, item 3, page 3 (lines 25 to 27), omit subsection (7B) and note, substitute:

   (7B)   Subsection (7A) does not exclude a return on a person's investment if the person is a prescribed pre-pension age person except as provided by subsections (7C) and (7D).

   Note:   For prescribed pre-pension age person see subsection 23(1).

   (7C)   If a person is a prescribed pre-pension age person, a return on the person's investment in a superannuation fund, an approved deposit fund, a deferred annuity or an ATO small superannuation account which is a return on monies invested before or on 20 August 1996 is not income for the purposes of this Act.

   Note:   For prescribed pre-pension age person see subsection 23(1).

   (7D)   If a person is a prescribed pre-pension age person, a return on the first $250,000 (the superannuation assets threshold ) of the person's investment made after 20 August 1996 in a superannuation fund, an approved deposit fund, a deferred annuity or an ATO small superannuation account is not income for the purposes of this Act.

   Note 1:   For prescribed pre-pension age person see subsection 23(1).

   Note 2:   The superannuation assets threshold is indexed annually in line with CPI increases (see sections 1191 to 1194)

(2)   Schedule 1, items 5 to 13, page 4 (line 2) to page 5 (line 4), omit the items.

(3)   Schedule 1, item 21, page 6 (lines 25 to 28), omit subsection (3) and note, substitute:

   (3)   Subsection (1) does not exclude the value of a person's investment if the person is a prescribed pre-pension age person except as provided by subsections (4) and (5).

   Note:   For prescribed pre-pension age person see subsection 23(1).

   (4)   If a person is a prescribed pre-pension age person, any superannuation investments made before or on 20 August 1996 are to be disregarded in calculating the value of the person's assets for the purposes of this Act.

   Note:   For prescribed pre-pension age person see subsection 23(1).

   (5)   If a person is a prescribed pre-pension age person, the first $250,000 (the superannuation assets threshold ) of the person's superannuation investments made after 20 August 1996 is to be disregarded in calculating the value of the person's assets for the purposes of this Act.

   Note 1:   For prescribed pre-pension age person see subsection 23(1).

   Note 2:   The superannuation assets threshold is indexed annually in line with CPI increases (see sections 1191 to 1194)

(4)   Schedule 1, page 6 (after line 28), at the end of the Schedule, add:

   22 Section 1190 (Indexed and Adjusted Amounts Table)

After table item 34B, insert:

34CSuperannuation assets thresholdSuperannuation assets threshold[subsection 23(1)]

   23 Section 1191 (CPI Indexation Table)

After table item 25, insert:

25ASuperannuation assets threshold1 JulyDecembermost recent December quarter before reference quarter$250

   24 At the end of section 1192

Add:

      (8)   The first indexation of the superannuation assets threshold under item 25A of the CPI Indexation Table in subsection 1191(1) is to take place on 1 July 1998.

(5)   Schedule 2—Opposition to oppose.

I won't add to what I said in the second reading debate. This particular set of amendments gives effect to the recommendations of the Senate Select Committee on Superannuation and seeks to restrict the operation of this measure to some superannuation assets and rollover assets in excess of $250,000 and to make it purely prospective. An amendment in this form was also moved in the Senate. I might indicate that we will divide on this. We obviously oppose schedules 1 and 2, but there will only be the one division, on this particular motion.