Mr SLIPPER (Parliamentary Secretary to the Minister for Finance and Administration) (1:24 PM) —I thank the member for Kingston for his unaccustomed brevity. He has outlined the position of the opposition. The amendment of schedule 1 of the bill, which would effectively backdate the application of the provisions to 1 July 1994, is what is contained in the opposition amendment. The start date proposed by the government is 1 July 2001. The rationale for the opposition amendment appears to be a concern that those who had internally rolled over superannuation benefits before 1 July 2001 would not be covered by the new provisions in this bill which are beneficial to taxpayers.

Mr SLIPPER —I can see the member for Kingston has interjected to that effect. I would like to outline to members the rationale behind the proposed 1 July 2001 start date. First, the 1 July 2001 start date was chosen because it coincides with the start of another government measure which has already been legislated. That measure ensured that superannuation benefits are not counted in the social security means test for those aged between 55 and age pension age. When combined with the internal rollover changes, this means that individuals could stop their super pension and roll their super back into the accumulation stage in the same fund, rather than be effectively forced to rely on their super as an income source. Secondly, the government has been advised that it is likely that the vast majority of those who have internally rolled over superannuation would have done so since 1 July 2001. Indeed, during confidential consultations with the superannuation industry on this measure, concerns were not raised with the government with respect to the start date.

Thirdly, while it is possible that some taxpayers internally rolled over before 1 July 2001, the Commissioner of Taxation has indicated that he will administer any such cases as they arise to ensure that there is no disadvantage to taxpayers. I mentioned that in my earlier speech and I have raised it privately with the member for Kingston, and I think he probably accepts that the Commissioner of Taxation will indeed carry out what he has actually said that he will do. In this regard, I note that the ATO interpretative decision ID 2001/802, which gave rise to this issue, has now been withdrawn. The Commissioner of Taxation has stated that he will administer the law relating to internal rollovers consistent with the government's announced change. Given this commitment by the commissioner, the amendment moved by the opposition is not expected to provide any practical benefit to taxpayers. For these reasons, the government—

Mr Cox —Just the uncertainty.

Mr SLIPPER —You ought not to comment or interject in this regard. I am just saying that, for these reasons, the government is not minded to support the opposition amendments in this place.

Question negatived.