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Thursday, 24 May 2012
Page: 5479

Mr SHORTEN ( Maribyrnong — Minister for Financial Services and Superannuation and Minister for Employment and Workplace Relations ) ( 10:21 ): I move:

That this bill be now read a second time.

This bill provides the Treasurer with the ability to make a subsequent determination of the amount of the superannuation supervisory levy to be paid for a financial year.

The superannuation supervisory levy will pay for implementation costs to improve the administration and management of super accounts, making the processing of everyday transactions easier, cheaper and faster for both members of funds and employers.

It is part of the SuperStream package of measures designed to enhance the back office processing of superannuation.

Key measures include the introduction of data and payment standards and consolidation of accounts.

Estimates undertaken by the superannuation industry have identified that these SuperStream measures that I have been speaking about this morning will save in the order of $1 billion each year in processing costs. Averaged over the approximately 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 over seven years to be paid for by a temporary SuperStream levy on APRA regulated funds. If you averaged the full levy increase of $121 million to apply in 2012-13 across the approximate 33 million accounts existing today, the cost is roughly in the order of a mere $4 per account.

This bill will provide the Treasurer increased flexibility in determining the maximum restricted and unrestricted levy amounts, the restricted and unrestricted levy percentages and the superannuation entity levy base to be used in finalising the levy amount.

Full details of the measure in this bill are contained in the explanatory memorandum.

Debate adjourned.