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Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2012

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2010-2011-2012

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

SENATE

 

 

 

SUPERANNUATION LEGISLATION amendment (MYSUPER CORE PROVISIONS) Bill 2012

 

 

 

 

SUPPLEMENTARY EXPLANATORY MEMORANDUM

 

 

Amendments to be moved on behalf of the Government

 

(Circulated by the authority of the

Minister for Financial Services and Superannuation, the Hon Bill Shorten MP)



Table of contents

Glossary.............................................................................................................. 1

General outline and financial impact............................................................ 3

Chapter 1               Explanation of amendments.............................................. 5

Chapter 2               Statement of compatibility with human rights................. 7

Do not remove section break.





The following abbreviations and acronyms are used throughout this explanatory memorandum.

Abbreviation

Definition

APRA

Australian Prudential Regulation Authority

Bill

Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011

RSE

registrable superannuation entity





Outline

On 3 November 2011, the Minister for Superannuation and Financial Services, the Hon Bill Shorten MP, introduced the Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 (Bill).

The Bill establishes the framework for registrable superannuation entity (RSE) licensees to be authorised by the Australian Prudential Regulation Authority (APRA) to offer a MySuper product.  Trustees may offer MySuper products from 1 July 2013. 

Currently, the provisions in the Bill that permit APRA to accept applications for authorisation of a fund to offer a MySuper product commence on a single day fixed by Proclamation or, if the provisions have not commenced before 1 January 2013, they commence on that day. 

This will be amended so that the provisions establishing the application and authorisation process for MySuper products commence on a single day fixed by Proclamation.

Date of effect :  The provisions allowing APRA to accept application for authorisation of a fund to offer a MySuper product will be a single day fixed by Proclamation.

Proposal announced On 16 December 2010, the Assistant Treasurer and Minister for Financial Services and Superannuation, the Hon Bill Shorten MP, announced the Stronger Super reforms.  On 21 September 2011, he announced the Government’s decisions on the key design aspects of the Stronger Super reforms.

Financial impact The amendments to the Bill have no significant financial impact on Commonwealth expenditure or revenue.

Human rights implications :  The amendments to the Bill do not engage any of the applicable rights or freedoms.

 



Chapter 1          

Explanation of amendments

Outline of chapter

1.1                   This chapter explains the amendment to the Bill.

Commencement

1.2                   The Bill establishes the framework for RSE licensees to be authorised by the APRA to offer a MySuper product, including the criteria that must be satisfied in order to be authorised. 

1.3                   Currently, these provisions commence on a single day fixed by Proclamation or, if the provisions have not commenced before 1 January 2013, they commence on 1 January 2013. 

1.4                   The commencement of these provisions is amended to be a single day fixed by Proclamation.  This will avoid any uncertainty that may arise if the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012 has not received Royal Assent by 1 January 2013.

 



Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011

2.1                   The amendments to the Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 are 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

2.2                   The Bill will be amended so that the provisions establishing the application and authorisation process for MySuper product commence on a single day fixed by Proclamation. 

Human rights implications

2.3                   The amendments to the Bill do not engage any of the applicable rights or freedoms.

Conclusion

2.4                   The amendments to the Bill are compatible with human rights as they do not raise any human rights issues.