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Superannuation Guarantee (Administration) Amendment Bill 2021

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2019-2020-2021

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

 

 

 

                    Superannuation Guarantee (Administration) Amendment Bill 2021

 

 

 

EXPLANATORY MEMORANDUM

and

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

 

 

 

 

 

 

 

Circulated by authority of

Craig Kelly

Member for Hughes



Superannuation Guarantee (Administration) Amendment Bill 2021

 

 

OUTLINE

 

Superannuation policies are more than just saving & investment accounts, as they also generally contain a life insurance policy component to cover the worker for the risk of workplace death or permanent disability.



The current provisions of the Superannuation Guarantee (Administration) Act ‘staple’ the Superannuation Policy (and therefore also ‘staple’ the worker’s life insurance policy) if the worker changes jobs.



Under the current legislation, there is the real risk that workers transferring occupations from a ‘low risk occupation’ (such as office work or retail) to a ‘dangerous occupation’ (such as road transport or fishing) may find themselves unknowingly stapled to, and paying a premium for, a life insurance policy that is totally unsuitable for that new occupation.



Therefore under the existing legislation, there is the real risk that an Australian worker who has transferred into a ‘dangerous occupation’, that if they were to suffer a catastrophic injury, they may not be adequately insured because their life insurance has been stapled to them from their previous low risk job.



The policy intent of the Bill is to amend the Superannuation Guarantee (Administration) Act to ‘unstaple’ the Superannuation Policies of workers when they transfer employment into a ‘dangerous occupation’ (defined as an occupation where the rate of death in workplace is more than 2.5 in 100,000 per year).



The intent is to ensure that workers have a life insurance policy (as part of their Superannuation Policy) that is suitable for such a dangerous occupation immediately they commence work in that new job

 

 

FINANCIAL IMPACT

 

The bill will have no financial impact.

 

 



STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

 

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

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Superannuation Guarantee (Administration) Amendment Bill 2021

 

This bill is 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 of the bill

 

The Bill amends the Superannuation Guarantee (Administration) Act 1992 be removing the stapling provision for workers transferring employment into a ‘dangerous occupation’ .

 

Human rights implications

 

 This bill does not engage any of the applicable rights or freedoms.

 

 

Conclusion

 

This bill is compatible with human rights because it does not raise any human rights issues.

 

 

 

 

Craig Kelly

Member for Hughes