Explanatory Memorandum
(Circulated by the authority of the Minister for Employment and Workplace Relations and Minister for Financial Services and Superannuation, the Hon Bill Shorten MP)Chapter 3 Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
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
This Bill contains the second tranche of legislation for the Government's Stronger Super (MySuper and governance) reforms, including expanding the covenants for registrable superannuation entity (RSE) licensees, applying new trustee duties to trustees of an RSE that offers a MySuper product and applying personal duties to the directors of corporate trustees in their own right. It also provides details of the power for APRA to issue prudential standards in relation to superannuation.
This Bill adds to the current Superannuation Industry (Supervision) Act 1993 obligations for trustees. The penalties that apply for breaches of trustee duties remain unchanged.
As prudential standards are legislative instruments, each prudential standard determined by APRA will need to be assessed for compatibility with human rights and freedoms and a Statement of Compatibility completed. Any prudential standards made by APRA that apply to individual entities will be merits reviewable.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
This Bill is compatible with human rights as it does not raise any human rights issues.
Bill Shorten. Minister for Employment and Workplace Relations, and Minister for Financial Services and Superannuation