House of Representatives

Second Reading Speech

Dr Stone (Murray - Parliamentary Secretary to the Minister for Finance and Administration)

I move:

That the bill be now read a second time.

The Superannuation (Consequential Amendments) Bill 2005 will amend eight acts and the trust deed under the Superannuation Act 1990 as a consequence of the establishment of the Public Sector Superannuation Accumulation Plan, the PSSAP, as a separate superannuation scheme and will allow Australian government employees and office holders to have choice of fund. The Superannuation Bill 2005 will establish the PSSAP as a separate scheme from the Public Sector Superannuation Scheme, the PSS.

The Superannuation Act 1990, which provides for the PSS, will confirm that the PSS will close to new employees from 1 July 2005 with the commencement of the PSSAP.

The Superannuation Guarantee (Administration) Act 1992 is being amended to allow Australian government employers to comply with the choice of fund requirements until 1 July 2006 in respect of employees who are PSSAP members. From that date, employers will be required to meet the choice of fund requirements in respect of new employees in the same manner as most private sector employers.

The Superannuation (Productivity Benefit) Act 1988 provides for superannuation guarantee type contributions for Australian government employees and office holders who are not Commonwealth Superannuation Scheme or PSS members. The bill will amend that act so that it does not apply to new employees and office holders from 1 July 2006. Superannuation will be provided for these persons as agreed with their employer subject to employers providing contributions at least in accordance with the Superannuation Guarantee (Administration) Act 1992. Also, these employees and office holders may join the PSSAP if eligible to do so.

The bill will also amend the productivity benefit act to ensure that the act does not apply in respect of PSSAP members who have chosen to cease PSSAP membership in accordance with the choice of fund arrangements.

The Governor-General Act 1974 and the Judges' Pensions Act 1968 are being amended as a consequence of the closure of the productivity benefit act to new employees. The amendments provide safety net superannuation guarantee minimum support to the Governor-General and judges in rare circumstances where the benefit otherwise payable would be less than the superannuation guarantee minimum employer superannuation.

The bill makes minor amendments to the Superannuation Benefits (Supervisory Mechanisms) Act 1990, the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997 and to the trust deed PSS. These amendments concern the establishment of the PSSAP as a separate scheme. The Superannuation Benefits (Supervisory Mechanisms) Act 1990 also includes minor amendments to allow Australian government employers to provide employees with choice of funds.

I commend the bill to the House and I present the explanatory memorandum.