25th Aug 2020, 12:34 PM – Senate Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 - in Committee - Choice of fund

The majority voted against amendments introduced by Tasmanian Senator Peter Whish-Wilson (Greens), which means they failed.

Amendment text

(1) Schedule 1, item 6, page 4 (lines 3 and 4), omit the item, substitute:

6 Paragraph 32C(6)(h)

Repeal the paragraph, substitute:

(h) an enterprise agreement:

(i) made before 1 July 2020; or

(ii) to which subsection (6AAA) applies; or

(2) Schedule 1, item 7, page 4 (before line 7), before subsection 32C(6AA), insert:

(6AAA) For the purposes of subparagraph (6)(h)(ii), this subsection applies to an enterprise agreement that provides for an employee to join a fund in relation to which:

(a) the employee is eligible to become a defined benefit member; and

(b) either or both of the following are satisfied:

(i) the governing rules of the fund permit the employee, within a period specified within those rules, to choose not to remain a defined benefit member;

(ii) the employee may choose another fund.

(3) Schedule 1, page 4 (after line 16), at the end of the Schedule, add:

8 At the end of section 32F

Add:

(4) A fund (the selected fund ) cannot become a chosen fund for an employee or a person who will become an employee under this section if the person has become or is eligible to become a defined benefit member pursuant to an arrangement of the kind referred to in paragraph 32C(6)(h).

9 Subsection 32NA(2)

After “An employer is not required under section 32N to give an employee”, insert “or a person who is eligible to become an employee”.

10 Paragraph 32NA(2)(a)

After “the employer is making”, insert “or will make”.

11 Paragraph 32NA(2)(b)

After “the contributions are made”, insert “or will be made”.

12 Subsection 32NA(9)

After “An employer is not required under section 32N to give an employee”, insert “or a person who is eligible to become an employee”.

13 Paragraph 32NA(9)(a)

After “the employee is”, insert “or will become”.

What is the main idea of the bill?

According to the bills digest:

The purpose of the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 (the Bill) is to amend the Superannuation Guarantee (Administration) Act 1992 (SGAA) to ensure employees under new workplace determinations or enterprise agreements have an opportunity to choose the superannuation fund for their compulsory employer contributions.