NEED TO KNOW

The following four Bills relating to the Government’s Stronger Super reforms were passed by the Senate on 24 June 2013 and now await Royal Assent:

  • Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2013;
  • Tax and Superannuation Laws Amendment (Increased Concessional Contributions Caps and Other Measures) Bill 2013;
  • Superannuation (Sustaining the Superannuation Contribution Concession) Imposition Bill 2013; and
  • Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill 2013.

BACKGROUND

As part of the Government’s Stronger Super reforms, the Government has introduced a new low-cost default superannuation product called ‘MySuper’ which will be offered from 1 July 2013.  It has also introduced governance measures intended to heighten the obligations of superannuation trustees in managing superannuation fund assets.

The legislation to implement the MySuper and governance elements of the reforms was divided into four legislative tranches.  The Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2013, which was introduced into the House of Representatives on 18 November 2012, was the fourth tranche of legislation awaiting passage by the Parliament.

The earlier three tranches which received Royal Assent and are currently law include:

  • Superannuation Legislation Amendment (MySuper Core Provisions) Act 2012;
  • Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Act 2012; and
  • Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Act 2012. 

In addition to the four main tranches of legislation, the Government has also introduced other amending legislation to support its reforms aimed at what the Government describes as making the superannuation system more transparent, efficient and fair.  

SUMMARY OF THE BILLS

The table below summarises the reforms introduced under each of the amending Bills.

Click here to view table.

TIMING OF NEW REGIME

The amendments contained in:

  • Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2013 will generally commence on 1 July 2013;
  • Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Bill 2013 and Superannuation (Sustaining the Superannuation Contribution Concession) Imposition Bill 2013 Tax will commence with effect from the date of Royal Assent; and
  • Superannuation Laws Amendment (MySuper Capital Gains Tax Relief and Other Measures) Bill 2013 will generally commence with effect from the date of Royal Assent.

It is presumed that Royal Assent for the above Bills will need to take place prior to 1 July 2013.