Bill Shorten (Maribyrnong, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I present a supplementary explanatory memorandum to the bill. By leave—I move government amendments (1) and (2):

(1) Clause 2, page 3 (at the end of the table), add:

(2) Page 20 (after line 6), at the end of the Bill, add:

Schedule 5—Deduction of employer contributions to superannuation funds

Income Tax Assessment Act 1997

1 Subsection 290-80(1)

  Omit ", either".

2 At the end of subsection 290-80(1)

  Add:

   ; or (c) the contribution must reduce your charge percentage under section 22 or 23 of the Superannuation Guarantee (Administration) Act 1992 in respect of the employee.

3 After subsection 290-80(2)

  Insert:

  (2A) If only paragraph (1)(c) applies, you can deduct only the amount of the contribution that reduces your charge percentage under section 22 or 23 of the Superannuation Guarantee (Administration) Act 1992 in respect of the employee.

  (2B) If both paragraphs (1)(b) and (c) apply and paragraph (1)(a) does not apply, you can deduct only the greater of the following amounts (or only one of them if they are equal):

     (a) the amount of the contribution that is required by the industrial award, determination or notional agreement preserving State awards;

     (b) the amount of the contribution that reduces your charge percentage under section 22 or 23 of the Superannuation Guarantee (Administration) Act 1992 in respect of the employee.

Note: If paragraph (1)(a) applies, you can deduct the whole of the contribution (whether or not paragraph (1)(b) or (1)(c) also applies).

4 Application this

  The amendments made by this Schedule apply to contributions made on or after the commencement of this Schedule.

The Gillard government has an effective plan to deal with one of the big challenges facing our nation: how to ensure that Australians enjoy a comfortable retirement as our population lives longer. The government's historic superannuation reforms will boost Australians' private savings, helping them enjoy a comfortable retirement. These amendments ensure that employers will be able to claim income tax deductions for superannuation guarantee contributions made to employees aged 75 and over from 1 July 2013.

These amendments enable superannuation guarantee payments to be claimed as a legitimate employment cost and therefore be deductible to the employer. The amendments ensure employers will not bear a higher cost in employing workers 75 or over compared with other workers. These amendments are part of the same measure that seeks to remove the superannuation guarantee maximum age limit. Without the ability to claim superannuation guarantee payments as a tax deduction, employers would face a hit to their corporate profits; therefore it is vital that these amendments are supported.

The government's policy has been thoroughly considered and is consistent with the broad goals of superannuation policy. I sincerely hope that the government's amendments receive bipartisan support so that older Australians and their employers can have some certainty.

See this speech in context