Bill Shorten (Maribyrnong, Australian Labor Party, Minister for Financial Services and Superannuation) Share this | Hansard source

Firstly, I would like to thank those members who have contributed to this debate, including the eloquent words of the member for Bruce. Schedule 1 to the Superannuation Legislation Amendment (Reducing Illegal Early Release and Other Measures) Bill 2012 introduces civil and criminal sanctions for a person who promotes a scheme that has resulted, or is likely to result, in the illegal early release of superannuation benefits. The Income Tax Rates Amendments (Unlawful Payments from Regulated Superannuation Funds) Bill 2012 imposes the superannuation non-complying fund rate of 45 per cent on those amounts that are released early by illegal means. These measures will further deter promoters of illegal early release scheme from undermining the government's retirement policy and harming members in the process.

Schedule 2 to the Superannuation Legislation Amendment (Reducing Illegal Early Release and Other Measures) Bill 2012 amends the Anti-Money Laundering and Counter-Terrorism Financing Act to require that superannuation benefits that are rolled over into self-managed superannuation funds are captured as a designated service. This requirement will assist in reducing the risk that superannuation benefits that are rolled over for self-managed superannuation funds are used for illicit purposes.

Schedule 3 amends the Superannuation Industry (Supervision) Act 1993 to introduce administrative consequences for contraventions relating to self-managed superannuation funds. This measure will give the Commissioner of Taxation, as regulator of self-managed superannuation funds, effective flexible and proportionate powers to address non-compliance with the superannuation laws. These tools will support the ongoing integrity of the superannuation system, and I commend these bills to the House.

Question agreed to.

Bill read a second time.

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