Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Hansard source

Firstly, I'd like to thank those in the chamber who have contributed to this debate. I particularly thank the member for Forde, who preceded me in speaking, for his passionate advocacy on behalf of so many superannuants. I am a bit disappointed that those opposite have not taken the opportunity in this chamber to back millions of Australians and their superannuation savings by giving support to this bill, the Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018. We have heard from them a number of weasel words where they are squirming to try to maintain a position where they are of course protecting vested interests. Let's be very clear on what this bill does. This bill demonstrates the government's commitment to put members first and protect their hard-earned retirement savings from erosion through excessive fees, inappropriate insurance arrangements and the inefficiencies which result from having multiple superannuation accounts.

Schedule 1 to this bill prevents trustees of superannuation funds from charging administration and investment fees exceeding three per cent per annum of the balance of accounts below $6,000. Those listening to this debate will recall that there was a time when there were caps on fees. It was when the Leader of the Opposition was the minister responsible for superannuation that we saw fees become uncapped for low-balance accounts—accounts of below $1,000. This schedule also prevents trustees from charging exit fees, regardless of the account balance, which, of course, makes it so much easier for people to consolidate accounts.

Schedule 2 to the bill will address the provision of insurance through superannuation. The schedule requires that insurance be provided on an opt-in basis only for members with balances below $6,000, for accounts that have not received a contribution for 13 months or longer, and for any new members from 1 July 2019 who are under the age of 25. Again, when the Leader of the Opposition was responsible for superannuation, he presided over a change that saw young people defaulted into superannuation arrangements where they had to take out insurance, whether or not they wanted it or needed it. Under this bill, we are changing this.

Under schedule 3 to the bill, all inactive accounts with a balance below $6,000 and no insurance cover will be transferred to the Australian Taxation Office. The schedule also empowers the ATO, for the first time, to proactively return these amounts, along with existing unclaimed superannuation monies, to their rightful owners' active accounts. The ATO estimates that within a month of receiving the funds it will be able to reunify the amounts it holds with the rightful owners, which is a good outcome for those members. The amendments in the bill all apply from 1 July 2019. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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