Stuart Robert (Fadden, Liberal Party, Shadow Assistant Treasurer) Share this | Hansard source

by leave—I move amendments (2) and (4) to Treasury Laws Amendment (2022 Measures No. 3) Bill 2022 in my name:

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

(4) Page 19 (after line 14), at the end of the Bill, add:

Schedule 6 — Annual members' meetings

Superannuation Industry (Supervision) Act 1993

1 Paragraph 29P(3)(b)

After "the notice", insert "the information required by section 29PAA and".

2 Paragraphs 29P(3)(c) and (d)

Before "give the notice", substitute "subject to section 29PAB,".

3 After section 29P

Insert:

29PAA Information to be included with notice

(1) If, under section 29P, the RSE licensee of a registrable superannuation entity is required to give notice of an annual members' meeting for a year of income of the entity to a member of the entity, the following information must be included with the notice:

(a) a short-form summary containing the information set out in subsection (2), which must:

(i) fit on a single page and be the only information on that page; and

(ii) be the first page of the pages of information referred to in this section;

(b) a copy of each of the following:

(i) a summary of each significant event or material change notice (if any) given under section 1017B of the Corporations Act 2001 by a trustee of the entity to a member of the entity during the 2 year period finishing at the end of the year of income;

(ii) the remuneration details that, at the time the notice is given, are required to be made publicly available under subsection 29QB(1) of this Act in relation to the entity;

(iii) if the trustee or trustees of the entity produce an annual report for the entity for the year of income—that report;

(c) if a determination made under paragraph 52(9)(a) of this Act in relation to the entity is publicly available at the time the notice is given, or must be made publicly available before the meeting is held—a copy of the determination;

(d) a copy of each of the following:

(i) the most recent periodic statement (if any) given to the member under section 1017D of the Corporations Act 2001;

(ii) the most recent information (if any)given to the member under paragraph 1017DA(1)(a) of the Corporations Act 2001;

(e) for each contract (if any) under which one or more payments were made, by or on behalf of the entity during the year of income, where a purpose of each payment was promoting the entity, promoting a particular view on behalf of the entity or sponsorship on behalf of the entity:

(i) the sum of all such payments that have been or are to be made under the contract during any year of income;

(ii) the name of each entity to whom such payments have been or are to be made under the contract during any year of income and, for each such entity, the sum of all such payments that have been or are to be made to the entity under the contract during any year of income;

(iii) the term of the contract;

(f) if any gifts (within the meaning of Part XX of the Commonwealth Electoral Act 1918) were made, by or on behalf of the entity during the year of income, to another entity who, at the time of receiving the gift:

(i) was a political entity (within the meaning of that Act); or

(ii) was, or was required by that Part of that Act to be, a significant third party (within the meaning of that Part); or

(iii) was, or was required by that Part of that Act to be, an associated entity (within the meaning of that Part);

an itemised list showing each such gift and the name of the entity to whom each gift was made;

(g) if any payments were made, by or on behalf of the entity during the year of income, to another entity who, at the time of receiving the payment, was an organisation (within the meaning of the Fair Work (Registered Organisations) Act 2009)—an itemised list showing each such payment and the name of the entity to whom each payment was made;

(h) if any payments were made, by the entity (the main entity) during the year of income, to any of the following:

(i) a connected entity of the RSE licensee of the main entity;

(ii) an associated entity of another entity (the third party) if the third party is a connected entity of the RSE licensee of the main entity;

(iii) an entity over whom the RSE licensee of the main entity has significant influence;

(iv) an entity who has significant influence over the RSE licensee of the main entity;

(v) an entity whose key management personnel include the RSE licensee, or an executive officer of the RSE licensee, of the main entity;

(vi) an associated entity of another entity (the third party), if the RSE licensee, or an executive officer of the RSE licensee, of the main entity is a member of the key management personnel of the third party;

an itemised list showing each such payment and the name of the entity to whom each payment was made.

Note 1: Information mentioned in subparagraphs (b)(i), (ii) and (iii) must be made publicly available on the entity's website (see subsection 29QB(1)).

Note 2: The determination mentioned in paragraph (c) is to be made publicly available on the entity's website within 28 days after the determination is made (see paragraphs 52(9)(b) and (c)).

(2) The short-form summary referred to in paragraph (1)(a) must set out the following:

(a) the sum of the remuneration referred to in subparagraph (1)(b)(ii), which is to be described as the aggregate remuneration expenditure relating to the entity for the year of income;

(b) the sum of the payments referred to in paragraph (1)(e) that were made during the year of income (under all contracts referred to in that paragraph), which is to be described as the aggregate promotion, marketing or sponsorship expenditure relating to the entity for the year of income;

(c) the sum of the payments referred to in paragraph (1)(f), which is to be described as the aggregate political donations relating to the entity for the year of income;

(d) the sum of the payments referred to in paragraph (1)(g), which is to be described as the aggregate industrial body payments relating to the entity for the year of income;

(e) the sum of the payments referred to in paragraph (1)(h), which is to be described as the aggregate related party payments relating to the entity for the year of income.

(3) Despite subsection (1), if any information (the extra information) referred to in paragraph (1)(b) to (h) required to be given to a member of the entity:

(a) is accessible by the member (including by being publicly available) at the time the notice of the annual members' meeting is given; or

(b) must be made so accessible before the meeting is held;

it is sufficient for the purposes of that paragraph if the information included with the notice includes details of how to access that extra information.

Note: The short-form summary referred to in paragraph (1)(a) must still be included.

(4) In this section:

associated entity has the same meaning as in the Corporations Act 2001.

contract includes a deed.

key management personnel has the same meaning as in the Corporations Act 2001.

29PAB How notice is to be given to members

If, under section 29P, the RSE licensee of a registrable superannuation entity is required to give notice of an annual members' meeting to the members of the entity, the RSE licensee must give the notice by:

(a) making the notice of the meetingpublicly available on the entity's website; and

(b) ensuring that the notice is readily accessible from the website at least 30 days before the meeting.

4 Application of ame ndments

The amendments made by this Schedule apply in relation to a notice of an annual members' meeting for a year of income for a registrable superannuation entity if:

(a) the notice is given on or after the commencement of this item; and

(b) the year of income ends on or after 30 June 2022.

Amendments (2) and (4) seek to put what was the annual member meeting notices by regulation into primary legislation. Imagine an incoming government's first act of Treasury. You would think the first act would be fairly significant. They've been out of government for nine years, and the very first act of Treasury was to water down transparency in super. That's what it was. Under the previous government's Your Future Your Super changes a range of changes came through on stapling of funds, on benchmarks, and one of those changes was that every single super fund had to report to their members, whose money it is, a breakdown of what those funds are actually spending their money on. They already produce that because it has to go to APRA. The very first act of the Treasury and its ministers—in this case the Assistant Treasurer—was to knock out the requirement for transparency in super and for disclosure as to what super funds were spending their sponsorship and support and contributions on, and for it only to be reported in the aggregate.

The Assistant Treasurer said that it was to reduce complexity of administration. But to produce an aggregate you must have it line by line anyway. There is no way to lawfully produce an aggregate without having it line by line, and funds have to report that to APRA anyway. So it's a complete fig leaf, a complete sham, an attempt by this government, which they then move regulations on, to actually say, 'We don't want the disclosure of that. We will simply have the aggregate.'

Why was this rushed through as the first act of Treasury? Apparently it was the most important thing. Not cost of living—that wasn't the most important thing of Treasury. Not looking at other areas when it comes to fiscal reform or discipline. No—it's the transparency of what super funds were spending members' money on. Now we know why it's so urgent: because the annual member meetings all start from September and October. The Commonwealth Superannuation Corporation, owned by the Commonwealth, have had their annual member meeting, and they broke down their expenditure line by line: a bit over $670,000, so everyone can see exactly what they're spending their sponsorship or support or advertising money on. Prime Super did exactly the same thing.

The first of the big super funds, Australian Super, came through. They announced $30 million in sponsorship in the aggregate, with no idea what it's for or where it goes. More importantly, the members don't have any idea where it goes. And of course over $80 million in the aggregate of co-payments, if you like, with nothing outlined of where the funds go.

The disclosure mechanisms in these regulations that the Assistant Treasurer has now overruled take away any transparency of what super funds are spending on sponsorship, support, contributions and co-payments. It has nothing to do with donations. There was never any levelling, that industry or other super funds were making donations to other political parties. This is about contributions and sponsorship and support, about saying, 'Let's be transparent to members.' So how the government's first act of Treasury was to water down transparency is simply beyond understanding. Amendments (2) and (4) moved in my name seek to take those regulations that have transparency in where member's money is being spent and put them into primary legislation so transparency can be brought back to super.

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