Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

Firstly, I would like to thank Senator Brown for her contribution to this debate. I would also like to place on record my appreciation for the very positive and constructive role played by the shadow minister for financial services and superannuation, Mr Ripoll, and his team in working with the government in coming up with a sensible way forward.

The Governance of Australian Government Superannuation Schemes Legislation Amendment Bill 2015 merges ComSuper, the administrator of the Australian government's civilian and military defined benefits superannuation schemes, with the Commonwealth Superannuation Corporation, which is the trustee of the Australian government schemes. The merger was announced in the 2014-15 budget as part of the government's smaller government agenda. This agenda aims to reduce the total number of government entities by eliminating duplication and overlap and by simplifying inefficient and complex agency structures. The smaller government agenda has so far seen the number of government bodies reduced by 286 and achieved savings of about $1.4 billion to repair the budget and to help fund other higher policy priorities. Fundamentally, this agenda is about ensuring that the Australian government is structured and operates in a way that delivers efficient services, robust advice and value for money the taxpayers.

Before addressing some of the points raised in this debate, I want to briefly go over some of the ways in which the bill will give effect to the merger of ComSuper with CSC. The general principle for the merger which is reflected in the bill is that the functions that ComSuper currently performs will be performed by CSC from the commencement of the merger, bringing the management of the Australian government schemes under a single body that will improve the efficiency of these functions by removing duplication and overlap. The merger will also give CSC control over the provision of administration services in line with its regulatory responsibilities as trustee of the Australian government superannuation schemes.

Importantly, the bill does not change the design of benefits provided by the Australian government schemes or affect the delivery of services, including payment of benefits to members of those schemes. The administration services that will be provided by CSC include the collection of member contributions and payment of lump sum and fortnightly benefit payments. As a result of its new administration services role, CSC will also perform several functions for and on behalf of the Commonwealth. These include, for example, the payment of superannuation benefits from Commonwealth appropriations. The bill transfers the assets and most of the liabilities of ComSuper to CSC.

The staff of ComSuper will be separately transferred from Australian Public Service employment to CSC employment by way of a determination by the Australian Public Service Commissioner under the Public Service Act 1999. The bill includes a range of transitional provisions to cater for the transfer of ComSuper staff to CSC employment. Under these provisions, ComSuper staff will continue to be covered by the ComSuper enterprise agreement on transfer to CSC. This will assist in ensuring that the remunerations and conditions of employment are no less favourable to those which apply to them immediately before the merger. ComSuper staff will also maintain their accrued entitlements and benefits on transfer to CSC.

The bill also makes consequential amendments to several acts of parliament governing the civilian and military superannuation schemes. Additionally, the bill amends the Superannuation Act 2005 to bring the arrangements for public sector superannuation accumulation plan members into line with the arrangements for members of private sector accumulation superannuation funds. Under the new arrangements, the cost of administering the PSSap will be deducted from member accounts. These PSSap administration fees will be determined by the Commonwealth Superannuation Corporation. I note that the Commonwealth Superannuation Corporation has published fees for PSSap on its website, including a monthly administration fee of $5 per month. These fees are, of course, subject to the passage of this bill.

Overall, the bill delivers on the government's commitment to streamline the management of Australian government superannuation by merging ComSuper with CSC. The merger provides for continuity of administration services in relation to the Australian government's civilian and military defined benefit schemes by removing duplication and overlap in existing structures. The opposition indicated during debate in the House of Representatives that they will be moving amendments to provide former ComSuper staff with some time-limited mobility rights equivalent to those they would have had if they had remained in the Australian Public Service. I appreciate, as I have indicated before, that the shadow minister for financial services and superannuation, Mr Ripoll, has given some notice of those amendments in advance, and I will make some brief comments on those proposed amendments in the committee stage of the debate. I commend this bill to the Senate.

Question agreed to.

Bill read a second time.