Jenny McAllister (NSW, Australian Labor Party, Shadow Cabinet Secretary) Share this | Hansard source

by leave—I move opposition amendments (1) to (3) on sheet 1000 together:

(1) Schedule 1, page 3 (before line 5), before the heading specifying Superannuation Guarantee (Administration) Act 1992, insert:

Fair Work Act 2009

1A At the end of section 187

Add:

Requirement relating to restrictions of choice of superannuation fund

(7) If the agreement includes a restriction on the choice of superannuation fund or funds available to employees, the FWC must be satisfied that the restriction is in the interests of the employees who will be covered by the agreement.

(8) For the purposes of considering whether the restriction is in the interests of the employees, the FWC must consider:

(a) the extent to which the employers who will be covered by the agreement have complied, or are likely to comply, with the requirements of the Superannuation Guarantee (Administration) Act 1992; and

(b) the features of the proposed default superannuation fund or funds, including matters such as insurance; and

(c) any other relevant matters.

(2) Schedule 1, item 6, page 4 (lines 3 and 4), omit the item, substitute:

6 Paragraph 32C(6 )( h)

Repeal the paragraph, substitute:

(h) an enterprise agreement:

(i) made before 1 January 2021; or

(ii) if the agreement includes a restriction on the choice of superannuation funds—made on or after 1 January 2021.

(3) Schedule 1, page 4 (after line 16), at the end of the Schedule, add:

8 Subsection 32NA(2)

After "An employer is not required under section 32N to give an employee", insert "or a person who is eligible to become an employee".

9 Paragraph 32NA(2 )( a)

After "the employer is making", insert "or will make".

10 Paragraph 32NA(2 )( b)

After "the contributions are made", insert "or will be made".

11 Subsection 32NA(9)

After "An employer is not required under section 32N to give an employee", insert "or a person who is eligible to become an employee".

12 Paragraph 32NA(9 )( a)

After "the employee is", insert "or will become".

These amendments seek to establish arrangements that will allow workers to retain the choice to bargain for a single fund or set of funds where it is determined by the Fair Work Commission that it is in their interests to do so. This is about protecting choice. This is about protecting the choices made by workers in the context of their workplace, along with their colleagues, and in the context of their union—their choice to collectively determine what is in their best interests.

The amendments we are considering will ensure that if an enterprise agreement includes a restriction on the choice of superannuation fund or funds available to employees it will go before the Fair Work Commission, and the Fair Work Commission must be satisfied that the restriction is in the interests of the employee who will be covered by the agreement. What this will allow, as was made clear by witnesses who appeared before the Senate inquiry into this legislation, is consideration of key factors that are essential to the proper functioning of our superannuation system. It will allow safeguarding against underpayment and it will allow features which are specific to certain workplaces or industries, which are attached to certain superannuation funds, to be retained. I commend the amendments to the Senate.