Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

GALLAGHER (—) (): by leave—In relation to the Treasury Laws Amendment (2022 Measures No. 3) Bill 2022, I move government amendments (1) and (2) on sheet ZA193 together:

(1) Clause 2, page 2 (table item 5), omit the table item.

(2) Schedule 5, page 14 (line 1) to page 19 (line 14), to be opposed.

As I foreshadowed in my speech summing up the second reading debate, this amendment removes schedule 5 from the bill pending further discussions with senators about how to proceed with that amendment. I table a supplementary explanatory memorandum relating to the government's amendments to be moved in relation to these bills.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Can the minister confirm that the amendments she has just moved, on sheet ZA193, are exactly the same as the opposition's amendments on sheet 1732?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

My understanding is that it is, but the government was unaware that you were moving that amendment, and certainly I was unaware that you were moving that amendment. We had ours amended ahead of that.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

For the record, the opposition's amendment was circulated last week, so it was well aware to the chamber. Why has it been necessary to change the government's position from it's position in the House of Representatives, where it voted against the opposition's amendment which is now your amendment, to its position in the Senate this morning?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

We've changed our position in light of consultations with senators.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

My apologies, Senator Gallagher, I didn't hear that.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

We made that decision based on further discussions with senators in this place.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Which senators?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I can't speak on behalf of the minister, but I'm aware there were discussions with senators across the Senate. I'm certainly aware of discussions that I've had with Senator McKim and others.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

AN SMITH () (): Could you take it on notice and report back to the chamber exactly which other senators were consulted before the government chose to copy the opposition's amendment?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I'll see what I can do to assist the chamber.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

In your remarks prior to introducing your amendment which copies the opposition's amendment which has been circulated for some time, you gave a commitment around further consultation. Can you provide to the Senate some additional detail about what that consultation will entail and with whom?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

In my second reading speech I referred to the Your Future, Your Super review. I expect those consultations will be finalised shortly with a report to the minister some time early next year—in the first quarter of next year.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Is the government leaving it open to weaken Your Future, Your Super arrangements?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

No, that's not the intention. I think we need to wait for that review to be complete. I think it's very difficult for me to stand here and answer what would be the outcome of a review that hasn't been provided to the government.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Won't government senators be embarrassed to be supporting an amendment in the Senate this afternoon which government House members were forced to vote against just last week?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

No, not at all. I think you have seen from this government the approach we are taking as a government, which is to talk and consult and respond accordingly. That's what you have seen with this amendment. It wasn't going to be supported by the Senate. That was clear. If there is another way we can address the concerns the opposition have in respect of this part of the bill along with concerns that the crossbench have had with that part of the bill, and if there is way we can bring people together to reach agreement on that, I think that would be a good thing.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Why didn't the government use the committee inquiry process and Senate Economics Committee report to advise the Senate and stakeholders more broadly of its intention not to pursue schedule 5?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

The government is always mindful and watches Senate committee inquiries and reports, so I have no doubt that that fed into some of the minister's considerations as he was resolving this issue. It's a source of information; it's not the only source. Further discussions were had and the government has taken the decision to amend the bill in light of those discussions.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

Why did the consultations happen only after the bill was introduced to the parliament?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Well, I don't think that's necessarily an unusual way of doing things. Quite often we develop legislation, and then that legislation is amended after further discussions with MPs and senators. So, in that respect, this is a very unsurprising amendment. It happens regularly. It happened when you were in government. It will continue to happen, particularly when you are in a minority chamber where the government can't act alone. We have to work across the chamber. We try to work collegiately as much as we can in this place. This is just another example of that.

David Pocock (ACT, Independent) Share this | Link to this | Hansard source

I rise to foreshadow that I will be voting for the amendments moved by the government and the coalition. Australians all deserve to be in a high-performing superannuation product. If they're not, they at least deserve to know that they're not. They should be armed with as much information as possible.

I support the coalition amendments to put back into place the annual member meeting notices and to move them into primary legislation. I think this is an important step as the current regulations, as I have said previously, are not ideal. In amending the regulations, the parliaments had limited time to provide scrutiny before they came into effect ahead of the reporting season. So effectively most of the super funds have reported and have not had to disclose at that level of transparency. When it comes to faith based super, I have real concerns about those sorts of carve-outs and believe that they should be addressed alongside ESG or more ethical focused funds as part of the broader review—and I'm pleased to see the government has introduced an amendment. As we know, the coalition's would have got up on the numbers.

I really think more transparency is crucial when it comes to superannuation. Members deserve to know how much they're paying in fees and how their super company is paying directors and making donations to various bodies, and I will support any measure to increase that transparency.

Catryna Bilyk (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

The question is that schedule 5 stand as printed.

Question negatived.

Original question agreed to.

The TEMPORARY CHAIR: Under the circumstances, we won't be proceeding with the opposition amendment that's listed, on sheet 1732.

Dean Smith (WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

by leave—I move opposition amendments (1) and (2), on sheet 1733, as circulated in the name of Senator Hume:

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

(2) 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", insert "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 amendments

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.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

The government won't be supporting these amendments.

Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I inform the chamber that the Australian Greens will also not be supporting these amendments. It's our view that the matters dealt with in these amendments are matters best left to regulation, not inserted into legislation.

In recent times, there's been a lot of discussion about the transparency regime for super funds. Senator Pocock has been an active participant in those discussions, and of course that's a good thing. We've got a situation where regulations were introduced by the government post this year's election, and those regulations currently have had two disallowances moved against them—one by me on behalf of the Australian Greens, and one by Senator Lambie. It is strongly the view of the Australian Greens that that is the appropriate forum for discussion and decision, rather than the way forward proposed by these amendments, which is effectively to legislate rather than to regulate.

The CHA IR: The question before the chair is that amendments (1) and (2) on sheet 1733 standing in the name of Senator Hume, as moved by Senator Smith, be agreed to.

The CHAIR (13:26): The question now is that the Treasury Laws Amendment (2022 Measures No. 3) Bill 2022, as amended, be agreed to and that the remaining bills stand as printed.

Question agreed to.

Treasury Laws Amendment (2022 Measures No. 3) Bill 2022, as amended, agreed to.

Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2022 and Income Tax Amendment (Labour Mobility Program) Bill 2022 agreed to.

Treasury Laws Amendment (2022 Measures No. 3) Bill 2022 reported with amendments; Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2022 and the Income Tax Amendment (Labour Mobility Program) Bill 2022 reported without amendments; report adopted.