Superannuation bills on hold

Four key pieces of legislation, including the protection of young superannuation members and low-balance accounts from default insurance premiums, have been put on ice.

Treasury Laws Amendment (Putting Members' Interests First) Bill 2019, a highly anticipated Bill that aims to prevent trustees from providing insurance on an opt-out basis to members under 25 years old and those with balances below $6000, has faced another roadblock.

It will need to be reintroduced in Parliament after the Federal Election, slated for May 18.

From 1 October 2019, members affected would have been able to opt in to default insurance by nominating to do so.

The proposed legislation was originally part of the Protecting Your Superannuation Package, but was left behind after a deal between the Greens and Coalition was reached.

Treasurer Josh Frydenberg anticipated the proposed new law would take effect from October 2019, three months later than initially scheduled.

The other lapsed bills are:

Treasury Laws Amendment (2018 Superannuation Measures No 1) Bill 2018

This Bill included the 12-month superannuation guarantee amnesty for non-compliant employers.

It aims to encourage employers to voluntarily disclose historical SG non-compliance and pay employees' full entitlements, including individual shortfall, nominal interest, and any related general interest charge on unpaid amounts of SG.

To qualify for the amnesty, employers must disclose to the ATO information related to an SG shortfall for a quarter that ends at least 28 days before the start of the 12-month amnesty period.

Treasury Laws Amendment (2018 Measures No 2) Bill 2018

This Bill provides certain exemptions to AFSL and Australian Credit Licence requirements when testing financial and credit products and services.

It provides a framework for a 'regulatory sandbox' to allow businesses to test certain financial and credit products and services without meeting the full regulatory licensing requirements if certain conditions are met.

Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 2) Bill 2018

This Bill aims to remove CGT applied to the main residence exemption for foreign residents and increase the CGT discount by 10% for gains on affordable housing.

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