Northern Territory Second Reading Speeches

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ADMINISTRATORS PENSIONS AMENDMENT BILL 1998

(This is an uncorrected proof of the daily report. It is made available on the condition it is recognised as such.)

Bills presented and read a first time.

Mr REED (Treasurer): Madam Speaker, I move that the bills be now read a second time.

The purpose of the bills is to introduce amendments to the Superannuation Act, the Legislative Assembly Members' Superannuation Act, the Supreme Court (Judges Pensions) Act, Superannuation Guarantee (Safety Net) Act and the Administrators Pensions Act to include the requirements of the Commonwealth superannuation surcharge tax in the governing rules of these superannuation schemes.

These amendments are necessary as it is mandatory for superannuation schemes throughout Australia to comply with the recently enacted Commonwealth superannuation (surcharge) tax legislation. The so-called surcharge tax places a surcharge on the employer financed superannuation contributions for high income earners. The trustees of defined benefit schemes, such as the Territory public sector schemes, are required to establish individual surcharge debt accounts for those members who incur a surcharge liability, as determined by ;the Australian Taxation Office (ATO). Interest is to be charged on the balance of this account at the 10-year Commonwealth bond rate.

When a benefit becomes payable to a member, the superannuation fund is liable to pay the balance of the member's surcharge debt account to the ATO.

The amendments will enable the various government superannuation schemes to comply with those requirements and, where necessary, to reduce the benefit payable to a member on exit from the scheme to offset any surcharge debt paid by the fund to the ATO on behalf of the particular member. The amendments will also allow for a member to have the option to pay the surcharge debt as it accrues and not incur the interest charges.

In line with parliamentary drafting policy, the amendments also provide for each of these acts to provide non-gender-specific language instead of the current masculine references. It had been my intention to move, at the appropriate time, for the suspension of standing orders to allow the passage of these bills through all stages of these sittings. I take this opportunity to advise honourable members that advice from Treasury today, which has been in contact with the federal government, indicates that that is no longer necessary. I am able to introduce the bills at these sittings for passage in August as I understand now that implementation at the federal level will not be effective until August. That provides a little more time for honourable members to study what are important and complex issues in relation to these bills. I commend the bills to honourable members.

Mr BAILEY (Wanguri): Madam Speaker, again I ask about the explanatory memorandum. I move that the debate be adjourned.

Debate adjourned.


 

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