UNCLAIMED SUPERANNUATION BENEFITS BILL 1998 Second Reading Speech

Northern Territory Second Reading Speeches

UNCLAIMED SUPERANNUATION BENEFITS BILL 1998

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

Bill presented and read a first time.

Mr STONE (Chief Minister): Madam Speaker, I move that the bill be now read a second time.

The purpose of this bill is to provide the Northern Territory with legislation complementary to that of the Commonwealth for the administration of unclaimed superannuation fund and approved deposit fund money. Similar legislation has already been introduced or is being introduced in all other jurisdictions.

The Commonwealth legislation provides that, where there is a state or territory law requiring superannuation and retirement savings account unclaimed money to be paid to that state or territory, the unclaimed money is paid to the state or territory and not to the Commonwealth Commissioner of Taxation. The bill will require superannuation funds and approved deposit funds registered within the Northern Territory to report on and pay to the Northern Territory Treasurer unclaimed benefits held by those funds. Without this legislation, the unclaimed benefits are payable to the Commonwealth Commissioner of Taxation.

The bill requires the trustees of the funds to provide 6- monthly reports of member and benefit details to the Treasurer for the purposes of maintaining a register of unclaimed superannuation money and paying subsequent claims on those benefits. The 6-monthly reporting timetable is standard for trustees in all jurisdictions. This standard will provide the superannuation industry with a practical national procedure for dealing with the various jurisdictions in respect of unclaimed benefits. It should facilitate compliance at a minimum cost. In addition, the implementation of a uniform approach for the collection of unclaimed superannuation benefits will assist potential claimants to identify entitlements more readily.

In light of legislative timing problems for several states and territories wishing to participate in the initial collection of unclaimed money, the Commissioner of Taxation has modified the relevant provisions of the Commonwealth legislation. This has allowed additional time for the states and territories to introduce legislation by setting a later payment deadline of 30 April 1998 in respect of the half-year ended 30 June 1997. Money unclaimed at the end of that reporting period, and still unclaimed b the time of payment, must be paid to the state or territory authority.

At present, it would appear that a relatively small amount, $12 500, of unclaimed money exists in the Northern Territory public sector fund. Exact amounts have not been made available to us from the private sector, but those funds have indicated that any unclaimed amounts would be likely to be minimal at this stage.

Although the initial payment to the Territory would not be significant, it is important to have this legislation in place for 2 reasons. First, any money becoming payable in the next reporting period, from 31 December 1997 to 30 June 1998, will require legislation to be in place if the Northern Territory is to capture those payments.

Secondly, the legislation represents part of a national scheme to streamline the collection of unclaimed superannuation money. All other states and the ACT have legislation in place, or expect to have legislation in place by 30 April this year. The efficiency of the unclaimed money scheme would be enhanced by having all states' and territories' unclaimed money laws in place at the time of initial operation of the system.

The legislation demonstrates the Northern Territory's commitment to cooperation with the states and Commonwealth, and the establishment of a national database of unclaimed superannuation benefits as a flow-on from the individual state and territory registers.

I commend the bill to honourable members.

Debate adjourned.

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