Parliament is now in caretaker mode following the dissolution of the lower house on Monday and will not sit again before the 7 September election, meaning many of the changes announced by then minister for financial services and superannuation, Bill Shorten, in early April will be relying on a Labor election win to make it into law.
Given the Coalition’s publicly stated opposition to a majority of changes to superannuation proposed by Labor, it is unlikely many, if any, would be reintroduced to parliament under a Coalition government.
The same applies to the five-year moratorium on major changes to super proposed by Treasurer Chris Bowen last week. Mr Bowen said at the time, those changes were dependent on Labor being returned in order to be legislated.
Shadow minister for financial services Mathias Cormann has already rejected that proposal, insisting you can make positive change without making negative change and pointing to many of the Coalition’s proposed changes to super, such as greater independence on boards and the removal of “anticompetitive” fair work arrangements.
Among the changes that have passed the Senate are a phased increase in the superannuation guarantee from nine per cent to 12 per cent, an increase in the concessional caps by $10,000 for people over 60, and for people over 50 from 1 July next year, and the abolition of the 15 per cent tax on super for people earning under $37,000 per year.
Announcing those changes in late June, Mr Shorten declared the passage of those Bills marked “the completion of Labor’s ambitious superannuation reform agenda”.
However, many changes have not been legislated, including a controversial $100,000 cap on tax-free earnings in the pension phase, as well as anything relating to the Council of Super Custodians and Super Charter Group has not been passed.
Legislation increasing penalties for promoters of early release schemes has not been passed.
Increased reporting requirements, an increase in the inactive account threshold and some changes around deferred lifetime annuities, as well as an extension of the deeming rules relating to account-based income streams, and bringing all financial assets to be assessed under the same rules, have all also not been passed.
