The fourth and final tranche of MySuper legislation has been submitted to parliament by minster for financial services and superannuation Bill Shorten.
The Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2012 implements the Cooper review recommendation to override any provisions in a fund’s governing rules that stipulate the trusts must use specified service providers or only invest in, or through, specified entities.
“This legislation will ensure a trustee is obliged to enter into arrangements which are in the best interests of members,” Mr Shorten said.
The Bill also responds to concerns that have been raised about the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Act 2012 in relation to director liability.
“These changes have been developed in consultation with industry and will better balance the rights of super fund members and the protection of directors and trustees against frivolous or vexatious litigation,” Mr Shorten said.
The Bill also implements the remaining Stronger Super governance changes, including enabling members to obtain information in relation to decisions that affect them, and increasing the time limits for lodging complaints with the Superannuation Complaints Tribunal.
Meanwhile, Mr Shorten also introduced the Superannuation Legislation Amendment (Reducing Illegal Early Release and Other Measures) Bill 2012 and the Income Tax Rates Amendment (Unlawful Payments from Regulated Superannuation Funds) Bill 2012 to the House of Representatives.
Currently, there are no specific promoter penalties under the superannuation law.
Under the new laws, promoters of illegal early release schemes will face civil and criminal penalties, including a fine of up to $340,000 (2,000 penalty units) and/or imprisonment of up to five years.
“Promoters of illegal early release schemes have, in the past, exploited vulnerable people within our community who may not be fully aware of the rules regarding accessing superannuation benefits,” Mr Shorten said.
“These new penalties will deter promoters from taking advantage of these people and help protect the superannuation savings of all Australians,” he said.
