The PRESIDENT (Senator the Hon. Stephen Parry) took the chair at 09:300, read prayers and made an acknowledgement of country.
Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016
Superannuation (Excess Transfer Balance Tax) Imposition Bill 2016
Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016
Superannuation (Excess Transfer Balance Tax) Imposition Bill 2016
That these bills may proceed without formalities, may be taken together and be now read a first time.
That these bills be now read a second time.
TREASURY LAWS AMENDMENT (FAIR AND SUSTAINABLE SUPERANNUATION) BILL 2016
SUPERANNUATION (EXCESS TRANSFER BALANCE TAX) IMPOSITION BILL 2016
These Bills implement the Government's election commitment to improve the fairness, sustainability, flexibility and integrity of the superannuation system.
We want superannuation to keep working for all Australians in their retirement as we move through the twenty-first century and grapple with some key challenges, including the ageing of our population and the need to return the Budget to surplus.
The measures in these Bills also reduce the extent to which the superannuation system can be used for tax minimisation and estate planning.
But the changes recognise that in a modern economy, working patterns are changing across the population and over the course of people's lives.
That's why our reforms will allow the system to work more flexibly for Australians; it will reflect their changing work-life patterns, particularly for those whose work patterns and incomes vary over time.
While some measures place limits on the amount of contributions that can be made to superannuation or amounts that will receive tax-free earnings status, at the same time these measures target the tax concessions to ensure they are fairer and more fiscally sustainable.
A key change to ensure the sustainability of the superannuation system is the introduction of the transfer balance cap, which is contained in Schedule 1 to the Fair and Sustainable Superannuation Bill. This introduces a $1.6 million cap on the total amount of superannuation savings that can be transferred from an 'accumulation account', where earnings are concessionally taxed, to a 'retirement account', where earnings are tax-free.
Importantly, the cap only limits the amount that can be transferred into the tax-free environment; once there, that amount can continue to grow through investment returns.
On top of introducing the transfer balance cap, the Government is also lowering the non-concessional and concessional contribution caps. As we look ahead, we want the superannuation system to give individuals strong incentives to make additional savings over the course of their working lives. At the same time, we want to make sure that these tax concessions are better targeted. This involves changes to both non-concessional and concessional contribution arrangements.
Schedule 3 to the Fair and Sustainable Superannuation Bill lowers the annual non-concessional contributions cap from $180,000 per year to $100,000 (or $300,000 every three years).
In addition a lower annual concessional contributions cap of $25,000 will apply from 1 July 2017 to all individuals, and will index in line with wages growth in $2,500 increments.
As with all caps that form part of the Government's superannuation reforms, the concessional cap continues to be set at levels well above the average and median contribution levels. For example, the median Australian worker currently receives annual concessional contributions to their superannuation of around $4,200 per year.
We are also reducing the income threshold above which high-income individuals are required to pay 30 per cent tax on their concessional superannuation contributions — commonly referred to as the Division 293 threshold — to $250,000 per annum.
To be liable for a total of 30 per cent tax, a person would need to have more than $250,000 in combined income and concessional superannuation contributions in a financial year.
We are introducing a number of important flexibility measures. First, we are abolishing the so-called '10 per cent rule'. This rule prevented anyone earning more than 10 per cent of their income from salary and wages from claiming a deduction for personal superannuation contributions.
As a result of abolishing this rule, more people will be able to claim a tax deduction for personal contributions to superannuation. Now all workers will have the flexibility to make concessional contributions up to their annual cap.
This reform will benefit up to 800,000 Australians, particularly self-employed contractors, individuals employed by small businesses and freelancers. It offers flexibility to people who are partially self–employed, partially wage and salary earners and in instances where employers do not offer salary sacrifice arrangements.
Take the example of a firefighter who works part-time. They might also be a contract tradesman. Under the current rules, they can't access the superannuation concessions available to most of the population because more than 10 per cent of their income comes from their firefighting wage. They wouldn't be able to make concessional superannuation contributions from their contract work as a tradesman.
The second important flexibility measure we're introducing is giving Australians the flexibility to make catch-up concessional contributions when they can afford it.
From 1 July 2018, people with superannuation balances less than $500,000 will be able to access any unused component of their concessional contributions cap on a rolling basis for a period of five years. This is a crucial step in providing assistance to those – particularly women – who have interrupted work patterns, whether it be to raise children, look after elderly parents, or seek to boost their retirement savings just before retirement.
Thirdly, we're expanding the current spouse superannuation tax offset to help more couples who make contributions to their spouses' superannuation savings. We're extending it by making the offset available to those whose spouses earn up to $40,000. This is up from the current threshold of $13,800.
It will encourage an additional 5,000 people to make contributions to the superannuation accounts of their low‑income partners, who are disproportionately women.
Taken together, the removal of the 10 per cent rule, the introduction of the catch-up contributions measure and the extension of the spouse tax offset provide more opportunities for couples to jointly decide how to balance their superannuation savings between each other.
The superannuation system is designed to encourage Australians to save for their retirement. That's why superannuation is taxed at a lower rate than income outside of superannuation.
But, for low income earners, the 15 per cent tax on superannuation contributions means they pay more tax on their superannuation contributions than on their take home pay.
So, we are improving the fairness of the superannuation system by also introducing the Low Income Superannuation Tax Offset.
This offset will ensure most individuals with taxable incomes of $37,000 or less don't pay more tax on their concessional superannuation contributions than on their take-home pay.
It's estimated that the Low Income Superannuation Tax Offset will increase the superannuation savings of around 3.1 million low-income Australians, or one in every five fund members. Almost two-thirds of these beneficiaries are women.
We are also improving choice and flexibility for Australian retirees looking to better manage the risk associated with outliving their retirement savings.
Currently, innovative income stream products that could help people to better manage the risk of outliving their retirement savings are not available because they do not qualify for tax-free earnings status. This has restricted the ability of retirement income providers to develop and bring new retirement products onto the market.
Extending the tax exemption on earnings in the retirement phase to products like deferred lifetime annuities will also play its part in providing more flexibility and choice for Australian retirees, as well as helping them better manage consumption and risk in retirement.
We are also improving integrity by making a taxation change for people who have reached preservation age but are under 65 and not retired.
Those people will still be able to access a transition to retirement income stream ahead of their retirement but earnings on the amount supporting it will be taxed in the fund at 15 per cent.
Taxing earnings on these accounts at 15 per cent will provide the same tax treatment as that which applies to all other individuals who are not yet retired.
The integrity of the system will also be enhanced by the removal of the inconsistently applied and outdated anti-detriment provision.
As part of this package of reforms, the Government is also streamlining some of the ATO's administrative processes.
Notably, these reforms will replace the existing release authority requirements with standardised timeframes and processes. Schedule 10 to the Fair and Sustainable Superannuation Bill will also introduce a default process for individuals who do not make an election within 60 days when dealing with all release amounts from superannuation, ensuring that the majority of individuals will be better off if they do nothing.
Finally, unlike some previous changes to superannuation taxation, the Government has carefully analysed the impact of this package of reforms and is making changes to ensure commensurate tax impacts on members of defined benefit schemes.
Many of our superannuation tax reforms will make the system fairer and more sustainable.
These vital and important goals would be undermined if the tax treatment of defined benefit schemes and constitutionally protected funds was not similarly adjusted.
In the past, governments have baulked at the challenge of tackling defined benefit schemes.
But this Government can not only identify tough issues – we can deal with them in a way that's fair and workable.
Full details about these Bills are contained in the explanatory memorandum.
At the end of the motion, add:
", but the Senate notes that this bill to tighten tax breaks for superannuation should be considered together with legislation to address the tax advantages for investors in real estate or more capital will be diverted into existing housing stock, making it even harder for young Australians to buy their first home and further entrenching wealth inequality between generations and therefore calls on the Government to undertake a review into how these superannuation changes will affect housing affordability for aspiring first home owners and report the results of the review to the Senate.".
Our changes will help women, who may have taken time out of the workforce to raise children or to care for a family member.
The Senate divided. [10:35]
(The Acting Deputy President—Senator Sterle)
(1) Schedule 2, item 15, page 61 (lines 5 and 6), omit the item, substitute: 15 Section 293-1
Omit "$300,000", substitute "$200,000".
(2) Schedule 2, item 17, page 61 (lines 9 and 10), omit the item, substitute:
17 Section 293-10
Omit "$300,000", substitute "$200,000".
(3) Schedule 2, item 18, page 61 (lines 11 and 12), omit the item, substitute:
18 Subsections 293-20(1), 293-155(1) and 293-200(1)
Omit "$300,000", substitute "$200,000".
(4) Schedule 2, item 19, page 61 (lines 14 and 15), omit the item, substitute:
19 Subsection 133-15(1) in Schedule 1 (note)
Omit "$300,000", substitute "$200,000".
(5) Schedule 3, item 2, page 63 (line 20) to page 65 (line 2), subsections 292-85(3) to (6) to be opposed.
(6) Schedule 5, page 77 (line 1) to page 78 (line 29), Schedule 5 to be opposed.
(7) Schedule 6, page 79 (line 1) to page 80 (line 25), Schedule 6 to be opposed.
Schedule 3, item 2, page 63 (line 20) to page 65 (line 2), subsections 292-85(3) to (6) to be opposed.
The committee divided. [11:33]
(The Chair—Senator Lines)
The committee divided. [11:38]
(The Chair—Senator Lines)
(1) Clause 2, page 2 (at the end of the table), add:
(2) Page 135 (after line 24), at the end of the Bill, add:
Schedule 12—Review of operation of Act
30 Review of operation of Act
(1) Before 1 July 2017, the Minister must cause to be conducted a review into the operation of the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 .
(2) The review must consider how the superannuation changes in the Act will affect housing affordability for aspiring first home owners.
(3) The Minister must cause to be prepared a report of a review under subsection (1).
(4) The Minister must cause a copy of the report to be tabled in each House of the Parliament within 15 sittings days of that House after the completion of the preparation of the report.
That these bills be now read a third time.
Income Tax Rates Amendment (Working Holiday Maker Reform) Bill 2016
Deloitte has not undertaken any additional research or analysis, and the information contained in this report is reflected as it has been provided by the stakeholders engaged through this process. Deloitte has also not reviewed the quality or validity of the information presented to us.
… there is far greater potential for revenue growth from a policy focus on increasing passenger numbers by removing up front barriers to travel than there is by imposing a demand dampening 9 per cent increase on this charge.
Industry has been completely blindsided by this decision to increase the PMC by $5—a 9 per cent hike in the rate. At no point was it flagged in any discussions in which we took part and is a bitter disappointment that we’ve been slapped with this tax hike on every traveller—Australian or international visitor—heading overseas.
… how is the tourism industry supporting the transitioning Australian economy? Are there any policies that could put the growth of the tourism industry at risk in my electorate of Bowman and South-East Queensland?
Brisbane and the Gold Coast had the largest international visitation numbers on record, reaching 1.17 million and 984,000 visitors respectively.
Overnight visitor expenditure on the Gold Coast reached a record $1.3 billion …
… we are human and make mistakes.
… … …
… our bodies are subject to biomechanical tolerance limits and simply not designed to travel at high-speed—
An effective road safety system needs to take human fallibility into account.
If he didn't want to look at me then clearly Senator David Bushby … is a future ministerial talent and the Prime Minister needs to explain why he was overlooked …
The government’s forewarning to pensioners to expect letters in the mail warning of pension cuts has triggered widespread concern.
… … …
Centrelink will send about one million letters in coming weeks to pensioners potentially affected now or in the future, the office of Human Services Minister Alan Tudge confirmed to The New Daily .
In December, a second letter will be sent to about 313,500 (8 per cent) of pensioners telling them their part pension is about to be cancelled or cut. About 225,000 will be told to expect less money, and about 88,500 to expect cancellation.
The 2015-16 Budget Papers indicate the AFP's fiscal position through the forward estimates will deteriorate to the tune of $112 million.
As an operational agency, the brunt of this deterioration will be borne within employee ranks, with funds available for employee benefits reducing by $61 million. By straight division, this represents a reduction of 450 staff, though the actual number will be higher. Of an organisation numbering 6500, this reduction is approaching ten percent of total personnel.
Against this declining revenue, the operating environment could not be more complex. Australia's National Terrorism Threat Level is Probable, whilst the Threat Level against police is Likely. Recent years have seen such developments as:
- Increasing numbers of foreign fighters, where Australians have travelled abroad to participate in conflicts in Syria, Iraq and Afghanistan;
- The rise of ISIS and the increased prevalence of home-grown terrorist threats targeted domestically;
- Technological advancements enabling fraud and other internet based crimes.
Traditional crime types including drugs, organised crime and people smuggling still pervade.
In the 2015 Budget, an additional $1.2 billion of counter terrorism funding was announced for Keeping Australia Safe and Secure.
Despite being central to the Government's counter terrorism arrangements, the AFP received none of this funding.
There's a social inability to criticise anything indigenous and Aboriginal people are encouraged not to evolve with the rest of humanity.
The cartoon highlighted the infighting over the taxpayer-funded trip as people fought for limited spaces on the touring party. The final panel had an image of Yagan's head in a box saying, 'Give me a warm beer in a quiet Pommy pub any day.'
It is feared Tasmanians with intellectual disabilities will be denied access to sports and activities after it was announced the state's Special Olympics branch will be closed next month.
Special Olympics provide a wide range of sports and programs for people with intellectual disabilities but these events could be hurt by the closure, with direction now to come from Victoria.
''I just don't want there to be a lack of opportunity for people with a disability. That is the main thing that I'm disappointed about.''
''It will affect us of course,' Mr Tringrove said. "Who knows what will happen?
"Who takes over? Who runs it? Or is Tasmania just forgotten per usual? It is really sad."
… implementing new programs that would now cease to exist when the branch closes on December 16.
Ms Foster said sports and programs were hugely beneficial not only for the participants but for the families as well.
… people gained confidence from being included without being judged, while parents were able to talk to other parents with similar experiences.
"If they go to a mainstream sport, they are a little bit different, but if they come to ours, it doesn't matter what their ability is," she said.
"They come along and participate and we don't care where they are at.
"We just want to see them improve bit by bit. It helps improve their co-ordination and just gives them a lot more confidence…"
"We have a child who has been with us a for a few years. She is actually speaking now. She goes to school and gets involved with so many other things because being involved with sport has given her so much confidence.
"There is no judgment for the parents and they can talk about their own experiences to each other.
"It is about sport, but it is about building a community as well."
… the MDBP cannot be altered in any way at all, without the agreement of all the jurisdictions.
You can ask about the participation rate, but it does not follow from that proposition that the labour market is in a poor condition.
… commentary … about members of the Islamic faith being unwelcome here … can make engagement with the Islamic community more difficult and, ipso facto, that makes our job—
more difficult.
Terrorist groups seek to identify weakness and vulnerability and to drive and exploit fear and division. Actions and behaviours that target particular sections in society merely play into their hands.
Well, the Commonwealth has indicated that our cap on equity contributions will be $29.5 billion. NBN will have to borrow money beyond that, but 29.5 billion is the Commonwealth cap.
The reduction in total employment from the recovery of water is estimated to be around … 21% in Collarenebri.
No. The equity cap that is in place is $29.5 billion, and our planning is for nbn to source the remaining funding requirements by raising debt from external markets. We have outlined that very clearly. We believe and are confident that that will be able to be achieved.
That the Senate take note of the answer given by the Minister for Resources and Northern Australia (Senator Canavan) to a question without notice asked by Senator Gallacher today relating to the Murray-Darling Basin Plan.
That the Senate take note of the answer given by the Attorney-General (Senator Brandis) to a question without notice asked by Senator McKim today relating to comments made by the Minister for Immigration and Border Protection (Mr Dutton).
… terrorist groups seek to identify weakness and vulnerability and drive fear and division. Actions and behaviours that target particular sections in society merely play into their hands.
That the order of the Senate agreed to on 22 November 2016 relating to the consideration of private senators’ bills on Thursday, 24 November 2016 be varied to add general business order of the day no. 13 (Landholders’ Right to Refuse (Gas and Coal) Bill 2015)
The Senate divided. [15:41]
The President (Senator Parry)
That the Senate—
(a) notes that the Meander Valley Council, Tasmania, is characterised by an aged population, high youth unemployment and under-employment, and low household income; and that it experiences all the attendant health and social challenges associated with rural areas across Australia;
(b) notes the success of the Meander Valley Council in utilising federal funding to develop essential youth and social work practices to support the community, including in health prevention and mental health, particularly through the Westbury and Deloraine Community Health Centres;
(c) recognises that health outcomes in rural and regional Australia continue to lag behind the rest of the country;
(d) notes the motion of the Meander Valley Council expressing concern about the impact of the proposed changes to funding for the Rural Primary Health Services Program;
(e) notes that these changes follow harsh cuts by the Federal Government to the Health Flexible Funds which have disproportionately impacted regional communities; and
(f) calls on the Federal Government to recognise the importance of the Westbury and Deloraine Community Health Centres to the Meander Valley when implementing its changes to the Rural Primary Health Services Program.
Pursuant to standing order 75, I propose that the following matter of public importance be submitted to the Senate for discussion:
The very, very mediocre performance of the Turnbull Government.
That the Senate take note of the report.
Any asylum seeker who arrives in Australia by boat will have no chance of being settled in Australia as refugees.
Any asylum seeker who arrives in Australia by boat will have no chance of being settled in Australia as refugees.
These policies and practices were not developed from a basis of fear—how could they be, because more than one in four Australian residents were born overseas and close to half of the population have at least one parent born elsewhere. Immigrants and their descendants are foundational to Australia's human capital and social fabric.
That the Senate take note of the report.
That the Senate take note of the report.
The committee recommends that the Australian government commission dedicated research into the exposure of Australian children and young people to online pornography and other pornographic material.
Following completion of the research referred to in recommendation 1, the committee recommends that the Australian government commission an expert panel to make recommendations to the government regarding possible policy measures. The panel should include experts in a range of relevant fields, including child protection, children's online safety, education, law enforcement and trends in internet usage.
The committee recommends that state and territory governments consider the adequacy of:
The committee recommends that the Australian government consider the adequacy of the information available to parents, guardians and teachers on how to keep children safe online, including whether existing resources such as the Office of the eSafety Commissioner's iParent website can be promoted more effectively.
Australian Government response to recommendations of the Senate Legal and Constitutional Affairs Legislation Committee in its report:
Medical Services (Dying with Dignity)
Exposure Draft Bill 2014
November 2016
AUSTRALIAN GOVERNMENT RESPONSE TO THE RECOMMENDATIONS OF THE SENATE LEGAL AND CONSTITUTIONAL AFFAIRS LEGISLATION COMMITTEE INQUIRY INTO THE MEDICAL SERVICES (DYING WITH DIGNITY) EXPOSURE DRAFT BILL 2014
Introduction
The Australian Government welcomes the consideration by the Senate Legal and Constitutional Affairs Legislation Committee (the Committee) of the Medical Services (Dying with Dignity) Exposure Draft Bill 2014.
The Medical Services (Dying with Dignity) Exposure Draft Bill 2014 (the Bill) is a Private Senator's exposure draft Bill, prepared by Senator Richard Di Natale of the Australian Greens.
On 24 June 2014, the Senate referred the Bill to the Committee for inquiry into the rights of terminally ill people to seek assistance with ending their lives, and an appropriate framework with safeguards.
On 10 November 2014, the Committee released its report, providing two recommendations. The Government has noted the two recommendations.
The following Australian Government departments were consulted in preparing this response:
Recommendations
Noted
The Government notes that this recommendation is directed to Senator Di Natale for action.
Noted
The Government notes this recommendation. The approach to this issue will be a matter for party leaders to consider should a Bill come before the Parliament.
That senators be discharged from and appointed to committees as follows:
Education and Employment Legislation Committee—
Discharged—Senator Bilyk
Appointed—
Senator Farrell
Participating member: Senator Bilyk
Law Enforcement—Joint Statutory Committee—
Discharged—Senator Bilyk
Appointed—Senator Farrell.
Law Enforcement Legislation Amendment (State Bodies and Other Measures) Bill 2016
That these bills may proceed without formalities, may be taken together and be now read a first time.
That these bills be now read a second time.
AUSTRALIAN ORGAN AND TISSUE DONATION AND TRANSPLANTATION AUTHORITY ACT (NEW GOVERNANCE ARRANGEMENTS) AMENDMENT BILL
Australia remains a world leader for successful organ and tissue transplantation.
The Australian Organ and Tissue Donation and Transplantation Authority, known commonly as the Organ and Tissue Authority, manages the implementation of the Australian Government's national reform program on organ and tissue donation for transplantation in partnership with:
Earlier this year, the then Minister for Rural Health, Senator the Hon Fiona Nash released the findings of the Ernst and Young Review of the National Reform Program on Organ and Tissue Donation and Transplantation (the EY Review).
The EY Review was prompted by concerns about the slowing of organ donation rates in Australia, and the need to review organ donation practices.
The EY Review examined the respective contributions to the national reform program of the Organ and Tissue Authority, state and territory governments and the DonateLife Network hospitals and clinicians.
The EY Review found that the national reform agenda (which commenced in 2009) has been broadly effective; however there is scope for improvement in the areas of governance, transparency and accountability.
To improve these areas, the Review made 24 recommendations, including:
Stakeholders, consulted following the release of the findings of the EY review, broadly agreed to the EY Review's recommendations, including recommendations five (5) to nine (9) which directly relate to the governance of the Organ and Tissue Authority
The EY Review states that strategic oversight of the DonateLife Network, as well as the performance monitoring, succession planning and mentoring of the CEO, could be improved through the establishment of a board of governance.
Further, the establishment of a board of governance will foster and encourage a culture of debate within the Organ and Tissue Authority.
This Bill seeks to establish the Australian Organ and Tissue Donation and Transplantation Authority Board under the Australian Organ and Tissue Donation and Transplantation Authority Act 2008 (the Act).
The Board will take on the functions currently vested in the CEO under the Australian Organ and Tissue Donation and Transplantation Authority Act 2008, including assuming the role as the accountable authority under thePublic Governance, Performance and Accountability Act 2013 (PGPA Act).
Establishing the Board as the decision making body, and accountable authority under the PGPA Act, will ensure that the perspectives of the organ and tissue donation and transplantation sector are taken into account in succession planning, in overseeing the work of the DonateLife Network, and in setting the key policy and strategic direction for the Organ and Tissue Authority.
The CEO, whose primary role will be to oversee the day to day administration of the Organ and Tissue Authority, will be appointed by the Minister in consultation with the Board. The CEO will also be a member of the Board.
This arrangement has been instituted to improve operational efficacy of the Organ and Tissue Authority, and will ensure that the strategic and policy objectives of the Authority are effectively integrated in day to day operations and activities.
To ensure that the Organ and Tissue Authority remains agile and responsive in a highly complex sector, the Board may also delegate some of its functions to the CEO.
This Bill retains the ability for the Commonwealth Minister to give policy principles to the Authority about the performance of its functions.
The Board will have skills-based membership - harnessing expertise, experience and knowledge from a broad range of areas, including:
In line with the EY Review recommendations, the Commonwealth will nominate the Chair of the Board. The jurisdictions will nominate the Deputy Chair, with the remaining five members to be nominated by the COAG Health Council. All Board members will be appointed by the Commonwealth Minister.
This arrangement will support Australia's nationally consistent and coordinated approach to organ and tissue donation and transplantation.
While there are no existing non-corporate Commonwealth Entities currently adopting this model, we are confident that this arrangement is best for the Organ and Tissue Authority, and the organ and tissue sector, going forward.
The Act will be amended to abolish the Advisory Council, but leave intact the provisions relating to organ and tissue donation and transplantation such as formulating and disseminating policies and standards, supporting clinical training and community education, and providing financial assistance.
At this point, I would also like to acknowledge the valuable work that the Advisory Council has done since its establishment.
The establishment of the Organ and Tissue Authority Board will improve accountability and transparency, and will better support the Authority to more effectively achieve its strategic goals - saving lives, and improving the quality of the lives, of more Australians.
LAW ENFORCEMENT LEGISLATION AMENDMENT (STATE BODIES AND OTHER MEASURES) BILL 2016
The Law Enforcement Legislation Amendment (State Bodies and Other Measures) Bill 2016 makes amendments to a number of Acts to ensure state integrity and anti‑corruption bodies have the necessary powers to discharge their functions and to ensure property acquired unlawfully is not kept by criminals.
The measures in the Bill will:
Law Enforcement Conduct Commission
The Government is committed to supporting State and Territory governments to tackle corruption and misconduct.
It is common for persons participating in corrupt conduct to utilise clandestine communication methods and attempt to avoid detection by law enforcement and integrity bodies.
In response to The Tink Review into Police Oversight, the NSW Government will abolish the state's current police oversight body, the Police Integrity Commission, and replace it with the Law Enforcement Conduct Commission. The new Commission will be responsible for detecting, investigating and preventing police corruption and misconduct, and will have comparable investigative powers to anti-corruption bodies in Australia.
The Bill provides the Law Enforcement Conduct Commission with access to information obtained under the Commonwealth interception regime, similar to other state anti‑corruption commissions, which would be vital to that Commission's investigations.
The Telecommunications (Interception and Access) Act 1979 (Interception Act) strictly regulates how agencies that receive intercepted information are able to use and communicate that information - this is important in ensuring that privacy and oversight considerations are part of the interception regime.
The Victorian Commission
Like the Law Enforcement Conduct Commission, the Victorian Independent Broad-based Anti-corruption Commission discharges a critical integrity and oversight role. Commonwealth law already provides a number of investigative powers to that Commission, including powers under the Interception Act.
This Bill would ensure the Commission has powers under Commonwealth law consistent with those available to equivalent state anti-corruption bodies.
Proceeds of Crime
The Proceeds of Crime Act is a key part of our response to serious and organised crime. It creates a scheme to trace, restrain and confiscate the proceeds and benefits gained from criminal activity.
The Bill clarifies that property or wealth is not to be considered 'lawfully acquired' where it has been subject to a security or loan that has been discharged using property that is not lawfully acquired.
These amendments address the consequences of the West Australian Supreme Court decision in Commissioner of the Australian Federal Police v Huang and ensure criminals cannot circumvent the Proceeds of Crime Act.
The amendments are necessary to prevent criminals from funnelling unlawfully obtained funds into real property, which is one of the most common assets restrained under proceeds of crime actions – by, for example, obtaining a mortgage using a lawfully obtained sum as a deposit, then using proceeds of crime to pay off the loan.
The Bill clarifies that courts must 'follow the money' and examine the arrangements underpinning the acquisition of property in determining whether the property has been 'lawfully acquired'.
This Bill demonstrates that the Government remains committed to making our streets and communities safer through taking effective steps to combat crime.
Conclusion
This Bill will ensure agencies responsible for combating serious criminal activity are able to access the tools they need to support their functions and that those tools are fully effective.
Superannuation (Objective) Bill 2016
That this bill may proceed without formalities and be now read a first time.
That this bill be now read a second time.
SUPERANNUATION (OBJECTIVE) BILL 2016
This Bill enshrines in law that the objective of the superannuation system is to provide income in retirement to substitute or supplement the Age Pension.
This is the first time we have had such definite recourse to what the purpose of the superannuation system is.
The Financial System Inquiry, led by David Murray, recommended that objective. And, after consulting widely, the Government has agreed to the objective.
The objective for superannuation will enhance stability in the superannuation system by creating a clear framework for assessing superannuation policy.
The importance of superannuation
Australia's retirement income system comprises the Age Pension, compulsory superannuation and other private savings, including voluntary contributions to superannuation and the family home.
Among these, superannuation is Australia's second‑largest savings vehicle.
More than 80 per cent of working-age Australians have superannuation savings, and superannuation makes up around 22 per cent of all assets held by Australian households.1
Since the introduction of compulsory superannuation in 1992, the superannuation system has grown, both in size and importance. Assets in superannuation are now over $2 trillion.
Over time there have been various statements about the role of superannuation.
But given its solid history and remarkable growth, it's really quite extraordinary to think that, until now, no legislation existed to clearly define the objective for superannuation.
Financial System Inquiry
The Financial System Inquiry (FSI) found that while Australia's superannuation system has considerable strengths, it lacks efficiency in a number of areas. In particular, the FSI said that the lack of clarity around the ultimate objective of superannuation led to short-term ad-hoc policy making, added complexity, imposed unnecessary cost and undermined long-term confidence in the superannuation system.
The FSI therefore recommended the Government seek broad agreement on the following primary objective for the superannuation system:
'To provide income in retirement to substitute or supplement the Age Pension'.
The Government agreed, as part of its response to the FSI, to enshrine the objective of the superannuation system in the law.
As the FSI noted, a legislated objective will serve as a guide to policy-makers, regulators, industry and the community about superannuation's fundamental purpose.
It will promote confidence in the superannuation system – that it is being used for its core purpose of providing income in retirement and not for tax minimisation or estate planning purposes.
And it will provide a way in which competing superannuation proposals can be measured and a framework for evaluating future changes and the fairness, adequacy and sustainability of the superannuation system overall.
There has been strong support for legislating an objective of superannuation from across the sector, including the Australian Council of Social Service, the Australian Institute of Superannuation Trustees, the Association of Superannuation Funds of Australia (ASFA), Industry Super Australia, the Self-Managed Superannuation Fund Association, National Seniors Australia and the Financial Services Council.
As ASFA noted: "The government's commitment to defining the objectives of superannuation and enshrining this in legislation will provide an enduring reference point to guide future decision making by all policy makers."2
The Government has consulted widely on the proposed objective of superannuation, releasing both a discussion paper and draft legislation.
During consultation, while stakeholders continued to support legislating an objective of superannuation, there were different views on the wording of the objective.
There was a general agreement that the objective of super is to provide for retirement income, rather than unlimited wealth accumulation or bequests. There was also broad agreement that the primary objective should be concise and supported by subsidiary objectives.
However, some stakeholders wanted the objective to go further, to include concepts like 'adequacy' or 'comfort' in retirement. While stakeholders recommended changes to the proposed objective, there was no consensus on what the revised wording should be.
After giving careful consideration to the different views put forward in consultation, the Government is legislating the objective recommended by the FSI. Schedule 5 of this Bill enshrines that the objective of superannuation is to " provide income in retirement to substitute or supplement the Age Pension ."
David Murray, the head of the FSI, supports a simple objective, recently stating:
"The legislated objective of the $2 trillion superannuation system should not include references to achieving 'comfort' or 'adequacy' because it would open the way to constant political interference."3
Subsidiary objectives
A single primary objective cannot possibly encompass all aspects of the purpose and attributes of the superannuation system. The FSI recommended the Government also seek agreement to a range of subsidiary objectives, which would support the primary objective of the superannuation system.
The Government will prescribe in regulation five subsidiary objectives.
These are:
The subsidiary objectives, with the primary objective, provide a comprehensive framework for assessing changes to superannuation policy.
Statement of Compatibility
To ensure the objective of superannuation is clearly considered when changes to superannuation are proposed, sections 6 and 7 of this Bill introduce a requirement that a statement of compatibility must be prepared for any Bill or regulation relating to superannuation. The statement must set out how the proposed legislation or regulation is consistent with the primary and subsidiary objectives of superannuation.
This will ensure that all proposed changes to superannuation are evaluated and measured against the objective of superannuation and inform public debate on any proposed changes.
As the purpose of the objective is to guide the policy-making process and public debate, the objective of superannuation will not affect the interpretation or application of superannuation legislation.
Budget 2016-17 Superannuation Package
The objective has been an anchor for development of the superannuation package announced in the 2016-17 Budget.
The package will better target superannuation tax concessions to those who need them most. It also enhances flexibility and choice in terms of saving for retirement and the retirement income products on offer, as well as improving the integrity of the superannuation system more broadly.
Accordingly, the Government's superannuation package is entirely consistent with the objective of superannuation to provide income in retirement to substitute or supplement the Age Pension, by affording many Australians more opportunities to save for a self-sufficient retirement while alleviating fiscal pressures on Government from the retirement income system.
As a sign of the Government's commitment to the objective of superannuation, while not technically required, a Statement of Compatibility has been provided for the Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016.
Final remarks
I would like to reiterate that the Government has taken the initiative to ensure that the Australian superannuation system continues to benefit all Australians through the delivery of this legislation.
The objective will help provide greater long-term confidence, policy stability and a means of measuring competing superannuation proposals. It already has been important for the development of the superannuation package that was announced in the 2016‑17 Budget.
As such, I encourage passage of the legislation so that it can be used to assess future amendments to superannuation by governments of any colour.
Full details about this Bill are contained in the explanatory memorandum.
1 5232.0 Australian National Accounts: Finance and Wealth June 2016, Table 34.
2 ASFA Media Release 9 March 2016.
3 AFR 'Super change invites political interference' 13 October 2016
Counter-Terrorism Legislation Amendment Bill (No. 1) 2016
… is an assertion of control by the Attorney-General over the Solicitor-General for no immediately perceptible reason.
The issue of the direction, in my view, demonstrates a serious incursion by the Attorney-General into the Solicitor-General's role, and the process that preceded the issue of the direction demonstrates a lack of trust and a lack of respect by the Attorney-General for the office of the Solicitor-General, particularly in respect of the function, the status and the independence of that office. This raises, in my mind, serious concerns for the rule of law.
… perceptions as to the integrity of the continuing office. The uncomfortable image of a dog on a lead comes to mind.
… it is critically important that persons such as the Governor-General, Prime Minister and officers of Parliament are able to approach the Solicitor-General for advice in an uninhibited fashion and in respect to questions framed by them and not by others. They should be able to do so not just where litigation is before a court or anticipated but whenever it is necessary to ensure the law, including the Constitution, is complied with.'
As the Direction relates to the process for referring a question of law to the Solicitor-General, the Attorney-General has consulted the Solicitor-General.
… I said to them, 'In the period leading up to 4 May, you must have known about this direction. You were helping draft it. The Parliamentary Counsel knew about it. The Attorney knew about it. His staff knew about it. How on earth could it have been that the one person who needed to know was not told?'
In March 2015, as I learned much later, the proposal was significantly revised within the Department of Immigration and Border Protection. For the next three months, the proponents of the Bill obtained various advices from the Australian Government Solicitor on the revised proposals. Almost by accident, the matter came to my attention again in June 2015. At that point, on request, I advised (SG No 10 of 2015)—
… some 24 hours later reflected new changes that were made without seeking my further advice.
Of course George has been such a shining example of good government.
London can't come soon enough.
... it is critically important that persons such as the Governor-General, Prime Minister, and officers of Parliament are able to approach the Solicitor-General for advice in an uninhibited fashion, and in respect to questions framed by them and not by others.
The Direction undermines that role insofar as it permits an Attorney-General to deny access to the Solicitor-General and has the potential to discourage persons and bodies from seeking the Solicitor-General's advice.
The uncomfortable image of a dog on a lead comes to mind.
I regard the content and intent of the Directions as effecting the practical destruction of independent office of Second Law Officer within the Australian constitutional context.
I had no advanced knowledge that the direction would be made, no notice of what would be in the direction and no opportunity to put a submission to the Attorney-General or the department as to my views on the legality or merits of the direction.
I was not given an opportunity to comment on the content of direction and finally there was no consultation with me at any time.
Income Tax Rates Amendment (Working Holiday Maker Reform) Bill 2016
Treasury Laws Amendment (Working Holiday Maker Reform) Bill 2016
Superannuation (Departing Australia Superannuation Payments Tax) Amendment Bill 2016
Passenger Movement Charge Amendment Bill 2016
This seems to have been done without any industry consultation.
The Australian vegetable industry faces critical local labour shortages during peak seasonal periods, and our growers rely on backpackers to harvest their crops and prevent crippling losses.
… … …
If the ongoing decline in the number of backpackers coming to Australia isn't arrested, or if these workers aren't replaced with labour from another source like the Seasonal Worker Program, we are facing a very real threat to the future of our industry.
… 32.5c in every dollar is too high. It means many backpackers will choose to go elsewhere, or stay in Australia for shorter periods. It means fewer workers on Australian farms, and more workers attracted to the cash economy.
Sourcing backpacker labour is getting harder and harder - our fruit is going to rot on the trees.
Attracting backpackers back to our sector will be difficult for many seasons to come.
The Senate divided. [19:19]
(The President—Senator Parry]
Scotland Yard trained Deputy Inspector General of police Sisira Mendis, oversaw the Criminal Investigation Department (CID) and the Terrorism Investigation Division (TID), during the final phase of the Sri Lankan civil war. Both bodies are accused by the UN among other organisations for systematic, routine, and widespread use of torture against suspects in police custody throughout the country.
He ran what's widely referred to as "the fourth floor"—a term which Sri Lankans use as a shorthand for describing torture. A UN report last year named Mr Mendis and described interrogation rooms used for torture in CID headquarters as being equipped with "metal bars and poles used for beatings, barrels of water used for waterboarding, pulleys and apparatus" all used as torture instruments.
The issue of impunity seems to be hanging like a sword over the entire situation in your country, and frankly over our review.
In the way it is written, the proposed law will have a chilling effect on all forms of dissent, including legitimate democratic political activity. We have long seen how the Prevention of Terrorism Act and Emergency Regulations have disproportionately targeted the Tamil ethnic community. The administrative and executive culture, particularly the police and security forces, continue$ to be pre-disposed to such disproportionate treatment.
The draft legislation places little emphasis on the protection of people under arrest. It places few limitations on police obligations to protect people from harm in custody. Additionally, it does not contain adequate safeguards against rape and sexual abuse during interrogation. The obligation on state security authorities to prevent these kinds of abuses—all too familiar in the post-war context—is expressed only through the ambiguous standard of "practicable measures". This is especially troubling in light of the scope of police powers and an extraordinarily broad definition of terrorism. Under the CTA advocating for change in a government policy decision may amount to terrorism.
Under the proposed law, a terrorism related offence includes threatening, attacking, changing or adversely affecting the unity, territorial integrity, security or sovereignty of Sri Lanka, or that of any other sovereign nation, or illegally or unlawfully compelling the government of Sri Lanka or the government of any other sovereign nation, to reverse, vary or change a policy decision or to do or abstain from doing any act relating to the defence, national security, territorial integrity, sovereignty of Sri Lanka or any other sovereign nation.
Terrorism is also defined as illegally causing a change of the government of Sri Lanka or of any other sovereign nation (as the case may be) and committing any act of violent extremism towards achieving ideological domination.
This decision follows an exhaustive investigation by the European Commission, which identified significant shortcomings in respect of Sri Lanka’s implementation of three UN human rights conventions relevant for benefits under the scheme.
While most acknowledged a reduction in the visibility of the soldiers under the new government, they emphasized a continued militarization of daily life. The number of camps in the former conflict zone remains remarkably high and military and police surveillance 'remains active and often intimidating'. And although focus is often on the North, where the final phase of the armed conflict occurred, the East is also still heavily militarized. Respondents in both the North and East emphasized that in many cases, the effect of the continued military presence is that victims live side-by-side with their abusers. Soldiers implicated in mass atrocities remain deployed throughout the North-East. And even where the personnel have changed, the institutions remain.