Super safety legislation changes on track

The Federal Government is likely to accept Senate amendments to the Superannuation Safety Amendment Bill when it is returned to the House of Representatives following minimal calls to modify the proposed legislation yesterday.

The only major amendments to the Government's legislation were those pursued by the Opposition Australian Labor Party (ALP) involving providing 100 per cent compensation where a fund member's loss is the result of fraudulent conduct, negligence or theft and ensuring that defined benefit funds report annually to theAustralian Prudential Regulation Authority(APRA).

The Government is likely to accept the amendments where more controversial changes proposed by the ALP including seeking to extend compensation to losses resulting from trustee negligence and treating unpaid super guarantee contributions as protected employee entitlements were defeated.

The Assistant Treasurer, Senator Helen Coonan, had earlier described Opposition amendments as a rehash of policies announced late last year.

Coonan says the Government's reforms contained in the Superannuation Safety Amendment Bill 2003 will enhance the safety of superannuation savings in Australia by strengthening the prudential framework for superannuation.

“The Bill introduces a requirement for all super trustees regulated by the Australian Prudential Regulation Authority to be licensed.

“This builds on the Government's requirement for employers to report quarterly on super guarantee contributions made to employees and financial assistance arrangements already in place to compensate people who have lost their super through fraudulent conduct or theft,” Coonan says.