Revenue and Other Legislation Amendment Bill 2016
Plain English Summary
Overview
This bill makes a range of technical changes to Queensland's tax, superannuation, and government planning laws. It tightens a stamp duty home concession rule, backdates several tax exemptions that have been run administratively, lets State and Local Government employees choose their own super fund, opens QSuper and LGIAsuper to everyone, and cuts duplicated Queensland Plan reporting.
Who it affects
State Government and Local Government employees, home buyers, overseas students, land developers, and members of QSuper and LGIAsuper. The general public can also now join these super funds.
Stamp duty, land tax and tax admin changes
The Duties Act, Land Tax Act and Taxation Administration Act are amended to protect state revenue, confirm taxpayer-friendly arrangements that have been operating informally, and modernise electronic lodgement rules. Several changes are backdated to when the informal arrangement began.
- Buying a home subject to a pre-existing lease counts as a disposal - the tenant must leave within six months of settlement or you lose the home concession
- Insurance duty exemption formally extended to overseas student and temporary visa holder private health cover (backdated to 14 October 2014)
- Corporate reconstruction duty exemption extended to statutory vestings (backdated to 30 November 2015)
- Land tax subdivider discount no longer requires parcels to come from the one larger parcel (backdated to 4 October 2014)
- Clearer rules on when electronic tax payments and documents are treated as received by the Commissioner of State Revenue
Choice of super fund for public sector workers
Core State Government employees and Local Government employees get the right to choose their own superannuation fund, matching the choice already available to private sector workers. QSuper and LGIAsuper remain the default for those who do not choose.
- State core government employees can direct their super contributions to a fund other than QSuper
- Local Government employees (including Brisbane City Council) can direct contributions to a fund other than LGIAsuper
- Defined benefit category members are excluded from choice of fund
- Employer contribution rates are preserved regardless of which fund the employee picks
QSuper and LGIAsuper open to the public
Both funds can now accept members from the general public, not just public sector workers. The QSuper Board is renamed, gains flexibility over auditors and promotion, and is exempted from the Right to Information Act for its board functions. The Local Government Superannuation Scheme and its board are renamed to LGIAsuper and LGIAsuper Trustee.
- Anyone can join QSuper or LGIAsuper
- QSuper Board can appoint an auditor other than the Queensland Audit Office
- QSuper Board functions exempt from Right to Information Act to protect commercial information
- Treasurer can adjust a defined benefit member's multiple where a salary rise is not matched by a real increase in total pay (accrued benefits preserved)
- Existing member entitlements are explicitly preserved
Queensland Plan reporting streamlined
The requirement for the Government to prepare a separate Government Response to the Queensland Plan is removed, along with the duty on public authorities and local governments to include Queensland Plan statements in their annual reports. Instead, the Premier must consider the Queensland Plan when preparing the community objectives statement under the Financial Accountability Act.
- Government Response to the Queensland Plan abolished
- Public authorities and local governments no longer report Queensland Plan alignment in annual reports
- Premier must consider the Queensland Plan when preparing the community objectives statement
- Premier still provides an annual implementation report as an accountability measure
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee16 June 2016View Hansard
Referred to Finance and Administration Committee
The Infrastructure, Planning and Natural Resources Committee examined the Revenue and Other Legislation Amendment Bill 2016 and recommended it be passed. The committee also recommended an amendment requiring local governments to include a statement in their annual reports about actions relating to the Queensland Plan. The committee identified potential breaches of fundamental legislative principles in several clauses, particularly regarding retrospective operation of certain tax provisions.
Key findings (4)
- The bill proposes changes to superannuation legislation including choice of fund, default fund nomination for QSuper and LGIAsuper, and opening membership to the general public.
- The committee identified potential breaches of fundamental legislative principles in clauses 10, 16, 54, 62, and 68, relating to retrospective operation of tax provisions.
- The bill includes amendments to the Duties Act 2001, Land Tax Act 2010, and local government legislation.
- The committee recommended an additional reporting requirement for local governments regarding the Queensland Plan.
Recommendations (2)
- The committee recommends the Revenue and Other Legislation Amendment Bill 2016 be passed.
- The committee recommends that the bill be amended to require that a local government's annual report for each financial year must include a statement about the local government's actions in relation to matters in its corporate plan that relate to the Queensland Plan.
Committee report tabled
▸Second Reading30 Nov 2016View Hansard
▸9 members spoke4 support5 mixed
As Treasurer, moved the bill and outlined amendments to revenue, superannuation and Queensland Plan legislation, including the introduction of choice of superannuation fund for public sector and local government employees, retention of QSuper and LGIAsuper as default funds, and formalising the process to manage unfunded windfall benefit gains resulting from artificial salary increases.
“The Revenue and Other Legislation Amendment Bill 2016 contains sensible reforms to the public sector superannuation arrangements in this state. I commend the bill to the House.”— 2016-11-30View Hansard
As shadow Treasurer, supported most of the bill including choice of superannuation fund as it built on LNP reforms but opposed clause 68 which gives the Treasurer power to adjust a member's accrued multiple, arguing it could leave public servants with over 30 years experience up to $210,000 worse off and was linked to the government's $4 billion raid on the defined benefit fund.
“The LNP does not oppose this bill—many of the changes are technical and administrative in nature—however, in the first part of my contribution this morning I will focus my comments on the section of the bill we do oppose, that is, clause 68.”— 2016-11-30View Hansard
As Leader of the Opposition, supported most of the bill as continuing the LNP's previous work on super portability but strongly opposed clause 68 as giving the Treasurer the power to alter contributions payouts and linked it to the government's $4 billion raid on the defined benefit fund.
“There is much in this bill to support: that part of the bill that we introduced. There is one part that we cannot support and that is the part that gives a power to this risky Treasurer to make changes to people's superannuation payouts.”— 2016-11-30View Hansard
As chair of the Infrastructure, Planning and Natural Resources Committee, supported the bill and explained the committee's consideration of the superannuation amendments including the introduction of choice of fund and the retention of QSuper and LGIAsuper as default funds.
“I take this opportunity to thank the committee for the great work that they did, as always. I thank the secretariat for their great work. I support the legislation.”— 2016-11-30View Hansard
Opposed clause 68 because it would enable the Treasurer to reduce senior public servants' defined benefit entitlements by up to $210,000, but acknowledged the bill contained other changes the LNP supported including choice of fund; also raised concerns about the dilution of Queensland Plan reporting requirements.
“The changes to superannuation will have far-reaching effects within my community and I am very concerned about that.”— 2016-11-30View Hansard
Supported the bill as providing a stable financial framework through amendments to revenue, superannuation and Queensland Plan legislation, including bringing Queensland into line with other jurisdictions by offering choice of superannuation fund.
“I support these amendments to ensure its continued effective operation and administration. I commend the bill to the House.”— 2016-11-30View Hansard
As Deputy Leader of the Opposition, criticised the government for delaying the bill and for its pattern of raids on public servants' superannuation and the long service leave fund, stating the LNP would oppose clause 68 of the bill.
“Like the shadow Treasurer said, we will be opposing section 68 of this bill, as many people have requested that we do, not limited to the Together union's Alex Scott.”— 2016-11-30View Hansard
As a former state government employee, supported the bill particularly the introduction of choice of superannuation fund while retaining QSuper and LGIAsuper as default funds, with review in the future.
“I support the bill.”— 2016-11-30View Hansard
Supported the choice of fund provisions building on former LNP treasurer work but expressed concerns about the Treasurer's power to adjust defined benefit multiples given the recent $4 billion raid on the scheme, and noted the committee did not support the proposed changes to Queensland Plan reporting requirements.
“Given this Treasurer's record with the public servants' superannuation scheme, one can understand their unease. We all remember all too well the Treasurer's raid upon this scheme in the last budget when $4 billion was raided to help prop up a failing budget bottom line.”— 2016-11-30View Hansard
▸In Detail30 Nov 2016View Hansard
Government amendment No. 1 inserting new clause 62A to amend section 15J of the Superannuation (State Public Sector) Act 1990, requiring the government's superannuation officer to arrange an independent review of the QSuper and LGIAsuper default fund arrangements after five years of operation
Government amendments Nos 2, 3 and 4 to clause 68 replacing the Treasurer with the government superannuation officer (appointed under section 15I) as the decision-maker for adjusting a member's defined benefit accrued multiple following an unremunerative salary increase, and requiring consultation with the QSuper board and chief executive
Government amendments Nos 5 and 6 to clause 71 inserting declaratory provisions and new section 34A providing that particular employees of existing Government Owned Corporations cannot become members of the QSuper scheme under a default arrangement, retaining existing default fund arrangements for GOCs
That the amendments be agreed to
Vote on government amendments to clause 68 replacing the Treasurer with the government superannuation officer as the decision-maker for adjusting defined benefit multiples and requiring consultation with the QSuper board
The motion passed.
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Ayes (45)
Noes (41)
That clause 68, as amended, be agreed to
Vote to retain clause 68 (which allows adjustment of a member's accrued multiple following an artificial salary increase) as amended; the LNP opposed the clause arguing it could reduce a senior public servant's defined benefit payout by up to $210,000
The motion passed.
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Ayes (45)
Noes (41)
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