The Assistant Treasurer, Senator Rod Kemp, announced today that the start date for superannuation choice for new employees would be deferred.
The deferral has become necessary as it is now evident that the Government will be unable to secure the passage of the legislation in this sitting of the Parliament. Therefore the Government considers that the 1 July 1998 start date for superannuation choice for new employees is no longer viable, given the lead time required for the release of regulations on disclosure, education of employees and employers and the necessary preparation by employers and superannuation funds.
Senator Kemp stressed that the Government remains strongly committed to choice of fund. This stands in stark contrast to Labors position of obstructing the Bill and opposing real choice of fund for Australian workers.
The Government will move an amendment delaying the start date when the legislation is considered in the Senate during the Winter sittings of Parliament. The Government is giving urgent consideration to the most appropriate new start date.
The Government will seek the earliest possible passage of the legislation in the Winter sittings to enable education and preparation for the introduction of choice to take place on the basis of certainty.
Other measures in the relevant legislation, Taxation Laws Amendment Bill (No. 7) 1997, will remain unaffected by the change.
CANBERRA
8 April 1998
Contact:
Penny Farnsworth
Telephone: (02) 6277 7360
Mobile: (0419) 482 497