Statutes Amendment (Superannuation) Bill

Second Reading

Adjourned debate on second reading.

(Continued from 29 July 2015.)

The Hon. R.I. LUCAS (15:57): I rise on behalf of Liberal members to support the second reading of the legislation. I note that the legislation was only introduced into the Legislative Council yesterday and I place on the record—because I know there has been considerable interest in this evidently from the Police Association and those who represent police officers in this state—that this bill was actually introduced into the parliament almost three months ago on 3 June by the government into the House of Assembly. It was not passed by the House of Assembly and the government until yesterday, 29 July, because the government controls the numbers in the House of Assembly.

I hope our very good friends in the Police Association and, as I said, others who represent the interests of police officers in South Australia, will note that the passage of the bill has been completely in the control of the government and that it has spent almost two months in the House of Assembly. It arrived in the Legislative Council yesterday and 24 hours later, on behalf of Liberal members, I am speaking at the second reading and indicating the Liberal Party's support for the second reading of the legislation.

The legislation is relatively straightforward. As I indicated earlier, it has the very strong support of the Police Association. It makes amendments in relation to their superannuation arrangements. It amends the Police Superannuation Act 1990 and the Southern State Superannuation Act 2009. The bill, amongst other things, seeks to permit police officers who are members of the Triple S Superannuation Scheme to elect to make their compulsory superannuation contributions required under the Southern State Superannuation Act 2009, which is 4.5 per cent for most police officers, on a salary sacrifice or a pre-tax equivalent basis.

In order to ensure that the final benefit is not reduced by tax, it is necessary for the salary sacrificed amount to be increased to take account of the 15 per cent tax that will be payable on the contribution when it is paid from the scheme as a benefit. This would mean that police officers will be required to make a contribution of at least 5.3 per cent of pre-tax moneys to ensure that the equivalent after tax contribution of 4.5 per cent is maintained.

Any police officer who makes a pre-tax contribution of at least 5.3 per cent (or the greater adjusted applicable percentage required in respect of those wishing to maintain the minimum benefit guarantee) will no longer be required to make their compulsory contribution on a post-tax basis. However, such officers will be permitted to make extra after tax contributions on a voluntary basis. The maximum 10 per cent employer contribution rate will continue to apply to those making a pre-tax contribution of at least 5.3 per cent or a post-tax contribution of at least 4.5 per cent.

The other major proposal in the bill seeks to implement the proposal to increase from 10 to 11 per cent the rotating shift allowance multiple, recognised under The Police Superannuation Act 1990, in respect of contributors to the Police Pension Scheme who hold the rank of senior sergeant or a lower rank, who at any time during the contribution period were rostered to work on day, afternoon and night shifts, or on any two of those shifts on a rotating basis.

Other than from the Police Association, which has indicated its strong support for the bill, the Liberal Party has received no other submissions in relation to the bill, either for or against. We offered the Public Service Association the courtesy of commenting if they wish, but they indicated they had no wish to comment on the legislation. We received no other contributions or submissions from any other organisation or individual.

As members will be aware, the Liberal Party is a very strong supporter of the South Australian police force and the police officers who make up the South Australian police force. We would therefore give great weight to their wishes, where they are able to be accommodated within budgetary circumstances. The government and its advisers have made the judgment that it is possible to meet the wishes of police officers in this particular piece of legislation, and for those reasons we indicate our preparedness to support the second reading of the legislation this afternoon.

The PRESIDENT: There are no further speakers. Minister?

The Hon. I.K. HUNTER: I am happy to go ahead. My last understanding was that the Greens were not ready to speak, so I think we had better adjourn it.

Debate adjourned on motion of Hon. J.M. Gazzola.

The Hon. J.M. GAZZOLA: Mr President, I draw your attention to the state of the council.

A quorum having been formed: