FOI 3289 
Document 1
QB22-000236 
CSLR
Compensation Scheme of Last Resort
KEY MESSAGE
•
The Albanese Government has re-introduced legislation to establish 
a financial services compensation scheme of last resort (CSLR) – 
the legislation is in substantially the same form as was introduced by 
the previous government. 
•
The Government is committed to the scheme’s timely establishment 
so that the scheme can start supporting hundreds of consumers who 
have been waiting to be compensated for years.
•
The Albanese Government has committed to establishing a CSLR 
and will get the job done.
KEY FACTS AND FIGURES
•
On 8 September 2022, the Government introduced legislation to establish the 
CSLR. 
–
The Government is prioritising the CSLR legislation because consumers 
have been waiting for 5 years for such a scheme - the Ramsay Review 
recommended the establishment of such a scheme to the previous 
government in 2017.
•
On 28 September 2022, the legislation passed the House of Representatives, 
and the Senate referred the provisions of the legislation to the Economics 
Legislation Committee for inquiry and report by 24 October 2022.
–
The Committee received 41 submissions and held a public hearing on 
14 October 2022.
•
Alongside the introduction of CSLR legislation, the Government has also 
released for public consultation exposure draft CSLR Regulations. The draft 
Regulations prescribe reporting requirements, identify persons upon whom a 
levy will be imposed, and outline the methods that underpin the calculation for 
the amount of levy payable by leviable persons.
Page 1 of 9
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Financial System Division 
Date of Update
24 October 2022

---

QB22-000236 
CSLR
Compensation Scheme of Last Resort
–
Consultation on the exposure draft Regulations closed on 
7 October 2022. 
•
The CSLR will facilitate the payment of compensation of up to $150,000 to 
eligible consumers who have received a relevant determination for 
compensation from the Australian Financial Complaints Authority (AFCA) 
which remains unpaid.
•
Consumers who have an unpaid determination from AFCA relating to one or 
more of the following financial products and/or services would be eligible for 
compensation under the CSLR:
–
Personal financial advice;
–
Credit provision;
–
Credit intermediation; and
–
Securities dealing.
•
The CSLR is expected to commence from 1 July 2023.
•
The CSLR is one of the key outstanding legislative measures from the Banking 
Royal Commission that remains to be implemented.
Page 2 of 9
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Financial System Division 
Date of Update
24 October 2022

---

QB22-000236 
CSLR
Compensation Scheme of Last Resort
BACKGROUND
•
Key Design Specifications
–
The CSLR is designed to provide compensation to consumers who have 
received a relevant determination in their favour by the Australian 
Financial Complaints Authority (AFCA), where that determination remains 
unpaid. 
–
Claimants may receive compensation where they have an unpaid AFCA 
determination in their favour for the following financial services or 
products:
:
personal advice on relevant financial products to retail clients
:
credit provision
:
credit intermediation
:
securities dealing to retail clients
–
The Scheme has a compensation cap of $150,000 per AFCA 
determination. This is broadly equivalent to the £85,000 cap that applies to 
the UK Financial Services Compensation Scheme.
–
The CSLR is designed to be forward-looking. Eligibility under the scheme 
has been designed to align with the commencement of AFCA, which 
commenced operations on 1 November 2018. This is to ensure that 
consumers who have progressed a complaint with AFCA and received a 
relevant determination which remains unpaid have access to 
compensation under the CSLR. 
–
Claimants have 12 months to notify AFCA that a determination remains 
unpaid. The CSLR is a last resort mechanism, and as such the liable entity 
must be assessed as being unlikely to pay and no other statutory 
compensation scheme must be available. 
–
The Government will contribute towards the costs of the CSLR in its first 
year of operation, which will ensure the Scheme can commence as soon 
as possible. 
Page 3 of 9
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Financial System Division 
Date of Update
24 October 2022

---

QB22-000236 
CSLR
Compensation Scheme of Last Resort
–
Eligible complaints provided to AFCA before the re-introduction of the 
CSLR Bills on 8 September 2022 will form part of the backlog of 
complaints that have accumulated with AFCA since its establishment. The 
costs associated with addressing the backlog will be funded by a one-off 
levy imposed onto the ten largest financial institutions (excluding health 
insurers and trustees of supernnuation entities).
:
Financial institutions whose total income for the 2019-20 income year 
exceeds $6 billion as reported in the Report of Tax Entity Information 
published by the Australian Taxation Office will have the one-off levy 
imposed onto them.
–
The Scheme will be fully industry funded moving forward through a levy on 
relevant financial service and credit licensees in subsequent years of the 
scheme’s operation. Relevant entities include those that provide the 
financial products and/or services prescribed as within scope of the 
Scheme.
–
The levy mechanism includes a $20 million subsector levy cap per levy 
period, as well as an overall scheme levy cap of $250 million per levy 
period. This balances the interests of consumers and industry, and 
provides greater certainy to entities of the maximum amount leviable 
against them. 
–
AFCA determinations relating to managed investment schemes (MISs) 
that remain unpaid will not be eligible for compensation under the CSLR.
–
The CSLR will be subject to periodic reviews, which may consider the 
ongoing appropriateness of its design, including scope.
•
Backlog of accumulated complaints
–
Accumulated complaints provided to AFCA prior to the date of introduction 
of the CSLR legislation, being up to 7 September 2022 inclusive, will be 
funded by Australia’s ten-largest financial institutions (excluding health 
insurers and trustees of supernnuation entities) as measured by total 
income reported in the 2019-20 Australian Taxation Office (ATO) Report of 
Tax Entity Information.
–
The backlog of accumulated complaints on pause with AFCA has grown 
significantly since the initial introduction of the CSLR legislation in 
Page 4 of 9
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Financial System Division 
Date of Update
24 October 2022

---

QB22-000236 
CSLR
Compensation Scheme of Last Resort
Parliament in October 2021. The collapse of Dixon Advisory in 
January 2022 has resulted in a significant increase in the number of 
complaints against Dixon received by AFCA, which forms part of the 
backlog of accumulated complaints.
–
On 19 September 2022, the Federal Court imposed a $7.2 million penalty 
on Dixon Advisory after it found that six Dixon Advisory representatives 
failed to act in their clients’ best interests and failed to provide advice 
appropriate to their clients’ circumstances before providing the advice. 
–
As of 7 September 2022, the backlog of accumulated complaints is 
comprised of a total of 1,836 complaints, of which 1,638 are against Dixon 
Advisory.
–
It is not possible at this time to estimate the value of funding required to 
address the costs associated with the backlog of accumulated complaints. 
The vast majority of the complaints have not yet been assessed by AFCA, 
including their validity or likely value of compensation. 
–
The cost of the backlog of accumulated complaints will be estimated by 
the CSLR operator, having regard to actuarial principles, as the amount it 
reasonably believes is required to fund the payment of compensation and 
AFCA’s costs. Each of the ten largest financial institutions will contribute a 
proportionate amount as measured by their revenue reported for the 
2019-20 financial year. 
–
The cap of $250 million applies to the levy imposed for the backlog of 
accumulated complaints.
•
Ongoing Costs (Annual Levy)
–
An ongoing industry levy will be established to fund the CSLR in a 
sustainable manner going forward. The ongoing levy will be imposed onto 
those licensees that are authorised to provide the products and/or services 
that are in scope for the CSLR. The amount of levy payable by each 
licensee would be proportionate to its size, with a minimum levy of $100 
for all relevant licensees.
–
The annual levy is estimated by the CSLR operator as what it reasonably 
believes, having regard to actuarial principles, will be the total amount of 
Page 5 of 9
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Financial System Division 
Date of Update
24 October 2022

---

QB22-000236 
CSLR
Compensation Scheme of Last Resort
funding required to make compensation payments and cover scheme 
costs for the upcoming levy period.
–
The levy framework provides mechanisms to address circumstances 
where the initial estimated levy is expected to be exceeded.
•
Senate Committee Consideration of Bills introduced by the Albanese 
Government
–
On 28 September 2022, the Senate referred the provisions of a package 
of Bills, including those that would establish the CSLR, to the Senate 
Economics Legislation Committee for inquiry and report by 
24 October 2022.
–
A total of 42 submissions were received by the Committee.
:
Stalkeholders are broadly supportive of the CSLR as proposed by the 
Bills, however:
(i) Industry representatives have proposed that the Bills be amended 
to reduce their financial exposure under the scheme; 
(ii) Consumer representatives have proposed that the Bills be 
amended to raise the level of compensation available under the 
scheme to align with compensation available under the AFCA 
scheme, and to expand the scope of eligible products and/or 
services to align with the scope of the AFCA scheme.
–
On 14 October 2022, the Committee held a public hearing into the Bills. 
Representatives from the following organisations appeared and provided 
evidence in relation to the CSLR provisions:
:
Financial Services Council (FSC); Australian Banking Association 
(ABA); Australian Securities and Investments Commission (ASIC); 
CHOICE; Consumer Action Law Centre (CALC); Australian Financial 
Complaints Authority (AFCA); and The Treasury.
•
Former Government Proposal to Establish a CSLR
Page 6 of 9
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Financial System Division 
Date of Update
24 October 2022

---

QB22-000236 
CSLR
Compensation Scheme of Last Resort
–
On 28 October 2021, the former Government introduced into the House of 
Representatives the Hayne Royal Commission Response No. 3 (2021) 
package of Bills to establish the CSLR.
:
Under the Bills, consumers who had an unpaid AFCA determination 
relating to personal advice, credit intermediation, securities dealing, or 
credit provision will be eligible to receive up to $150,000 in 
compensation under the CSLR.
–
On 11 April 2022, the CSLR bills lapsed at the prorogation of the previous 
Parliament. 
•
Senate Committee Consideration of Bills Introduced by Former Government
–
On 25 November 2021, the Senate referred the provisions of these bills to 
the Senate Economics Legislation Committee for inquiry and report by 
15 February 2022. A public hearing was held on 27 January 2022.
:
A key matter considered during the hearing on 27 January 2022 was 
the exclusion of managed investment schemes (MISs) from the scope 
of the CSLR. In their submissions to the committee, consumer groups 
(led by CHOICE), advisers (FPAA, AFA), finance brokers (MFAA) and 
other associations (CPA, Maurice Blackburn, Law Council of Australia) 
argued for the inclusion of MISs. Product issuers (ABA, COBA, FSC) 
and dealers (AFMA) argued for the scope to be maintained as 
proposed or narrowed to be initially limited to personal advice.
–
On 15 February 2022, the Committee handed down its report regarding its 
inquiry into the provisions of the CSLR bills. The report contained two 
recommendations:
:
Committee recommendation (Recommendation 1): The committee 
recommends the bills be passed.
:
Additional comment from Labor Senators: Labor Senators supported 
the bills, but recommended that the scope of the CSLR could be 
expanded to include managed investment schemes.
•
Royal Commission into Misconduct in the Banking, Superannuation and 
Financial Services Industry
Page 7 of 9
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Financial System Division 
Date of Update
24 October 2022

---

QB22-000236 
CSLR
Compensation Scheme of Last Resort
–
In February 2019, the former Government released its response to the 
Royal Commission, committing to take action on all 76 recommendations 
contained within the Royal Commission Final Report.
–
The Royal Commission recommended that the three principal 
recommendations to establish a CSLR made in the Supplementary Report 
of the Ramsay Review should be carried into effect (Recommendation 7.1 
— Compensation scheme of last resort). As part of its response to 
recommendation 7.1 of the Royal Commission, the former Government 
agreed to establish an industry-funded, forward looking CSLR.
•
Ramsay Review – Compensation Scheme of Last Resort
–
A CSLR was originally recommended by the Ramsay Review 
Supplementary Final Report, which the Government released in 
December 2017.
:
On 20 April 2016, the former Government commissioned the Ramsay 
Review to make recommendations to improve the existing external 
dispute resolution framework. The Review Panel comprised of 
Professor Ian Ramsay (Chair), Julie Abramson and Alan Kirkland. 
Terms of Reference were released on 8 August 2016. 
:
On 3 February 2017, the Government amended the Terms of 
Reference to require the Panel to provide a separate report on the 
establishment, merits and design of a last resort compensation 
scheme and on the merits and issues involved in providing access to 
redress for past disputes.
–
The Supplementary Final Report recommended that an industry-funded, 
limited and carefully targeted forward-looking CSLR be established.
:
In particular, the Report recommended that a CSLR should be initially 
restricted to financial advice failures but be scalable if in the future 
other significant problems emerge.
•
Past proposals for a last resort compensation scheme
–
The Parliamentary Joint Committee on Corporations and Financial 
Services’ 2009 Inquiry into financial products and services in Australia 
recommended that the government investigate the costs and benefits of 
Page 8 of 9
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Financial System Division 
Date of Update
24 October 2022

---

QB22-000236 
CSLR
Compensation Scheme of Last Resort
differing models of a statutory last resort compensation fund for investors 
(recommendation 10). 
–
The 2012 Richard St John report Compensation arrangements for 
consumers of financial services recommended against implementing a 
compensation scheme of last resort and concluded it would be 
inappropriate and possibly counterproductive to introduce one (rec. 1). 
:
The then Minister for Financial Services and Superannuation, 
the Hon Bill Shorten MP, commissioned that inquiry and accepted that 
particular recommendation. 
–
The Parliamentary Joint Committee on Corporations and Financial 
Services’ 2012 Inquiry into the collapse of Trio Capital did not support a 
general compensation scheme for self-managed super funds (rec. 1).
–
On 21 April 2016, the Australian Bankers’ Association announced it would 
consider setting up a last resort compensation scheme for financial 
advisers, as part of a Strengthening Community Trust plan.
 
Page 9 of 9
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Financial System Division 
Date of Update
24 October 2022

---

FOI 3289 
Document 2
OFFICIAL
KEY FACTS AND FORECASTS
FISCAL & BUDGET
2022-23 October Budget ($b)
2021-22
2022-23 (f)
2023-24 (f)
2024-25 (f)
2025-26 (f)
UCB (% of GDP)
-32.0 (-1.4%)
-36.9 (-1.5%)
-44.0 (-1.8%)
-51.3 (-2.0%)
-49.6 (-1.8%)
Payments (% of GDP)
616.3 (26.8%)
644.1 (25.9%)
665.5 (27.0%)
694.2 (27.1%)
728.6 (27.1%)
Tax Receipts (% of GDP)
536.6 (23.4%)
562.9 (22.7%)
574.3 (23.3%)
590.5 (23.0%)
629.3 (23.4%)
(f) estimates as published in the 2022-23 October Budget. 
Debt ($b)
At 30 Sep  At 31 Jan  Most recent
as at
2022-23 (f)
2025-26 (f)
Peak reported*
2013
2020
Net debt
174.6
430.2
533.5^
31/10/22
572.2
766.8
NA
Gross debt
280.3**
568.1**
886.7^^
25/11/22
927.0
1,159.0
43.1% at 30 June 
2026
Government Bond Interest Rate (as at 2022-23 October Budget)
3.8%
(weighted average borrowing cost for future issuances)
^Reported monthly from the Australian Government General Government Sector Monthly Financial Statements
^^Face value of Total Australian Govt Securities on Issue (updated weekly)
* The peaks cited here are the end-of-year peaks as at 30 June
** Reported on a dealt basis to include transactions (issuance and buybacks) according to the date the transaction occurred
Expenses (2022-23 October Budget)
2022-23 ($b)
2025-26 ($b)
Social security and welfare
228.8
271.1
Education
46.3
52.0
Health
109.7
111.6
Child Care Subsidy
10.6
14.1
Total Expenses
650.9
731.0
Defence + ASD funding
49.1 (2.0% GDP)
56.6
Note: expenses (Fiscal balance) rather than payments (UCB) - % about the same. Defence is appropriations
Receipts (2022-23 October Budget)
2022-23 ($b)
2025-26 ($b)
Individual and other withholding tax
280.1
319.9
Company tax
127.3
125.7
GST
82.5
92.4
Super fund taxes
12.6
22.4
Non-tax receipts
44.4
49.7
Total receipts
607.2
679.0
ECONOMY
Total size of economy (Nominal GDP) (2021-22): $2.3 tril ion
Annualised 
(f) 2022-23 October 
Qtr
Yr
(to Jun 22)
2021-22 
2022-23 
2023-24 
2024-25 
2025-26 
Budget
(Jun 22) (Jun 22)
 (%)
(%)
(f)
(f)
(f)
(f)
(%)
Annual Real GDP
0.9
3.6
      3.6
3.6 
3 ¼
1 ½ 
2 ¼
2 ½
Consumption
2.2
6.0
3.8
6 ½
1 ¼ 
Business investment
0.6
1.4
5.2
6
3 ½
Terms of trade
4.6
7.5
11.8
-2 ½ 
-20 
Note: Forecasts (f) are from the 2022-23 October Budget. 
Population
Mar-22 (Q)
2021-22 (f)
2022-23 (f)
2023-24 (f)
Population
25.9 mil ion
26.0 million
26.3 million
26.7 million
Population growth (annual) (%)
0.9
1.1
1.4
1.4
Last Updated: 11:44 AM, 1 December 2022 
OFFICIAL

---

OFFICIAL
Productivity
Jun-22*
2019-20 2020-21 2021-22
Productivity 
assumption **
QoQ
YoY
Labour productivity (whole of economy) (%)
-1.9
1.1
1.5
1.9
1.1
1.2
Multifactor Productivity (market sector) (%)
0.1
0.2
Note: Treasury reports productivity metrics on a financial year basis rather than a calendar year basis. *Labour productivity on a quarterly basis is 
calculated as GDP per hour. This measure often experiences significant fluctuations and does not contain important information on multifactor 
productivity and contributions to economic growth of key factors. **Average growth rate in labour productivity over the 20 years to 2018-19.
Labour Force
Oct-22
2021-22
2022-23(f)
2023-24(f)
2024-25(f)
2025-26(f)
  Number employed
13.6m
  Employment growth (tty, %)
5.9
3.3
1 ¾ 
¾ 
1
1 ¼ 
Unemployment rate (%)
3.4
3.8
3 ¾ 
4 ½ 
4 ½ 
4 ¼
Unemployed
477,600
Underemployed
836,200
Underemployment rate (%) 
5.9
Underutilised
1.31m
(No. unemployed or 
underemployed)
Youth unemployment (%)
7.3
Participation Rate (%)
66.5
66.6 
66 ¾
66 ½ 
Employment to population ratio (%)
64.3
Note: Forecasts (f) are from the 2022-23 October Budget. 
Other Indicators
Qtr 
Yr 
2021-22  2022-23 (f) 2023-24 (f) 2024-25 (f) 2025-26 
(f)
WPI (%) (Sep-22)
1.0
3.1
2.6 
3 ¾
3 ¾
3 ¼   
3 ½ 
CPI (headline) (%) (Sep-22)
1.8
7.3
6.1 
5 ¾ 
 3 ½ 
2 ½
2 ½ 
Real wages (%) (Sep-22)*
-0.8
-4.2
-3.5
-2
¼ 
¾ 
1
CPI (trimmed mean) (%) 
1.8
6.1
(Sep-22)
Monthly CPI indicator (%) 
-
6.9
(Oct-22)
Note: Forecasts (f) are from the 2022-23 October Budget. 
*Real wages calculated as change in CPI (%) – change in WPI (%).
Value
Change through 
the year
RBA Cash Rate Target 
2.85%
(November-22)
Household debt 
(% disposable income) 
187.5%
(June-22)
ABS Job Vacancies 
470,900 
(August-22)
(-2.1%)
40.8%
COSTS OF LIVING
Cost of Living
1 December 2022
Wonder White Bread (700g) - Woolworths
$3.90
Ful  Cream Milk 2L - Woolworths
$3.10
Petrol (Unleaded, Average, Brisbane)*
$1.77/L
*Based on Fuelprice.io prices 
 
Value as of 29 
% Change Q3 2022  % Change Q3 2022 to 
% Change (YTD 
November 2022
to Q2 2022
Q3 2021
2022/2021 CY average)
Last Updated: 11:44 AM, 1 December 2022 
OFFICIAL

---

OFFICIAL
Wholesale spot electricity 
(NEM) ($/MWh) 
$129.24/MWh
-21%
202%
167%
Wholesale spot gas prices 
($/GJ) 
$22.52/GJ
-10%
147%
140%
Gas prices – AEMO. Wholesale spot gas prices comprise of the simple average daily ex-ante Short Term Trading Market prices in Sydney, Adelaide and 
Brisbane; 6 AM ex-ante price at the Victorian Declared Wholesale Gas Market; and volume weighted average price at the Wal umbil a Gas Supply Hub. 
YTD prices are updated as of 29 November 2022 and are the average price between 1 Jan to 29 November of each respective calendar year.
Electricity prices – AEMO. Wholesale spot prices are volume-weighted based on region 5-minute spot price and region 5-minute total dispatch demand 
over the relevant time period. YTD prices are updated as end 29 November 2022, and are the average price between 1 Jan to 29 November of each 
respective calendar year.
Expenditure class (CPI)
Over Last Year to Sep-22 (%)
Electricity
3.2
Child care
-5.4
Medical and hospital services
2.9
Automotive fuel
18
International holiday travel and accommodation
25.3
New dwel ing purchase by owner-occupiers
20.7
Oils and fats
19.3
ESTIMATED MEDIAN HOUSEHOLDS ELECTRICITY BILLS IN THE NATIONAL ELECTRICITY MARKET (NEM)
Region
Estimated median annual bill
Change from April to October
April 2022
October 2022
$
%
NEM 
$1,295 
 $1,589 
$294
23%
NSW
$1,460 
 $1,848 
$388
27%
SA
$1,520 
 $1,830 
$310
20%
SEQ
$1,290 
 $1,620 
$330
26%
Vic
$1,187 
 $1,390 
$204
17%
Tas
$2,125 
 $2,500 
$375
18%
Note: Estimates are based on preliminary data to 10 October 2022 covering new market offers published on government-run comparator websites 
(Energy Made Easy and Victoria Energy Compare). 
Source: ACCC estimates.
HOUSING & INTEREST RATES
Interest Rates
Current Value
Change from 
Change from previous 
(%)
previous month^
year^
Weighted average new variable interest rate 
mortgage – owner occupier (September-22)
4.38
0.42
1.70
Weighted average outstanding variable interest 
rate, mortgage – owner occupied (September-22)
4.88
0.44
1.87
Weighted average new variable rate smal  business 
loan – term (September-22)
5.33
0.37
2.09
Average Credit Card Rate (Standard) (October-22)
19.94
0.00
0.00
Average Credit Card Rate (low) (October-22)
12.62
0.00
0.00
^Percentage point difference
Mortgages
Current Value
Per cent of households owing owner occupied housing debt (2019-20) 
36.8%
Number of households in Australia (2019-20)
9.7 mil ion
Estimate households with owner-occupier mortgages (Apr-22)
3.9 mil ion
Average owner-occupier mortgage debt outstanding
(Treasury estimate from ABS and APRA data, Apr-22)
$330,000
Last Updated: 11:44 AM, 1 December 2022 
OFFICIAL

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OFFICIAL
Monthly 
Cumulative 
Increase in monthly repayment, if rates increase by a 
Outstanding 
Repayment at 
Increase in 
further:
Loan 
Balance
2 Nov 2022 
Monthly 
15
25
40
50
65
75
(Existing 
(with 25 years 
Repayment 
basis 
basis 
basis 
basis 
basis 
basis 
borrowers)
remaining @ retail 
since 1 May 
rate of 5.61%)
2022
points
points
points
points
points
points
$200,000
$1,241
$307
$18
$30
$48
$61
$79
$92
$300,000
$1,862
$461
$27
$45
$73
$91
$119
$137
$330,000
$2,048
$507
$30
$50
$80
$100
$131
$151
$400,000
$2,483
$615
$36
$60
$97
$121
$158
$183
$500,000
$3,103
$769
$45
$75
$121
$152
$198
$229
$600,000
$3,724
$922
$54
$91
$145
$182
$238
$275
$700,000
$4,345
$1,076
$63
$106
$170
$213
$277
$321
$800,000
$4,965
$1,230
$72
$121
$194
$243
$317
$366
$900,000
$5,586
$1,383
$81
$136
$218
$273
$357
$412
Note: Assumes 25 years left on mortgage, 100% of loan is on variable rates, retail banks pass-through 100% of the cash rate change, and current 
mortgage rate as at 2 November 2022 is 5.61% (mean April retail variable rate of 2.86%, plus a 275 basis point increase in the cash rate). We 
estimate that the average existing owner occupier loan is approximately $330,000 (Treasury estimate from ABS and APRA data). The average new 
owner-occupier loan in August 2022 was $589,000 (ABS).
Impact on savers per year 
$20,000
$50,000
$100,000
$250,000
(0.25 basis points)
0.25%
$50
$125
$250
$625
Median House Price (CoreLogic) – Detached – November 2022
Australia
Sydney
Melbourne
Brisbane
Adelaide
Perth
Hobart
Darwin
Canberra
$769,220  $1,243,126  $915,005
 $798,552
 $702,392
$585,989
 $740,100
 $588,972
 $987,450
WAGES
Wages
Annual
Weekly
Hourly
Through the year 
growth (%)
National Minimum Wage (Jul-22)
$42,255
$812.60
$21.38
5.2
Average weekly total earnings (May-22)
$69,924
$1,344.70
-
3.0
Average weekly Ordinary Time Earnings 
$92,030
$1,769.80
-
1.9
(May-22) 
Median Weekly Earnings (Aug-21)
$62,400
$1,200.00
-
4.3
GOVERNMENT PAYMENTS
Australian Government Payments
Per Fortnight
Annual
Age Pension (Single – incl. supplements)
$1,026.50
$26,689.00
Age Pension (Couple – incl. supplements)
$773.80 each
$20,118.80 each
$1,547.60 combined
$40,237.60 combined
Disability Support Pension (Single – incl. supplements)
$1,026.50
$26,689.00
Youth Allowance – Other (under 21, living away from home)
$530.40
$13,790.40
JobSeeker Payment (Single – no children – over 22)
$668.40
$17,378.40
JobSeeker Payment (Partnered – over 22) (each)
$608.70
$15,826.20
Rent Assistance – Single, no children
$151.60
$3,941.60
Rent Assistance – Couple, no children (combined)
$142.80
$3,712.80
Amounts payable depend on assessable income, number of dependents and whether single or in a couple.
Note: Pension figures include both the Energy Supplement and maximum Pension Supplement. 
Last Updated: 11:44 AM, 1 December 2022 
OFFICIAL

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OFFICIAL
COMMODITIES AND EXCHANGE RATE
Exchange rates and Commodity  Updated on 1 December 
Assumption Start*
Assumption End*
spot prices
2022
Exchange Rate (AUD / USD)
0.68
0.65
0.65
Trade Weighted Index
62.1
61
61
Iron Ore (US$/tonne)^
91.8^
91
55
Metallurgical coal (US$/tonne)^
247.5^
271
130
Thermal coal (US$/tonne)^
353.9^
438
60
Tapis (US$/barrel)**
91.5
108
100
North Asia LNG (US$/MMBtu)^
27.0
-
-
Wheat (US$/tonne)**
405.0
-
-
Sugar (US$/LB)**
19.6
-
-
Note: Assumptions are from the 2022-23 October Budget.
*Iron ore and coal prices are assumed to decline from current elevated levels by the end of the December quarter 2022. The Tapis oil price is 
assumed to decline from recent levels but remain elevated. 
^provided by Argus Media (https://www.argusmedia.com/en). The price is for information purposes only (i.e. it is "read only")
**provided by Bloomberg
Note: Iron ore is 62% Fe, FOB; Metallurgical coal is premium hard low-vol, FOB; Thermal coal is 6000k Cal, FOB; Oil is Malaysian Tapis; LNG is 
Northeast Asia (ANEA); LME is the London Metal Exchange Index; Wheat is US HRW Gulf; and Sugar is raw sugar traded (ICE futures).
TAX
Taxable Income ($) 
Current Marginal tax rate (%)
Marginal tax rate from 1 July 2024 (%)
0-18,200
0
 0
18,201-45,000
19
 19
45,001-120,000
32.5
 30
120,001-180,000
37
30
180,001-200,000
45
30
>200,000
45
 45
Distribution of Personal 
% of Personal Income 
# of Personal Income 
% of Personal Income 
Income Tax (2019-20)
Taxpayers
Taxpayers
Tax Paid
Below $18,201
0.7%
85,000
0.1%
$18,201-37,000
18.4%
2.1 million
1.7%
$37,001-$90,000
54.5%
6.2 million
29.8%
$90,001-$180,000
21.6%
2.5 million
36.8%
Over $180,000
4.8%
544,000
31.6%
Company tax thresholds
Rate (%)
Base rate entities (turnover below $50 mil ion)
25
Entities with turnover above $50 million
30
STATE ECONOMIC SUMMARY
Economic Activity
NSW
VIC
QLD
SA
WA
TAS
NT
ACT
AUS
Real GSP growth 
(2021-22) (%)
1.8
5.6
4.4
5.1
3.1
4.3
4.7
1.9
3.6
GSP (2021-22) ($bil ion)
697
515
447
129
404
38
31
46
2,309
GSP % of GDP
30
22
19
6
18
2
1
2
Population (mil ions) (Mar qtr 
2022) 
8.1
6.6
5.3
1.8
2.8
0.57
0.25
0.46
25.9
Last Updated: 11:44 AM, 1 December 2022 
OFFICIAL

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OFFICIAL
% of Aus population (Mar qtr 
2022) 
31
25
20
7
11
2
1
2
Real SFD Growth (Jun qtr 
1.9
2022) (%)
1.0
1.0
1.5
0.1
0.6
-0.5
0.6
2.0
Labour Force (October 2022)
NSW
VIC
QLD
SA
WA
TAS
NT
ACT
AUS
Unemployment (%)
3.0
3.6
3.3
4.1
3.6
4.0
3.8
3.2
3.4
Employed people (Million)
4.3
3.5
2.8
0.9
1.5
0.3
0.1
0.2
13.6
Underemployment (%)
5.6
5.7
6.7
6.5
5.6
6.7
5.1
4.4
5.9
Participation (%)
66.3
66.8
66.2
63.4
68.7
61.6
73.6
72.0
66.5
Prices & Wages*
SYD
MEL
BNE
ADL
PER
HOB
DAR
CBR
AUS
CPI (%) (Sep 22)
7.0
7.4
7.9
8.4
6.0
8.6
7.0
6.9
7.3
WPI (%) (Sep 22)
3.1
3.1
3.4
3.3
3.3
3.6
2.5
2.7
3.2
Real Wages (%) (Sep 22)
-3.9
-4.3
-4.5
-5.1
-2.7
-5
-4.5
-4.2
-4.1
*Figures in this table are original
SUPPLEMENTARY INDICATORS
Household consumption
Change from previous  Change through the year 
period (%)
(%)
Nominal retail sales (Oct-22) (m)
-0.2
12.5
Motor vehicle sales (VFACTS, original) (Oct-22) (m)
-6.7
16.9
ANZ-Roy Morgan Weekly Consumer Confidence (w/e 27 Nov) (w)
1.5^^
-22.9^^
Westpac-MI Consumer Sentiment (index) (Nov-22) (m)
-5.7^^
-27.3^^
Household saving ratio (per cent) (Jun-22) (q)
-2.4^
-3.0^
Dwelling investment
Real dwelling investment (Jun-22) (q)
-2.9
-4.6
Dwelling finance (owner occupier ex. refinancing) (Sep-22) (m)
-8.2
-18.5
Building approvals (number) (Oct-22) (m)
-6.0
-6.4
CoreLogic Hedonic Home Value Index* (Nov-22) (m)
-1.0
-3.2
Business investment
Capital expenditure survey (Jun-22) (q)
-0.3
2.0
Nominal corporate GOS** (profits) (Jun-22) (q)
10.0
24.9
Construction work done (Sep-22) (q)
2.2
1.1
NAB business survey – Conditions (net balance) (Oct-22) (m)
-1^^
12^^
NAB business survey – Confidence (net balance) (Oct-22) (m)
-4^^
-23^^
Balance of payments and external sector
Exports volumes (Jun-22) (q)
5.5
4.9
Import volumes (Jun-22) (q)
0.7
10.0
Trade balance (Sept-22) (m)
-3,780^^
2,393^^
Current account balance (% of GDP) (Jun-22) (q)
2.5^
-0.7^
^ Percentage point difference; ^^ Level difference; *Includes detached houses and other dwelling units.
** This includes both public and private companies.
Last Updated: 11:44 AM, 1 December 2022 
OFFICIAL

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FOI 3289 
Document 3
QB22-000196 
CONSUMER AFFAIRS
CONSUMER AFFAIRS
KEY MESSAGE
• The Government is committed to ensuring strong protections for 
Australian consumers.
KEY FACTS AND FIGURES
•
Strong consumer laws don’t just protect consumers – they promote 
competition, increased productivity and innovation.
•
The Government is working collaboratively with the states and territories in this 
important area and demonstrating the national leadership that is required.
•
Legislation to strengthen unfair contract terms (UCT) protections passed the  
Parliament on 27 October 2022, as Schedule 2 to the Treasury Laws 
Amendment (More Competition, Better Prices) Bill 2022. 
–
The amendments introduce a civil penalty regime prohibiting the use of 
and reliance on UCTs in standard form contracts. The amendments also 
expand the class of contracts that are covered by the UCT provisions.
•
The Government is also increasing penalties for breaches of competition and 
consumer law to deter conduct that stifles competition and increases costs to 
consumers. This also forms part of the More Competition, Better Prices Bill.
–
Maximum penalties for corporations will increase from $10 million to 
$50 million per breach and from 10 per cent of annual turnover to 
30 per cent of turnover for the period the breach took place. 
•
At the meeting of Consumer Ministers in September 2022, Commonwealth, 
State and Territory Ministers discussed and agreed on priorities, which include: 
–
improved capability and collaboration to combat scams 
–
considering reforms to consumer guarantees and supplier indemnification 
provisions
–
consulting on proposed reforms to address unfair trading practices 
–
releasing a discussion paper on travel services to inform ACL learnings 
across all service sectors following COVID-19.
Page 1 of 5
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
 
Contact Number
s 22
Division responsible
Market Conduct Division 
Date of Update
08 November 2022

---

QB22-000196 
CONSUMER AFFAIRS
CONSUMER AFFAIRS
•
The Government is also progressing reforms to the ACL to better recognise 
overseas product safety standards.
•
The Government has appointed an experienced consumer advocate, 
Ms Catriona Lowe, to be a Deputy Chairperson of the Australian Competition 
and Consumer Commission for a five-year period starting on 27 January 2023.
Page 2 of 5
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
 
Contact Number
s 22
Division responsible
Market Conduct Division 
Date of Update
08 November 2022

---

QB22-000196 
CONSUMER AFFAIRS
CONSUMER AFFAIRS
BACKGROUND
•
The Australian Consumer Law (ACL) commenced in 2011. It provides a single 
consumer protection law operating as a law of the Commonwealth and of each 
state and territory. It includes:
–
general protections that create and promote standards of conduct in trade 
or commerce across the economy, including prohibitions against 
misleading or deceptive conduct, unconscionable conduct and the use of 
unfair contract terms; and
–
specific protections against certain unfair practices including false or 
misleading representations, consumer guarantees and product safety 
provisions.
•
The Government made election commitments to:
–
introduce a set of measures to combat scams and online fraud, including 
establishing a National Anti-Scam Centre
–
make unfair contract terms illegal so small businesses can negotiate fairer 
agreements with large partners
–
increase penalties in the Competition and Consumer Act 2010 
–
establish a ‘Super Complaint’ function within the Australian Competition 
and Consumer Commission (ACCC)
Scams – election commitment
•
The Government has committed to introducing a range of measures to combat 
scams, including:
–
establishing a National Anti-Scam Centre (based on the UK’s Fusion Cell 
model)
–
new industry codes (including for banks, telecommunications providers 
and digital platforms)
–
more funding for identification recovery services
–
a review of penalties
Page 3 of 5
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
 
Contact Number
s 22
Division responsible
Market Conduct Division 
Date of Update
08 November 2022

---

QB22-000196 
CONSUMER AFFAIRS
CONSUMER AFFAIRS
•
These measures are intended to strengthen the system to better protect 
consumers, families and small businesses.
•
Delivering on this election commitment will require a comprehensive, whole-of-
government response.
•
Treasury has commenced work with other departments and regulators. 
Stakeholder roundtables are expected to be held this year.
Scams – statistics
•
Scams remain a key consumer concern for the public.  So far in 2022, the 
ACCC’s Scamwatch service has received 166,047 reports with more than 
$425 million in financial losses.
•
According to the ACCC, Australians lost over $2 billion to scams in 2021.
•
On 4 July 2022, the ACCC released its ‘Targeting Scams’ report on key trends 
in scam activity. The data in this report is for the 2021 calendar year.
–
The ACCC received 286,622 scam reports in 2021, with reported losses of 
$324 million. Reports increased by 33 percent compared to 2020, and 
financial losses increased by 84 percent.
–
The highest losses reported to all agencies and banks were for investment 
scams.
–
Scamwatch sent more than 150 disseminations of scam reports on high 
risk or current scam trends to law enforcement and government agencies. 
This intelligence assisted state and federal police to investigate and, in 
some instances, prosecute scammers. 
–
Scamwatch shared thousands of telephone numbers provided in scam 
reports with the telcos and the Australian Communications and Media 
Authority (ACMA) every week, to assist them to identify scam call traffic 
and disrupt scammers.
•
Consumers concerned about scams should visit the ACCC’s website 
www.scamwatch.gov.au to keep up to date with current scams, report scam 
activity, and get information about what to do if they become a scam victim.
Page 4 of 5
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
 
Contact Number
s 22
Division responsible
Market Conduct Division 
Date of Update
08 November 2022

---

QB22-000196 
CONSUMER AFFAIRS
CONSUMER AFFAIRS
•
The Scamwatch website receives thousands of reports each year. The ACCC 
uses this information to help consumers recognise and avoid scams. The 
ACCC focuses on education and collaboration as the online and global nature 
of scams makes it difficult to prosecute scammers and ultimately recover 
money lost to scams.
Page 5 of 5
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
 
Contact Number
s 22
Division responsible
Market Conduct Division 
Date of Update
08 November 2022

---

FOI 3289 
Document 4
QB22-000209 
SUSTAINABLE FINANCE/CLIMATE 
DISCLOSURES
Sustainable Finance and Climate Disclosures
KEY MESSAGE
•
Australian businesses need clearer guidance on how to report the climate risks 
impacting their operations. 
•
Our Government is working with the regulators to develop a standardised 
approach to climate disclosures that will ensure reporting is credible and 
comparable. 
KEY FACTS AND FIGURES
•
As the world transitions towards net zero, capital markets are increasingly 
focused on climate-related risks and opportunities.
–
Sustainable debt issuance increased 10x over 2016 - 2021, from 
$0.14 trillion to $1.6T USD.
•
While the Corporations Act currently requires Australian companies to disclose 
material risks, many of our international peers are introducing more detailed 
climate risk reporting requirements.
–
New climate reporting requirements have been legislated in the United 
Kingdom, European Union and New Zealand, among others. The 
United States is also developing an approach.
•
Treasury is working closely with Australian regulators, industry and 
international peers: 
–
The International Sustainability Standards Board (ISSB) was formed at 
COP26, and is developing a new global baseline for climate and 
sustainability disclosures.
–
ASIC is a member of the IOSCO Sustainability Technical Experts Group, 
which will provide input to the ISSB with a view to possible IOSCO 
endorsement of the ISSB standards. 
–
Treasury and the RBA have supported the work of the ISSB through their 
participation in the G20 Sustainable Finance Working Group and the 
Financial Stability Board’s climate-related workstream. 
Page 1 of 3
Treasurer - The Hon Jim 
Adviser
s 22
Office Responsible
Chalmers MP
Contact Officer
s 22
 
Contact Number
s 22
Division responsible
Market Conduct Division 
Date of Update
30 November 2022

---

QB22-000209 
SUSTAINABLE FINANCE/CLIMATE 
DISCLOSURES
Sustainable Finance and Climate Disclosures
BACKGROUND
•
Voluntary reporting: The Corporations Act currently requires Australian 
companies to disclose material risks, including climate-related financial risks:
–
Financial regulators encourage use of the the voluntary Taskforce on 
Climate-related Financial Disclosures framework (TCFD) – the leading 
global framework for climate risk reporting. 
•
There has been steady Australian uptake of TCFD-aligned climate disclosures.
–
In 2021, 103 of the ASX200 made TCFD-aligned climate disclosures, 
compared to 11 when the framework was established in 2017. 
–
But the TCFD framework is flexible, firm capabilities vary, and Australia’s 
legal framework creates considerable variation in how risks are reported. 
–
There are shortcomings with quality, consistency and comparability of 
disclosures. 
•
International process: The ISSB will provide a detailed global standard which 
can be adopted by jurisdictions.
–
ISSB builds on the reporting framework established by the TCFD, and 
incorporates industry disclosure requirements taken from the Sustainability 
Accounting Standards Board Standards.
–
On July 27 2022, the CFR provided comment on the ISSB exposure drafts 
to better adapt these standards to an Australian context.
–
The ISSB has closed for comment on its drafts of its proposed climate and 
sustainability standards, which it expects to finalise in early 2023. 
•
Key next steps for Australia are engaging with the ISSB process and carefully 
assessing the finalised ISSB standards, in the context of the Government’s 
commitment to introduce globally aligned climate reporting requirements.  
Page 2 of 3
Treasurer - The Hon Jim 
Adviser
s 22
Office Responsible
Chalmers MP
Contact Officer
s 22
 
Contact Number
s 22
Division responsible
Market Conduct Division 
Date of Update
30 November 2022

---

QB22-000209 
SUSTAINABLE FINANCE/CLIMATE 
DISCLOSURES
Sustainable Finance and Climate Disclosures
•
Climate disclosures are part of a wider CFR sustainable finance agenda: 
–
On 30 November 2022, APRA published the outcomes of its first Climate 
Vulnerability Assessment (CVA), which focused on the major banks. The 
process involved entities estimating the potential physical impacts of a 
changing climate on their balance sheets, as well as the risks that may 
arise from the global transition to a low-carbon economy.
:
The participating banks did not face severe stress under the climate 
scenarios considered. However, the analysis showed that impacts 
could be more severe for institutions with concentrated exposures to 
certain regions or industries. 
:
The outcomes highlight the importance of proactive climate risk 
management by financial institutions.
:
CFR agencies will consider whether the CVA process should be 
expanded, including to the superannuation and insurance sectors.
–
In June 2022, ASIC released an information sheet to help issuers avoid 
‘greenwashing’ when offering or promoting sustainability-related products. 
–
Treasury and the RBA are actively participating in the G20’s Sustainable 
Finance Working Group, including to support the development of a more 
consistent global approach for incorporating transitional industries and 
investments within sustainable finance frameworks. 
•
The Government is actively considering opportunities to leverage accelerating 
global sustainable finance flows to support its Powering Australia policies and 
help deliver Australia’s strengthened emissions reductions goals. 
Recent announcements 
•
ASIC has taken action against listed energy company Tlou Energy Limited for 
‘greenwashing’, fining them to the tune of $53,280 for alleged misleading 
sustainability-related statements made to the ASX in October 2021. ASIC is 
continuing its investigations in a number of listed entities, super funds and 
managed funds.
•
On 7 November 2022, the Investor Group on Climate Change was reported to 
have urged the Treasurer and RBA governor to move quickly to mandate 
climate disclosures aligned with the ISSB standards.
Page 3 of 3
Treasurer - The Hon Jim 
Adviser
s 22
Office Responsible
Chalmers MP
Contact Officer
s 22
 
Contact Number
s 22
Division responsible
Market Conduct Division 
Date of Update
30 November 2022

---

FOI 3289 
Document 5
QB22-000262 
SUPPORT PAYMENTS
Age Pension - Work Bonus and Income Test
KEY MESSAGE
•
Following the Jobs and Skills Summit, the Government has announced two 
measures that support pensioners to help meet labour supply shortages:
– A temporary $4,000 income bank credit — this will enable pensioners to earn 
another $4,000 from employment without impacting their pension, helping to 
alleviate skills shortages.
: This measure temporarily increases the maximum income bank to $11,800. 
After the temporary increase period ends, the maximum income bank 
balance will revert to $7,800. 
: Legislation to give effect to the measure is currently before Parliament, with 
the Government having introduced an amendment to extend the expiry of 
the measure from 30 June 2023 to 31 December 2023. This extension will 
give pensioners more time to start work or increase their hours to take 
advantage of the $4000 credit. 
– Pensioners will not have to reapply for payments if their employment income 
exceeds the income limit and reduces their payment to zero, for up to two 
years, rather than their payment being cancelled after 12 weeks.
: Pensioners will also be able to keep their Pensioner Concession Card and 
associated benefits for two years.
: This measure was an announced but unenacted policy of the previous 
Government.
KEY FACTS AND FIGURES
•
The Work Bonus disregards the first $300 of employment income per fortnight 
from the income test. The bonus can be carried over up to maximum of 
$7,800. Combined with the one off $4,000 credit, pensioners can earn up to 
$11,800 in 2022-23 without affecting their pension payment. On 1 July 2023, 
the maximum income bank balance will revert to $7,800.
•
When combined with the income test free area ($190), a single retiree with 
no other income can earn up to $490 per fortnight before their Age 
Pension is impacted.
Page 1 of 4
Treasurer - The Hon Jim 
Adviser
s 22
Office Responsible
Chalmers MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
18 November 2022

---

QB22-000262 
SUPPORT PAYMENTS
Age Pension - Work Bonus and Income Test
•
As at 25 March 2022, there were around 75,700 Age Pension recipients with 
employment income in the past fortnight, or 3.0 per cent of all Age Pension 
recipients. Around 96 per cent of Age Pensioners have a full work bonus 
income bank.
• The total cost of the Work Bonus income credit in the October Budget 2022-23, 
expiring 30 June 2023, was $46.9 million. 
– Costs for the extension to 31 December 2023 are still being finalised.
Page 2 of 4
Treasurer - The Hon Jim 
Adviser
s 22
Office Responsible
Chalmers MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
18 November 2022

---

QB22-000262 
SUPPORT PAYMENTS
Age Pension - Work Bonus and Income Test
BACKGROUND
How many pensioners will benefit from the work credit? 
•
All age pensioners, around 2.6 million, will receive the upfront $4000 income 
credit and will be able to work and earn more before their age pension is 
reduced.
–
The proposal will also apply to Disability Support Pensioners and Carer 
Payment recipients over Age Pension age, as well as equivalent 
Department of Veterans’ Affairs pension recipients.
Why is our measure better than the Coalition’s suggestion? 
•
Our measure provides certainty – pensioners know exactly what they are 
getting up front and how much they can earn. We are providing support in a 
simple easy to follow manner. 
•
Coalition proposal: the Coalition is proposing to double the existing work 
bonus for age pensioners from $300 per fortnight to $600 per fortnight for 
2022-23 and review the merits of extending the policy for future years.
Age Pension means testing 
•
The Age Pension is asset and income tested to ensure it is targeted to those 
that need it most. 
•
Payment amounts also vary according to whether a person is single or in a 
couple and whether they own their home (the value of the principal place of 
residence is not included in the means test).
•
The income test reduces the pension amount by 50 cents for every dollar over 
the free area (currently $190 per fortnight for a single pensioner and 
$336 combined for a couple).
–
The Age Pension income test cut-off for a single is $2,243.00 per fortnight 
and $3,431.20 per fortnight combined for a couple.
–
If the income is from employment, the Work Bonus allows individuals to 
earn up to $300 per fortnight without reducing their pension. The bonus 
can be carried over up to a maximum of $7,800.
•
The assets test reduces the pension amount by $3 per fortnight per $1,000 of 
assets over the free area (currently $280,000 for a single homeowner). 
Page 3 of 4
Treasurer - The Hon Jim 
Adviser
s 22
Office Responsible
Chalmers MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
18 November 2022

---

QB22-000262 
SUPPORT PAYMENTS
Age Pension - Work Bonus and Income Test
Other policies that support Age Pensioners in work
•
The Senior Australians and Pensioners Tax Offset (SAPTO) ensures eligible 
senior Australians with incomes up to $33,088 (or $29,783 for each member of 
a couple) pay no income tax. 
•
Those aged between 67 and 74 years old inclusive who satisfy the work test 
(employed for at least 40 hours during a consecutive 30-day period during the 
year) are also able to access income tax concessions from contributing to 
super; through salary sacrificing or personal deductible contributions.
Page 4 of 4
Treasurer - The Hon Jim 
Adviser
s 22
Office Responsible
Chalmers MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
18 November 2022

---

FOI 3289 
Document 6
QB23-000087 
SUPPORT PAYMENTS
Age Pension - Work Bonus and Income Test
KEY MESSAGE
• Following the Jobs and Skills Summit, the Government has implemented two 
measures that support pensioners to help meet labour supply shortages:
1) From 1 December 2022, a temporary $4,000 income bank credit — enabling 
pensioners to earn another $4,000 from employment without impacting their 
pension, helping to alleviate skills shortages. 
: This measure temporarily increases the maximum income bank to $11,800 
until 31 December 2023. 
2) From 1 January 2023, pensioners no longer need to reapply for payments if 
their employment income exceeds the income limit and reduces their 
payment to zero, for up to two years. Previously, payments would be 
cancelled after 12 weeks.
: Pensioners will also be able to keep their Pensioner Concession Card and 
associated benefits for two years.
: This measure was an announced but unenacted policy of the previous 
Government.
KEY FACTS AND FIGURES
•
The Work Bonus disregards the first $300 of employment income per fortnight 
from the income test. The bonus can be carried over up to a maximum of 
$7,800. 
•
Combined with the one off $4,000 credit, pensioners can earn up to $11,800 in 
2022-23 without affecting their pension payment. On 31 December 2023, the 
maximum income bank balance will revert to $7,800.
•
When combined with the income test free area ($190), a single retiree with 
no other income can earn up to $490 per fortnight before their Age 
Pension is impacted.
•
As at 30 September 2022, there were around 76,900 Age Pension recipients 
with employment income in the past fortnight, or 3.0 per cent of all Age 
Pension recipients.
•
The indicative total cost of the Work Bonus income credit is $49.9 million. 
Page 1 of 2
Treasurer - The Hon Jim 
Adviser
s 22
Office Responsible
Chalmers MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
23 January 2023

---

QB23-000087 
SUPPORT PAYMENTS
Age Pension - Work Bonus and Income Test
BACKGROUND
How many pensioners will benefit from the work credit? 
•
All age pensioners, around 2.6 million, will receive the upfront $4000 income 
credit and will be able to work and earn more before their Age Pension is 
reduced.
–
The proposal will also apply to Disability Support Pensioners and Carer 
Payment recipients over Age Pension age, as well as equivalent 
Department of Veterans’ Affairs pension recipients.
Other policies that support Age Pensioners in work
•
The Senior Australians and Pensioners Tax Offset (SAPTO) ensures eligible 
senior Australians with incomes up to $33,088 (or $29,783 for each member of 
a couple) pay no income tax. 
•
Those aged between 67 and 74 years old inclusive who satisfy the work test 
(employed for at least 40 hours during a consecutive 30-day period during the 
year) are also able to access income tax concessions from contributing to 
super; through salary sacrificing or personal deductible contributions.
Page 2 of 2
Treasurer - The Hon Jim 
Adviser
s 22
Office Responsible
Chalmers MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
23 January 2023

---

FOI 3289 
Document 7
QB23-000083 
SUPER – YFYS
Your Future, Your Super Review
KEY MESSAGE
•
The Australian Government is committed to strengthening Australia’s world 
class superannuation system, which is why we are considering options to 
enhance the Your Future, Your Super (YFYS) measures following Treasury’s 
review.  
KEY FACTS AND FIGURES
YFYS Review
•
The Government is aware of concerns that the YFYS measures have had 
unintended consequences, such as discouraging certain investment decisions. 
•
As such the Government tasked Treasury to review the operation of the YFYS 
measures after the second round of the test for MySuper products took place 
in August 2022.
•
To inform the YFYS review, Treasury undertook an extensive 6-week 
consultation process seeking stakeholder feedback. The consultation process 
commenced on 7 September 2022 and submissions closed on 14 October 
2022.
–
During the consultation process, Treasury met with a range of 
stakeholders from across the superannuation sector through bilateral 
meetings, roundtable discussions, and a technical working group on the 
performance test. 
–
The Government announced the membership of the 12-member technical 
working group on 20 September 2022, which was comprised of 
independent economists, academics, investment advisers, and 
representatives from retail and not-for-profit super funds. 
–
Notes of the discussion in the working group meetings have also been 
published on the Treasury website.
•
The Government is currently considering outcomes from the review and 
expects to make further announcements on next steps in due course. 
Page 1 of 4
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
30 January 2023

---

QB23-000083 
SUPER – YFYS
Your Future, Your Super Review
Deferral of the performance test to trustee-directed products (TDPs)
•
The performance test currently applies to MySuper products and was 
scheduled to be extended to TDPs from 1 July 2022. 
•
The extension of the performance test to TDPs was paused for 12 months to 
provide time for the review to take place. This will allow the Government to 
consider and consult on any changes to ensure that the test is fit for purpose 
given the significant variety and complexity of these products.
Faith-based products
•
In 2022, the Government introduced legislation in Parliament to adjust how 
faith-based products are treated under the performance test (Schedule 5 of the 
Treasury Laws Amendment (2022 Measures No. 3) Bill 2022). 
•
These amendments were targeted at the small number of faith-based 
superannuation funds that face the potential of being penalised for investing in 
accordance with their religious principles.
–
Members of faith-based products affected by the regulations represent 
around 1 per cent of superannuation members.
•
Schedule 5 to the Bill:
–
Required trustees to ‘self-identify’ and apply to APRA for faith-based 
product status;
–
Subjected faith-based products to a supplementary test that considers 
their faith-based investment strategy, if they fail the original test; and
–
Exempted faith based products from the consequences of failure if they 
pass the supplementary test.
•
After engaging with stakeholders during the development of this legislation, the 
Government removed Schedule 5 from the Bill and will consider these reforms 
as part of the broader Your Future, Your Super review. 
–
The YFYS Review also provides an opportunity to assess the unintended 
consequences of the performance test benchmarks for other products.
Page 2 of 4
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
30 January 2023

---

QB23-000083 
SUPER – YFYS
Your Future, Your Super Review
–
Two notionally faith-based products have failed the performance test: 
Christian Super failed the 2021 test; and Australian Catholic failed in both 
2021 and 2022. Both funds have since merged with better performing 
funds (Australian Ethical and UniSuper, respectively).
2022 Performance Test Results
•
The second performance test applied to 69 MySuper products in August 2022. 
This found that 5 products failed the test, representing 604,000 member 
accounts and nearly $28 billion in assets. Of the 5 products which failed:
–
1 product, Westpac Group Plan MySuper, failed for the first time.
–
4 products failed for a second consecutive time and have been closed to 
new members until they pass a subsequent performance test. These 
products are:
:
AMG MySuper;
:
BT Super MySuper;
:
Energy Industries Superannuation Scheme Balanced (MySuper);
:
ACS Super LifetimeOne (Australian Catholic Superannuation 
Retirement Fund).
•
Since the inception of the performance test in 2021, 14 products have failed. 
Of these products:
–
11 products have exited the market or are progressing with mergers
–
2 products have since passed the 2022 test
–
1 product failed both tests and can no longer accept new members.
Page 3 of 4
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
30 January 2023

---

QB23-000083 
SUPER – YFYS
Your Future, Your Super Review
BACKGROUND
YFYS reforms
•
The YFYS reforms include the following elements: 
–
Annual performance test — Holding funds accountable and protecting 
members by introducing an annual objective performance test. The test 
aims to protect members from poor outcomes by encouraging funds to 
lower fees and improve performance to boost Australians’ retirement 
incomes. 
–
Stapling — Changes to ensure that superannuation accounts follow 
members (stapling) when they change jobs. This stops the creation of 
unwanted multiple accounts that reduce retirement savings through 
duplicate fees.
–
YourSuper comparison tool — Empowering members to make better 
decisions about who manages their retirement savings by delivering the 
new, interactive, online YourSuper comparison tool.
–
Best Financial Interests Duty — Increasing trustee accountability by 
strengthening obligations to ensure trustees only act in the best financial 
interests of members and requiring superannuation funds to provide better 
information regarding how they manage and spend members’ money in 
advance of Annual Members’ Meetings.
Page 4 of 4
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
30 January 2023

---

FOI 3289 
 
 
Document 8
QB22-000159 
SUPER – VICTIMS 
 
Victims of Crime 
 
 
KEY MESSAGE 
 
• 
The Government considers that it is particularly egregious for convicted 
criminals to seek to hide assets in superannuation in order to avoid paying 
compensation to their victims. The Government recently met with the Grace 
Tame Foundation to discuss this issue and is considering how survivors can 
be better supported to receive their rightful compensation. 
KEY FACTS AND FIGURES 
 
• 
In June 2022, the Grace Tame Foundation, in partnership with Andrew 
Carpenter, Fighters Against Childhood Abuse Australia and the Carly Ryan 
Foundation, launched the Super for Survivors campaign.  
• 
The Super for Survivors campaign, represented by the Grace Tame 
Foundation met with the Assistant Treasurer on 16 June 2022 to discuss 
victims’ access to perpetrators’ superannuation and presented a joint letter.  
• 
Through the campaign, the Grace Tame Foundation are seeking legislative 
amendments to ensure that victims and survivors of child sexual abuse are 
able to access redress from the superannuation of perpetrators.  
 
 
Page 1 of 3 
Assistant Treasurer and Minister 
Adviser 
s 22
 
Office Responsible 
for Financial Services - The Hon 
Stephen Jones MP 
Contact Officer 
s 22
 
Contact Number 
s 22
 
Division responsible  Retirement Advice and Investment Division  
Date of Update 
19 July 2022 
 
 

---

 
 
QB22-000159 
SUPER – VICTIMS 
 
Victims of Crime 
 
BACKGROUND 
  
Current avenues for victims of crime compensation 
• 
There are three ways that a victim of crime can currently seek compensation 
from the perpetrator: 
–  state and territory statutory compensation schemes (state-funded), where 
the state pays compensation directly to a victim of crime 
–  compensation or restitution orders, handed down as part of the sentencing 
process in a criminal trial, requiring the perpetrator to pay the victim 
–  a victim pursuing civil action against a perpetrator or al eged perpetrator 
for damages (either fol owing their conviction or in the absence of a 
conviction).  
• 
The perpetrator’s superannuation is protected in each of these processes and 
may be used by perpetrators as a vehicle to avoid paying compensation to 
victims.  
–  Bankruptcy proceedings may currently be used to ‘claw-back’ 
superannuation contributions made by a perpetrator to avoid paying debts, 
including victims’ compensation orders. 
Measure announced by previous Government 
• 
The previous Government’s measure, which was original y scheduled to 
commence on 1 July 2020 but did not proceed, included two mechanisms for 
victims of crime to access their perpetrator’s superannuation: 
–  the first was for a claw-back mechanism for ‘out of character’ 
superannuation contributions made by criminals to shield their assets from 
use in compensating victims of their crimes; and 
–  the second was to al ow victims of serious, violent crimes to be able to 
access a perpetrator’s superannuation as compensation, where other 
assets have been exhausted, subject to appropriate limits and thresholds.  
• 
These mechanisms were canvassed as part of a Treasury consultation paper 
released from 28 May to 15 June 2018. Treasury received 23 submissions in 
response to this consultation process, which are publicly available on the 
Treasury website. Treasury met bilaterally with a number of stakeholders, 
including representatives from most state and territory justice departments 
and/or victims of crime commissions, as wel  as a number of state and federal 
courts.  
Page 2 of 3 
Assistant Treasurer and Minister 
Adviser 
s 22
 
Office Responsible 
for Financial Services - The Hon 
Stephen Jones MP 
Contact Officer 
s 22
 
Contact Number 
s 22
 
Division responsible  Retirement Advice and Investment Division  
Date of Update 
19 July 2022 
 
 

---

 
 
QB22-000159 
SUPER – VICTIMS 
 
Victims of Crime 
 
• 
Prior to the Treasury consultation released between 28 May and 15 June 
2018, Treasury released a consultation paper from 20 December 2017 to 12 
February 2018, which included canvassing whether, and the circumstances in 
which, a perpetrator’s superannuation assets should be available to pay 
compensation to victims of crime. 
–  Treasury received over 60 submissions which are publicly available on the 
Treasury website, held 10 roundtables and met bilaterally with a number of 
stakeholders.  
Page 3 of 3 
Assistant Treasurer and Minister 
Adviser 
s 22
 
Office Responsible 
for Financial Services - The Hon 
Stephen Jones MP 
Contact Officer 
s 22
 
Contact Number 
s 22
 
Division responsible  Retirement Advice and Investment Division  
Date of Update 
19 July 2022 
 
 

---

FOI 3289 
Document 9
QB22-000171 
SUPER - WOMEN
WOMEN AND SUPERANNUATION
KEY MESSAGE
•
The Government is committed to improving the economic security of 
women in retirement and reducing the superannuation savings gap.
KEY FACTS AND FIGURES
•
In 2019-20, the median superannuation balance for males approaching Age 
Pension age (60-64) was $180,928 compared with $139,056 for females. This 
equates to a 23.1 per cent gap between the median male and female 
superannuation balance. 
•
In 2019-20, the median superannuation balance for males at or approaching 
preservation age (55-59 years) was $163,180 compared to $112,122 for 
females. This equates to a 31.3 per cent gap between the median male and 
female superannuation balance. 
•
The gender pay gap is a key driver of the difference in superannuation 
balances between men and women. According to the Workplace Gender 
Equality Agency (WGEA), the national gender pay gap is 14.1 per cent (as at 
May 2022).
•
Another major driver is the time women take out of the workforce to 
undertake unpaid care work. Women are more likely than men to take time out 
of the workforce to care for children and this interrupts paid employment 
patterns resulting in lower earnings and lower superannuation contributions.
–
In 2019-20, among parents of children aged five and under, 65.5 per cent 
of women were in the labour force, compared to 94.4 per cent of men. 
–
The labour force participation gap is the largest around childbearing ages 
where women aged 30-39 are almost three times more likely than men to 
be not in the labour force – 22 per cent of women were not in the labour 
force compared to only 8 per cent of men in 2019-20.
–
According to 2020-21 data from WGEA, women account for 88 per cent of 
all primary carer’s leave utilised.  
Page 1 of 3
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
20 October 2022

---

QB22-000171 
SUPER - WOMEN
WOMEN AND SUPERANNUATION
BACKGROUND
Removal of the $450 threshold 
•
After years of advocacy while in opposition, the Government welcomes the 
removal of the $450 per month income threshold under which employees do 
not have to be paid the superannuation guarantee by their employer, which 
commenced on 1 July 2022. This will improve equity in the superannuation 
system, in particular for women, who are most likely to be impacted by this 
threshold due to being more likely to work part-time, in lower-paid industries.
- The Retirement Income Review estimated that of employees who were 
affected by the $450 per month threshold in July 2019, 63 per cent (around 
200,000) were women. Removing the threshold will help women working a 
few hours in multiple jobs or balancing re-entering the workforce with caring 
responsibilities contribute to their retirement savings.
Increases to the superannuation guarantee rate 
•
The Government will help improve women’s economic security in retirement by 
committing to the legislated SG increases to 12 per cent. 
–
The Retirement Income Review found that under a 12 per cent SG rate, 
most people will either maintain or improve their standard of living in 
retirement compared to working life, and that a lower SG rate would lead 
to lower superannuation balances.
Superannuation guarantee and paid parental leave 
•
Unlike most other leave entitlements, employers are not required to pay the 
superannuation guarantee (SG) on paid parental leave (PPL). The SG is also 
not paid on government-funded Parental Leave Pay (PLP). 
•
The Government has not committed to any changes to pay superannuation on 
government-funded PPL schemes. 
•
Paying superannuation on PPL and PLP would improve equity in the 
superannuation system by reducing some of the impact of child-related career 
breaks on retirement incomes. It would also signal the value of unpaid care. 
Page 2 of 3
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
20 October 2022

---

QB22-000171 
SUPER - WOMEN
WOMEN AND SUPERANNUATION
–
According to the Retirement Income Review, for the median female 
earner, receiving superannuation on the average period of employer PPL 
(11 weeks in 2019) increases her balance at retirement by around 0.8 per 
cent. For the Government-funded PLP (18 weeks), the median female 
earner increases her balance by 0.17 per cent. 
–
The WGEA reported that in 2020-21, around 49 per cent of private 
employers pay superannuation to primary carers on parental leave.
Page 3 of 3
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
20 October 2022

---

FOI 3289 
Document 10
QB22-000172 
DOWNSIZER
Downsizer
KEY MESSAGE
•
The Government has introduced legislation to expand eligibility for 
those who can make downsizer contributions to their superannuation 
to 55 years of age, in line with its election commitment.
KEY FACTS AND FIGURES
•
The downsizer program allows eligible older people to make a one-off, post-tax 
contribution to their superannuation of up to $300,000 per person ($600,000 
per couple) from the proceeds of selling their home, outside the usual 
superannuation contribution caps. 
•
From 1 July 2022, the eligibility age to make downsizer contributions has been 
reduced from 65 to 60. 
•
The Government is legislating its commitment to further expand eligibility to 55 
years of age. The changes are included in the Treasury Laws Amendment 
(2022 Measures No. 2) Bill 2022 (Schedule 5). This further reduction in 
eligibility age will take effect from the first quarter following passage of 
legislation.
–
On 21 October 2022, the Australian Greens proposed an amendment in 
the Senate to the Treasury Laws Amendment (2022 Measures No. 2) Bill 
2022 to omit the provisions relating to downsizer. 
•
The measure is estimated to decrease receipts by $20 million over the forward 
estimates.
•
Since the start of the program, from 1 July 2018 to 30 September 2022, 
around 48,900 individuals have made downsizer contributions, of which 
around 77 per cent had superannuation balances of less than $600,000 and 
around 55 per cent were women. The average accumulated downsizer 
contribution per individual was around $245,800.
–
Around 59 per cent of those who have used the downsizer scheme have 
superannuation balances of $300,000 or less.
Page 1 of 2
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
16 November 2022

---

QB22-000172 
DOWNSIZER
Downsizer
BACKGROUND
•
Downsizer contributions allow individuals who may otherwise be prevented 
from making contributions into their superannuation due to their age, work 
status or contribution cap restrictions to sell their home and make a 
contribution using the proceeds of the sale. 
•
The downsizer program provides flexiblity for older people to boost their 
superannuation savings for retirement. It is aimed at encouraging people to 
downsize earlier to homes that better meet their needs and free up the stock of 
larger homes for younger families.
•
The Government is progressing this modest change to the eligibility age for the 
downsizer program in the context of a comprehensive plan to improve housing 
access and affordability and increase supply. 
•
Legislation requires an independent review of the operation of the First Home 
Super Saver Scheme (FHSSS) and downsizer scheme as soon as practicable 
after June 2019. The Government will consider the legislated review within the 
context of its broader priorities. 
•
On 29 September 2022 the Superannuation Legislation Amendment 
(Broadening Contribution Rules) Regulations 2022 were made. This allows 
superannuation funds and Retirement Savings Account institutions to accept 
downsizer contributions under the new eligilbity criteria.
–
These regulations are subject to the commencement of primary legislation. 
Page 2 of 2
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
16 November 2022

---

FOI 3289 
Document 11
QB22-000176 
SUPER – PERFORMANCE TEST
PERFORMANCE TEST - FAITH BASED PRODUCTS AND 
TDP DEFERRAL
KEY MESSAGE
•
The Albanese Government is committed to strengthening Australia’s 
world-class superannuation system, which is why we have tasked 
Treasury to review whether the Your Future, Your Super (YFYS) 
laws have created unintended outcomes for members. We have also 
deferred the extension of the annual YFYS performance test beyond 
MySuper products for 12 months, and introduced legislation to adjust 
how faith-based products are treated under the test.  
KEY FACTS AND FIGURES
•
The annual YFYS performance test (the test) for superannuation products is a 
component of the YFYS reforms legislated in 2021. The test compares a 
product’s returns and fees against benchmarks to determine if it passes 
(performing) or fails (underperforming). 
2022 Performance Test Results
•
The second annual performance test applied to 69 MySuper products in 
August 2022. This found that 5 products failed the test, representing 604,000 
member accounts and nearly $28 billion in assets.
•
Of the 5 products which failed:
–
1 product, Westpac Group Plan MySuper failed the test for the first time.
–
4 products had a second consecutive failure and are now closed to new 
members until they pass a subsequent performance test. These products 
are:
:
AMG MySuper;
:
BT Super MySuper;
:
Energy Industries Superannuation Scheme Balanced (MySuper);
:
ACS Super LifetimeOne (Australian Catholic Superannuation 
Retirement Fund).
Page 1 of 5
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
01 November 2022

---

QB22-000176 
SUPER – PERFORMANCE TEST
PERFORMANCE TEST - FAITH BASED PRODUCTS AND 
TDP DEFERRAL
•
Since the inception of the performance test, 14 products have failed. Of these 
products:
–
4 have already exited;
–
5 have failed the 2021 performance test, and passed the 2022 
performance test;
–
4 failed both the 2021 and 2022 performance tests; and
–
1 passed the 2021 performance test, and failed the 2022 performance 
test.
•
The 4 products that failed the test two years in a row can longer accept new 
members until they pass a future performance test. This will ensure that 
superannuation members do not join underperforming products, setting them 
up for a better retirement.
•
For the 5 products that failed the 2022 performance test, four funds have 
committed to exiting ahead of the 2023 performance test.
2021 Peformance Test Results
•
The results of the first performance test were released in August 2021. 
13 products failed out of the 76 products tested. Out of the 13 failed products, 
1 has since closed, 9 have merged or are in the process of merging, and 3 are 
subject to increased supervision by APRA. 
YFYS Review and deferral of test for trustee-directed products (TDPs)
•
The Albanese Government is committed to ensuring that the performance test 
holds trustees to account for the investment performance they deliver and the 
fees that they charge to members.
•
The Government is aware of concerns that the YFYS reforms have potentially 
created unintended consequences, such as discouraging certain investment 
decisions. 
Page 2 of 5
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
01 November 2022

---

QB22-000176 
SUPER – PERFORMANCE TEST
PERFORMANCE TEST - FAITH BASED PRODUCTS AND 
TDP DEFERRAL
–
As such the Government tasked Treasury to review the operation of the 
YFYS reforms after the second round of the test for MySuper products 
took place in August 2022.
–
As part of the review, Treasury recently undertook an extensive 6-week 
consultation process seeking stakeholder feedback into the YFYS 
measures. Submissions closed on 14 October 2022. Treasury is 
processing submissions and intends to provide advice to Government in 
the coming weeks. 
–
During the consultation process Treasury met with a range of stakeholders 
from across the superannuation sector through bilateral meetings, 
roundtable discussions, and a technical working group on the performance 
test. The Government announced the membership of the technical working 
group on 20 September 2022. 
•
The extension of the performance test to TDPs has been paused for 
12 months to provide time for the review to take place. This will allow the 
Government to consider and consult on any changes to ensure that the test is 
fit for purpose given the significant variety and complexity of these products. 
Faith-based products
•
Currently, the performance benchmark can potentially penalise faith-based 
products for avoiding certain investments that fall outside their religious 
principles, for example, armaments. This could lead to these funds ultimately 
being closed to new members, denying Australians of faith the option of 
investing their super in line with their religious beliefs.
–
Two notionally faith-based products have failed the performance test. 
Christian Super failed the performance test in 2021 and Australian 
Catholic failed in 2021 and 2022. These funds are currently progressing 
mergers with other better performing funds (Australian Ethical and 
UniSuper, respectively).
•
The Government has now introduced legislation into Parliament to adjust how 
faith-based products are treated under the test. 
Page 3 of 5
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
01 November 2022

---

QB22-000176 
SUPER – PERFORMANCE TEST
PERFORMANCE TEST - FAITH BASED PRODUCTS AND 
TDP DEFERRAL
–
On 28 September, Treasury Laws Amendment (2022 Measures No. 3) Bill 
2022 was referred to the Senate Economics Legislation Committee and 
the Senate Standing Committee for the Scrutiny of Bills. The report from 
the Senate Economics Legislation Committee is due by 17 November 
2022.
–
On 27 October, Treasury Laws Amendment (2022 Measures No. 3) Bill 
2022 passed the House of Representatives without amendment. 
•
The proposed legislation seeks to:
–
Require trustees to ‘self-identify’ and apply to APRA for faith-based 
product status;
–
Subject faith-based products to a supplementary test that considers their 
faith-based investment strategy, if they fail the original test; and 
–
Exempt faith-based products from the consequences of failure if they pass 
the supplementary test.
•
Exposure draft regulations to support this legislation have been released for 
public consultation. Draft regulations can be found on the Treasury website 
and consultation closed on 7 October 2022.
–
Treasury received 8 written submissions from a variety of stakeholders, 
the majority from industry peak bodies.
•
These amendments are targeted squarely at the small number of faith-based 
superannuation funds that face the potential of being penalised for investing in 
accordance with their religious principles. 
–
Members of faith-based products affected by the regulations represent 
around 1 per cent of total superannuation members. 
–
The YFYS Review will provide an opportunity to assess the unintended 
consequences that the performance test benchmarks pose for other 
products.
Page 4 of 5
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
01 November 2022

---

QB22-000176 
SUPER – PERFORMANCE TEST
PERFORMANCE TEST - FAITH BASED PRODUCTS AND 
TDP DEFERRAL
BACKGROUND
YFYS reforms
•
The YFYS reforms include the following elements: 
–
Annual performance test — Holding funds accountable and protecting 
members by introducing an annual objective performance test. The test 
aims to protect members from poor outcomes by encouraging funds to 
lower fees and improve performance to boost Australians’ retirement 
incomes. 
–
Stapling — Changes to ensure that superannuation accounts follow 
members (stapling) when they change jobs. This stops the creation of 
unwanted multiple accounts that reduce retirement savings through 
duplicate fees.
–
YourSuper comparison tool — Empowering members to make better 
decisions about who manages their retirement savings by delivering the 
new, interactive, online YourSuper comparison tool.
–
Best Financial Interests Duty — Increasing trustee accountability by 
strengthening obligations to ensure trustees only act in the best financial 
interests of members and requiring superannuation funds to provide better 
information regarding how they manage and spend members’ money in 
advance of Annual Members’ Meetings.
Page 5 of 5
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
01 November 2022

---

FOI 3289 
Document 12
QB22-000233 
SUPER - MILITARY INVALIDITY
MILITARY SUPERANNUATION INVALIDITY PENSIONS
KEY MESSAGE
•
The Government will shortly introduce legislation to amend the tax 
treatment of military invalidity pensions impacted by the Full Federal 
Court decision in Commissioner of Taxation v. Douglas. This will 
ensure that veterans will not pay higher taxes due to the Court’s 
decision and still get to keep benefits from the decision.
KEY FACTS AND FIGURES
•
The Douglas decision found that certain veterans’ invalidity pension payments 
in the Defence Force Retirement and Death Benefits (DFRDB) and Military 
Superannuation Benefits (MSB) schemes are superannuation lump sums for 
income tax purposes rather than superannuation income stream benefits.
•
A draft bill, Treasury Laws Amendment (Measures for a later sitting) Bill 2022: 
Taxation of military superannuation benefits was released for public 
consultation on the Treasury website between 25 July and 5 August. 
–
The draft legislation confirms the lump sum tax treatment for affected 
members of the DFRDB and MSB schemes. The Government’s approach 
means that affected veterans in the two affected schemes will not only 
retain the income tax benefits of the Douglas decision, but also benefits of 
changes in their taxable income, such as Family Tax Benefit entitlements. 
–
The Government will also introduce a non-refundable tax offset to prevent 
any adverse income tax outcomes for affected veterans in the DFRDB and 
MSB schemes. This will address higher end of year tax liabilities that 
would have occurred for some of these veterans and enable the ATO and 
CSC to include the impact of the new offset in determining fortnightly tax 
withholding, in order to address higher withholding that has occurred for 
some veterans due to the Douglas decision. 
–
These changes will also apply to Spouse and Children’s pensions paid to 
a spouse or child following the death of a member of a DFRDB or MSB 
scheme affected by the Douglas decision.
Page 1 of 9
Assistant Treasurer and Minister for Financial  Adviser
s 22
Office Responsible
Services - The Hon Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
03 November 2022

---

QB22-000233 
SUPER - MILITARY INVALIDITY
MILITARY SUPERANNUATION INVALIDITY PENSIONS
–
The draft Bill also retrospectively and prospectively reverses the impact of 
the Douglas decision in relation to all schemes other than the invalidity 
benefits and death benefits for beneficiaries of invalidity pensioners paid 
from the DFRDB and MSB schemes that commence on or after 
20 September 2007. This will ensure that payments in all other schemes 
that may have been within the wider scope of the Court’s decision will 
continue to be taxed as superannuation income stream benefits, which is 
consistent with the intent of the current superannuation tax law.
Page 2 of 9
Assistant Treasurer and Minister for Financial  Adviser
s 22
Office Responsible
Services - The Hon Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
03 November 2022

---

QB22-000233 
SUPER - MILITARY INVALIDITY
MILITARY SUPERANNUATION INVALIDITY PENSIONS
BACKGROUND
Full Federal Court’s decision
•
On 4 December 2020, the Full Federal Court handed down its decision for the 
Douglas case concerning the taxation of military invalidity benefits paid from 
the DFRDB and MSB Schemes. 
•
The Court found that military invalidity benefits paid under an invalidity pension 
that commenced on or after 20 September 2007 from the DFRDB scheme or 
the MSB scheme are to be taxed as superannuation lump sums and not as 
superannuation income stream benefits. 
–
The successful applicants were Wayne Douglas and Shane Walker. Peter 
Burns was unsuccessful. No appeals were lodged to the High Court by the 
ATO or Mr Burns. 
–
The Court found also found that benefits paid under an invalidity pension 
that commenced before 20 September 2007 (and have been continuously 
paid since that date) are to continue to be taxed as superannuation 
income stream benefits. 
Impacts of decision
•
While the Douglas decision provided a positive tax outcome for most affected 
veterans, it did create adverse taxation impacts for some veterans on a 
permanent basis. Some others will not be worse off on an annual basis but will 
have more tax withheld on a fortnightly basis from their pension. 
–
This will result in some tax debts owing under the remediation program, 
and some individuals will have ongoing lower fortnightly pension 
payments. 
•
The outcome for individuals as a result of Douglas depends on their personal 
circumstances. The age of the recipients and size of payments can mean the 
interaction of the loss of income stream tax offsets and capping of tax rates on 
lump sums plays out unfavourably. 
Page 3 of 9
Assistant Treasurer and Minister for Financial  Adviser
s 22
Office Responsible
Services - The Hon Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
03 November 2022

---

QB22-000233 
SUPER - MILITARY INVALIDITY
MILITARY SUPERANNUATION INVALIDITY PENSIONS
•
Where any amendments alter an individual’s taxable income, there may also 
be financial impacts to other Commonwealth payments and obligations. The 
Government’s response means this can be factored in by other Government 
agencies in assessing non-tax Commonwealth entitlements and obligations. 
The specifics of how this occurs is a matter for those agencies. 
–
There can be changes to a veteran’s taxable income, as well as tax 
outcome, as part of the shift in benefit taxation from income stream to 
lump sum. This is more likely to occur where the veteran has also been 
able to claim disability benefit status for income tax purposes.
Implementation of the Douglas decision to date
•
In December 2020, the ATO commenced a remediation program to correct the 
tax treatment of past payments for affected veterans from the DFRDB and 
MSB schemes that arise from the Douglas decision, and assessed 2020-21 
income tax returns lodged by affected veterans in line with the Douglas 
decision. 
–
This will continue for 2021-22 income tax returns lodged until legislation is 
passed. After passage the new offset will be implemented by the ATO. 
–
To date, the ATO has completed over 2,500 remediation activities. The 
ATO continues to review objections by veterans on their past year income 
tax assessments.  
•
From July 2021, CSC began applying the ATO’s PAYG withholding variation 
for the affected veterans who CSC assessed would not face higher tax 
withholding. 
–
However, in the absence of amended legislation, CSC was required to 
apply the withholding rates for all remaining veterans as soon as possible 
and began doing so from 19 May 2022. 
Outcomes of consultation
–
During consultation, Treasury received 17 submissions from stakeholders, 
including from veterans and professional bodies. 
–
Additionally, Treasury held discussions with various Government 
agencies, including an inter-agency meeting held on 21 July 2022, and 
hosted a meeting with veteran representatives on 10 August 2022.
Page 4 of 9
Assistant Treasurer and Minister for Financial  Adviser
s 22
Office Responsible
Services - The Hon Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
03 November 2022

---

QB22-000233 
SUPER - MILITARY INVALIDITY
MILITARY SUPERANNUATION INVALIDITY PENSIONS
Pre-decision taxation policy
•
The taxation treatment of military invalidity pension payments has been an 
issue of dispute between the broader military superannuation taxpayer group 
and the ATO in recent years. The Defence Force Welfare Association has 
been actively campaigning in this area. 
•
Prior to the Douglas decision, the taxation treatment of a military invalidity 
benefit paid from a superannuation fund was treated equally to any other 
disability superannuation benefit. Notwithstanding, the taxation treatment of 
disability superannuation benefits, including from military funds, continues to 
be more concessional for some taxpayers compared to non-disability benefits. 
–
For income stream benefits, people below preservation age receive a 
15 per cent offset (from their marginal tax rate) if it has been financed from 
a previously taxed element. The highest tax rate faced is the recipient’s full 
marginal tax rate (with no offset) which occurs when the recipient is under 
60 years old and the benefit is financed from a previously untaxed 
element. 
–
For lump sum benefits, any tax-free component applicable is increased 
based on number of years the recipient was forced to retire early due to 
disability. However, tax is applied on any other components at rates that 
can range between 15 per cent and recipient’s marginal rate. 
•
More broadly, longstanding tax settings governing invalidity benefits from 
superannuation funds maintain that these are not compensation benefits for 
the purposes of the superannuation and taxation systems, but rather, are 
benefits paid earlier than retirement because the member is invalid and can no 
longer work (or work in an occupation for which the member was trained). 
Hence, taxation applies to such invalidity pension payments, including from the 
military schemes. 
Q&A
How will the new tax offset ensure veterans don’t pay more tax? 
•
The Douglas decision was concerned with the income tax treatment of the 
invalidity pension benefits from the DFRDB and MSB schemes. As such, the 
Page 5 of 9
Assistant Treasurer and Minister for Financial  Adviser
s 22
Office Responsible
Services - The Hon Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
03 November 2022

---

QB22-000233 
SUPER - MILITARY INVALIDITY
MILITARY SUPERANNUATION INVALIDITY PENSIONS
new non-refundable tax offset will ensure veterans do not pay higher tax as a 
result of the Court’s decision. 
•
The offset will take into account the amount of tax an affected veteran would 
have paid had the Douglas decision not been delivered. It will ensure that 
veterans who would pay more income tax in a particular year than if the 
invalidity pension were to still be treated as a superannuation income stream, 
would pay the same amount of tax as if the change had not occurred. 
What are the impacts for non-tax payments and benefits for veterans from the 
Government’s actions?
•
Certain non-tax consequences arise because taxable income is relevant in 
determining either eligibility for, or the amount of, these payments, such as 
Family Tax Benefit and child support obligations.
•
The Government’s response, by allowing the Douglas decision to stand for 
affected veterans’ invalidity benefits, means that reductions in taxable incomes 
that occur for those veterans who also have disability tax status can be 
factored in by other Government agencies in assessing non-tax 
Commonwealth entitlements and obligations. The specifics of how this occurs 
is a matter for those agencies. 
–
The flow-on impacts are particulary relevant for veterans eligible for 
Disability Superannuation Benefit (DSB) status, as DSB alters the 
calculation of the tax-free amounts of a lump sum. Therefore, many 
affected veterans have begun claiming DSB following the Douglas 
decision, as it lowers their taxable income and increases the amount of 
payments they can receive.
–
For those Douglas-affected veterans who do not also have disability tax 
status there is no impact on their taxable incomes, so there is no taxable 
income change that flows through to non-tax Commonwealth entitlements 
and obligations from the Douglas decision or the Government’s response. 
Why are only veterans in the DFRDB and MSB schemes being compensated 
through the new offset?
•
The Douglas decision was concerned with the direct income tax treatment of 
the invalidity pension benefits from the DFRDB and MSB schemes which 
commenced on or after 20 September 2007. As such, the Government’s 
Page 6 of 9
Assistant Treasurer and Minister for Financial  Adviser
s 22
Office Responsible
Services - The Hon Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
03 November 2022

---

QB22-000233 
SUPER - MILITARY INVALIDITY
MILITARY SUPERANNUATION INVALIDITY PENSIONS
commitment is related to that direct income tax change caused by that 
decision. 
•
The Full Federal Court made no decisions in relation to other schemes and the 
ATO has only released a decision impact statement in relation to the two 
schemes mentioned by the Court. The Government’s response only covers the 
schemes directly referenced by the Court’s decision, which was clear that the 
pre-20 September 2007 benefits from these schemes were still income 
streams.
•
There is no policy rationale for extending the Douglas decision tax treatment 
and proposed new tax offset to other invalidity schemes and benefits given 
that they are common law pensions and should be treated as superannuation 
income streams.
How many veterans are affected?
•
The decision applies to the invalidity benefits of around 14,150 veterans in the 
DFRDB and MSB schemes. Around 350 face higher end of year tax outcomes. 
The ATO expects these numbers to increase over time as veterans’ 
circumstances change.
How much will this cost the Budget?
•
The Government’s approach was expected originally to have a cost to the 
underlying cash balance of $94.5 million over the forward estimates - as 
estimated at the 2021-22 MYEFO by the previous Government.
•
In the 2021-22 MYEFO, the previous Government announced an approach 
with the following impact on the underling cash balance:
Impact on UCB 
($ millions)
2020-21
2021-22
2022-23
2023-24
2024-25
Australian Taxation 
Office – Receipts
-
-15.0
-25.0
-10.0
-10.0
Related payments 
($m)
Australian Taxation 
Office
-
11.2
10.4
8.1
4.2
Department of the 
Treasury
-
0.3
0.2
-
-
Page 7 of 9
Assistant Treasurer and Minister for Financial  Adviser
s 22
Office Responsible
Services - The Hon Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
03 November 2022

---

QB22-000233 
SUPER - MILITARY INVALIDITY
MILITARY SUPERANNUATION INVALIDITY PENSIONS
Total - Payments
-
11.5
10.7
8.1
4.2
•
In the Pre-Election Fiscal and Economic Outlook, the previous government 
amended that approach, resulting in the following changes to the UCB:
Impact on UCB 
($ millions)
2021-22
2022-23
2023-24
2024-25
2025-26
ATO - receipts
15.0
-15.0
0.0
0.0
0.0
Total
15.0
-15.0
0.0
0.0
0.0
•
The Government has adopted the previous Government's approach as 
amended. However, as a result of the passage of time the following receipt 
estimates will now be reflected in the new Bill when it is introduced into 
Parliament. The table also reflects the changes in related payments.  
Impact on UCB 
($ millions)
2022-23
2023-24
2024-25
2025-26
Total
Australian Taxation 
Office – Receipts
-40.0
-10.0
-10.0
0.0
-60.0
Related payments 
($m)
Australian Taxation 
Office, Department 
of Treasury 
(departmental)
10.7
8.1
4.2
0.0
23.0
Department of 
Social Services 
(act of grace)
14.2
13.9
2.0
1.3
31.4
Total - Payments
24.9
22.0
6.2
1.3
54.4
•
The payments also now include the effect of the October 2022-23 Budget 
measure that provided $31.4 million (including implementation costs) over the 
forward estimates period (and $1.1 million per year on an ongoing basis) to 
provide act of grace payments to address the retrospective impacts of the 
Douglas decision for child support customers. 
Why were some taxpayers worse off because of the Douglas decision? 
•
The decision means the affected payments should be treated as 
superannuation lump sums instead of superannuation income streams for tax 
purposes. 
Page 8 of 9
Assistant Treasurer and Minister for Financial  Adviser
s 22
Office Responsible
Services - The Hon Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
03 November 2022

---

QB22-000233 
SUPER - MILITARY INVALIDITY
MILITARY SUPERANNUATION INVALIDITY PENSIONS
•
Relevant factors that determine the tax treatment of benefits include the 
person’s age, the nature of the benefit (e.g., disability or otherwise), the 
amount of the benefits, the tax components that make up the benefits and any 
taxation offsets that might apply to those components. 
–
For example, for over 60s with lower value non-disability benefits, the loss 
of the 10% untaxed element income stream offset may result in a less 
favourable tax outcome. 
–
Other taxpayers may find they use up all their low-rate caps that apply to 
lump sum benefits, and the taxation rates that apply thereafter are higher 
than the average rate applied to an income stream.
Page 9 of 9
Assistant Treasurer and Minister for Financial  Adviser
s 22
Office Responsible
Services - The Hon Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement, Advice and Investment Division 
Date of Update
03 November 2022

---

FOI 3289 
Document 13
QB22-000247 
SUPER - SG COMPLIANCE
Superannuation Guarantee Compliance
KEY MESSAGE
•
The Government is committed to ensuring all Australians retire with adequate 
retirement savings, which is why we have no tolerance for employers who 
shortchange their workers by not paying them their superannuation 
entitlements. The Government has made commitments to include a right to 
superannuation in the National Employment Standards and to set public 
targets for the recovery of unpaid superannuation.
KEY FACTS AND FIGURES
•
In 2021-21, the Australian Taxation Office (ATO) checked the records of over 
15,500 employers for unpaid superannuation, of which over 12,200 led to a 
superannuation liability being raised. 
•
In 2021-22, the ATO paid out $645.4 million in previously unpaid 
superannuation to employees as a result of their enforcement and recovery 
activities. 
•
In 2019-20, the latest ATO estimates, the superannuation guarantee gap 
before ATO compliance activities was 5.9 per cent of all superannuation 
guarantee liabilities, or 4.9 per cent after compliance activities. The net gap of 
4.9 per cent means that around $3.4 billion in superannuation guarantee 
payments remained unpaid after ATO compliance activities. 
Page 1 of 4
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
03 November 2022

---

QB22-000247 
SUPER - SG COMPLIANCE
Superannuation Guarantee Compliance
BACKGROUND
Government commitments
Including the superannuation guarantee (SG) in the National Employment 
Standards (NES)
•
The Government will legislate to include a right to the SG within the National 
Employment Standards which will give Australian workers the power to pursue 
their unpaid superannuation as a workplace entitlement. 
–
Employees currently do not have legal standing to pursue underpayment 
of superannuation unless it's specifically included in their employment 
contract. This means they need to rely on the ATO to recover unpaid SG.
•
The inclusion of the SG in the National Employment Standards was 
recommended by the Senate Inquiry into unlawful underpayment of 
employees' (Recommendation 10). 
–
The Inquiry report, ‘Systemic, sustained and shameful: unlawful 
underpayment of employees' remuneration’, was released on 30 March 
2022.
Setting public targets for the recovery of unpaid superannuation
•
The Government made a public commitment to set recovery targets for unpaid 
SG for the ATO and is currently working with the Treasury and ATO to develop 
these targets. 
ATO recovery procedures
•
Individuals can lodge a SG employee notification to tell the ATO their employer 
has not paid superannuation entitlements, paid late, or paid to the incorrect 
fund.
–
When an employee lodges an unpaid superannuation notification with the 
ATO they receive regular updates on the progress of their complaint 
through a series of letters. The updates advise the employee on the 
progress the ATO has made with the investigation of their complaint 
and/or what steps are being taken to recover the unpaid superannuation 
from their employer. 
Page 2 of 4
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
03 November 2022

---

QB22-000247 
SUPER - SG COMPLIANCE
Superannuation Guarantee Compliance
•
The ATO has legal responsibility and power to detect non-compliance and 
enforce employers’ SG obligations. The ATO has the authority to:
–
Issue director penalty notices to recover SG from insolvent businesses 
and security bonds for high-risk employers;
–
seek court-ordered penalties in the most egregious cases of non-payment, 
including up to 12 months jail for employers who are repeatedly caught but 
fail to pay SG liabilities; and
–
inform all affected employees about their actions to recover unpaid super 
and display contribution information on MyGov.
•
The continued rollout of Single Touch Payroll (STP) is making it easier than 
ever for employers to comply with their SG obligations. STP reduces the 
regulatory burden on business and transforms compliance by aligning payroll 
functions with regular reporting of taxation and superannuation obligations.
•
STP phase two requires employers to report on ordinary time earnings for all 
employees, that is the employee income which attracts SG. STP phase 2 had 
a mandatory start date for employers of 1 January 2022 and the ATO is 
expected to have oversight of all employer reported ordinary time earnings 
data relevant to SG payments from the 2022-23 year onwards.  
Payment frequency of superannuation
•
While employers are required to pay employees’ wages at least on a monthly 
basis, they are only required to pay their employees’ superannuation quarterly.
–
The majority of employers pay SG more frequently than quarterly. In 
2020-21, 78 per cent of all superannuation guarantee amounts were paid 
monthly, or more frequently (weekly or fortnightly).
Industry Super Australia estimates of unpaid superannuation
•
Industry Super Australia (ISA) estimate that unpaid super affects more than a 
quarter of employees, costing each affected worker an average of $1,700 per 
year. They claim that in 2018-19, a total of $5 billion in SG was not paid, and 
that over each of the preceding six years, unpaid SG has totalled at least $4.5 
billion per annum.
•
ISA’s estimates differ from the ATO’s as the former relies on a bottom-up 
approach whereas the latter uses a top-down approach to calculate the SG 
gap.
Page 3 of 4
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
03 November 2022

---

QB22-000247 
SUPER - SG COMPLIANCE
Superannuation Guarantee Compliance
–
ISA use a bottom-up approach whereby they rely on a sample of tax data 
(the ATO’s 2 per cent file) to estimate the SG gap and the number of 
employees impacted. 
–
The ATO uses a top-down approach to estimating the SG gap by 
comparing actual SG contributions for a year with the theoretical required 
SG contributions for that year.
Page 4 of 4
Assistant Treasurer and Minister 
Adviser
s 22
Office Responsible
for Financial Services - The Hon 
Stephen Jones MP
Contact Officer
s 22
Contact Number
s 22
Division responsible
Retirement Advice and Investment Division 
Date of Update
03 November 2022

---

FOI 3289 
 
 
Document 14
QB22-000252 
ANNUAL MEMBERS’ MEETING NOTICES 
 
Annual Members’ Meeting Notices 
 
KEY MESSAGE 
• 
The Government is promoting meaningful transparency by ensuring 
super fund members receive simple and clear information with the 
Annual Members’ Meeting (AMM) notice.    
KEY FACTS AND FIGURES 
• 
Superannuation funds are required to provide certain information with AMM 
notices.  
• 
This disclosure is designed to assist members in preparing questions ahead of 
the meeting.  
• 
The question and answer process in the meeting remains the primary method 
for members to obtain relevant information.   
• 
On 2 September 2022, the Superannuation Industry (Supervision) 
Amdendment (Annual Members’ Meetings Notices) Regulations 2022 (the 
Regulations) were registered. 
• 
The Regulations amend the expenditure information provided with the AMM 
notice to: 
–  remove itemised disclosure for certain expenditure but retain itemised 
disclosure of political donations; 
–  remove double-counting where an amount could be classified as both 
promotion expenditure and a political donation; 
–  reduce content restrictions on the one-page summary of aggregate 
expenditure; and 
–  align the definition of ‘related party’ with the Australian Accounting 
Standards. 
• 
The changes apply to meeting notices issued from 9 September 2022 for a 
year of income ending on or after 30 June 2022. 
 
 
Page 1 of 5 
Assistant Treasurer and Minister 
Adviser 
s 22
 
Office Responsible 
for Financial Services - The Hon 
Stephen Jones MP 
Contact Officer 
s 22
 
Contact Number 
s 22
 
Division responsible  Retirement, Advice and Investment Division  
Date of Update 
01 November 2022 
 
 

---

 
 
QB22-000252 
ANNUAL MEMBERS’ MEETING NOTICES 
 
Annual Members’ Meeting Notices 
 
• 
The Government’s approach ensures members are provided with summarised 
information that better aligns with the purpose of the AMM notice disclosures 
and addresses stakeholder feedback on practical implementation issues with 
the previous requirements.  
ADDITIONAL INFORMATION 
• 
Public consultation on draft regulations occurred from 15 July 2022 to 28 July 
2022.  
• 
Treasury received 10 written submissions (see Background). 
–  Superannuation industry organisations were supportive of the proposed 
changes which would reduce the original regulatory burden.   
–  Some stakeholders did not support the changes on the basis that they 
would reduce transparency for members.  
–  Several stakeholders highlighted that there may be other instances of 
double-counting expenditure (in addition to the double-counting of political 
donations which the exposure draft sought to address).  
• 
In response, the Government has retained itemised disclosure of political 
donations, and permitted the inclusion of contextual information with the one-
page summary of aggregate expenditure, to improve clarity for members.  
Itemised Disclosure 
• 
The Regulations remove the requirement for itemised disclosure for the 
following categories of expenditure: 
–  promotion, marketing and sponsorship expenditure; 
–  payments to industrial bodies; and 
–  ‘related party’ payments. 
• 
Funds wil  continue to be required to disclose an itemised list of ‘political 
donations’.  
–  There is no change to the definition of ‘political donations’.  
Page 2 of 5 
Assistant Treasurer and Minister 
Adviser 
s 22
 
Office Responsible 
for Financial Services - The Hon 
Stephen Jones MP 
Contact Officer 
s 22
 
Contact Number 
s 22
 
Division responsible  Retirement, Advice and Investment Division  
Date of Update 
01 November 2022 
 
 

---

 
 
QB22-000252 
ANNUAL MEMBERS’ MEETING NOTICES 
 
Annual Members’ Meeting Notices 
 
–  ‘Political donations’ are defined by reference to ‘gift’ in Part XX of the 
Commonwealth Electoral Act 1918 (the CEA). It captures gifts made to 
political parties, significant third parties and associated entities as also 
defined by the CEA.  
• 
There is stil  the requirement to disclose aggregate political donations, 
promotion expenditures, payments to industrial bodies, and ‘related party’ 
payments.  
• 
There is no change to disclosure of remuneration details.  
• 
This disclosure to members is separate to APRA’s regulatory oversight of 
these matters.   
Double-Counting 
• 
The Regulations include a technical clarification to ensure amounts that could 
be classified as both ‘promotion, marketing or sponsorship’ expenditure, and 
‘political donations’ are disclosed under the political donations category.  
• 
Restrictions on including contextual information to support the disclosure of 
aggregate expenditure have been reduced. This wil  improve the clarity of the 
disclosure for members, particularly where expenditure is required to be 
disclosed in multiple categories. 
• 
The different categories of expenditure disclosed with the AMM notices are not 
intended to be an exhaustive or mutual y exclusive list of al  fund expenditure. 
Each category should be considered separately.   
Definition of related party 
• 
The Regulations update the definition of ‘related party’ to align with the 
definition in the Australian Accounting Standards.  
–  Many funds voluntarily publish their financial statements on their website. 
This created a situation where two separate disclosures for payments to a 
‘related party’, yield different values.  
 
 
Page 3 of 5 
Assistant Treasurer and Minister 
Adviser 
s 22
 
Office Responsible 
for Financial Services - The Hon 
Stephen Jones MP 
Contact Officer 
s 22
 
Contact Number 
s 22
 
Division responsible  Retirement, Advice and Investment Division  
Date of Update 
01 November 2022 
 
 

---

 
 
QB22-000252 
ANNUAL MEMBERS’ MEETING NOTICES 
 
Annual Members’ Meeting Notices 
 
• 
The definition in the Australian Accounting Standards is also the basis for 
reporting related party transactions in annual financial reports such as those 
prepared by companies, registered schemes and disclosing entities as 
required under the Corporations Act 2001. 
• 
The amendments are expected to reduce the regulatory burden on 
superannuation funds as the revised definition of ‘related party’ is already used 
for the purposes of financial reporting. Publication costs are also expected to 
be lower.  
 
 
Page 4 of 5 
Assistant Treasurer and Minister 
Adviser 
s 22
 
Office Responsible 
for Financial Services - The Hon 
Stephen Jones MP 
Contact Officer 
s 22
 
Contact Number 
s 22
 
Division responsible  Retirement, Advice and Investment Division  
Date of Update 
01 November 2022 
 
 

---

 
 
QB22-000252 
ANNUAL MEMBERS’ MEETING NOTICES 
 
Annual Members’ Meeting Notices 
 
BACKGROUND 
• 
AMMs are an opportunity for fund members to hear from the trustee’s board of 
directors and executives and ask questions about important topics such as 
fund performance and operations.  
• 
The requirement to hold an AMM was introduced by the Treasury Laws 
Amendment (Improving Accountability and Member Outcomes in 
Superannuation Measures No. 1) Act 2019, which received Royal Assent on 
5 April 2019.  
• 
The AMM notice disclosure requirements were significantly extended by the 
Superannuation Industry (Supervision) Amendment (Your Future, Your Super 
– Improving Accountability and Member Outcomes) Regulations 2021, 
registered on 5 August 2021.  
• 
The next meeting notices for most superannuation funds are required to be 
sent to members before 31 December 2022.  
–  There are approximately 10 funds who operate on an amended tax year 
who may have issued meeting notices under the requirements prior to the 
changes. 
• 
List of submissions received: 
–  Australian Institute of Superannuation Trustees 
–  Association of Superannuation Funds of Australia 
–  CPA Australia and Chartered Accountants Australia and New Zealand 
–  Financial Services Council 
–  Industry Super Australia 
–  Law Society of NSW 
–  Mills Oakley 
–  Senator Andrew Bragg 
–  The Hon Stuart Robert MP 
–  Super Consumers Australia 
Page 5 of 5 
Assistant Treasurer and Minister 
Adviser 
s 22
 
Office Responsible 
for Financial Services - The Hon 
Stephen Jones MP 
Contact Officer 
s 22
 
Contact Number 
s 22
 
Division responsible  Retirement, Advice and Investment Division  
Date of Update 
01 November 2022 
 
 

---

FOI 3289 
Document 15
QB22-000267 
NOT APPLICABLE
Superannuation lending
KEY MESSAGE
• The superannuation wars have been won and now we need to win the peace.
• We see a larger role for superannuation in investing in nation building and 
national priorities to grow the economy, create jobs and help more people — like 
investments in cleaner, cheaper energy and new housing — while also delivering 
in shareholders’ and members’ best financial interests.
– This is not about mandating investment that is not in fund members interests – 
its about unlocking capital for profitable projects that can deliver value to fund 
members. 
• [Treasurer’s Investor Rountable] This will bring together super funds, banks, 
venture capital and other institutions to discuss opportunities in areas including 
energy, housing, government co-investment and impact investments. 
– We are still working through the details of the roundtable but it is generating a 
lot of interest. 
• [Jobs Summit – immediate action] Widen the remit of the National Housing 
Infrastructure Facility, making up to $575 million available to invest in social and 
affordable housing. The funding can be used to partner with other tiers of 
government and social housing providers, and to attract private capital including 
from superannuation funds
• [Jobs Summit – further work] The Government will work with investors, including 
superannuation funds to leverage greater private capital into national priority 
areas, including housing and clean energy
KEY FACTS AND FIGURES
• The growth: the pool was $148b three decades ago, now it’s $3.4 trillion.
– By 2060 – Australian super pool will be two-and-half-times the size of the 
Australian economy. 
• The size of Australia’s superannuation assets is 30% bigger than Canada’s in 
per cent of GDP terms.
– Top three in pension assets (only behind Iceland and Netherlands) despite 
being the 13th biggest economy.
• More paid out each year in super than pensions, taking pressure of budgets.
Page 1 of 2
Treasurer - The Hon Jim 
Adviser
s 22
Office Responsible
Chalmers MP
Contact Officer
Contact Number
Division responsible
Retirement Advice and Investment Division 
Date of Update
01 September 2022

---

QB22-000267 
NOT APPLICABLE
Superannuation lending
– Super is providing more than $80b a year in retirement incomes – we pay out 
$60b in pensions.
• Infrastructure investment’s gone from 3.7 percent of super assets to 6.6 percent 
in the last eight years, but housing’s only gone from 7.4 to 8.5 percent.
Page 2 of 2
Treasurer - The Hon Jim 
Adviser
s 22
Office Responsible
Chalmers MP
Contact Officer
Contact Number
Division responsible
Retirement Advice and Investment Division 
Date of Update
01 September 2022

---