{"id":"BILL-TAS-superannuation-liability-gst-windfall-fund-bill-2025-70-of-2025","name":"Superannuation Liability (GST Windfall Fund) Bill 2025","slug":"superannuation-liability-gst-windfall-fund-bill-2025","collection":"bill","jurisdiction":"tas","status":"in_force","isInForce":true,"actNumber":null,"makingDate":"2025-01-01","administeringDepartment":null,"currentVersion":{"id":446206,"registerId":"BILL-TAS-superannuation-liability-gst-windfall-fund-bill-2025-70-of-2025:current","compilationNumber":null,"startDate":"2025-01-01","status":"in_force","reasons":null,"registeredAt":"2026-05-08T16:49:00.854Z"},"sections":[{"sectionNumber":"retrieval-0001","sectionType":"document_chunk","heading":"Document excerpt 1","content":"# Superannuation Liability (GST Windfall Fund) Bill 2025\n\n[Bill 70]-VI\nTASMANIA\n__________\nSUPERANNUATION LIABILITY (GST WINDFALL\nFUND) BILL 2025\n__________\nCONTENTS\n1. Short title\n2. Commencement\n3. Interpretation\n4. Meaning of GST windfall\n5. Superannuation Liability Fund\n6. Transfer of money to Retirement Benefits Fund\n7. Fund not to be closed other than in accordance with this Act\n8. Regulations\n9. Administration of Act\n\n2\n\n[Bill 70] 3\nSUPERANNUATION LIABILITY (GST WINDFALL\nFUND) BILL 2025\n(Brought in by the Treasurer, the Honourable Eric Abetz)\nA BILL FOR\nAn Act to establish a fund in the Public Account to ensure\nthat, where the GST allocation for a financial year exceeds\nthe amount budgeted for that financial year, a percentage\nof the excess amount of GST is used to offset the unfunded\nsuperannuation liability of the State\nBe it enacted by Her Excellency the Governor of Tasmania, by\nand with the advice and consent of the Legislative Council and\nHouse of Assembly, in Parliament assembled, as follows:\n1. Short title\nThis Act may be cited as the Superannuation\nLiability (GST Windfall Fund) Act 2025.\n2. Commencement\nThis Act is taken to have commenced on\n1 July 2025.\n3. Interpretation\nIn this Act, unless the contrary intention\nappears –\nContributory Scheme means a contributory\nscheme within the meaning of the Public\nSector Superannuation Reform Act 2016,\n\nSuperannuation Liability (GST Windfall Fund) Act 2025\nAct No. of 2025\ns. 3\n4\nother than the schemes to which Part 6 of\nthat Act apply;\nContributory Scheme member means –\n(a) a person who is contributing to\nthe Contributory Scheme by way\nof contributions, or salary\nsacrifice, under the Public Sector\nSuperannuation Reform Act\n2016; or\n(b) a person who is receiving a\npension, under the regulations\nmade under that Act; or\n(c) a person who is receiving a lump\nsum benefit, under the regulations\nmade under that Act, other than a\nlump sum benefit payable under\nthe schemes to which Part 6 of\nthat Act apply;\nfinal budget outcome report means the report\nthat is publicly released in respect of a\nfinancial year under section 18 of the\nCharter of Budget Honesty Act 1998 of\nthe Commonwealth;\nFund means the Superannuation Liability\nFund established under section 5(1);\nGeneral Government Sector has the same\nmeaning as in the Financial Management\nAct 2016;\n\nSuperannuation Liability (GST Windfall Fund) Act 2025\nAct No. of 2025\ns. 3\n5\ngenerally accepted accounting principles has\nthe same meaning as in the Financial\nManagement Act 2016;\nGST windfall – see section 4;\nRetirement Benefits Fund means the fund\ncontinued in existence by section 27 of\nthe Public Sector Superannuation Reform\nAct 2016;\nSecretary means the Secretary of the\nDepartment;\nSpecific Purpose Account has the same\nmeaning as in the Financial Management\nAct 2016;\nSuperannuation Commission means the\nCommission established by section 6 of\nthe Public Sector Superannuation Reform\nAct 2016;\nunfunded superannuation liability means the\nliability of the State, in respect of the\nsuperannuation entitlements of\nContributory Scheme members within\nthe General Government Sector, that –\n(a) is calculated by the Department\nin accordance with the generally\naccepted accounting principles;\nand\n(b) is not covered by the Retirement\nBenefits Fund.\n\nSuperannuation Liability (GST Windfall Fund) Act 2025\nAct No. of 2025\ns. 4\n6\n4. Meaning of GST windfall\n(1) In this section –\nBudget papers, in relation to a financial year,\nmeans the information tabled by the\nTreasurer in support of an Appropriation\nAct, within the meaning of section 36 of\nthe Constitution Act 1934, for that\nfinancial year;\nequalisation payment, in respect of a financial\nyear, means a payment, by the\nCommonwealth to the State, in respect of\nthe financial year –\n(a) of a grant under section 5(3) of\nthe Federal Financial Relations\nAct 2009 of the Commonwealth;\nor\n(b) under an intergovernmental\nagreement that extends, or\nreplaces, section 5(3) of the\nFederal Financial Relations Act\n2009 of the Commonwealth; or\n(c) under an Act of the\nCommonwealth that the Minister\nis satisfied is intended to replace\na grant under section 5(3) of the\nFederal Financial Relations Act\n2009 of the Commonwealth;\nGST entitlement, in relation to a financial\nyear, means the amount of GST\nrevenue –\n\nSuperannuation Liability (GST Windfall Fund) Act 2025\nAct No. of 2025\ns. 5\n7\n(a) allocated to the State, for the\nfinancial year, as reflected in the\nfinal budget outcome report\npublicly released for the financial\nyear; and\n(b) that includes, but is not limited\nto, any equalisation payments, in\nrespect of the financial year, as\nspecified in that final budget\noutcome report;\nGST estimate, in relation to a financial year,\nmeans the amount that has been specified\nin the Budget papers for that financial\nyear as the amount of GST revenue,\nincluding any equalisation payments, that\nis expected to be allocated to the State,\nunder the Federal Financial Relations\nAct 2009 of the Commonwealth, for that\nfinancial year;\nGST revenue has the same meaning as in the\nFederal Financial Relations Act 2009 of\nthe Commonwealth.\n(2) For the purposes of this Act, the GST windfall of\nthe State in any financial year is the amount, if\nany, by which the GST entitlement for the\nfinancial year exceeds the GST estimate for that\nfinancial year.\n5. Superannuation Liability Fund\n(1) As soon as practicable after this Act receives the\nRoyal Assent, there is to be established a\n\nSuperannuation Liability (GST Windfall Fund) Act 2025\nAct No. of 2025\ns. 5\n8\nSpecific Purpose Account to be named the\nSuperannuation Liability Fund.\n(2) For the purposes of section 17(1) of the\nFinancial Management Act 2016 –\n(a) the Fund is to be used for the purpose of\nproviding funds to offset the unfunded\nsuperannuation liability; and\n(b) the Department is the Agency\nresponsible for administering the Fund.\n(3) There is to be paid into the Fund –\n(a) each amount determined in accordance\nwith subsection (5)(b) to be paid into the\nFund in respect of a financial year; and\n(b) such other amounts as the Treasurer may,\nfrom time to time, advance for the\npurposes of the Fund; and\n(c) any income derived from the investment\nof money standing to the credit of the\nFund.\n(4) Within 3 months after the public release of the\nfinal budget outcome report for a financial year,\nthe Secretary is to determine if there is a GST\nwindfall in respect of the financial year.\n(5) If the Secretary determines that there is a GST\nwindfall in respect of a financial year, the\nSecretary is to –\n(a) calculate the amount of the GST windfall\nfor that financial year; and\n\nSuperannuation Liability (GST Windfall Fund) Act 2025\nAct No. of 2025\ns. 6\n9\n(b) determine the amount, being 50% of the\nGST windfall for that financial year, to\nbe paid into the Fund in respect of the\nfinancial year; and\n(c) as soon as practicable after determining\nan amount under paragraph (b), pay the\namount into the Fund.\n(6) For the avoidance of doubt, the payment of an\namount under subsection (5)(c) into the Fund\ndoes not require any further appropriation than\nthis section.\n(7) Except as provided under this Act, the Financial\nManagement Act 2016 applies to the\nadministration, and management, of the Fund.\n6. Transfer of money to Retirement Benefits Fund\n(1) The Treasurer is to, from time to time, transfer\nmoney from the Fund to the Retirement Benefits\nFund to be applied by the Superannuation\nCommission to the unfunded superannuation\nliability, in accordance with the Public Sector\nSuperannuation Reform Act 2016.\n(2) Money may not be transferred from the Fund\nother than in accordance with this section and\nsection 7.\n(3) For the purposes of this section, the investment\nof money standing to the credit of the Fund, in\naccordance with section 31 of the Financial\nManagement Act 2016, is not a transfer of\nmoney from the Fund.\n\nSuperannuation Liability (GST Windfall Fund) Act 2025\nAct No. of 2025\ns. 7\n10\n7. Fund not to be closed other than in accordance with\nthis Act\n(1) The Treasurer may, with the approval of both\nHouses of Parliament, transfer the money\nstanding to the credit of the Fund to another\naccount in the Public Account.\n(2) For the purposes of subsection (1), a House of\nParliament is taken to have approved the transfer\nof money under that subsection if –\n(a) the Treasurer causes a proposal for the\nmoney transfer to be laid before each\nHouse of Parliament; and\n(b) after the proposal has been laid before a\nHouse of Parliament –\n(i) the House passes a motion\napproving the proposal; or\n(ii) no notice of motion to disallow\nthe proposal is made within 5\nsitting-days after the proposal has\nbeen laid before it; or\n(iii) if a notice of motion to disallow\nthe proposal has been made\nwithin 5 sitting-days after the\nproposal has been laid before it –\n(A) the notice of motion is\nwithdrawn; or\n(B) the motion is negatived;\nor\n\nSuperannuation Liability (GST Windfall Fund) Act 2025\nAct No. of 2025\ns. 8\n11\n(C) a further period of 9\nsitting-days of the House\nends without it having\npassed the motion.\n(3) If the Treasurer transfers the money standing to\nthe credit of the Fund in accordance with this\nsection –\n(a) the Treasurer is to direct that the Fund be\nclosed; and\n(b) after all liabilities relating to the Fund\nhave been met, the Department is to\nclose the Fund.\n(4) The Fund may not be closed other than in\naccordance with this section.\n8. Regulations\n(1) The Governor may make regulations for the\npurposes of this Act.\n(2) The regulations may –\n(a) authorise any matter to be from time to\ntime determined, approved, applied or\nregulated by any person or body\nspecified in the regulations; and\n(b) be made subject to conditions so as to\napply differently according to matters,\nlimitations or restrictions, whether as to\ntime, circumstance or otherwise,\nspecified in the regulations.\n\nSuperannuation Liability (GST Windfall Fund) Act 2025\nAct No. of 2025\ns. 9\n12\n9. Administration of Act\nUntil provision is made in relation to this Act by\norder under section 4 of the Administrative\nArrangements Act 1990 –\n(a) the administration of this Act is assigned\nto the Treasurer; and\n(b) the department responsible to the\nTreasurer in relation to the administration\nof this Act is the Department of Treasury\nand Finance.\nGovernment Printer, Tasmania","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The Bill implements the policy stated in its long title and preamble: it creates a fund and prescribes that 50% of any GST receipts above the budgeted amount be applied to offset the State's unfunded superannuation liability. It does not add material functions beyond that core purpose; it formalises the allocation rule, sets administrative roles and procedures for transfers and closure, and cross-references existing financial and superannuation statutes to operate. There is no expansion of beneficiaries or purposes beyond addressing the unfunded liability for Contributory Scheme members as defined (s.3, s.5–6)."},"complexity_factors":["Relatively short (9 substantive sections) but several multi-part definitions in s.3 and s.4","Fixed numerical rule (50% of GST windfall) reduces discretionary complexity (s.5(5)(b))","Multiple cross-references to other statutes: Financial Management Act 2016, Public Sector Superannuation Reform Act 2016, Charter of Budget Honesty Act 1998, Federal Financial Relations Act 2009 (s.3, s.4, s.5(7))","Timing and procedural conditions: Secretary must act within 3 months after final budget outcome report (s.5(4)); closure requires detailed parliamentary approval steps (s.7(2))","Conditional logic: calculation of GST windfall (s.4) triggers a statutory payment (s.5(5)), and transfers are restricted to a specified recipient (Retirement Benefits Fund) (s.6)","Accounting/valuation dependency: unfunded superannuation liability defined by generally accepted accounting principles, requiring actuarial/accounting processes (s.3)","Delegation and administration: regulations may delegate or apply conditions (s.8), and administration is initially assigned to the Treasurer/Department (s.9)"],"plain_english_summary":"**What this law does (mechanics first)\n\n- Establishes a new Specific Purpose Account in the State's Public Account called the \"Superannuation Liability Fund\" (the Fund) (s.5(1)).\n- Requires the Secretary of the Department of Treasury and Finance to check, within 3 months after the Commonwealth's final budget outcome report is publicly released for a financial year, whether the State has received more GST revenue than was estimated (a \"GST windfall\") (s.4(2), s.5(4)).\n- If a GST windfall exists, the Secretary must calculate its size and place 50% of that excess into the Fund for that financial year (s.5(5)(a)–(c)). No further appropriation is required to make that payment (s.5(6)).\n- The Treasurer may, from time to time, transfer money from the Fund to the existing Retirement Benefits Fund; monies so transferred are to be applied by the Superannuation Commission to reduce the State's unfunded superannuation liability for certain public sector members (s.6(1)–(2)).\n- The Fund may only be closed or its money moved to another Public Account with the Treasurer’s proposal and the approval process set out in the Act (a form of parliamentary approval) (s.7).\n- The Fund is administered under the Financial Management Act 2016 and the Department of Treasury and Finance is the responsible agency until administrative arrangements say otherwise (s.5(7), s.9).\n\nWhat the law is intended to achieve (official rationale)\n\n- The Bill sets up a mechanism so that when the State receives more GST revenue in a year than it budgeted for, a fixed share (50%) of that unbudgeted extra is ringfenced and used to reduce the State’s unfunded superannuation liability (preamble and s.5(2)(a), s.5(5)(b)).\n\nWho is affected and who decides\n\n- Who benefits: Contributory Scheme members for public sector schemes covered by the Public Sector Superannuation Reform Act 2016 — i.e. people contributing to those schemes, and certain pensioners and lump-sum recipients defined in the Act — because the Fund is used to offset the State’s unfunded superannuation liability that relates to them (definitions in s.3 and the definition of \"unfunded superannuation liability\").\n- Who pays / where the money comes from: The trigger is extra GST revenue allocated to Tasmania by the Commonwealth in any financial year (the \"GST windfall\" as defined in s.4). The State diverts 50% of that excess revenue into the Fund (s.5(5)(b)). That reduces the amount of the windfall available for other State spending.\n- Who decides and acts: the Secretary (Department of Treasury and Finance) determines whether a windfall exists, calculates it and directs 50% into the Fund (s.5(4)–(5)); the Treasurer makes transfers from the Fund to the Retirement Benefits Fund (s.6(1)); the Superannuation Commission applies transferred money to reduce unfunded liability (s.6(1)).\n\nKey rules and constraints\n\n- The Act fixes the share of any GST windfall to flow into the Fund at 50% (s.5(5)(b)).\n- The Fund can receive other advances from the Treasurer and investment income (s.5(3)(b)–(c)).\n- Transfers out of the Fund are limited to transfers to the Retirement Benefits Fund (s.6(1)–(2)), except that usual investment of the Fund's money under the Financial Management Act is not treated as a transfer (s.6(3)).\n- The Fund can only be closed or its balance moved to another Public Account with the parliamentary approval process set out in the Act (s.7).\n\nCosts, incentives, trade‑offs and implementation considerations (testing the purpose-claims)\n\n- Opportunity cost: Committing 50% of an unexpected GST windfall to the Fund reduces the State’s immediate discretionary spending capacity; those funds cannot be used for other programs unless the Fund is later reallocated under the Act (s.5(5)(b), s.7). The Act explicitly permits the Treasurer to advance additional amounts, which preserves executive discretion to increase the Fund at the Treasurer’s choice (s.5(3)(b)).\n- Concentrated benefit / diffuse cost: The economic benefit of transfers is concentrated to meeting the State’s superannuation obligations (beneficiaries are Contributory Scheme members as defined in s.3). The cost is borne by the State's overall budget (i.e. taxpayers and service budgets) in the form of foregone alternative uses of that revenue.\n- Incentives for budgeting and behaviour: Because the mechanism triggers only when actual GST receipts exceed the Budget papers' GST estimate (s.4), it creates an automatic fiscal rule that reduces the marginal benefit to the Government of declaring or spending a GST windfall. That may alter how conservative GST estimates are set, or how windfalls are treated in near-term budget decisions (mechanical effect of s.4 and s.5(5)).\n- Implementation and administrative burden: The Secretary must identify and quantify GST windfalls within three months of the Commonwealth’s final budget outcome report for the year (s.5(4)–(5)); the unfunded superannuation liability must be calculated in accordance with generally accepted accounting principles (s.3 definition), which requires actuarial/accounting work and coordination with the Superannuation Commission and Treasury.\n- Legal and fiscal interactions: The Act cross‑references multiple Commonwealth and State statutes for definitions and triggers (Charter of Budget Honesty Act 1998 (final budget outcome report) — s.4; Federal Financial Relations Act 2009 (GST, equalisation payments) — s.4; Financial Management Act 2016 (accounting and Specific Purpose Account rules) — s.5(7); Public Sector Superannuation Reform Act 2016 (scheme definitions and Retirement Benefits Fund) — s.3, s.6). Changes to those external statutes or to Commonwealth GST/ equalisation arrangements would affect when and how the Fund is filled (s.4 definitions).\n- Political and parliamentary constraint on closure: Closing the Fund or moving its balance out of the Fund requires a procedural approval process involving both Houses (s.7). This constrains executive flexibility to redeploy the funds quickly without parliamentary involvement.\n\nBottom line (mechanical summary with purpose tested)\n\n- Mechanically, the Act creates a ring‑fenced account that automatically collects half of any GST revenue received by the State in a year above the Budget estimate, and makes that money available to reduce the State’s unfunded superannuation liability for defined public sector members (s.4, s.5, s.6).\n- The stated purpose is to use unbudgeted GST gains to offset unfunded superannuation liability. The law does this by imposing an automatic allocation (50%) with clear administrative roles for the Secretary, Treasurer and the Superannuation Commission (s.5(5), s.6(1)).\n- Trade-offs include reduced short‑term budgetary flexibility, administrative tasks for measurement and transfer, and reliance on external Commonwealth reporting and definitions (s.4, s.5(4)–(5), s.5(6))."},"summary":{"status_summary":"The bill has been introduced in the Tasmanian House of Assembly and is awaiting debate and further parliamentary stages.","complexity_score":3,"likely_questions":["When will the first determination of a GST windfall occur for the 2025-26 financial year?","How is the 'unfunded superannuation liability' calculated, and who audits that calculation?","What happens if there is no GST windfall for several years? Does the Fund remain empty?","Can the Treasurer transfer money out of the Fund for purposes other than the Retirement Benefits Fund without closing the Fund?","Does the 50% capture apply to the net windfall after any equalisation payments, or to the gross GST entitlement?"],"complexity_factors":["Relies on definitions from multiple existing Acts (Financial Management Act 2016, Public Sector Superannuation Reform Act 2016, Federal Financial Relations Act 2009, Charter of Budget Honesty Act 1998)","Calculation of GST windfall requires comparing budget estimates with final outcome reports, which may involve interpretation of what constitutes 'GST estimate' in budget papers","Interaction with Commonwealth grants and equalisation payments adds layers of dependency on federal fiscal data","Parliamentary approval mechanism for closing the Fund involves a time-limited disallowance procedure that may be unfamiliar to general readers"],"plain_english_summary":"The bill creates a Superannuation Liability Fund that captures 50% of any GST “windfall” (amount the State actually receives above the budget estimate) and directs those proceeds to the Retirement Benefits Fund to reduce Tasmania’s unfunded superannuation liability for Contributory Scheme members. Operative from 1 July 2025, it limits future Treasurers’ discretion over unexpected GST revenue, imposes administrative duties on Treasury to calculate and transfer amounts, and redirects funds away from other budget uses."}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-liability-gst-windfall-fund-bill-2025","history":"/api/acts/superannuation-liability-gst-windfall-fund-bill-2025/history","analysis":"/api/acts/superannuation-liability-gst-windfall-fund-bill-2025/analysis","conflicts":"/api/acts/superannuation-liability-gst-windfall-fund-bill-2025/conflicts","importantCases":"/api/acts/superannuation-liability-gst-windfall-fund-bill-2025/important-cases","documents":"/api/acts/superannuation-liability-gst-windfall-fund-bill-2025/documents"}}