Barry Maggie: Taxation (Annual Rates Foreign Superannuation and Remedial Matters) Bill — In CommitteeText is incorporated into the Bound VolumeBarry Maggie: Taxation (Annual Rates Foreign Superannuation and Remedial Matters) Bill — In Committee[Sitting date: 18 February 2014. Volume:696;Page:16005. Text is incorporated into the Bound Volume.]MAGGIE BARRY (National—North Shore): I rise to take a call on the Taxation (Annual Rates Foreign Superannuation and Remedial Matters) Bill. This bill is all about making the tax system simpler and fairer and also strengthening the economy. That is the way we approach this as a Government. We do not choose as the Opposition does with its alien notions just to tax the rich and hike the tax rates up. The Opposition’s more ludicrous recommendation today was to make a Man Booker Prize winner the chair of the Finance and Expenditure Committee. The level of contribution to this debate that has come through from the Opposition is pretty well indicative of the level of intellectual rigour that it brings to many of the debates in this House and it is woeful.I would like to talk mostly about the taxation of foreign superannuation because our moves to make it fairer have in fact benefited from the process of the select committee. We have made several recommendations to improve and to clarify the rules. For those of us who have electorates many of us have received complaints either from people who have shifted to New Zealand and have not understood the complexities of the lump-sum payments when they are bringing over their superannuation schemes or from New Zealanders who are moving back. They too are a little unclear about how the system actually works. When you look at the base of what we are doing with foreign superannuation we are trying to make it as clear as possible.The Minister who has proposed this bill the Hon Todd McClay has sought to provide even greater flexibility over foreign superannuation because the people who are needing to make adjustments before this bill goes through in April of 2014 probably need a little bit of time to adjust. So too do the financial advisers I think because the complexities that existed in the old system have not quite been ironed out. But there is as I said earlier a degree of rigour that is bringing a lot of clarity more transparency and greater simplicity to the way we do things.The bill introduces a 15 percent option. That is very important for those who withdrew a lump sum or who made a transfer from their foreign superannuation scheme and did not comply with the rules at the time. A lot of people did comply with the rules and as far as they are concerned they want to see everybody I guess playing on a level playing field. That is why we went to such a lot of trouble and why the Minister intervened—Hon Trevor Mallard: I raise a point of order Mr Chairperson. With all due respect to the member I think she is referring to Part 3 of the bill rather than Part 2. Is the debate not on Part 2 at the moment? The foreign superannuation stuff I understand—the bits that I have found are in Part 3 of the bill.The CHAIRPERSON (Eric Roy): I have to confess that I have not read all 107 clauses that are in the bill.Hon Trevor Mallard: Oh come on! Ross Robertson would have.The CHAIRPERSON (Eric Roy): I take offence—almost—to that comment. The Minister has passed me a schedule of what is in Part 2 and taxation of foreign superannuation is mentioned in a number of clauses.MAGGIE BARRY: Thank you Mr Chair. As I was saying speaking to Part 2 of the bill as I was on foreign superannuation and for those members of the Committee who were not paying attention this is a piece of legislation—and this part in particular—that deals with foreign superannuation. As I indicated many of us have received complaints from people who are in genuine distress. When you are ushering in a piece of legislation that is this comprehensive it is important to make sure that people are not left out and that they are in fact able to make their adjustments.I was talking about the 15 percent rule and I think that when we look at what Todd McClay has proposed there the 15 percent option is a change that will extend the availability of the 15 percent option to those whose funds have not actually been transferred before that date of 1 April 2014. Funds transfers as those of you who either through your constituents or through your own experience know are a very lengthy process. It is a tricky one and this extension is in fact very good news for those who are wanting to take up that option. In fact I think it would have been very difficult for them otherwise.When we look at the way that it used to be the foreign investment fund used to have its rules applying to foreign superannuation interest. It is not going to be involved any more. Instead of that taxpayers will have the option of calculating the actual income earned during their period of residence if they have a defined contribution scheme. That is a very good thing. I think much of the confusion was around the application of the foreign investment fund to a range of foreign investment schemes many of which were in the UK. The Australian one is a little bit different because there is a lump-sum withdrawal or transferring of interest to a New Zealand or Australian scheme still being allowed under these new rules.All in all this is a bill that does aim to make things fairer and simpler and to strengthen the economy. It also from the perspective of individuals makes it a lot more straightforward to iron out the complexities in order to make it easier for older people who want to settle here or for New Zealanders who want to come home to have a very fair approach to the way they are taxed. Therefore their planning for their retirement will be a lot easier. That is why I commend this to the Committee.