The bill cutting life insurance commissions and introducing clawbacks has lapsed, as  it didn't achieve Royal Asset before Parliament was called back today to debate bills that could lead to a July 2 election.

A spokesman for Assistant Treasurer Kelly O’Dwyer’s office confirmed the bill has stalled.

“All bills without royal asset lapse in their current form,” he told insuranceNEWS.com.au.

The Life Insurance Remuneration Arrangements Bill was awaiting a third reading in the Senate.

With the Senate only debating bills scheduled to trigger a double dissolution, it looks unlikely the life insurance legislation will make it back onto the Government’s business schedule.

The bill was due to take effect on July 1, so the move to cut commissions and introduce clawbacks is now in disarray.

A general election has been tipped for July 2, and if the bill is reintroduced to Parliament it would be months after that date.

Although it has bipartisan support, Labor has hinted it would consider tougher measures on adviser remuneration, so there is no guarantee the bill would survive in its current form.

The failure to achieve royal assent would also appear to stop the Australian Securities and Investments Commission’s regulations on administering changes to life insurance.

The bill granted powers to the regulator to create its own remuneration regulations, which were expected to be the same as the lapsed legislation.

There is a Treasury consultation paper based on the Bill, with comments due by April 28.