Superannuation (Interest) Regulations (Amendment) (Cth)

Statutory Rules 1988 No. 3361

Superannuation (Interest) Regulations2

(Amendment)

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Superannuation Act 1976.

Dated 15 December 1988.

N. M. STEPHEN

Governor-General

By His Excellency’s Command,

Peter Walsh

Minister of State for Finance

Principal Regulations

1. In these Regulations, “Principal Regulations” means the Superannuation (Interest) Regulations.

Calculation of interest

2. Regulation 6 of the Principal Regulations is amended:

(a) by omitting from subregulation (1) “1 July 1988” and “11.89 per cent” and substituting “1 October 1988” and “12.42 per cent” respectively;

(b) by omitting subregulations (2), (3) and (4) and substituting the following subregulations:

“(2) Where the period of interest in respect of a prescribed amount, in relation to a person who has ceased to be an eligible employee, commences before 1 October 1988, interest payable in respect of that prescribed amount shall be deemed to have accrued:

(a) during a part or, where there is more than one such part, each part of the period of interest that is comprised of a financial year, or part of a financial year, specified in column 1 of Part I of the Schedule (or, where the period of interest is comprised wholly of such a financial year or part of such

(S.R. 286/88)—Cat. No. 14/2.12.1988

a financial year, during the whole of the period of interest). at the rate of interest applicable in respect of the financial year that comprises, or part of which comprises, that part of the period of interest (or the whole of the period of interest. as the case requires);

(b) during the part or, where there is more than one such part. each part of the period of interest that is comprised of a quarter, or part of a quarter, specified in column 1 of Part II of the Schedule (or, where the period of interest is comprised wholly of such a quarter or part of such a quarter. during the whole of the period of interest), at the rate of interest applicable in respect of the quarter that comprises. or part of which comprises, that part of the period of interest (or the whole of the period of interest, as the case requires): and

(c) where the period of interest ends on or after 1 October 1988—during the part of the period of interest that commences on 1 October 1988, at the rate of 12.42 per cent per annum.

“(3) Interest payable in respect of a prescribed amount in relation to a person who has  ceased to be an eligible employee shall be deemed to have been compounded:

(a) where the period of interest commenced on or after 1 July 1988—on 31 March, 30 June, 30 September and 31 December in each year; and

(b) where the period of interest commenced before 1 July 1988:

(i) in respect of that part of the period that ended on 30 June 1988—on 30 June in each year; and

(ii) in respect of that part of the period that commenced on 1 July 1988—on 31 March, 30 June, 30 September and 31 December in each year.

“(4) For the purposes of subregulation (2):

(a) the rate of interest specified in column 2 of Part I of the Schedule opposite to the reference to a financial year in Column 1 of that Part is the rate of interest applicable in respect of that financial year; and

(b) the rate of interest specified in column 2 of Part II of the Schedule opposite to the reference to a quarter in column 1 of that Part is the rate of interest applicable in respect of that quarter.”;

(c) by omitting from subregulation (5) “of interest” (second occurring);

(d) by inserting after subregulation (5) the following subregulation:

“(6) For the purposes of this regulation, a reference to a quarter shall be read as a reference to a period of 3 months commencing on 1 January, 1 April, 1 July or 1 October in any year.”.

Schedule

3. The Schedule to the Principal Regulations is amended:

(a) by inserting the heading “PART I” before “RATES OF INTEREST APPLICABLE IN RESPECT OF CERTAIN FINANCIAL YEARS”:

(b) by adding at the end:

“PART II

RATES OF INTEREST APPLICABLE IN RESPECT OF CERTAIN QUARTERS

Column 1	Column 2
Quarter	Rate of interest
Quarter that commenced on 1 July 1988	5.279 per cent per annum”.

Application

4. (1) The provisions of regulation 6 of the Principal Regulations, as amended by these Regulations, apply in relation to interest payable in respect of an amount that is a prescribed amount in relation to a person:

(a) if deferred benefits become payable in respect of the person after the date of commencement of these Regulations; or

(b) if:

(i) deferred benefits cease to be applicable in respect of the person; or

(ii) in the case of a person in respect of whom deferred benefits are not applicable—the person ceases to be an eligible employee;

on or after that date.

(2) An expression used in subregulation (1) that is defined in the Principal Regulations has the same meaning for the purposes of that subregulation as it has in those Regulations.

NOTES

1. Notified in the Commonwealth of Australia Gazette on 15 December 1988.

2. Statutory Rules 1978 No. 253 as amended to date. For previous amendments see Note 2 to Statutory Rules 1988 No. 33 and see also Statutory Rules 1988 Nos. 33, 113, 229 and 274.

Printed by Authority by the Commonwealth Government Printer