Superannuation (Interest) Regulations (Cth)

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Superannuation (Interest) Regulations

Statutory Rules 1978 No. 253 as amended

made under the

Superannuation Act 1976

This compilation was prepared on 8 June 2004

taking into account amendments up to SR 1990 No. 127

Prepared by the Office of Legislative Drafting,

Attorney-General’s Department, Canberra

Contents

      1Citation [see Note 1]

 These Regulations may be cited as the Superannuation (Interest) Regulations.

2Commencement

 These Regulations shall be deemed to have taken effect from and including 1 July 1976.

3Repeal

 The Superannuation (Interest) Regulations (being Statutory Rules 1976 No. 258) are repealed.

4Interpretation

 In these Regulations, unless the contrary intention appears:

first day of interest, in relation to a prescribed amount, means:

  • (a)

    where the prescribed amount, being a prescribed amount referred to in paragraph (a), (b), (c) or (e) of the definition of prescribed amount, is deducted from the salary of the person referred to in whichever of those paragraphs is applicable:

    • (i)

      if the day on which the amount was so deducted was a contribution day — that day; or

    • (ii)

      if that day was not a contribution day — the contribution day next following that day;

  • (b)

    where the prescribed amount, being a prescribed amount referred to in paragraph (a), (b), (c) or (e) of the definition of prescribed amount, is not deducted from the salary of the person referred to in whichever of those paragraphs is applicable:

    • (i)

      if the day on which the amount was paid to the Commissioner was a contribution day — that day; or

    • (ii)

      if that day was not a contribution day — the contribution day next following that day;

  • (c)

    where the prescribed amount is a prescribed amount referred to in paragraph (d) of the definition of prescribed amount — the commencing day;

  • (d)

    where the prescribed amount is a prescribed amount referred to in paragraph (g) or (h) of the definition of prescribed amount — the day next following the day that was the last day of service of the person referred to in whichever of those paragraphs is applicable upon that person ceasing to be an eligible employee as referred to in paragraph 7A (2) (a) of the Act;

  • (e)

    where the prescribed amount is a prescribed amount referred to in paragraph (f), (j), (k) or (n) of the definition of prescribed amount:

    • (i)

      if the day on which the prescribed amount was paid to the Fund was a contribution day — that day; or

    • (ii)

      if that day was not a contribution day — the contribution day next following that day; and

  • (f)

    where the prescribed amount is a prescribed amount referred to in paragraph (m) of the definition of prescribed amount:

    • (i)

      if the day on which the amount was paid to the Commissioner was a contribution day — that day; or

    • (ii)

      if that day was not a contribution day — the contribution day next following that day.

prescribed amount, in relation to a person who has ceased to be an eligible employee, means:

  • (a)

    a basic or supplementary contribution paid by the person to the Commissioner on or after his first day of service;

  • (b)

    an amount deemed by virtue of paragraph 128 (2) (a) of the Act to be basic contributions paid by the person to the Commissioner under the Act on or after his first day of service;

  • (c)

    an amount deemed by virtue of subsection 129 (2) of the Act to be an amount of supplementary contributions paid by the person to the Commissioner under the Act on or after his first day of service;

  • (d)

    an amount deemed by virtue of subsection 177 (9), (10) or (11) of the Act to be an amount of basic contributions or supplementary contributions, as the case may be, paid by the person under the Act on the commencing day;

  • (e)

    an additional contribution paid by the person to the Commissioner on or after his first day of service under subsection 186 (9) of the Act;

  • (f)

    an amount paid to the Fund under subsection 112 (5) of the Act in respect of the person, being a person referred to in subsection 7A (1) of the Act, upon the person again becoming an eligible employee as referred to in paragraph 7A (1) (b) of the Act;

  • (g)

    an amount that was the person’s accumulated basic contributions upon the person, being a person referred to in subsection 7A (2) of the Act, ceasing to be an eligible employee as referred to in paragraph 7A (2) (a) of the Act;

  • (h)

    an amount that was the person’s accumulated supplementary contributions upon the person, being a person referred to in subsection 7A (2) of the Act, ceasing to be an eligible employee as referred to in paragraph 7A (2) (a) of the Act;

  • (j)

    an amount paid to the Fund under subsection 112 (9) of the Act in respect of the person, being a person referred to in subsection 7A (3) of the Act, upon his entitlement to deferred benefits being cancelled under subsection 76 (1) of the Act as referred to in subsection 7A (3) of the Act;

  • (k)

    an amount paid, or last paid, to the Fund under subsection 112 (9) of the Act in respect of the person, being a person referred to in subsection 7A (4) of the Act, upon his entitlement to deferred benefits being cancelled under subsection 143 (2) of the Act as referred to in subsection 7A (4) of the Act;

  • (m)

    an amount paid to the Commissioner by an eligible employee to whom section 14A applies, being an amount so paid under section 124C of the Act as modified in its application to that employee by regulation 5 of the Superannuation (Continuing Contributions for Benefits) Regulations; and

  • (n)

    an amount deemed to be paid to the Fund under subsection 112 (5) of the Act in respect of the person, being a person to whom subsection 7A (1) of the Act as modified by the Superannuation (Existing Invalidity Pensioners) Regulations applies, upon the person becoming an eligible employee.

termination day, in relation to a person who has ceased to be an eligible employee, means:

  • (a)

    subject to paragraphs (b) and (c), where no benefit other than lump sum benefit is payable to or in respect of that person:

    • (i)

      his last day of service; or

    • (ii)

      the day 14 days after the day on which the Commissioner has determined the amount of accumulated contributions in respect of that person;

whichever is later;

  • (b)

    where, after so ceasing to be an eligible employee, deferred benefits become payable to or in respect of that person under Division 3 of Part IX of the Act:

    • (i)

      the pension pay day next following the day on which the deferred benefits become payable or, if deferred benefits become payable on more than one occasion after his last day of service, first become payable; or

    • (ii)

      the second pension pay day after the day on which the Commissioner has determined the amount of any accumulated contributions constituting or forming part of the deferred benefits payable or, if deferred benefits become payable on more than one occasion after his last day of service, first payable, to or in respect of that person;

whichever is later;

  • (c)

    where, upon the person ceasing to be an eligible employee, deferred benefits become applicable in relation to the person by virtue of Division 3 of Part IX of the Act but the deferred benefits do not become payable to the person:

    • (i)

      except where subparagraph (ii) applies — his last day of service; or

    • (ii)

      where the deferred benefits cease to be applicable in relation to the person by virtue of paragraph 139 (6) (b) of the Act — the day 14 days after the day on which the Commissioner has determined the amount of accumulated contributions in respect of the person; and

  • (d)

    in any other case:

    • (i)

      the pension pay day next following that person’s last day of service; or

    • (ii)

      the second pension pay day after the day on which the Commissioner has determined the amount of accumulated contributions in respect of that person;

whichever is later.

the Act means the Superannuation Act 1976.

5Interest payable on contributions etc

 For the purpose of ascertaining:

  • (a)

    the accumulated basic contributions or the accumulated supplementary contributions of a person who has ceased to be an eligible employee (whether for the first time or otherwise); or

  • (b)

    the amount that, by virtue of section 7A of the Act, is to be added to the amount that would, but for that section, be the amount of the accumulated basic contributions or accumulated supplementary contributions of a person who has ceased to be an eligible employee on an occasion earlier than his first day of service, or who, immediately before becoming an eligible employee, was an existing invalidity pensioner;

interest, calculated in accordance with regulation 6, is payable in respect of any amount that is a prescribed amount in relation to a person who has ceased to be an eligible employee in respect of the period commencing on the day that is the first day of interest in relation to the prescribed amount and ending on the day that is the termination day in relation to the person.

6Calculation of interest
  • (1)

    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 on or after 1 April 1990, interest payable in respect of that prescribed amount shall be deemed to have accrued during the whole of the period of interest at the rate of 13.52% per annum.

  • (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 April 1990, 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 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 April 1990 — during the part of the period of interest that commences on 1 April 1990, at the rate of 13.52% 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.

  • (5)

    In this regulation, period of interest, in respect of a prescribed amount, means the period in respect of which interest is, by virtue of regulation 5, payable in respect of the prescribed amount.

  • (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.

7Interest payable on an amount referred to in subparagraph 145 (8) (a) (i) or (9) (a) (i) of the Act
  • (1)

    For the purposes of subparagraphs 145 (8) (a) (i) and 9 (a) (i) of the Act, where:

    • (a)

      the Commissioner is required, upon a life policy or life policies assigned by a person to the Commissioner in accordance with subsection 145 (3) of the Act becoming payable at or before the time when the person ceases to be an eligible employee, as referred to in subsection 145 (8) of the Act, to pay into the Superannuation Fund, in accordance with subparagraph 145 (8) (a) (i) of the Act, an amount equal to the amount that, but for subsection 145 (2) of the Act, would have been paid by the Commissioner into the Superannuation Fund under paragraph 128 (2) (a) of the Act; or

    • (b)

      the Commissioner is required, upon the Commissioner surrendering the life policy or life policies assigned by a person to the Commissioner in accordance with subsection 145 (3) of the Act where the person attains his minimum retiring age while he is an eligible employee or ceases to be such an eligible employee before he attains that age, as referred to in subsection 145 (9) of the Act, to pay into the Superannuation Fund, in accordance with subparagraph 145 (9) (a) (i) of the Act, the amount referred to in paragraph (a);

    interest, calculated in accordance with subregulation (2), shall be payable in respect of that amount in respect of the period commencing on the day on which the person referred to in paragraph (a) or (b), as the case may be, made an election in accordance with paragraph 128 (1) (a) of the Act and ending on the day on which the life policy or life policies becomes or become payable or the day as at which the surrender value or surrender values of the life policy or life policies was or were calculated, as the case requires.

  • (2)

    For the purposes of calculating the amount of interest payable in respect of an amount referred to in subregulation (1), the provisions of regulation 6 and the Schedule shall apply as if:

    • (a)

      the reference to a prescribed amount in relation to a person who has ceased to be an eligible employee were a reference to an amount referred to in subregulation (1);

    • (b)

      the reference to the period of interest in respect of a prescribed amount were a reference to the period in respect of which interest is, by virtue of subregulation (1), payable in respect of an amount referred to in that subregulation; and

    • (c)

      subregulation (5) of that regulation were omitted.

Schedule

(regulation 6)

PartIRates of interest applicable in respect of certain financial years 

Column 1

Column 2

Financial year

Rate of interest

Financial year that commenced on 1 July 1976

8.135 per cent per annum

Financial year that commenced on 1 July 1977

8.414 per cent per annum

Financial year that commenced on 1 July 1978

9.300 per cent per annum

Financial year that commenced on 1 July 1979

9.637 per cent per annum

Financial year that commenced on 1 July 1980

12.110 per cent per annum

Financial year that commenced on 1 July 1981

11.655 per cent per annum

Financial year that commenced on 1 July 1982

10.787 per cent per annum

Financial year that commenced on 1 July 1983

13.490 per cent per annum

Financial year that commenced on 1 July 1984

14.968 per cent per annum

Financial year that commenced on 1 July 1985

16.714 per cent per annum

Financial year that commenced on 1 July 1986

22.676 per cent per annum

Financial year that commenced on 1 July 1987

12.000 per cent per annum

PartIIRates 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

Quarter that commenced on 1 October 1988

5.415 per cent per annum

Quarter that commenced on 1 January 1989

9.098 per cent per annum

Quarter that commenced on 1 April 1989

15.836 per cent per annum

Quarter that commenced on 1 July 1989

23.838 per cent per annum

Quarter that commenced on 1 October 1989

6.415% per annum

Quarter that commenced on 1 January 1990

0.000% per annum

 

Notes to the Superannuation (Interest) Regulations

Note 1

The Superannuation (Interest) Regulations (in force under the Superannuation Act 1976) as shown in this compilation comprise Statutory Rules 1978 No. 253 amended as indicated in the Tables below.

All relevant information pertaining to application, saving or transitional provisions prior to 12 May 2004 is not included in this compilation.

 For subsequent information see Table A.

Table of Statutory Rules

Year and

number

Date of notification

in Gazette

Date of

commencement

Application, saving or

transitional provisions

1978 No. 253

19 Dec 1978

1 July 1976

1980 No. 98

12 May 1980

12 May 1980

R. 3

1981 No. 17

19 Feb 1981

19 Feb 1981

R. 3

1981 No. 38

13 Mar 1981

15 Mar 1981

1981 No. 213

31 July 1981

31 July 1981

R. 3

1982 No. 43

24 Feb 1982

24 Feb 1982

R. 2

1982 No. 318

26 Nov 1982

26 Nov 1982

R. 4

1984 No. 34

15 Mar 1984

15 Mar 1984

R. 3

1984 No. 156

23 July 1984

23 July 1984

R. 3

1984 No. 240

17 Sept 1984

17 Sept 1984

R. 2

1985 No. 33

1 Apr 1985

1 Apr 1985

R. 3

1985 No. 226

10 Sept 1985

10 Sept 1985

R. 2

1985 No. 328

9 Dec 1985

9 Dec 1985

R. 2

1986 No. 15

13 Feb 1986

13 Feb 1986

R. 4

1986 No. 139

20 June 1986

20 June 1986

R. 3

1986 No. 250

19 Sept 1986

19 Sept 1986

R. 3

1986 No. 389

22 Dec 1986

22 Dec 1986

R. 3

1987 No. 7

30 Jan 1987

30 Jan 1987

R. 4

1987 No. 44

27 Mar 1987

27 Mar 1987

R. 3

1987 No. 99

1 June 1987

1 June 1987

R. 3

1987 No. 199

21 Sept 1987

21 Sept 1987

R. 3

1987 No. 271

27 Nov 1987

27 Nov 1987

R. 4

1988 No. 33

17 Mar 1988

17 Mar 1988

R. 3

1988 No. 113

3 June 1988

3 June 1988

R. 3

1988 No. 229

16 Sept 1988

16 Sept 1988

R. 4

1988 No. 274

15 Nov 1988

1 July 1976

1988 No. 336

15 Dec 1988

15 Dec 1988

R. 4

1989 No. 33

14 Mar 1989

14 Mar 1989

R. 4

1989 No. 106

31 May 1989

31 May 1989

R. 4

1989 No. 240

11 Sept 1989

11 Sept 1989

R. 4

1989 No. 360

15 Dec 1989

15 Dec 1989

R. 4

1990 No. 73

16 Mar 1990

16 Mar 1990

R. 4

1990 No. 127

19 June 1990

19 June 1990

R. 4

Table of Amendments

    ad. = added or inserted

     am. = amended rep. = repealed rs. = repealed and substituted

Provision affected

How affected

R. 4.........................................

am. 1981 No. 38; 1982 No. 318; 1988 No. 274

R. 5.........................................

am. 1988 No. 274

R. 6.........................................

am. 1980 No. 98; 1981 Nos. 17 and 213; 1982 Nos. 43 and 318; 1984 Nos. 34, 156 and 240; 1985 Nos. 33, 226 and 328; 1986 Nos. 15, 139, 250 and 389; 1987 Nos. 7, 44, 99, 199 and 271; 1988 Nos. 33, 113, 229 and 336; 1989 Nos. 33, 106, 240 and 360; 1990 Nos. 73 and 127

Schedule

Schedule................................

am. 1980 No. 98; 1981 Nos. 17 and 213; 1982 No. 318; 1984 Nos. 34 and 156; 1985 No. 33; 1986 No. 15; 1987 Nos. 7 and 271; 1988 Nos. 229 and 336; 1989 Nos. 33, 106, 240 and 360; 1990 Nos. 73 and 127

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