Superannuation Legislation Amendment Act 1990 (Cth)

Superannuation Legislation Amendment Act

1990

No. 40 of 1990

TABLE OF PROVISIONS
PART 1—PRELIMINARY
Section
1.	Short title
2.	Commencement
PART 2—AMENDMENTS OF THE SUPERANNUATION ACT 1922
3.	Principal Act
4.	Repeal of section 55
5.	Payment to person other than pensioner
PART 3—AMENDMENTS OF THE SUPERANNUATION ACT 1976
6.	Principal Act
7.	Long title
8.	Interpretation
9.	Insertion of new sections:
4a.	Definition of “approved authority”—declaration for purposes of paragraph (a)
4b.	Meaning of “re-employed former contributor with preserved rights”
10.	Retirement on ground of invalidity
11.	Accumulated basic and supplementary contributions—additional amounts
12.	Children of deceased retirement pensioners
13.	Temporary employees likely to be continued in employment
14.	Repeal of section 12
15.	Temporary employees employed under contract
16.	Insertion of new section:
13a.	Sections 11 and 13 not applicable to certain persons employed on or after 1 July 1990

TABLE OF PROVISIONS continued
Section
17.	Statutory office holders
18.	Persons to whom Division 2 or 3 of Part IV of the Public Service Act applies
19.	Insertion of new section:
15a.	Persons excluded from definition of “eligible employee”
20.	Medical examination, and issue of benefit classification certificate, on becoming eligible employee
21.	Insertion of new sections:
16aa.	Benefit event happening before section 16 procedures completed
16ab.	Condition coming into existence after person became eligible employee
16ac.	Issue of benefit classification certificate where duty of disclosure breached
16ad.	Service of certificates and of related notices
16ae.	Application of certain provisions to the Commissioner
22.	Commissioner for Superannuation
23.	Insertion of new Part:
PART IIa—COMMONWEALTH SUPERANNUATION BOARD
Division 1—Establishment. Functions and Powers of Board
27a.	Establishment of Board
27b.	Incorporation etc.
27c.	Functions
27d.	Powers
Division 2—Constitution, meetings and business of Board
27e.	Definitions
27f.	Membership of Board
27g.	Chairperson of Board
27h.	Acting appointments
27j.	Remuneration
27k.	Leave of absence
27l.	Resignation of appointed members
27m.	Termination of appointment of appointed members
27n.	Meetings
27p.	Disclosure of interests
27q.	Delegation by Board
27r.	Indemnification of members of the Board
27s.	Vacancies not to invalidate actions of Board
27t.	Defective appointment not invalid etc.
27u.	Staffing
24.	Objective and duties of Trust
25.	Repeal of sections 30, 30a and 31 and insertion of new section:
30.	Membership of Trust
26.	Remuneration and allowances
27.	Leave of absence
28.	Resignation
29.	Disclosure of interests
30.	Termination of appointment
31.	Acting appointments
32.	Meetings of Trust
33.	Repeal of section 39
34.	Establishment of Fund
35.	Insertion of new section. Division and heading
43.	Certain documents not liable to stamp duty etc.
Division 2a—Provisions relating to certain services provided by Trust
43a.	Powers of Trust as investment manager, etc.
43b.	Trust may charge
43c.	Costs

TABLE OF PROVISIONS continued
Section
Division 2b—Accounts and Records
36.	Trust to keep accounts and records
37.	Insertion of new Division:
Division 2c—The Chief Executive Officer
44aa.	Chief Executive Officer
44aab.	Duties of Chief Executive Officer
44aac.	Chief Executive Officer not to engage in other paid employment
44aad.	Remuneration and allowances
44aae.	Leave of absence
44aaf.	Resignation
44aag.	Termination of appointment
44aah.	Acting Chief Executive Officer
44aaj.	Delegations
38.	Basic contributions
39.	Decreases in salary
40.	Repeal of section 51a and substitution of sections:
51a.	Maternity and parental leave
51b.	Election to cease making contributions
41.	Insertion of new Part:
PART IVa—RETIREMENT ON GROUND OF INVALIDITY
54a.	Interpretation
54b.	Meaning of “totally and permanently incapacitated”
Division 2—Certification by Board
54c.	Eligible employee not to be retired on ground of invalidity without certificate from Board
Division 3—Assessment process
54d.	Interpretation
54e.	Request for approval of retirement
54f.	Assessment panel
54g.	Board to seek recommendations of Comcare
54h.	Board to decide whether to approve retirement
54j.	Eligible employee etc. to be informed of decision of Board
Division 4—Pre-assessment payments and rehabilitation
54k.	Determination of requests, payments and rehabilitation programs to be in accordance with the Rules for the administration of the Superannuation (1990) Scheme
54l.	Making of payments
Division 5—Reconsideration of Decisions
Subdivision A—Preliminary
54m.	Interpretation
Subdivision B—Reconsideration Advisory Committees
54n.	Establishment
54p.	Membership of Committee
54q.	Functions of Committee
54r.	Proceedings of Committee

TABLE OF PROVISIONS continued
Section
241.	Payments from Consolidated Revenue Fund
242.	Exemption from tax etc.
PART XIV—TRANSFERS TO SUPERANNUATION (1990) SCHEME
243.	Interpretation
244.	Election to join Superannuation (1990) Scheme
245.	Effect of election
246.	Loss of entitlement to benefits
247.	Revocation of election in certain cases
248.	Transfer of assets etc. to Superannuation (1990) Scheme
249.	Advances in respect of assets to be transferred
250.	Exemption from tax etc.
93.	New Schedule
PART 4—AMENDMENTS OF SUPERANNUATION BENEFIT (INTERIM ARRANGEMENT) ACT 1988
94.	Principal Act
95.	Long title
96.	Short title
97.	Interpretation
98.	Insertion of new section:
3a.	Only one benefit in respect of a day of employment
99.	Insertion of new sections:
3b.	Rates of salary
3c.	Continuing contributions
3d.	Variation of Table
3e.	Interest factors
3f.	Qualified employees
100.	Insertion of new sections:
4a.	Arrangements for certain employees
4b.	Nominated fund
4c.	Approved funds
4d.	Nominated and approved superannuation funds to comply with standards
4e.	Payments of equivalent benefit to declared funds
4f.	Payments of continuing contributions to declared funds
4g.	Interest
4h.	Certain employees to become members of nominated fund
101.	When benefit payable
102.	Amount of interim benefit before 1 July 1990
103.	Insertion of new section:
8a.	Amount of interim benefit from 1 July 1990
104.	Insertion of new sections:
9a.	Declarations
9b.	Certain declarations disallowable etc.
9c.	Delegation by Minister
9d.	Minister to comply with Standards Act
9e.	Source of payments
9f.	Employers to ensure membership of funds
105.	Schedule
106.	Consequential amendments
PART 5—AMENDMENTS OF THE PAPUA NEW GUINEA (STAFFING ASSISTANCE) ACT 1973
107.	Principal Act
108.	Interpretation
109.	Commissioner to administer Part V

TABLE OF PROVISIONS continued
Section
110d.	Variation of Table
110e.	Exclusion of certain employees
110f.	Inclusion of certain employees
110g.	Declarations
110h.	Payments of productivity contributions to Commissioner
110j.	Source of productivity contributions
110k.	Repayments of interim benefits
110l.	Payments of certain benefits to Fund by new productivity employees
110m.	Payments of certain benefits to Fund by productivity employees
110n.	Commissioner to pay Fund
110p.	Productivity benefit
110q.	Accumulated employer contributions
110r.	Payment of productivity benefit
110s.	Productivity benefits payable to spouses etc.
65.	Payment of accumulated contributions where no other benefit payable etc.
66.	Payments into and out of Consolidated Revenue Fund
67.	Payment of part of spouse’s pension etc. attributable to children
68.	Payment of orphan benefit
69.	Persons to whom Part applies
70.	Interpretation
71.	Payment of transfer values to Commissioner
72.	Exemption of certain eligible employees from medical examination
73.	Interpretation
74.	Transfer value
75.	Deferred benefits
76.	Election that Division apply
77.	Circumstances in which person entitled to deferred benefits
78.	Election for transfer value by persons in relation to whom deferred benefits are applicable
79.	Person who is entitled to rights under Division not entitled to rights under other provisions of Act
80.	Special provisions affecting certain former contributors under certain superannuation schemes
81.	Insertion of new section:
154a.	Determinations with respect to interest
82.	Insertion of new section:
155b.	Modification of Act in relation to persons who cease to be eligible employees in certain circumstances
83.	General provisions applicable to elections under Act
84.	Repeal of section 159 and substitution of section:
159.	Payment by approved authorities etc. to the Commonwealth in respect of eligible employees
85.	Cost of administration of, and of medical examinations under, Act etc.
86.	Annual report of Trust
87.	Insertion of new section:
161a.	Annual report of Commonwealth Superannuation Board
88.	Minister may request the supply of information
89.	Making false statements to Commissioner etc.
90.	Regulations
91.	Medical examinations and benefit classification certificates
92.	Insertion of new Parts:
PART XIII—TRANSFERS TO APPROVED SUPERANNUATION SCHEMES
237.	Interpretation
238.	Loss of entitlement to benefits—eligible employee transferring to an approved superannuation scheme
239.	Approval of superannuation schemes
240.	Transfer of assets etc. to approved superannuation schemes

TABLE OF PROVISIONS continued
Section
Subdivision C—Reconsideration of decision made by delegate
54s.	Application to Board
54t.	Decision to be referred to Committee
54u.	Determination by Board
Subdivision D—Reconsideration of decision made by Board
54v.	Application to Board
54w.	Payment of fees
54x.	Decision to be reconsidered only on basis of new evidence
54y.	Decision to be referred to Committee
54z.	Determination by Board
Division 6—Administrative Costs
54za.	Costs to be paid from Consolidated Revenue Fund
42.	Entitlement to age retirement benefit
43.	Rate of standard age retirement pension
44.	Early retirement—voluntary or involuntary retirement
45.	Entitlement to early retirement benefit
46.	Rate of standard early retirement pension
47.	Election for lump sum benefit in case of involuntary retirement
48.	Lump sum benefit payable on commutation
49.	Entitlement to invalidity pension
50.	Invalidity benefit where pension not reduced on medical grounds and election not made under section 68 or 69
51.	Election where benefit not reduced on medical grounds
52.	Invalidity benefit where benefit reduced on medical grounds, period of contributory service not less than 8 years and election not made under section 71 or 72
53.	Election where benefit reduced on medical grounds, period of contributory service not less than 8 years
54.	Rate of spouse’s standard pension on death of age or early retirement pensioner
55.	Rate of spouse’s additional pension on death of age or early retirement pensioner
56.	Rate of spouse’s pension on death of invalidity pensioner
57.	Insertion of new section:
96a.	Set off against pension in certain circumstances
58.	Insertion of new Division:
Division 3a—Spouse's benefit attributable to partially dependent children
96b.	Extra spouse’s pension
59.	Insertion of new section:
96c.	Interpretation
60.	Orphan benefit—death of eligible employee before attaining maximum retiring age where benefit not reduced on medical grounds, period of prospective service less than 8 years and direction given under this section
61.		Orphan benefit—death of eligible employee before attaining maximum retiring age where benefit reduced on medical grounds and period of contributory service less than 8 years
62.	Insertion of new section:
109a.	Orphan pension—when there are partially dependent children
63.	Eligible employee or retirement pensioner survived by more than one spouse
64.	Insertion of new Part:
PART VIa—PRODUCTIVITY SUPERANNUATION
110a.	Interpretation
110b.	Rate of salary
110c.	Productivity contributions

TABLE OF PROVISIONS continued
Section
110.	Annual reports
111.	Repeal of Part VI
112.	Arrangements for reimbursement of Commonwealth by certain authorities
113.	No assignment of benefits

Superannuation Legislation Amendment Act 1990

No. 40 of 1990

An Act to amend certain Acts relating to superannuation

[Assented to 7 June 1990]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART 1—PRELIMINARY

Short title

1. This Act may be cited as the Superannuation Legislation Amendment Act 1990.

Commencement

2. (1) The following provisions:

(a) Parts 1 and 2, sections 6, 69, 70, 71, 94 and 98 and Part 5, of this Act;

(b) section 43 and Part XIII of the Superannuation Act 1976 inserted by this Act;

commence on the day on which this Act receives the Royal Assent.

(2) Section 48 of this Act is taken to have commenced on 1 May 1987.

(3) The remaining provisions of this Act commence on 1 July 1990.

PART 2—AMENDMENTS OF THE SUPERANNUATION ACT 1922

Principal Act

3. In this Part, “Principal Act” means the Superannuation Act 19221.

Repeal of section 55

4. Section 55 of the Principal Act is repealed.

Payment to person other than pensioner

5. Section 62 of the Principal Act is amended by inserting “, for any reason (including the reason that the pensioner or beneficiary is insane or undergoing imprisonment or is otherwise under a disability),” after “should”.

PART 3—AMENDMENTS OF THE SUPERANNUATION ACT 1976

Principal Act

6. In this Part, “Principal Act” means the Superannuation Act 1976².

Long Title

7. The title of the Principal Act is amended by adding at the end “, and for other purposes”.

Interpretation

8. (1) Section 3 of the Principal Act is amended:

(a) by omitting from the definition of “accumulated basic contributions” in subsection (1) “, in accordance with the regulations,”;
(b) by omitting from the definition of “accumulated supplementary contributions” in subsection (1) “, in accordance with the regulations,”;
(c) by omitting from paragraph (a) of the definition of “approved authority” in subsection (1) “specified in the regulations as an approved authority for the purposes of this Act, being—” and substituting “declared by the Minister to be an approved authority for the purposes of this Act and is:”;
(d) by adding at the end of each of subparagraphs (a) (i) and (ii) of the definition of “approved authority” in subsection (1) “or”;

(e) by adding at the end of paragraph (a) of the definition of “approved authority” in subsection (1) the following subparagraph:
“(v) a company or other body corporate incorporated, whether before or after the commencement of this subparagraph, under an Act or a law of a State or Territory, being a company or body corporate in which:
(a) an authority or body referred to in subparagraph, (ii), (iii) or (iv), has; or
(b) the Commonwealth and one, or more than one, such authority or body together have; or
(c) 2 or more such authorities or bodies together have;
a controlling interest; or”;
(f) by adding at the end of each of paragraphs (h) and 0) of the definition of “eligible employee” in subsection (1) “or”;
(g) by adding at the end of the definition of “eligible employee” in subsection (1) the following word and paragraph:
“or (m) a person who, under section 15a, is excluded from this definition.”;
(h) by omitting from the definition of “Fund” or “Superannuation Fund” in subsection (1) “Superannuation Fund” and substituting “Commonwealth Superannuation Fund No. 2”;
(j) by omitting from the definition of “period of contributory service” in subsection (1) “(less any period during that period when the person was on leave of absence without pay and in respect of which sub-section 51 (1) applies or was absent from duty and in respect of which sub-section 51a (1) applies)” and substituting the following words and paragraphs:
“(less any period during that period that is:
(a) a period of leave of absence in respect of which subsection 51 (1) applies to the person; or
(b) a period of absence from duty in respect of which subsection 51a (1) as in force before 1 July 1990 applies to the person; or
(c) a period that is taken, under subsection 51a (5) as in force on and after 1 July 1990, to be a non-contributory period of service for the person;)”;
(k) by inserting in subsection (1) the following definitions:

“ ‘accumulated employer contributions’ has the meaning given by section 110q;

‘approved medical practitioner’ means a medical practitioner approved by the Commissioner for the purposes of this Act;

‘asking a question’ includes making a request (whether oral or in writing) for information;

‘Board’ means the Commonwealth Superannuation Board established under section 27a;

‘Chief Executive Officer’ means the Chief Executive Officer of the Trust appointed under section 44aa;
‘Fund accumulated employer contributions’,in relation to a person, means the person’s accumulated employer contributions less any part of them that is:
(a) a notional interim benefit of the person within the meaning of Part VIa; or
(b) interest on that benefit;
‘partially dependent child’,in relation to a person who has died and was, at the time of his or her death, an eligible employee or a retirement pensioner, means a person:
(a) who is a child of the deceased person other than:
(i) an eligible child; or
(ii) (where the deceased person was a retirement pensioner at the time of his or her death) a child who, by virtue of section 9, is deemed not to be a partially dependent child for the purposes of this Act; and
(b) who is a person the 16th anniversary of whose birth has not occurred or is a person:
(i) the 16th anniversary of whose birth has occurred but the 25th anniversary of whose birth has not occurred; and
(ii) who is receiving full-time education at a school, college or university; and
(iii) who is not ordinarily in employment or engaged in work on his or her own account; and
(c) to or in respect of whom, immediately before the deceased person’s death, the deceased person was voluntarily making, or required by a court to make, regular maintenance payments;

‘re-employed former contributor with preserved rights’ has themeaning given by section 4b;

‘Rules for the administration of the Superannuation (1990) Scheme’ means the rules for the administration of that scheme set out in the Schedule to the deed by which that scheme was established;
‘Superannuation (1990) Scheme’ means the Superannuation Scheme established by deed under the Superannuation Act 1990;”.

(2) Regulations made for the purposes of the definition of “approved authority” in subsection 3 (1) of the Principal Act and in force immediately before 1 July 1990:

(a) remain in force on and after that date; and
(b) are taken to be declarations made by the Minister for the purposes of that definition as in force on and after that date; and
(c) may be amended or repealed by such declarations.

(3) On and after 1 July 1990, an approval that, immediately before that date, was in force for the purposes of the definition of “approved medical practitioner” in subsection 16 (1) of the Principal Act has effect as if it were an approval under the definition of “approved medical practitioner” in subsection 3 (1) of the Principal Act as amended by this Act.

9. After section 4 of the Principal Act the following sections are inserted:

Definition of “approved authority”—declaration for purposes of paragraph (a)

“4a.(1) Subject to subsection (2), a declaration for the purposes of paragraph (a) of the definition of ‘approved authority’ in subsection 3 (1) is a disallowable instrument for the purposes of section 46aof the Acts Interpretation Act 1901.

“(2) A declaration referred to in subsection (1) is a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903.

“(3) A declaration referred to in subsection (1) may be expressed to have taken effect from and including a day not earlier than 12 months before the making of the declaration.

Meaning of “re-employed former contributor with preserved rights”

“4b. For the purposes of this Act, a person is are-employed former contributor with preserved rights if:

(a) the person:

(i) ceased, or last ceased, to be a contributor under the superseded Act before 1 July 1976; or
(ii) ceased, or last ceased, to be an eligible employee before 1 July 1990; and
(b) after his or her so ceasing or last ceasing to be such a contributor or an eligible employee (as the case may be), a transfer value in respect of the person was paid to the person administering a superannuation scheme (other than the scheme established under the superseded Act or the scheme established under this Act); and

(i) a permanent employee; or

(ii) a temporary employee; or

(iii) the holder of a statutory office (including the office of Commissioner); or

(iv) a person to whom section 14a applies;

and a transfer value that includes the transfer value referred to in paragraph (b) is payable, or will, on the person’s becoming an eligible employee, be payable, to or in respect of the person under:

(v) the superannuation scheme referred to in paragraph (b); or

(vi) another superannuation scheme applicable in relation to any employment in which the person was employed after ceasing, or last ceasing, to be a contributor under the superseded Act or an eligible employee (as the case may be).”.

Retirement on ground of invalidity

10. Section 7 of the Principal Act is amended:

(a) by omitting from subsection (2) “Commissioner” (wherever occurring) and substituting “Board”;

(b) by inserting in subsection (2) “invalidity because of’ after “on the ground of’ (last occurring).

Accumulated basic and supplementary contributions—additional amounts

11. Section 7 aof the Principal Act is amended by omitting from subsections (1), (2), (3) and (4) “, in accordance with the regulations,” (wherever occurring).

Children of deceased retirement pensioners

12. Section 9 of the Principal Act is amended by inserting in each of subsections (1), (2), (3), (4) and (5) “or a partially dependent child” after “eligible child”.

Temporary employees likely to be continued in employment

13. Section 11 of the Principal Act is amended by omitting subsections (1), (2) and (3) and substituting the following subsection:

“(1) Where a person who is a temporary employee requests the Commissioner to direct, under this section, that the person be treated as an eligible employee for the purposes of this Act, the Commissioner may direct that the person is, as from the day on which the direction is given, an eligible employee for the purposes of this Act.”.

Repeal of section 12

14.Section 12 of the Principal Act is repealed.

Temporary employees employed under contract

15. Section 13 of the Principal Act is amended by omitting from paragraph (1) (a) “for a term of not less than 1 year”.

16. After section 13 of the Principal Act the following section is inserted:

Sections 11 and 13 not applicable to certain persons employed on or after 1 July 1990

“13a. Sections 11 and 13 do not apply in relation to a person who is on 1 July 1990, or becomes after that date, a temporary employee unless:

(a) immediately before the person became or becomes so employed:

(i) invalidity pension was, or would, but for a suspension of payment, have been, payable to him or her under this Act or the superseded Act; or
(ii) deferred benefits were applicable to him or her under this Act; or
(b) the person became or becomes, by virtue of his or her being so employed, a re-employed former contributor with preserved rights.”.

Statutory office holders

17. Section 14 of the Principal Act is amended:

(a) by omitting from paragraph (1) (a) “to which he has been appointed for a term of not less than 1 year”;
(b) by adding at the end the following subsection:
“(5) This section does not apply in relation to a person who is on 1 July 1990, or becomes after that date, the holder of a statutory office unless:
(a) immediately before the person became or becomes the holder of the statutory office:
(i) invalidity pension was, or would, but for a suspension of payment, have been, payable to him or her under this Act or the superseded Act; or
(ii) deferred benefits were applicable to him or her under this Act; or
(b) the person became or becomes, by virtue of his or her becoming the holder of the statutory office, a re-employed former contributor with preserved rights.”.

Persons to whom Division 2 or 3 of Part IV of the Public Service Act applies

18. Section 14a of the Principal Act is amended:

(a) by omitting from subsection (1)“This” and substituting “Subject to subsection (1a), this”;

(b) by omitting from paragraph (1) (c) “section 87q” and substituting “section 87m or 87q”;

(d) by inserting after subsection (1) the following subsections:

“(1a) This section does not apply to a person who becomes, on or after 1 July 1990, a person referred to in paragraph (1) (a), (b), (c) or (d) unless the person had been an eligible employee:
(a) in the case of a person referred to in paragraph (1) (a) or—immediately before becoming such a person; or
(b) in the case of a person referred to in paragraph (1) (c) or—immediately before the person ceased to be employed in his or her previous relevant employment.

“(1b) In subsection (1a):

‘previous relevant employment’, in relation to a person referred to in paragraph (1) (c) or (d), means:

(a) if the person:

(i) after being dismissed or deemed to have been retired from the Australian Public Service, was reappointed to that Service under section 63f, 63g or 66b of the Public Service Act (as the case may be); or
(ii) after being dismissed or retired from employment other than employment in the Australian Public Service, was re-appointed or re-employed in circumstances similar to circumstances in which a person could have been re-appointed to that Service under section 63f, 63g or 66b of the Public Service Act;
the office held by the person, or the employment in which the person was employed, immediately before his or her dismissal or retirement; or

(b) if the person:

(i) is deemed to have been re-appointed to the Australian Public Service under section 87m or 87q of the Public Service Act; or
(ii) not being a person to whom subparagraph (i) applies, is re-appointed, or re-employed, by a previous employer in circumstances similar to the circumstances in which a person could have been deemed to have been re-appointed to the Australian Public Service under section 87m or 87q of the Public Service Act;

the office last held by the person, or the employment in which the person was last employed, in the Australian Public Service, or the employment in which the person was last employed by that employer, before his or her reappointment or re-employment.”;
(e) by omitting from paragraph (6) (a) “section 87q” (wherever occurring) and substituting “section 87m or 87q”.

19. After section 15 of the Principal Act the following section is inserted:

Persons excluded from definition of “eligible employee”

“15a. (1) A person who, on or after 1 July 1990, becomes a permanent employee because he or she is employed in a permanent capacity by an approved authority declared by the Minister to be an exempt authority for the purposes of this subsection is excluded from the definition of ‘eligible employee’ in subsection 3(1).

“(2) Where, on or after 1 July 1990:

(a) a person (other than a person to whom subsection (1) applies) becomes a permanent employee; or

(b) a person is appointed as Commissioner;

that person is excluded from the definition of ‘eligible employee” in subsection 3 (1) unless:

(i) the person was an eligible employee; or

(ii) invalidity pension was, or would, but for a suspension of payment, have been, payable to him or her under this Act or the superseded Act; or
(iii) deferred benefits were applicable to him or her under this Act; or
(d) the person becomes, by virtue of his or her employment or appointment, a re-employed former contributor with preserved rights.”.

Medical examination, and issue of benefit classification certificate, on becoming eligible employee

20. (1) Section 16 of the Principal Act is amended:

(a) by omitting subsection (1);

(b) by omitting subsections (9) to (14), inclusive, and substituting the following subsection:

“(9) Where, under subsection (8), the Commissioner revokes a benefit classification certificate on a particular day:

(a) the revocation has effect on and from that day; and

(b) the new certificate (if any) issued in substitution for the

revoked certificate is to be taken to have been issued on that day.”.

(2) In spite of subsection (1), subsections 16 (11b) and (11c) of the Principal Act (as in force before the commencement of this section) continue to apply in relation to a certificate revoked or issued under subsection 16(11) of that Act.

(3) Where, before the commencement of this section, the Administrative Appeals Tribunal or the Federal Court of Australia made a decision or order setting aside or varying a decision by the Commissioner to issue a benefit classification certificate in respect of a person under subsection 16 (11) of the Principal Act as then in force, then in spite of subsection (1) of this section and section 21:

(a) subsections 16 (11) to (11c), inclusive, of the Principal Act (as in force before the commencement of this section) continue to apply in relation to:

(i) a requirement on the basis of which; and

(ii) information on the basis of the giving of which;

the Commissioner decided to issue the certificate or to specify in it a particular physical or mental condition; and
(b) section 16ac of the Principal Act as amended by this Act does not apply in relation to:

(i) a question the asking of which constituted, or formed part of, such a requirement; or

(ii) such information.

(4) In subsection (3):

“information” includes information allegedly given;

“requirement” means a requirement, or an alleged requirement, to give information;

“set aside” includes quash.

21. (1) After section 16 of the Principal Act the following sections are inserted:

Benefit event happening before section 16 procedures completed

“16aa. (1) In this section:

‘benefit event’, in relation to a person who is an eligible employee, means:

(a) the person’s death; or
(b) the person ceasing to be an eligible employee because of retirement on the ground of invalidity; or
(c) the annual rate of salary of the person decreasing under such circumstances that the Commissioner is satisfied that the decrease can properly be attributed to physical or mental incapacity;

‘condition' means a physical or mental condition;

‘examination’ means a medical examination.

“(2) Subsections (3) to (9), inclusive, apply where, as at the time of a benefit event in relation to a person who is an eligible employee:

(a) the person has undergone no examination under subsection 16 (2); or
(b) the person has undergone such an examination, or 2 or more such examinations, but the Commissioner has not yet decided that the person should not be required under subsection 16 (2) to undergo a further examination; or
(c) the Commissioner has so decided but has not yet considered the report or reports of the result or results of the examination or examinations that the person has undergone under subsection 16 (2); or
(d) the Commissioner has considered the report or reports but has not yet decided whether or not to issue a benefit classification certificate in respect of the person under subsection 16 (4); or
(e) the Commissioner has decided so to issue such a certificate but has not yet issued it.

“(3) If subparagraph (2) (a) or (b) applies, the Commissioner must, in relation to each examination (if any) that:

(a) the Commissioner required the person under subsection 16 (2) to undergo; or
(b) the Commissioner is satisfied he or she would, but for the benefit event, have so required the person to undergo;

but that the person did not in fact undergo, determine what, in the Commissioner’s opinion, the report of the result of the examination would have contained if the person:

(c) had undergone the examination on the day when the person:

(i) if paragraph (2) (a) applies—became an eligible employee; or

(ii) if paragraph (2) (b) applies—underwent the examination, or the later or last of the examinations, referred to in that paragraph; and
(d) at or in connection with the examination:
(i) had answered properly, within the meaning of section 16ac, all the questions asked of the person; and
(ii) had given no false or misleading information.

“(4) For the purposes of subsection (3), the Commissioner must consider such information and other matters as he or she considers relevant.

“(5) In subsection (6):

‘report material’ means:

(a) if paragraph (2) (a) applies—the determination or determinations under subsection (3); or

(b) if paragraph (2) (b) applies:
(i) the report or reports of the result or results of the examination or examinations referred to in that paragraph; and
(ii) the determination or determinations (if any) under subsection (3); or
(c) if paragraph (2) (c) or (d) applies—the report or reports referred to in that paragraph.

“(6) Unless paragraph (2) (e) applies, the Commissioner must consider the report material and any other matters (other than matters excluded by subsection (7)) that he or she considers relevant and, if satisfied on the basis of the matters set out in the report material and of those other matters that, had the benefit event not happened, he or she would have formed on that basis the opinion that there was a real risk that the person, by reason of, or for a reason connected with:

(a) a condition that is referred to in the report material and that the Commissioner is satisfied is a condition of the person that existed at the time when the person became an eligible employee; or
(b) 2 or more such conditions;

would not continue to be an eligible employee until the person attained his or her maximum retiring age, must issue in respect of the person a benefit classification certificate specifying the condition or conditions.

“(7) The matters excluded by this subsection are the following:

(a) the fact that the benefit event has happened;
(b) any information the Commissioner has about the causes of:

(i) the death; or

(ii) the incapacity that was the ground for the retirement; or

(iii) the incapacity to which the Commissioner is satisfied that the decrease in the annual rate of salary of the person could properly be regarded as attributable;

as the case may be;

(c) any information the Commissioner has about the person’s state of physical or mental health, or medical history, during a period beginning after:
(i) if the person has undergone an examination or examinations under subsection 16 (2)—the person underwent the examination or the later or last of the examinations; or

(ii) otherwise—the person became an eligible employee.

“(8) If paragraph (2) (e) applies, the Commissioner must issue in respect of the person the benefit classification certificate that the Commissioner would have so issued but for the benefit event.

“(9) For the purposes of this Act, a benefit classification certificate issued under this section is to be taken to have been issued under subsection 16 (4) on the day before the day of the benefit event.

Condition coming into existence after person became eligible employee

“16ab. (1) This section applies where a benefit classification certificate (whether issued before or after the commencement of this section):

(a) is in force in respect of a person (in this section called the ‘employee’)who is an eligible employee; or

(b) was in force in respect of a person (in this section also called the ‘employee’)immediately before:

(i) the annual rate of salary of the employee decreased, at or after that commencement, under such circumstances that the Commissioner is satisfied that the decrease can properly be attributed to physical or mental incapacity; or

(ii) the employee ceased, at or after that commencement, to be an eligible employee.

“(2) A person, being:

(a) the employee or a person acting on his or her behalf; or

(b) if the employee is dead:

(i) a spouse or child of the employee who is entitled to benefits under Part VI; or

(ii) a person acting on behalf of such a spouse or child;

may apply to the Commissioner for the certificate to be revoked under this section.

“(3) If an application is made under subsection (2) and the employee is living, the Commissioner may, for the purposes of the application, require him or her to undergo within a specified period such medical examination or examinations by an approved medical practitioner or practitioners as the Commissioner determines.

“(4) A report or reports of the result or results of a medical examination or medical examinations under subsection (3) is to be given to the Commissioner.

“(5) On an application under subsection (2), the Commissioner must consider each report (if any) given to the Commissioner under subsection (4), and such other matters (if any) as he or she thinks relevant, and must:

(a) if he or she is satisfied that a physical or mental condition or

conditions specified in the certificate came into existence after the relevant time:

(i) if the certificate specifies no other physical or mental condition—revoke the certificate; or

(ii) otherwise—revoke the certificate and issue in substitution for it a new benefit classification certificate that does not specify the first-mentioned condition or conditions but specifies the other condition or conditions specified in the revoked certificate; or

(b) otherwise—refuse the application.

“(6) For the purposes of paragraph (5) (a), the relevant time is the time when the employee:

(a) if he or she became an eligible employee because of paragraph (a) of the definition of ‘eligible employee’ in subsection 3 (1)— became an employee for the purposes of the superseded Act; or

(b) otherwise—became an eligible employee.

“(7) Except for the purposes of this section, a certificate revoked under subsection (5) is taken never to have been issued.

“(8) A certificate issued under subsection (5) in substitution for a revoked certificate is taken to have been issued on the day on which, and under the provision under which, the revoked certificate was issued.

“(9) Subsections (5), (7) and (8) have effect even if the certificate referred to in subsection (1) had previously been revoked, in which case:

(a) a certificate issued under subsection (5) in substitution for the first-mentioned certificate is taken to have been revoked at the time of the previous revocation; and
(b) a certificate that was previously issued in substitution for the first-mentioned certificate is taken to have been issued in substitution for the certificate (if any) issued under subsection (5).

Issue of benefit classification certificate where duty of disclosure breached

“16ac. (1) In this section:

‘condition’ means a physical or mental condition;

‘relevant person’ means:

(a) a person:

(i) who is an eligible employee; and

(ii) who has not attained his or her maximum retiring age; and

(iii) whose period of contributory service, if the person were

to cease to be an eligible employee, would be less than 20 years; or

(b) a person:

(i) who is or was an eligible employee to whom partial invalidity pension is or was payable in accordance with section 78; and
(ii) whose period of contributory service, if the person had ceased to be an eligible employee at the time when partial invalidity pension became so payable, would have been less than 20 years; or

(i) who has ceased, because of death or retirement on the ground of invalidity, to be an eligible employee before attaining his or her maximum retiring age; and

(ii) whose period of contributory service is less than 20 years.

“(2) Subsections (4) to (8), inclusive, apply where the Commissioner is satisfied, in respect of a person who is a relevant person:

(a) that:

(i) at or in connection with a medical examination that the person was required under subsection 16 (2) or (6) or 16ab (3) to undergo; or

(ii) in connection with a request under subsection 16 (6) by the person;

the person failed to answer properly a question asked of him or her or gave false or misleading information; and
(b) that, if the person had answered the question properly or had not given that false or misleading information:
(i) where there is in force, or there was in force immediately before the person’s retirement or death, a benefit classification certificate in respect of the person—a condition or conditions of the person not specified in the certificate would be or would have been so specified; or
(ii) where subparagraph (i) does not apply—there would be in force, or there would have been in force immediately before the person’s retirement or death, a benefit classification certificate in respect of the person specifying a condition or conditions of the person.

“(3) Subsections (4) to (8), inclusive, also apply where the Commissioner is satisfied, in respect of a person who is a relevant person:

(a) that, in connection with an application under subsection 16ab (2) for the revocation of a certificate issued in respect of

the person, a person (in this section called the ‘non-discloser’),being:

(i) the relevant person; or

(ii) the applicant; or

(iii) a person acting on the applicant’s behalf; or

(iv) a person on whose behalf the applicant was acting;

failed to answer properly a question asked of him or her or gave false or misleading information; and
(b) that, if the non-discloser had answered the question properly or had not given that false or misleading information:
(i) where there is in force, or there was in force immediately before the relevant person’s retirement or death, a benefit classification certificate in respect of the relevant person— a condition or conditions of the relevant person not specified in the certificate would be or would have been so specified; or
(ii) where subparagraph (i) does not apply—there would be in force, or there would have been in force immediately before the relevant person’s retirement or death, a benefit classification certificate in respect of the relevant person specifying a condition or conditions of the relevant person.

“(4) If subparagraph (2) (b) (i) or (3) (b) (i) applies, the Commissioner shall revoke the certificate and issue in substitution for it a new benefit classification certificate in which the condition or conditions referred to in that subparagraph is or are specified either in addition to, or instead of, the condition, or some or all of the conditions, specified in the revoked certificate.

“(5) If subparagraph (2) (b) (ii) or (3) (b) (ii) applies, the Commissioner shall issue in respect of the relevant person a benefit classification certificate specifying the condition or conditions referred to in that subparagraph.

“(6) Except for the purposes of this section, a certificate revoked under subsection (4) is taken never to have been issued.

“(7) A certificate issued under subsection (4) in substitution for a revoked certificate is taken to have been issued on the day on which, and under the provision under which, the revoked certificate was issued.

“(8) A certificate issued under subsection (5) shall be taken to have been issued on the day, and under the provision, that the Commissioner determines to be the day on which, and the provision under which, a benefit classification certificate would have been issued, or would have been taken to have been issued, as the case requires, in respect of the relevant person if the relevant person, or the non-discloser, as the case

may be, had answered the question properly, or had not given the false or misleading information, as the case may be.

“(9) For the purposes of this section, a person answers a question properly if, and only if, he or she gives in answer to the question all the information that he or she could reasonably be expected to give, on the basis of:

(a) his or her knowledge about the relevant matters; and
(b) the knowledge that, having regard to his or her knowledge about the relevant matters, he or she could reasonably be expected to have about those matters;

if he or she answered the question fully and truthfully on the basis of the knowledge referred to in paragraphs (a) and (b).

“(10) In subsection (9):

‘relevant matters’, in relation to a question asked of a person, means:

(a) in any case—the matters that the person could reasonably be expected to regard as relevant to answering the question; and
(b) if the question is asked of the person:
(i) at or in connection with a medical examination that the person was required under subsection 16 (2) or (6) or 16ab (3) to undergo; or
(ii) in connection with a request by the person under subsection 16 (6); or
(iii) in connection with an application under subsection 16ab (2) for the revocation of a certificate issued in respect of the person;

the person’s medical history and past and present state of physical and mental health.

Service of certificates and of related notices

“16ad. (1) The Commissioner must serve:

(a) a copy of a benefit classification certificate; or
(b) notice of the revocation of a benefit classification certificate; or
(c) notice of a refusal by the Commissioner of a request or application made under subsection 16 (6) or 16ab (2) in relation to a benefit classification certificate;

on:

(d) in any case—the person to whom the certificate relates; and
(e) in the case of:
(i) a copy of a certificate issued under subsection 16ab (5) on an application made under subsection 16ab (2); or
(ii) notice of a refusal by the Commissioner of an application made under subsection 16ab (2);

the applicant.

“(2) Where subsection (1) requires a copy or notice to be served on a person and the person has died, the Commissioner must serve the copy or notice on:

(a) the person’s personal representative; or
(b) such other person or persons as the Commissioner, in his or her discretion, determines.

Application of certain provisions to the Commissioner

“16ae. In the application of section 16, 16aa, 16ab, 16ac, 16ador 184 in relation to a person who is an eligible employee because of paragraph (g) of the definition of ‘eligible employee’ in subsection 3 (1), a reference in that section to the Commissioner is taken to be a reference to the Secretary to the Department.”.

(2) Section 16aa of the Principal Act as amended by this Act applies in relation to a benefit event within the meaning of that section that happens on or after the commencement of this section.

(3) Subject to subsection 20 (3), section 16ac of the Principal Act as amended by this Act applies in relation to a question asked of a person, or information given, whether before or after the commencement of this section.

Commissioner for Superannuation

22. Section 17 of the Principal Act is amended by omitting from subsection (2) other than Parts III and Xa,” and substituting “(other than Parts IIa, III and IVa and section 154a)”.

23. After Part II of the Principal Act the following Part is inserted:

“PART IIa—COMMONWEALTH SUPERANNUATION BOARD

“Division I—Establishment, Functions and Powers of Board

Establishment of Board

“27a.There is established by this section a board called the Commonwealth Superannuation Board.

Incorporation etc.

“27b.(1) The Board:

(a) is a body corporate with perpetual succession; and

(b) has a common seal; and

(d) may sue and be sued in its corporate name.

“(2) The common seal of the Board is to be kept in such custody as the Board directs and is to be used only as authorised by the Board.

“(3) All courts, judges and persons acting judicially must take judicial notice of the common seal of the Board and must presume that it was duly affixed.

Functions

“27c. The functions of the Board are:

(a) to give certificates for the purposes of section 54c; and

(b) to make, and reconsider, decisions, in respect of the retirement of eligible employees on the ground of invalidity as provided by Part IVa; and

Powers

“27d.Subject to this Act, the Board has power to do all things necessary or convenient to be done for or in connection with the performance of its functions.

“Division 2—Constitution, meetings and business of Board

Definitions

“27e. In this Division:

‘appointed member’ means a member appointed under paragraph 27f (1) (b);

‘CSB No. 1’ means the Commonwealth Superannuation Board of Trustees No. 1 established by Part 6 of the Superannuation Act 1990.

Membership of Board

“27f. (1) The Board is to consist of:

(a) the persons who for the time being are members, or acting as members, of CSB No. 1; and

(b) 2 part-time members appointed by the Minister.

“(2) One of the members referred to in paragraph (1) (b) must have experience in, and knowledge of, the administration of one or more bodies or authorities established for a public purpose by or under a law or laws of the Commonwealth.

“(3) The other member referred to in paragraph (1) (b) must be a person nominated by the Australian Council of Trade Unions.

“(4) Before nominating a person, the Council must consult with organisations, each of which is:

(a) an organisation:

(i) a substantial number of whose members are eligible employees; and

(ii) whose principal purpose is to protect and promote the

interests of its members in matters concerning their employment; or

(b) an organisation having as one of its principal purposes the protection and promotion of beneficiaries under this Act in matters concerning their entitlements as beneficiaries.

“(5) The member referred to in subsection (2) holds office at the Minister’s pleasure.

“(6) The member referred to in subsection (3) holds office for the period, not exceeding 3 years, specified in the instrument of appointment.

“(7) A member appointed under this section:

(a) holds office on such terms and conditions (in respect of matters not provided for by this Act) as are determined by the Minister; and

(b) is eligible for re-appointment.

Chairperson of Board

“27g. The Chairperson of CSB No. 1 is to be the Chairperson of the Board.

Acting appointments

“27h.(1) The Minister may appoint a person to act as an appointed member:

(a) during a vacancy in the office of that member, whether or not an appointment has previously been made to the office; or
(b) during any period, or during all periods, when that member is absent from duty or from Australia or is, for any other reason, unable to perform the duties of the office.

“(2) A person appointed to act during a vacancy must not continue so to act for a continuous period of more than 12 months.

“(3) Subsections 27f (2),(3) and (4) apply to the appointment of a person under this section in the same way as they apply to the appointment of the member in whose place the person is to act.

Remuneration

“27j.A member of the Board is to be paid remuneration and allowances as determined by the Remuneration Tribunal, but, if no such determination is in operation, is to be paid remuneration and allowances as determined by the Minister.

Leave of absence

“27k.The Minister may grant leave of absence to a member of the Board on such terms and conditions as to remuneration or otherwise as the Minister determines in writing.

Resignation of appointed members

“27l.An appointed member may resign office by writing signed by the member and delivered to the Minister.

Termination of appointment of appointed members

“27m.(1) The Minister may terminate the appointment of an appointed member for:

(a) misbehaviour or physical or mental incapacity; or
(b) inefficiency or incompetence.

“(2) If an appointed member:

(a) becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with the member’s creditors or makes an assignment of the member’s remuneration for their benefit; or
(b) fails, without reasonable excuse, to comply with section 27p; or
(c) is absent, except on leave granted by the Minister, from 3 consecutive meetings of the Board of which the member has had notice;

the Minister may terminate the appointment of the member.

Meetings

“27n.(1) The Board is to hold such meetings as are necessary for the performance of its functions.

“(2) The Chairperson of the Board:

(a) may convene a meeting at any time; and
(b) must convene a meeting within 30 days after receiving a written request signed by another member of the Board.

“(3) The Chairperson of the Board is to preside at all meetings at which he or she is present.

“(4) If the Chairperson of the Board is not present at a meeting:

(a) a member nominated by him or her is to preside; or

(b) if no member is so nominated—the members present are to elect one of their number to preside.

“(5) At a meeting, 5 members form a quorum.

“(6) Decisions at a meeting must be affirmed by at least 5 votes of members present at the meeting.

“(7) The Board must keep accurate records of all its meetings.

“(8) In this section:

‘Chairperson of the Board’ includes a person who is acting as Chairperson of CSB No. 1;

‘member’ includes a person who is acting as an appointed member or as a member of CSB No. 1.

Disclosure of interests

“27p. (1) Each member of the Board must:

(a) as soon as practicable after, but in any case, not later than 60 days after, becoming a member of the Board; and
(b) as soon as practicable after, but in any case, not later than 60 days after, each anniversary of becoming a member of the Board;

present to a meeting of the Board a statement in writing setting out particulars of those interests, whether pecuniary or otherwise and whether direct or indirect, of the member as at the day of becoming a member of the Board or as at that anniversary, as the case requires, that could reasonably be expected to conflict with the proper performance of the member’s duties as a member.

“(2) If:

(a) a member of the Board acquires an interest, whether pecuniary' or otherwise and whether direct or indirect, that could reasonably be expected to conflict with the proper performance of the member’s duties as a member; and
(b) a statement containing particulars of the interest has not been given to a meeting of the Board under subsection (1);

the member must, as soon as possible after acquiring the interest, present to a meeting of the Board a statement in writing setting out particulars of the interest.

“(3) A statement presented to a meeting under subsection (1) or (2) must be incorporated in the minutes of the meeting.

“(4) A member of the Board who has a direct or indirect pecuniary interest in a matter being considered by the Board must, as soon as possible after the relevant facts have come to the member’s knowledge, disclose the nature of the interest at a meeting of the Board.

“(5) A disclosure under subsection (4) must be recorded in the minutes of the meeting and the member must not, unless the Board or the Minister otherwise determines:

(a) be present during any deliberation of the Board with respect to that matter; or

(b) take part in any decision of the Board with respect to that matter.

“(6) For the purpose of making a determination by the Board under subsection (5), a member who has a direct or indirect pecuniary interest in the matter to which the disclosure relates must not:

(a) be present during any deliberation of the Board for the purpose of making the determination; or

(b) take part in making the determination.

“(7) Subsection (4) applies whether or not particulars of the interest in question have been disclosed under subsection (1) or (2).

Delegation by Board

“27q.The Board may delegate to:

(a) a member of the Board; or

(b) the Commissioner; or

all or any of its powers under this Act or the regulations except its power to reconsider its own decisions or decisions made by its delegates.

Indemnification of members of the Board

“27r.(1) Any matter or thing done, or omitted to be done, in good faith by:

(a) a member of the Board in the performance of functions under this Act; or

(b) a delegate of the Board in the performance of functions under this Act;

does not subject him or her to any action, liability, claim or demand.

“(2) Subsection (1) does not preclude the Board from being liable to any action, liability, claim or demand.

Vacancies not to invalidate actions of Board

“27s. An act done by the Board is not invalid merely because of a vacancy or vacancies in the membership of the Board.

Defective appointment not invalid etc.

“27t.(1) The appointment of a person as an appointed member is not invalid because of a defect or irregularity in or in connection with the appointment.

“(2)Anything done by or in relation to a person purporting to act under an appointment under section 27his not invalid merely because:

(a) the occasion for the appointment had not arisen; or

(b) there was a defect or irregularity in or in connection with the appointment; or

(d) the appointment had ceased to have effect.

“(3) Subsection 24 (2) of the Superannuation Act 1990 extends to anything done for the purposes of this Act.

Staffing

“27u. (1) The Commissioner is responsible for the provision of administrative services to the Board in the performance of its functions.

“(2) In the discharge of functions under this section, the Commissioner must act in accordance with any policies determined, and any directions given, by the Board.

“(3) Anything done by the Commissioner in the name of, or on behalf of, the Board is to be taken to have been done by the Board.”.

Objective and duties of Trust

24. Section 29aof the Principal Act is amended:

(a) by inserting after subsection (1) the following subsections:

“(1a) In addition to its functions under subsection (1), the Trust may:

(a) give advice with respect to the management, the investment, or the management of the investment, of:
(i) any funds of a Commonwealth or Territory body; or
(ii) any funds held in trust for the benefit of a Commonwealth or Territory body; or
(iii) any funds held in trust for the purposes of a superannuation scheme established by a person or body for the benefit of persons employed by the Commonwealth or by a Commonwealth or Territory body; or
(iv) any funds of, or any funds held in trust for the benefit of, any other person or body; or
(b) undertake, as an investment manager, to invest, and manage the investment of:
(i) any funds mentioned in subparagraph (a) (i), (ii) or (iii); or
(ii) any funds mentioned in subparagraph (a) (iv); or
(c) in the course of, or for the purposes of:
(i) trade and commerce with other countries; or
(ii) trade and commerce among the States; or
(iii) trade and commerce between a State and a Territory or between Territories; or
(iv) trade and commerce within a Territory;
give advice of a kind mentioned in paragraph (a), or do any of the things mentioned in paragraph (b), in relation to any funds; or
(d) for the purpose of assisting corporations (being foreign corporations, or trading or financial corporations, to

which paragraph 51 (xx) of the Constitution applies), give advice of a kind mentioned in paragraph (a), or do any of the things mentioned in paragraph (b), in relation to any funds.

“(1b) In subsection (1a):

‘Commonwealth or Territory body’ means:

(a) a body corporate incorporated for a public purpose by an Act or regulations made under an Act or by a law of a Territory; or
(b) an authority or body, not being a body corporate, established for a public purpose by, or under, an Act or regulations made under an Act or by or under a law of a Territory; or
(c) a company or other body corporate incorporated under an Act or a law of a State or Territory, being a company or body corporate in which the Commonwealth has a controlling interest; or
(d) a company or other body corporate incorporated under an Act or a law of a State or Territory, being a company or body corporate in which:
(i) an authority or body referred to in paragraph (a), or (c) has; or
(ii) the Commonwealth and one, or more than one, such authority or body together have; or
(iii) 2 or more such authorities or bodies together have; a controlling interest.
“(1c) The Trust must not perform any of its functions otherwise than for a purpose in respect of which the Parliament has power to make laws.
“(1d) In spite of subsection (1c), it is the intention of the Parliament that, where a State law confers a power or function on the Trust, the Trust may, with the written approval of the Minister, exercise that power or perform that function, as the case may be.”;
(b) by inserting at the end of paragraphs (2) (e) and (f) “and any other services provided by the Trust”.

25. (1) Sections 30, 30a and 31of the Principal Act are repealed and the following section is substituted:

Membership of Trust

“30. (1) The Trust consists of the following members:

(a) the Chairperson;

(b) the Chief Executive Officer;

“(2) The members referred to in paragraphs (1) (a) and (c):

(a) are part-time members; and

(b) are appointed by the Governor-General.

“(3) A part-time member:

(a) holds office for such period, not exceeding 3 years, as is specified in the instrument of appointment; and
(b) is eligible for re-appointment.

“(4) The appointment of a part-time member is not invalid because of a defect or irregularity in connection with the member’s appointment.

“(5) A part-time member holds office on such terms and conditions (if any) in respect of matters not provided for by this Act as are determined by the Governor-General.”.

(2) The persons who, immediately before 1 July 1990, were members of the Trust cease on that day to be such members.

Remuneration and allowances

26. Section 32 of the Principal Act is amended by omitting from subsections (1) and (2) “Chairperson and the”.

Leave of absence

27. Section 33 of the Principal Act is amended by inserting “part-time” before “member”.

Resignation

28. Section 34 of the Principal Act is amended by inserting “part-time” before “member” (first occurring).

Disclosure of interests

29. Section 34a of the Principal Act is amended:

(a) by omitting from paragraph (1) (a) “appointment as” and substituting “becoming”;
(b) by omitting from paragraph (1) (b) “the member’s appointment as” and substituting “becoming”;
(c) by omitting from subsection (1) “appointment” and substituting “becoming a member of the Trust”.

Termination of appointment

30. Section 35 of the Principal Act is amended:

(a) by inserting in subsection (1) “part-time” before “member”;
(b) by omitting from subsection (2) “If—” and paragraphs (a), (b) and (c) and substituting the following words and paragraphs:

“If a part-time member of the Trust:

(a) becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with the member’s creditors or makes an assignment of the member’s remuneration for their benefit; or
(b) fails, without reasonable excuse, to comply with the member’s obligations under section 34a; or
(c) is absent, except on leave granted by the Minister, from 3 consecutive meetings of the Trust of which the member has had notice;”.

Acting appointments

31. Section 36of the Principal Act is amended:

(a) by inserting in subsection (2) “(other than the Chairperson)” after “Trust” (first occurring);

(b) by inserting in paragraphs (2) (a) and (b) “such” before “a part-time member”;

(d) by omitting subsections (3), (4), (6), (7), (8) and (9).

Meetings of Trust

32.Section 37 of the Principal Act is amended by omitting subsections (4) and (5) and substituting the following subsections:

“(4) If the Chairperson is not present at a meeting of the Trust, the members present must appoint one of their number to preside at the meeting.

“(5) At a meeting of the Trust, a quorum is constituted if the number of members present exceeds half of the number of members for the time being holding office.”.

Repeal of section 39

33. Section 39 of the Principal Act is repealed.

Establishment of Fund

34. Section 40 of the Principal Act is amended by omitting from subsection (1) “Superannuation Fund” and substituting “Commonwealth Superannuation Fund No. 2”.

35. After section 42 of the Principal Act the following section, Division and heading are inserted:

Certain documents not liable to stamp duty etc.

“43. An instrument or document that has been made, executed or given in the course of, or for a purpose connected with or arising out of, the exercise by the Trust of its power to invest moneys of the Fund

is not liable to stamp duty or other tax under a law of the Commonwealth, of a State or of a Territory.

“Division 2a—Provisions relating to certain services provided by Trust

Powers of Trust as investment manager etc.

“43a.(1) Where the Trust provides services under subsection 29a (1a),the Trust has, subject to any agreement entered into between the Trust and the person or body requesting the services, power to do, in Australia or elsewhere, all things necessary or convenient to be done for or in connection with, or as incidental to, the provision of those services and, in particular, has power to do any of the following:

(a) to give guarantees;
(b) to underwrite or sub-underwrite any form of investment;
(c) to establish unit trusts, including pooled superannuation trusts (within the meaning of Part IX of the Income Tax Assessment Act 1936);
(d) to establish approved deposit funds (within the meaning of the Occupational Superannuation Standards Act 1987);
(e) to appoint agents or attorneys;
(f) to act as agents for other persons;
(g) to engage consultants and investment managers;
(h) to open and maintain bank accounts.

“(2) Without limiting the generality of subsection (1), the power given to the Trust to do all things necessary or convenient to be done as incidental to the provision of services includes, where the services consist of or include the investment, or the management of the investment, of any funds, the power to take action to control or manage, or to enhance or protect the value of, any investment made out of those funds or to enhance or protect the return of any such investment.

“(3) Funds that the Trust has undertaken to invest under subsection 29a(1a) may be invested in any manner and, in particular, may be invested by the Trust jointly with another person or other persons.

Trust may charge

“43b. (1) The Trust may charge for services provided under subsection 29a (1a).

“(2) The following amounts must be paid into the Fund:

(a) amounts received by the Trust for services provided under subsection 29a (1a);
(b) amounts received by the Trust for services provided in connection with the exercise of a power, or the performance of a function, referred to in subsection 29a(1d).

Costs

“43c. The costs of, and incidental to, the provision of any services referred to in subsection 43b (2) must be paid out of the Fund.

“Division 2b—Accounts and Records”.

Trust to keep accounts and records

36. Section 44 of the Principal Act is amended:

(a) by omitting from subsection (1) “the Fund” and substituting “its operations”;

(b) by adding at the end of subsection (2) “in respect of the Fund”;

37. After section 44 of the Principal Act the following Division is inserted:

“Division 2c—The Chief Executive Officer

Chief Executive Officer

“44aa. (1)There shall be a Chief Executive Officer of the Trust.

“(2) The Chief Executive Officer is appointed by the Governor-General.

“(3) A person who is 65 years old may not be appointed as Chief Executive Officer and a person may not be appointed as Chief Executive Officer for a period that ends after the day on which the person reaches the age of 65 years.

“(4) A person appointed as Chief Executive Officer holds office for such period, not exceeding 5 years, as is specified in the instrument of appointment of the person.

“(5) The Chief Executive Officer holds office on such terms and conditions (if any) in respect of matters not provided for by this Act as are determined by the Governor-General.

“(6) The appointment of a person as Chief Executive Officer is not invalid because of a defect or irregularity in connection with the person’s appointment.

Duties of Chief Executive Officer

“44aab. (1) The Chief Executive Officer manages the affairs of the Trust subject to the directions of, and in accordance with policies determined by, the Trust.

“(2) All acts and things done in the name of, or on behalf of, the Trust by the Chief Executive Officer are taken to have been done by the Trust.

Chief Executive Officer not to engage in other paid employment

“44aac.The Chief Executive Officer must not engage in paid employment outside the duties of his or her office except with the approval of the Minister.

Remuneration and allowances

“44aad.(1) The Chief Executive Officer is to be paid such remuneration as is determined by the Remuneration Tribunal, but if no determination of that remuneration by the Tribunal is in operation, the Chief Executive Officer is to be paid such remuneration as is prescribed.

“(2) The Chief Executive Officer is to be paid such allowances as are prescribed.

“(3) This section has effect subject to the Remuneration Tribunal Act 1973.

Leave of absence

“44aae.The Minister may grant leave of absence to the Chief Executive Officer on such terms and conditions as to remuneration or otherwise as the Minister determines.

Resignation

“44aaf.The Chief Executive Officer may resign office by writing signed by him or her and delivered to the Governor-General.

Termination of appointment

“44aag.(1) The Governor-General may terminate the appointment of the Chief Executive Officer for:

(a) misbehaviour or physical or mental incapacity; or

(b) inefficiency or incompetence.

“(2) If the Chief Executive Officer:

(a) becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his or her creditors or makes an assignment of his or her remuneration for their benefit; or
(b) fails, without reasonable excuse, to comply with his or her obligations under section 34a; or
(c) without the approval of the Minister, engages in paid employment outside the duties of his or her office; or
(d) is absent from duty, except on leave of absence granted by the Minister, for 14 consecutive days or for 28 days in any 12 months;

the Governor-General must, by notice published in the Gazette, declare that the office of the Chief Executive Officer is vacant, and thereupon the office becomes vacant.

Acting Chief Executive Officer

“44aah. (1) The Minister may appoint a person (not being a part-time member of the Trust) to act as Chief Executive Officer:

(a) during a vacancy in the office of Chief Executive Officer (whether or not an appointment has previously been made to the office); or
(b) during any period, or during all periods, when the Chief Executive Officer is absent from duty or from Australia or is, for any other reason, unable to perform the functions of the office;

but a person appointed to act during a vacancy shall not continue so to act for more than 12 months.

“(2) Anything done by or in relation to a person purporting to act under this section is not invalid on the grounds that:

(a) the occasion for the person’s appointment had not arisen; or

(b) there is a defect or irregularity in connection with the person’s appointment; or

(d) the occasion for the person to act had not arisen or had ceased.

Delegations

“44aaj.The Chief Executive Officer may, by signed instrument, delegate to an officer or employee of the Trust all or any of the powers of the Chief Executive Officer under this Act.”.

Basic contributions

38. Section 45of the Principal Act is amended by inserting “, 51b”after “51a”.

Decreases in salary

39. Section 47 of the Principal Act is amended:

(a) by omitting from subsection (1) “to be that highest rate” and substituting the following words and paragraphs:

“to be:

(a) where paragraph (b) does not apply—that highest rate; or

(b) where, if:

(i) there had not been any decrease in his annual rate of salary during the period commencing immediately after the last day on which that highest annual rate of salary was payable to him and ending on the relevant anniversary; and
(ii) account were taken of any increase in salary that he would have received during that period other than an increase resulting from his progressing to

a higher level of salary within a graduated range of salaries applicable to the office held by him or the employment in which he was employed;
the annual rate of salary of the eligible employee on the relevant anniversary (in this paragraph called the ‘imputed annual rate of salary’)would be higher than that highest annual rate of salary—that imputed annual rate of salary.”;
(b) by omitting from subsection (3) “to be that highest rate” and substituting the following words and paragraphs:

“to be:

(d) where, if:

(i) there had not been any decrease in his annual rate of salary during the period commencing immediately after the last day on which that highest annual rate of salary was payable to him and ending on the relevant anniversary; and
(ii) account were taken of any increase in salary that he would have received during that period other than an increase resulting from his progressing to a higher level of salary within a graduated range of salaries applicable to the office held by him or the employment in which he was employed;
the annual rate of salary of the eligible employee on the relevant anniversary (in this paragraph called the ‘imputed annual rate of salary’)would be higher than that highest annual rate salary—that imputed annual rate of salary.”.

40. Section 51aof the Principal Act is repealed and the following sections are substituted:

Maternity and parental leave

“51a. (1)This section applies to a person:

(a) who is, or at any time has been, an eligible employee; and
(b) who, on or after 1 July 1990, has been, while an eligible employee, on leave of absence without pay for reasons related to:

(i) the birth of a child of the person or of the spouse of the person; or

(ii) the termination (otherwise than by child-birth) of a pregnancy of the person; or

(iii) the adoption of a child by the person.

“(2) Subject to this section, where this section applies to a person in respect of a period of leave of absence, the person is not required or

permitted to make contributions on any contribution day occurring during that period.

“(3) A person to whom this section applies in respect of a period of leave of absence may, by writing addressed to the Commissioner, elect to pay contributions on any contribution day that:

(a) occurs during that period of leave of absence; and

(b) is specified in the instrument of election; and

“(4) Where a person makes an election under subsection (3), the person is required to pay, on each contribution day to which the election relates, the contribution or contributions (as the case may be) that, but for subsection (2), would be payable by the person on that day.

“(5) For the purposes of the definition of ‘period of contributory service’ in subsection 3 (1):

(a) if a person to whom this section applies in respect of a period of leave of absence does not make an election under subsection (3)—the whole of the period of leave of absence is taken to be a non-contributory period of service for the person; or
(b) if the person elects to pay contributions in respect of a number, but not all, of the contribution days included in the period of leave of absence:
(i) there must be deducted from the number of days included in the period of leave of absence 14 days in respect of each of those contribution days; and
(ii) the period consisting of the resulting number of days is taken to be a non-contributory period of service for the person.

“(6) The regulations may make provisions for modifying this Act, or a provision of this Act specified in the regulations, in the application of this Act or that provision to and in relation to a person to whom this section applies, or to and in relation to a prescribed class of such persons.

“(7) The modifications that may be made by the regulations in pursuance of subsection (6) include, but are not limited to, modifications providing for benefits in addition to, or in substitution for, benefits provided for by this Act.

Election to cease making contributions

“51b. (1) This section applies to a person:

(a) who is an eligible employee; and
(b) whose period of contributory service, if the person were to cease to be an eligible employee, would exceed 40 years.

“(2) A person to whom this section applies may elect in writing addressed to the Commissioner, to cease paying contributions.

“(3) Where a person makes an election under this section, the person is not required or permitted to make contributions on any contribution day occurring while the election has effect.

“(4) A person who has made an election under this section may, by writing addressed to the Commissioner, revoke the election.

“(5) An election ceases to have effect at the end of the day on which it is revoked.”.

41. After Part IV of the Principal Act the following Part is inserted:

“PART IVa—RETIREMENT ON GROUND OF INVALIDITY

“Division 1—Preliminary

Interpretation

“54a.In this Part, unless the contrary intention appears:

‘Comcare’ means the Commission for the Safety, Rehabilitation and Compensation of Commonwealth Employees established under the Commonwealth Employees’ Rehabilitation and Compensation Act 1988;

‘compensation leave’,in relation to an eligible employee, means leave of absence from his or her employment due to an incapacity for work resulting from an injury in respect of which:

(a) if the Commonwealth Employees’ Rehabilitation and Compensation Act 1988 applies in relation to the eligible employee—compensation is payable under section 19 or 22 of that Act; or
(b) in any other case—payments similar in nature to payments under those sections are payable;

‘totally and permanently incapacitated’ has the meaning given by section 54b.

Meaning of “totally and permanently incapacitated”

“54b.For the purposes of this Part a person is totally and permanently incapacitated if, because of a mental or physical condition, it is unlikely that the person will ever be able to work in any employment or hold any office for which the person:

(a) is reasonably qualified by education, training or experience; or

(b) could become reasonably qualified after retraining.

“Division 2—Certification by Board

Eligible employee not to be retired on ground of invalidity without certificate from Board

“54c. (1) In spite of anything contained in any Act, award, determination or contract of employment, an eligible employee who has not reached his or her maximum retirement age is not, after the commencement of this section, capable of being retired from the employment or office by virtue of which he or she is an eligible employee on the ground that, because of any mental or physical condition, the eligible employee is unable to perform his or her duties, unless the Board has certified in writing that, if the eligible employee is so retired, he or she will be entitled to receive benefits under Division of Part V.

“(2) The Board must not give a certificate in respect of an eligible employee under subsection (1) unless the Board has approved the retirement of the eligible employee on the ground of invalidity in accordance with this Part.

“(3) In subsection (1), a reference to an eligible employee being retired from employment or office includes a reference to the services of the eligible employee being otherwise terminated.

“Division 3—Assessment process

Interpretation

“54d. In this Division:

‘retirement’ means retirement on the ground of invalidity.

Request for approval of retirement

“54e. A request to the Board for the approval of the retirement of an eligible employee:

(a) may be made by:

(i) the eligible employee; or
(ii) the person or body by which the eligible employee is employed; or
(iii) any other person authorised under the regulations; and
(b) if the regulations make provision as to the manner in which the request is to be made—must be made in accordance with the regulations.

Assessment panel

“54f. (1) Subject to subsection 54h (1), the Board must appoint a panel consisting of such number of persons as the Board determines to assist it in reaching a decision whether or not to approve the retirement of an eligible employee.

“(2) The members of the panel must be persons with expertise in the assessment of invalidity claims for the purposes of superannuation.

“(3) The Board:

(a) may require the eligible employee to undergo such medical examinations as it considers necessary and to provide such information as the members of the panel require; and

.113	.103
54 ..................................................................................................................................	.114	.104
55...................................................................................................................................	.115	.105
56...................................................................................................................................	.116	.106
57...................................................................................................................................	.117	.107
58...................................................................................................................................	.118	.108
59...................................................................................................................................	.119	.109
60...................................................................................................................................	.120	.110
61...................................................................................................................................	.122	.112
62...................................................................................................................................	.124	.114
63...................................................................................................................................	.126	.116
64...................................................................................................................................	.128	.118
65...................................................................................................................................	.130	.120
66...................................................................................................................................	.134	.124
67...................................................................................................................................	.138	.128
68...................................................................................................................................	.142	.132
69...................................................................................................................................	.146	.136
70...................................................................................................................................	.150	.140
71...................................................................................................................................	.154	.144
72...................................................................................................................................	.158	.148
73...................................................................................................................................	.162	.152
74...................................................................................................................................	.166	.156
75...................................................................................................................................	.170	.160
76...................................................................................................................................	.174	.164
77...................................................................................................................................	.178	.168
78...................................................................................................................................	.182	.172
79...................................................................................................................................	.186	.176
80 or over.....................................................................................................................	.190	.180

PART 4—AMENDMENTS OF SUPERANNUATION BENEFIT (INTERIM ARRANGEMENT) ACT 1988

Principal Act

94.In this Part,“Principal Act”means theSuperannuation Benefit (Interim Arrangement) Act 19883.

Long title

95.The title of the Principal Act is amended by omitting “an interim superannuation benefit” and substituting “superannuation benefits”.

Short title

96. Section 1 of the Principal Act is amended by omitting “Benefit (Interim Arrangement)" and substituting ‘‘(Productivity Benefit)".

Interpretation

97.Section 3of the Principal Act is amended:

(a) by omitting “for the purposes of the Superannuation Act” from paragraph (d) of the definition of “qualified employee” in subsection (1);
(b) by omitting “for the purposes of that Act” from paragraph (e) of that definition;
(c) by inserting “or a declaration under subsection 3f (1)” after “regulations” in paragraph (g) of that definition;
(d) by inserting “and declarations” after “regulations” (third occurring) in that definition;
(e) by inserting “or a declaration under subsection 3f (2)” after “regulations” in paragraph (p) of that definition;
(f) by inserting in subsection (1) the following definitions:
“ ‘anniversary of birth’ has the same meaning as in the Superannuation Act;
‘approved authority’ means an authority or body that is an approved authority for the purposes of the Superannuation Act or the new Superannuation Act;
‘approved fund’ means a superannuation fund that is an approved fund because of a declaration in force under section 4c;
‘class employee’ means a qualified employee in a class in respect of which a declaration is in force under section 4a;
‘continuing contribution’, in relation to a fund employee, has the meaning given by section 3c;
‘declared first interest factor’, in relation to a financial year, means the factor that is the declared first interest factor for that year because of a declaration in force under paragraph 3e (a);
‘declared fund’ means the nominated fund or an approved fund;

‘declared second interest factor’,in relation to a financial year, means the factor that is the declared second interest factor for that year because of a declaration in force under paragraph 3E (b);

‘Department’ means:

(a) a Department of State; or
(b) a Department of the Parliament; or
(c) a branch or part of the Australian Public Service in relation to which a person has, under an Act, the powers of, or exercisable by, the Secretary of a Department of the Australian Public Service;

‘designated employer’,in relation to a qualified employee, means:

(a) where the employee is a permanent employee, or temporary employee, other than an employee employed by an approved authority:
(i) if the remuneration in respect of his or her employment is paid wholly or principally out of money appropriated by an annual Appropriation Act—the Department in respect of which the money is appropriated; or
(ii) if the remuneration in respect of his or her employment is paid wholly or principally out of money appropriated under an Act other than an annual Appropriation Act—such Department as is determined by the Minister; or
(b) where the employee is a holder of a statutory office:
(i) if the remuneration in respect of that office is paid by an approved authority—that authority; or
(ii) if subparagraph (i) does not apply—such Department or person as is determined by the Minister; or
(c) where the employee is employed by an approved authority—that authority; or
(d) in any other case—such person as is determined by the Minister;

‘fund employee’ means a remainder employee who is a member of a declared fund;

‘interim arrangement employee’ means a remainder employee who is not a fund employee;

‘new Superannuation Act’ means the Superannuation Act 1990;

‘nominated fund’ means the superannuation fund that is the nominated fund because of a declaration in force under section 4b;

‘permanent employee’ means:

(a) a person who is an officer for the purposes of the Public Service Act 1922;and
(b) any other person employed in a permanent capacity by the Commonwealth or by an approved authority;
‘rate of salary’, in relation to a remainder employee and a pay period of the employee, has the meaning given by section 3b;
remainder employee’ means a qualified employee who is neither:
(a) a scheme employee; nor
(b) a class employee;
‘salary’ includes wages and allowances that are paid regularly but does not include payments for working overtime;

‘scheme employee’ means:

(a) a qualified employee who is an eligible employee within the meaning of the Superannuation Act; or
(b) a qualified employee who is a member of the superannuation scheme within the meaning of the new Superannuation Act;

‘temporary employee’ means:

(a) a person who is an employee for the purposes of the Public Service Act 1922; and
(b) any other person employed, otherwise than in a permanent capacity, by the Commonwealth or by an approved authority;
but does not include a person engaged or appointed for employment outside Australia only (other than such a person who is declared by the Minister to be a person to whom this definition applies);”;

(g) by omitting subsection (6) and substituting the following subsection:

“(6) The Superannuation Benefits (Supervisory Mechanisms) Act 1990 does not apply to:
(a) benefits payable because of contributions payable under this Act into a declared fund; and
(b) arrangements applying because of a declaration under subsection 4a (2) and benefits payable under such arrangements; and
(c) interim benefits;
and the provision of benefits referred to in paragraph (a), (b) or (c) is not taken to be the provision of a superannuation scheme for the purposes of regulations or determinations under the Superannuation Act or the new Superannuation Act.”.

98. After section 3 of the Principal Act the following section is inserted:

Only one benefit in respect of a day of employment

“3a. (1) In this section:

‘employment event’, in relation to a person, means:

(a) the person ceasing to be a qualified employee; or

(b) another change in the person’s employment.

“(2) Where (whether before or after the commencement of this section) a person was a qualified employee on a day for the purpose of ascertaining the amount of an interim benefit payable in respect of the person because of an employment event, the person is taken not to have been a qualified employee on that day for the purpose of ascertaining the amount (if any) of:

(a) an interim benefit payable in respect of the person because of a later employment event; or

(b) what, for the purposes of this Act, the Superannuation Act or the new Superannuation Act, would have been the interim benefit payable in respect of the person if a later employment event had occurred.

“(3) Where a person was a qualified employee on a day for the purpose of ascertaining the amount of what, for the purposes of this Act, the Superannuation Act or the new Superannuation Act, would have been the interim benefit payable in respect of the person if an employment event had occurred, the person is taken not to have been a qualified employee on that day for the purpose of ascertaining the amount (if any) of:

(a) an interim benefit payable in respect of the person because of a later employment event; or

(b) what, for the purposes of this Act or one of those other Acts, would have been the interim benefit payable in respect of the person if a later employment event had occurred.”.

99. After section 3a of the Principal Act the following sections are inserted:

Rates of salary

“3b. (1) For the purposes of this Act, the rate of salary of a remainder employee for a pay period of the employee is taken to be:

(a) where the employee worked on a full-time basis for the whole of his or her first pay period after whichever is the later of the commencement of his or her employment by his or her current designated employer or the last anniversary of the employee’s birth—the employee’s rate of salary for that first pay period; or

(b) in any other case—what would have been the employee’s rate of salary for that first pay period if he or she had worked on a full-time basis for the whole of it at the same hourly or other rate as that at which he or she was paid.

“(2) Where a remainder employee is re-employed by a designated employer:

(a) later than 12 months after the employee last ceased to be employed by the employer; or
(b) for the performance of duties that are not the same as, nor similar to, the duties he or she performed when last employed by the employer;

then, for the purposes of subsection (1) in relation to a pay period after the re-employment, the employee is taken to have commenced employment with the employer when he or she commenced reemployment.

Continuing contributions

“3c. (1) Subject to this section, where a fund employee is employed on a full-time basis, the continuing contribution in respect of the employee for a pay period of the employee is:

(a) where the period is a week—the amount ascertained in accordance with the Table in the Schedule; or
(b) where the period is a fortnight—the amount ascertained in accordance with that Table as if the sums of money specified in it were multiplied by 2; or
(c) where the period is half a month—the amount ascertained in accordance with that Table as if those sums were multiplied by 2⅙; or
(d) where the period is 4 weeks—the amount ascertained in accordance with that Table as if those sums were multiplied by 4; or
(e) where the period is a month—the amount ascertained in accordance with that Table as if those sums were multiplied by 4⅓.

“(2) Subject to this section, where a fund employee is employed on a part-time basis, the continuing contribution in respect of the employee for a pay period of the employee is the amount calculated using whichever of the following formulas the employee’s designated employer considers to be convenient:

Actual salary	×	Full-time continuing contribution
Full-time salary
Part-time hours	×	Full-time continuing contribution
Full-time hours

where:

‘Actual salary’ means the salary payable to the employee for the pay period;

‘Full-time salary’ means the salary that would have been payable to the employee for the period if he or she performed his or her duties on a full-time basis;

‘Full-time continuing contribution’ means the amount that would be the continuing contribution in respect of the employee for the pay period if he or she performed his or her duties on a full-time basis;

‘Part-time hours’ means the number of hours in the pay period for which the employee is paid;

‘Full-time hours’ means the number of hours that the employee would work in the pay period if he or she performed his or her duties on a full-time basis.

“(3)Where the Minister makes a declaration under section 3din relation to a period, the Table set out in the Schedule has effect in relation to that period as if it had been varied in accordance with the declaration.

“(4) Where an amount that, but for this subsection, would be a continuing contribution for a fund employee for a pay period includes a part of a cent, then:

(a) where the part is .5 of a cent or more—that part shall be taken to be 1 cent; and
(b) in any other case—the part shall be disregarded.

Variation of Table

“3d. The Minister may, before the commencement of aperiod (which may be a period commencing on 1 July 1990), declare that the Table in the Schedule is to have effect in relation to the period as if amounts specified in the declaration were substituted for amounts specified in the Table (whether sums of money or percentages).

Interest factors

“3e. (1) For the purposes of section 8a, the Minister, before each financial year, is to declare:

(a) the factor ascertained using a specified formula to be the declared first interest factor for that year; and
(b) the factor ascertained using a specified formula to be the declared second interest factor for that year.

“(2) A formula:

(a) is to involve the use of a rate specified in the declaration; and
(b) may contain a variable that depends on the period, or another aspect, of the employment of the person in relation to whom the factor is to apply.

Qualified employees

“3f.(1) The Minister may declare that a specified class of persons is a class of persons who are qualified employees.

“(2) The Minister may declare that a specified class of persons is a class of persons who are not qualified employees.

“(3) A declaration under subsection (1) or (2) takes effect from such day, not earlier than 1 January 1988, as is specified in it.”.

100. After section 4 of the Principal Act the following sections are inserted:

Arrangements for certain employees

“4a. (1)The Minister may declare that a specified class of qualified employees, not being scheme employees, is a class of employees who are neither fund employees nor interim arrangement employees.

“(2) The Minister may declare that specified arrangements about superannuation or similar benefits are to apply to a declared class.

“(3) A declaration under subsection (1) or (2) takes effect from such day, not earlier than 1 January 1988, as is specified in it.

Nominated fund

“4b. (1)Subject to subsection (2)and section 4d,the Minister may declare a superannuation fund to be the nominated fund for the purposes of this Act.

“(2) The Minister is not to make a declaration under subsection (1) while another such declaration is in force.

“(3) The Minister is to ensure that there is a nominated fund at all times after the first declaration under subsection (1) is made.

Approved funds

“4c. (1) Subject to section 4d, the Minister may declare a superannuation fund to be an approved fund for the purposes of this Act.

“(2) A remainder employee may, by notice in writing to the employee’s designated employer, elect to be a member of an approved fund.

“(3) A fund employee who has made an election may revoke the election.

“(4) While an election by a fund employee is in force, the employee is, for the purposes of this Act, taken to be a member of the fund to which the election applies and not to be a member of any other approved fund of which he or she has been a member or of the nominated fund.

Nominated and approved superannuation funds to comply with standards

“4d.The Minister is not to declare a superannuation fund to be the nominated fund or an approved fund unless the fund is a complying fund within the meaning of Part IX of the Income Tax Assessment Act 1936.

Payments of equivalent benefit to declared funds

“4e.Where an interim arrangement employee becomes a member of a declared fund, his or her designated employer must pay into that fund:

(a) a contribution in respect of the employee equal to the amount of the interim benefit that would have been payable in respect of the employee if he or she had ceased to be a qualified employee on the day immediately before the day on which he or she became a member of the fund; and
(b) where that amount is not paid on the day on which he or she becomes a member—a contribution in respect of the employee of interest, fixed under section 4g in relation to the fund, on the amount in respect of each day in the period commencing on the day on which the amount should have been paid and ending on the day immediately before the day when the amount is paid.

Payments of continuing contributions to declared funds

“4f. (1)Subject to this section, the designated employer of a fund employee is to pay into the declared fund of which the employee is a member:

(a) continuing contributions in respect of the employee in respect of each pay period occurring while the employee is a member of the fund; and
(b) where a contribution is not paid on the day on which it is payable under subsection (2)—a contribution in respect of the employee of interest, fixed under section 4G in relation to the fund, on the contribution in respect of each day in the period commencing on the day on which the contribution should have been paid and ending on the day immediately before the day when the amount is paid.

“(2) A continuing contribution in respect of a fund employee payable to a fund for a pay period is payable on:

(a) where there are arrangements between the employer and the trustees of the fund fixing a day for payment—that day; or
(b) in any other case—the day on which salary for that pay period is payable.

“(3) A designated employer of a fund employee is not required to make a payment of continuing contributions before the first day on which salary is payable to the employee on or after 1 July 1990.

Interest

“4g.For the purposes of sections 4eand 4f, the interest fixed under this section in relation to a fund on a day is the interest calculated in a way determined by the Minister.

Certain employees to become members of nominated fund

“4h. (1)Where the designated employer of an interim arrangement employee becomes aware that the employee is not about to cease to be such an employee by becoming a member of an approved fund or otherwise, the employer must pay into the nominated fund the contribution that would be required to be paid in respect of the employee under paragraph 4e(a) if the employee had become a member of the fund on the day of payment, and, where the employer does so, the employee becomes a member of the fund.

“(2) Where a superannuation fund ceases to be an approved fund, a fund employee who is a member of that fund becomes a member of the nominated fund unless he or she has elected to be a member of another approved fund.

“(3) Where a fund employee revokes his or her election to be a member of an approved fund without electing to be a member of another approved fund, he or she becomes a member of the nominated fund.

“(4)Where a fund ceases to be the nominated fund, then, for the purposes of this Act, all remainder employees who were members of it immediately before it ceased are taken not to remain members of it and are taken to become members of the nominated fund that, because of subsection 4b (3), replaces it.”.

When benefit payable

101. Section 6 of the Principal Act is amended by omitting subsection (1) and substituting the following subsection:

“(1) Subject to subsection (2) and section 5, where an interim arrangement employee:

(a) ceases to be a qualified employee; or
(b) in the case of an employee who is employed by an approved authority—ceases to be employed by that authority; or
(c) in the case of an employee who is not employed by an approved authority—becomes employed by an approved authority;

an interim benefit becomes payable in respect of the person.”.

Amount of interim benefit before 1 July 1990

102. Section 8 of the Principal Act is amended:

(a) by omitting from subsection (1)“the year commencing on 1January 1988or a subsequent year” and substituting “a year commencing on 1 January 1988,1 January 1989or 1January 1990”;
(b) by inserting in subsection (2) “and before 1July 1990”after “year” (first occurring).

103. The Principal Act is amended by inserting after section 8 the following section:

Amount of interim benefit from 1 July 1990

“8a. (1) In this section:

‘notional interim benefit’,in relation to a person, means the amount of the interim benefit that, under section 8, would have been payable in respect of the person if he or she had ceased to be a qualified employee on 30June 1990.

“(2) The amount of interim benefit that accumulates in respect of service by an interim arrangement employee in the year commencing on 1July 1990or a subsequent year is the amount calculated using the formula:

Notional contributions + (First factor × Notional contributions)

+ Second factor × (Notional benefit + Past accumulations)

where:

‘Notional contributions’ means the sum of what would have been the continuing contributions for the employee in respect of the employee’s pay periods in the year if he or she had been a fund employee in the year;

‘First factor’ means the declared first interest factor for the year applied in relation to the employee;

‘Second factor’ means the declared second interest factor for the year applied in relation to the employee;

‘Notional benefit’ means the employee’s notional interim benefit (if any);

‘Past accumulations’ means the amounts (if any) that accumulated under this subsection in respect of the employee in the preceding years.

“(3) Where an interim benefit becomes payable in respect of a person in a financial year commencing on or after 1July 1990, the amount of that benefit is the sum of:

(a) the person’s notional interim benefit (if any); and
(b) the amount that accumulated in respect of service by the person under subsection (2) in respect of that year; and

(c) the amounts (if any) that accumulated under that subsection in respect of the person in the preceding years.”.

104. After section 9 of the Principal Act the following sections are inserted:

Declarations

“9a. Declarations, and determinations, under this Act by the Minister are to be in writing signed by the Minister.

Certain declarations disallowable etc.

“9b. Declarations under sections 3d, 3e, 3f, 4aand 4gare:

(a) statutory rules for the purposes of the Statutory Rules Publication Act 1903; and
(b) disallowable instruments for the purposes of section 46a of the Acts Interpretation Act 1901.

Delegation by Minister

“9c. The Minister may, by signed instrument, delegate all or any of his or her powers under section 4c or for the purposes of the definition of ‘designated employer’ in section 3 to an officer of the Department of Finance.

Minister to comply with Standards Act

“9d. The Minister is not to exercise his or her powers under this Act in relation to superannuation funds in any way that would be inconsistent with the Standards Act or regulations made under that Act.

Source of payments

“9e. A designated employer of a remainder employee may make payments under this Act in respect of the employee out of any money in the employer’s control that is available for the purpose.

Employers to ensure membership of funds

“9f. Without limiting subsection 4h (1), a designated employer employing a remainder employee on 1 July 1990 must take all reasonable steps to ensure that the employee becomes a fund employee before 30 June 1991.”.

Schedule

105. The Principal Act is amended by adding at the end the following Schedule:

“SCHEDULE Section 3c

TABLE OF CONTINUING CONTRIBUTIONS

Pay period rate of salary	Pay period contribution
Less than $423	$12.70
$423 or more but less than $650	The amount that is 3% of the employee’s pay period rate of salary $19.50
$650 or more but less than $975	The amount that is 2% of the employee’s pay period rate of salary”.
$975 or more

Consequential amendments

106. The Principal Act is further amended as follows:

Subsection 3 (1) (definition of “pay period”):

Omit “or wages”.

Subsection 3 (1) (paragraph (a) of “qualifying pay period”):

Omit “or wages”.

Subsection 3 (1) (definition of “qualifying pay period value”):

Omit “or wages” (wherever occurring).

Subsection 3 (1) (definition of “reduced salary or wages”):

Omit the definition, substitute the following definition:

“ ‘reduced salary’ means reduced salary during a period of sick leave or long service leave;”.

Paragraph 5 (2) (c):

Omit “or wages”.

Section 7:

Before “employer” insert “designated”.

PART 5—AMENDMENTS OF THE PAPUA NEW GUINEA (STAFFING ASSISTANCE) ACT 1973

Principal Act

107. In this Part, “Principal Act” means the Papua New Guinea (Staffing Assistance) Act 19734.

Interpretation

108. Section 3 of the Principal Act is amended:

(a) by omitting from subsection (1) the definitions of “appropriate Board”, “Benefits Board” and “Benefits Fund”;

(b) by omitting from the definition of “Board” in subsection (1) “the Benefits Board or” and as the case requires”.

Commissioner to administer Part V

109. Section 20 of the Principal Act is amended by omitting “Parts V and VI” and substituting “Part V”.

Annual reports

110. Section 21 of the Principal Act is amended by omitting from subsection (1) “, VI”.

Repeal of Part VI

111. Part VI of the Principal Act is repealed.

Arrangements for reimbursement of Commonwealth by certain authorities

112. Section 58 of the Principal Act is amended:

(a) by omitting “or VI”;
(b) by omitting the Provident Account or the Benefits Fund” and substituting “or the Provident Account”.

No assignment of benefits

113. Section 60 of the Principal Act is amended:

(a) by omitting “or VI”;
(b) by omitting “, the Reserve Units of Pension Account or the Benefits Fund” and substituting “or the Reserve Units of Pension Account”.

_____________________________________________________________________________________

NOTES

1. No. 33, 1922, as amended. For previous amendments, see No. 45, 1924; No. 22, 1930; No. 10, 1931; No. 45, 1934; No. 28, 1937; No. 53, 1942; No. 18, 1943; Nos. 15 and 30, 1945; No. 2, 1946; Nos. 1 and 35, 1947; No. 19, 1948; No. 76, 1950; Nos. 49 and 62, 1951; No. 92, 1952; No. 11, 1954; No. 27, 1955; Nos. 19 and 112, 1956; No. 94, 1957; No. 45, 1958; No. 102, 1959; No. 102, 1963; Nos. 97 and 154, 1965; Nos. 69 and 86, 1966; No. 52, 1967; Nos. 49 and 57, 1968; Nos. 14 and 26, 1969; No. 46, 1971; Nos. 46, 83 and 135, 1973; No. 216, 1973 (as amended by No. 20, 1974); No. 59, 1974; Nos. 32 and 37, 1976; No. 17, 1978; No. 92, 1981; No. 63, 1984; Nos. 80, 93 and 151, 1986; and No. 125, 1989.
2. No. 31, 1976, as amended. For previous amendments, see No. 51, 1976; No. 80 1977; Nos. 17, 134, 169 and 170, 1978; Nos. 52 and 155, 1979; No. 177, 1980; No. 92, 1981; No. 92, 1983; No. 165, 1984; Nos. 80, 93, 151 and 153, 1986; No. 141, 1987; Nos. 38 and 130, 1988; and Nos. 71, 97 and 125, 1989.

3. No. 70, 1988.

4. No. 70, 1973, as amended. For previous amendments, see No. 100, 1975; Nos. 37 and 69, 1976; and No. 36, 1978.

[Minister’s second reading speech made in—

House of Representatives on 16 May 1990 Senate on 28 May 1990