EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO. 163
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1990
DECLARATION UNDER PARAGRAPH (a) OF DEFINITION OF “APPROVED AUTHORITY” IN SECTION 3
The Superannuation Act 1990 (the Act) provides for the new superannuation scheme for Commonwealth employees and certain other persons to operate from 1 July 1990. The Superannuation Act 1976 provides for the current Commonwealth superannuation scheme. Generally, members of the current scheme are to have the option, to be exercised during the period of 12 months from 1 July 1990, of remaining members of that scheme or of transferring to the new scheme.
In accordance with section 6 of the Act and the definitions of “permanent employee” and “temporary employee” in section 3, those who may become members of the new scheme include persons employed in permanent or a temporary capacity by an approved authority. In accordance with section 3 of the Act, the term “approved authority” means-
(a) an authority or body that was, immediately before 1 July 1990, an approved authority for the purposes of the Superannuation Act 1976: and
(b) an authority or body of a kind described in paragraph (b) of the definition that is declared by the Minister for Finance to be an approved authority for the purposes of the Act.
Paragraph (a) is not to include an authority or body that is declared by the Minister for Finance not to be an approved authority for the purposes of the Act.
In accordance with section 45 of the Act, a declaration for the purposes of paragraph (a) of the “approved authority” definition is to be a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 and a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903.
The declaration contained in the Statutory Rule, and cited as “Approved Authority Exclusion Declaration No 1”, specifies a number of authorities or bodies that are approved authorities for the purposes of the Superannuation Act 1976 but which are not to be approved authorities for the purpose of the Act.
Prior to the introduction by the Northern Territory on 1 October 1986 of a superannuation scheme for its employees, all Northern Territory employees were able to be members of the current Commonwealth scheme. That scheme was closed to Northern Territory employees from 1 October 1986 and Northern Territory employees who were members of the scheme immediately before that date were given the option of remaining members of that scheme or of transferring to the Northern Territory scheme. It is not intended that the new Commonwealth scheme be available to Northern Territory employees. The Declaration contained in the Statutory Rule therefore provides that the body politic known as the Northern Territory of Australia and the following Northern Territory authorities or bodies are not to be approved authorities for the purposes of the Act-
Aboriginal Areas Protection Authority
Alice Springs College of Technical and Further Education
Batchelor College
Fire Service of the Northern Territory
Housing Commission
Katherine Rural College
Menzies School of Health Research
Museums and Art Galleries Board
NT Open College of Technical and Further Education
NT Tourist Commission
NT University
Power and Water Authority
A number of Commonwealth authorities or bodies have established, or will be establishing with effect from 1 July 1990, superannuation schemes for their employees. Employees of those authorities or bodies have had, or will have, the opportunity of transferring from the current Commonwealth superannuation scheme to those schemes. It is not intended that employees of those authorities or bodies have available to them the new Commonwealth scheme.
The Declaration contained in the Statutory Rule therefore also provides that the relevant Commonwealth authorities or bodies are not to be approved authorities for the purposes of the Act.
Section 3 of the Act came into operation on Royal Assent (7 June 1990). The Declaration operates from the date of its gazettal.
Overview
The Superannuation Act 1990 was enacted by the Commonwealth of Australia to provide for the establishment of a new superannuation scheme for Commonwealth employees and certain other persons, effective from 1 July 1990. The Act replaced the existing Superannuation Act 1976 and aimed to streamline the superannuation arrangements for Commonwealth employees. It provided for a transition period during which members of the old scheme could choose to remain in that scheme or transfer to the new scheme. The policy objective of the Act was to ensure a unified and efficient superannuation system for Commonwealth employees, facilitating their retirement savings and benefits.
The Act was issued under the authority of the Minister for Finance and included a mechanism for the Minister to declare certain authorities or bodies as "approved authorities" for the purposes of the new scheme. The explanatory statement outlines that certain authorities, including the Northern Territory and specific Commonwealth bodies, were excluded from being approved authorities for the new scheme, reflecting the intention to prevent these entities' employees from accessing the new Commonwealth scheme. The declaration, known as "Approved Authority Exclusion Declaration No 1", specifies the authorities or bodies that are excluded from being approved authorities under the Act, ensuring that the new scheme is only available to the intended participants.
Scope and Application
The Superannuation Act 1990 applies to Commonwealth employees and other specified persons who are eligible to join the new superannuation scheme that commenced on 1 July 1990, offering them a choice between remaining in the existing scheme or transferring to the new one within a 12-month period from the commencement date. This legislation is applicable to individuals employed in either permanent or temporary capacities by entities recognised as approved authorities. Approved authorities include those previously recognised under the Superannuation Act 1976 and any additional bodies declared by the Minister for Finance as such for the purposes of the 1990 Act. Conversely, the Act excludes certain authorities and bodies, notably those in the Northern Territory and specific Commonwealth authorities with their own superannuation schemes. This exclusion is formalised through a Statutory Rule that specifies these entities, ensuring they are not considered approved authorities for the purposes of the new superannuation scheme. The scope and application of the Act are further refined through subordinate instruments, which delineate the specific entities affected by the exclusions.
Key Provisions
The Superannuation Act 1990 (the Act) includes several key provisions that govern the establishment and operation of a new superannuation scheme for Commonwealth employees and certain other individuals. Section 6 of the Act outlines the eligibility criteria for membership in the new scheme, which includes employees in permanent or temporary capacities of approved authorities. Section 3 defines "approved authority" and specifies that these authorities are those that were approved under the Superannuation Act 1976 and those declared by the Minister for Finance under the new Act. The explanatory statement notes that certain authorities or bodies, previously approved, are not to be considered approved authorities under the new Act.
The Act imposes obligations on approved authorities and their employees regarding the new superannuation scheme. Specifically, section 45 mandates that certain authorities or bodies, including those of the Northern Territory and some Commonwealth authorities, are excluded from being approved authorities for the purposes of the new scheme. This exclusion is formalised in the Approved Authority Exclusion Declaration No 1, which specifies which authorities or bodies are not approved authorities under the Act. The declaration ensures that the new scheme does not overlap with existing or new superannuation schemes established by the Northern Territory or certain Commonwealth authorities.
The obligations under the Act include ensuring that eligible employees are informed of their options to remain in the existing scheme or transfer to the new scheme within a specified timeframe, as outlined in section 3. Approved authorities must facilitate this process, ensuring that all eligible employees are given the opportunity to make an informed choice about their superannuation arrangements.
Failure to comply with the provisions of the Act may result in civil or criminal consequences. Although the explanatory statement does not specify the exact penalties, the Act is subject to the general provisions of the Acts Interpretation Act 1901, which could include fines or other legal repercussions for non-compliance. The disallowable nature of the declaration under section 46A of the Acts Interpretation Act 1901 means that Parliament has the power to review and potentially annul the declaration if deemed necessary. This underscores the importance of adhering to the provisions set out in the Act and the approved authority exclusion declaration.