Overview

The Defence Act 1903, enacted by the Commonwealth Parliament, addresses the governance and administration of the Australian Defence Force. This legislative instrument, titled the Defence Act 1903 Determination No 1 of 1996, was introduced to amend the Defence Force (Superannuation) (Productivity Benefit) Determination. Specifically, this determination, made by the Minister for Defence Science and Personnel, Gary Francis Punch, on 25 January 1996, seeks to adjust the calculation of interest applicable for certain calendar years. The policy objective appears to focus on ensuring accurate financial calculations for superannuation benefits, reflecting the need for timely and precise administrative adjustments within the Defence Force’s financial frameworks.

Scope and Application

The Defence Act 1903 Determination No 1 of 1996 applies to the calculation of interest rates applicable to certain calendar years under the Defence Force (Superannuation) (Productivity Benefit) scheme. This legislative instrument amends the existing determination by specifying the interest factor applicable for the year 1996, which is set at 0.0695. The amendment is specifically targeted at Defence Force members and their superannuation benefits, ensuring that the correct interest rate is applied for those years covered by the determination. The amendment took effect from 1 January 1996, and its application is confined to the Defence Force superannuation context as outlined in the Defence Act 1903. This determination does not extend beyond its specific interest rate calculation for superannuation benefits, and no other conduct or transactions are affected.

Key Provisions

The Defence Force (Superannuation)(Productivity Benefit) Determination, as amended by Determination No 1 of 1996 under section 52 of the Defence Act 1903, primarily modifies the calculation of interest applicable for certain calendar years. Specifically, section 3.1 of the Schedule introduces a new interest rate of 0.0695 for the year 1996 (section 3.1). This adjustment affects the interest applied to superannuation benefits for the specified year. Entities and individuals governed by the Defence Force Superannuation provisions must adhere to the updated interest rate as stipulated in the amended determination. This includes ensuring that any calculations pertaining to superannuation benefits for the year 1996 incorporate the new interest rate of 0.0695. Failure to comply with these adjustments may result in discrepancies in benefit calculations and potential disputes regarding entitlements. The legislation does not explicitly detail specific offences or penalties for non-compliance with the interest rate amendment itself. However, general non-compliance with Defence Act provisions can lead to civil or criminal consequences depending on the severity and intent of the breach. Under Australian law, breaches of statutory provisions can result in fines, imprisonment, or both, depending on the nature and seriousness of the offence. The Defence Act 1903 encompasses a broad range of activities and responsibilities, and penalties can vary significantly based on the specific provision breached and the context of the non-compliance. In summary, the determination sets forth a specific interest rate for superannuation benefit calculations for 1996, imposing an obligation on relevant entities to use this rate in their computations. While the determination does not detail specific penalties for non-compliance with the interest rate, general non-compliance with Defence Act provisions can result in significant legal consequences.