Overview

The Defence Act 1903 was enacted to provide for the regulation and management of the Australian Defence Force and related matters, including superannuation benefits for defence force personnel. The Act was introduced to address the need for a structured and legal framework governing the operations, administration, and welfare of the Australian Defence Force. One of the key provisions of the Act is section 52, which empowers the Minister for Veterans' Affairs and the Minister Assisting the Minister for Defence to make determinations regarding superannuation benefits, including productivity benefits. This specific legislative instrument, the Defence Force (Superannuation)(Productivity Benefit) Determination No 1 of 2000, was made under the authority of section 52 of the Defence Act 1903 by Bruce Craig Scott, the Minister for Veterans' Affairs and the Minister Assisting the Minister for Defence. The objective of this determination is to amend the calculation of interest applicable in respect of certain calendar years, as evidenced by the amendment to Clause 3, which was taken to have commenced on 1 January 2000. The schedule appended to the determination includes a specific interest factor for the year 2000, reflecting the policy objective to accurately adjust superannuation benefits for that period.

Scope and Application

The Defence Force (Superannuation)(Productivity Benefit) Determination No 1 of 2000, made under section 52 of the Defence Act 1903, applies to members of the Australian Defence Force who are eligible for superannuation benefits. The determination modifies the calculation of the productivity benefit for certain calendar years, specifically adding an interest factor of 0.0588 for the year 2000. This amendment is intended to reflect economic conditions and ensure that superannuation benefits are adjusted accordingly. The scope of the determination extends to all eligible Defence Force members, encompassing both current personnel and those who retired during the specified period. The determination applies on a national level, affecting members across Australia, and it is effective from 1 January 2000. While the primary focus is on adjusting superannuation benefits, it does not explicitly state exclusions or exemptions, implying that all eligible members are subject to its provisions unless otherwise specified by subordinate instruments.

Key Provisions

The main operative sections of this Determination are found in sections 1 and 3. Section 1.1 details the amendment made to the Defence Force (Superannuation)(Productivity Benefit) Determination. This amendment modifies the interest factors used in the calculation of interest applicable in respect of certain calendar years. Section 3.1 adds a new factor for the year 2000, which is 0.0588. The obligations imposed by this Determination on the parties or entities it governs are primarily related to the calculation of superannuation benefits. Specifically, this Determination requires that the new interest factor for the year 2000 be applied to any superannuation calculations that are applicable to that year. This ensures that the interest calculations are accurate and reflect the interest rate applicable for that year. In terms of offences, penalties, or consequences for breach, the Determination itself does not explicitly state any penalties or consequences. However, it is reasonable to assume that any failure to comply with the Determination could lead to legal action being taken against the party responsible for the breach. Such action could potentially result in financial penalties or other consequences as determined by the relevant court. It is also worth noting that the Defence Act 1903, under which this Determination is made, contains provisions for penalties and consequences for breaches of the Act and any subsidiary legislation made under it. For example, section 116 of the Defence Act 1903 provides for penalties for offences against the Act, including fines and imprisonment. The maximum penalty for an offence against the Act is a fine of up to 100 penalty units or imprisonment for up to two years, or both. In summary, the main operative sections of this Determination require the application of a new interest factor for the year 2000 to superannuation calculations. The Determination imposes obligations on parties or entities to comply with the new interest factor. Failure to comply with the Determination could potentially result in legal action being taken against the party responsible for the breach, with penalties and consequences determined by the relevant court or tribunal.