Overview

The Defence Act 1903 was enacted to provide a legislative framework for the management and administration of the Australian Defence Force, including provisions for superannuation benefits. In 2001, the Defence Force (Superannuation)(Productivity Benefit) Determination No 1 was introduced by Bruce Craig Scott, the Minister for Veterans' Affairs, to address specific issues related to the calculation and payment of productivity benefits within the superannuation scheme for Defence Force members. This legislative instrument aimed to clarify and adjust the factors involved in the calculation of interest applicable to certain calendar years, ensuring that the benefits were accurately and fairly calculated and disbursed. The Determination took effect from 1 January 2001, with the addition of a new factor for the year 2001, as specified in the Schedule.

Scope and Application

The Defence Act 1903 Determination No 1 of 2001, made under the authority of the Minister for Veterans' Affairs, applies to the calculation of interest applicable in respect of certain calendar years for superannuation benefits under the Defence Force Superannuation scheme. This legislation specifically targets the Productivity Benefit component of superannuation for members of the Australian Defence Force. The amendment made by this Determination affects the interest calculation factor for the year 2001, setting it at 0.0490. The Determination applies nationally across Australia, as it is an instrument under the Commonwealth's Defence Act 1903. There are no stated exclusions or exemptions within this Determination, and it does not extend or restrict application through subordinate instruments beyond what is specified within its text. The scope of this legislation is limited to the precise adjustment of the interest calculation factor for the specified year, ensuring compliance with the broader framework of the Defence Force Superannuation scheme.

Key Provisions

The Defence Force (Superannuation)(Productivity Benefit) Determination is amended by the Defence Act 1903 Determination No 1 of 2001. This amendment, effective from 1 January 2001, introduces a new factor to be considered in the calculation of interest applicable in respect of certain calendar years. Specifically, the schedule of the Determination now includes a new entry for the year 2001, with an interest factor of 0.0490 (Schedule, clause 3.1). This legislation imposes specific obligations on those responsible for administering superannuation benefits within the defence force. It mandates the inclusion of the newly specified interest factor in calculations pertaining to the Productivity Benefit for superannuation. This adjustment ensures that the interest calculation for the year 2001 reflects the correct economic conditions and interest rates applicable at that time (section 1.1). The Determination does not explicitly outline offences, penalties, or civil/criminal consequences for non-compliance with the specified interest factor. However, it is reasonable to infer that any failure to adhere to the legislative requirements could result in incorrect calculations of superannuation benefits, potentially leading to financial discrepancies or disputes. Such discrepancies might necessitate corrective actions or legal interventions to ensure compliance with the terms of the Determination (section 2.1). While the specific penalties are not detailed in the text, non-compliance could lead to administrative or legal repercussions for those responsible for implementing the changes.