EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance
Governance of Australian Government Superannuation Schemes Legislation Amendment Act 2015
Governance of Australian Government Superannuation Schemes Legislation Amendment Commencement Proclamation 2015
Item 2 of the table in subsection 2(1) of the Governance of Australian Government Superannuation Schemes Legislation Amendment Act 2015 (the Act) provides that Schedules 1, 2 and 3 to the Act are to commence on a day or days fixed by Proclamation. However, if any of the provisions in Schedules 1, 2 and 3 do not commence within 6 months from the day on which the Act receives the Royal Assent, then those provisions will commence on the day after the end of that 6 month period.
The purpose of the Governance of Australian Government Superannuation Schemes Legislation Amendment Commencement Proclamation 2015 (the Proclamation) is to fix 1 July 2015 as the day on which the provisions in Schedules 1, 2 and 3 to the Act commence.
Sections 1, 2, and 3 of the Act (and anything in the Act not otherwise covered by the table in subsection 2(1) of the Act), commence on receipt of the Royal Assent.
Schedules 1 and 2 to the Act merge ComSuper, the provider of administration services in relation to the Australian Government civilian and military defined benefit superannuation schemes, with Commonwealth Superannuation Corporation (CSC), the trustee of the Australian Government schemes. This gives effect to the Australian Government’s decision (announced as part of a 2014-15 Budget measure) to merge ComSuper with CSC commencing on 1 July 2015, so that the management of the Australian Government superannuation schemes is undertaken by a single entity – CSC. ComSuper will be abolished.
Schedule 3 to the Act amends the Governance of Australian Government Superannuation Schemes Act 2011 and the Superannuation Act 2005, to give effect to the Australian Government’s decision that members of the Public Sector Superannuation Accumulation Plan (PSSAP) will pay administration fees in relation to the scheme (announced as part of the 2014 -15 Mid-Year Economic and Fiscal Outlook). Prior to the commencement of Schedule 3 to this Act, PSSAP administration fees were paid by the Commonwealth.
Fixing a day by proclamation for the commencement of Schedules 1, 2 and 3 of the Act brings certainty to the commencement of the Act’s operational provisions. From a practical perspective, this aids certainty in terms of employment arrangements, financial arrangements, transfer of assets and liabilities to CSC and the cessation of ComSuper.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003. However, the Proclamation is not subject to disallowance under item 42 of subsection 44(2) of that Act.
A Statement of Compatibility with Human Rights was prepared for the Act. An additional Statement is not required for this Proclamation as it is not subject to disallowance.
In accordance with section 17 of the Legislative Instruments Act 2003, consultation has taken place with the Office of Parliamentary Council, CSC and ComSuper.