EXPLANATORY STATEMENT
MILITARY SUPERANNUATION AND BENEFITS AMENDMENT TRUST
DEED 2005 (No.2)
ISSUED BY THE AUTHORITY OF THE MINISTER ASSISTING THE MINISTER
FOR DEFENCE
The Schedule to the Trust Deed made by the Minister for Defence under section 5 of the Military Superannuation and Benefits Act 1991 ('the MSB Act') contains Rules ('the MSB Rules') which deal with the benefits to be provided to members of the MSB Scheme upon retirement, or to dependants of deceased members of the scheme. The benefits payable are a member benefit based on member contributions and accrued MSB Fund earnings, and an employer benefit which includes employer contributions.
The Minister is empowered, by section 5 of the MSB Act, to amend the Trust Deed (including the MSB Rules), by an instrument which, by subsection 49(1) of the MSB Act, is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
The Superannuation Laws Amendment (Abolition of Surcharge) Act 2005 prevents the superannuation surcharge, payable in individual's surchargeable superannuation contributions and relevant termination payments, from applying on or after 1 July 2005. It achieves this by amending the:
- Superannuation Contributions Tax (Assessment and Collection) Act 1997
- Superannuation Contributions Tax (Members of Constitutionally Protected
Superannuation Funds) Assessment and Collection Act 1997, and
- Termination Payments Tax (Assessment and Collection) Act 1997.
The amendments made by the Military Superannuation and Benefits Amendment Trust Deed 2005 (No. 2) abolishes the surcharge deduction amount applied to the employerfinanced component of benefits accruing to a MSB Scheme member from 1 July 2005.
Military Superannuation and Benefits Amendment Trust Deed 2005 (No. 2) will commence on 1 July 2005. The amendment is beneficial and, in accordance with the provisions of subsection 48(2) of the Acts Interpretation Act 1901, no member of the MSB Scheme will be disadvantage upon implementation of the amendment.
Consultation has taken place between the Military Superannuation and Benefits Board, Commonwealth Superannuation Administration (the administrator of the MSB Scheme), the Office of Legislative Drafting and Defence Military Superannuation Officers.
Clause 1- Name of Trust Deed
This clause is formal. Clause 2 - Commencement
This clause provides for commencement on the day of registration.
Clause 3 - Amendment of Military Superannuation and Benefits Trust Deed
This clause is formal. Schedule 1- Amendments
This schedule amends the Military Superannuation and Benefits Trust Deed (incorporating the MSB Rules) made under the Military Superannuation and Benefits Act 1991 to provide for the abolition of the superannuation surcharge deduction amount that can be applied to a MSB Scheme member's debt account.
Item 1 - Rules, Schedule 12, paragraph 3 (c)
This item omits the term "year;" and inserts the term "year." to enable the omission of Rules, Schedule 12, paragraph 3 (d)
Item 2 - Rules, Schedule 12, paragraph 3 (d)
This item repeals the amount to be deducted from an MSB Scheme member's debt account from 1 July 2005.