Parliamentary Contributory Superannuation Amendment Act 1996

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Parliamentary Contributory Superannuation

Amendment Act 1996

No. 29, 1996

An Act to amend the Parliamentary Contributory

Superannuation Act 1948, and for related purposes

 

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Contents

1 Short title.......................................................765

2 Commencement..................................................765

3 Schedule(s).....................................................766

Schedule 1—Amendment of the Parliamentary Contributory Superannuation Act 1948 767

 

Parliamentary Contributory

Superannuation Amendment Act 1996

No. 29, 1996

 

An Act to amend the Parliamentary Contributory Superannuation Act 1948, and for related purposes

The Parliament of Australia enacts:

[Assented to 9 July 1996]

1 Short title

This Act may be cited as the Parliamentary Contributory Superannuation Amendment Act 1996.

2 Commencement

(1) Subject to subsection (2), this Act commences on the day on which it receives the Royal Assent.

(2) Schedule 1 is taken to have commenced on 2 March 1996.

 

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3 Schedule(s)

Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

 

Schedule 1— Amendment of the Parliamentary Contributory Superannuation Act 1948

1 Subsection 18(2AA)

Add at the end:

Note: The references in this subsection to the rate of parliamentary allowance for the time being payable are affected by section 22T.

2 Subsection 18(6)

Add at the end (after the table):

Note: The reference in this subsection to the rate of parliamentary allowance for the time being payable is affected by section 22T.

3 Subsection 18(9)

Add at the end:

Note: The reference in this subsection to the rate of salary, or allowance by way of salary, for the time being payable in respect of an office is affected by sections 22T and 23.

4 Subsection 18(10B)

Add at the end:

Note: The reference in this subsection to the rate of salary, or allowance by way of salary, for the time being payable in respect of an office is affected by sections 22T and 23.

5 After section 22S

Insert in Part VI:

22T Treatment of decreases in rates used to calculate retiring allowance

(1) If:

(a) after 2 March 1996, the rate of any of the following payments (the underlying payment) is decreased:

(i) parliamentary allowance payable to a member;

(ii) salary payable to a Minister of State in respect of an office;

(iii) allowance by way of salary payable to an office holder in respect of that office; and

(b) at a time after the decrease, retiring allowance is payable to a person, or would have been payable to a person if he or she

 

had not died, who was receiving the underlying payment at a time before the decrease;

this section applies for the purposes of calculating the rate of the retiring allowance after the decrease. The rate of the underlying payment immediately before the decrease is the preserved rate.

Note 1: For the purposes of applying paragraph (b), it does not matter if the retiring allowance was or would also have been payable to the person before the decrease.

Note 2: For the purposes of applying paragraph (b), the time when the person was receiving the underlying payment may be a time before or after 2 March 1996.

(2) In calculating the rate of the retiring allowance, the rate of the underlying payment is to be taken to remain at the preserved rate until the actual rate of the payment increases to at least the preserved rate.

(3) If the actual rate of the underlying payment is further decreased before increasing to at least the preserved rate, this section does not apply separately in relation to that further decrease.

(4) If a decrease of a payment is expressed to have effect from a particular time before the taking of the decision to decrease the payment, this section applies as if the payment had actually been decreased at that earlier time.

6 Overpayments during retrospective period

(1) An overpayment of an amount purporting to be made under the Parliamentary Contributory Superannuation Act 1948 (the PCS Act) during the period that started on 2 March 1996 and ended when this Act received the Royal Assent may be recovered by the Commonwealth as a debt due to the Commonwealth.

(2) The whole or a part of the overpayment may be deducted from an amount payable under the PCS Act as amended by this Act.

(3) Subitems (1) and (2) do not, by implication, affect the recovery or set­off of other overpayments purporting to be made under the PCS Act.

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[Minister’s second reading speech made in

House of Representatives on 30 May 1996

Senate on 20 June 1996]

Overview

The Parliamentary Contributory Superannuation Amendment Act 1996 was enacted by the Parliament of Australia to amend the Parliamentary Contributory Superannuation Act 1948. This Act was introduced to address the issue of superannuation entitlements of Members of Parliament and Ministers of State in light of changes to parliamentary allowances and salaries. It ensures that superannuation entitlements are not adversely affected by any reductions in these allowances and salaries. The primary policy objective of this Act is to maintain the integrity of superannuation benefits for members and ministers by preserving their superannuation entitlements based on their original rates of payment, in the event of any subsequent reductions in their allowances or salaries. The Act received Royal Assent on 9 July 1996, with certain provisions commencing on 2 March 1996.

Scope and Application

The Parliamentary Contributory Superannuation Amendment Act 1996 amends the Parliamentary Contributory Superannuation Act 1948 to modify the calculation of retiring allowances for members of the Parliament of Australia. This Act applies to individuals who are or were members of the Parliament and are receiving or would have been eligible for a retiring allowance as defined under the amended Act. This includes former members whose retirement benefits are impacted by changes to their parliamentary allowance, salary, or allowances by way of salary post-2 March 1996. The Act’s jurisdiction is limited to the Commonwealth of Australia, thereby affecting only federal parliamentary members and not extending to state or territory legislatures. Notably, the Act provides provisions for the recovery of overpayments made under the amended Act during a specified retrospective period, which runs from 2 March 1996 until the Act received Royal Assent. The Act does not explicitly state exclusions or thresholds but implies that any overpayments within the specified period may be recovered, subject to the provisions outlined. The Act's scope and application are further defined through subordinate instruments, which may provide additional details on the implementation of the amendments.

Key Provisions

The Parliamentary Contributory Superannuation Amendment Act 1996 (Act) amends the Parliamentary Contributory Superannuation Act 1948 (PCS Act) by introducing specific provisions regarding the calculation of retiring allowances and the recovery of overpayments. Section 22T of the Act (subparagraphs 18(2AA), 18(6), 18(9), and 18(10B)) addresses the treatment of decreases in rates used to calculate retiring allowances, ensuring that the preserved rate of an underlying payment is maintained until the actual rate of the payment increases to at least the preserved rate (subsections 18(2AA), 18(6), 18(9), and 18(10B)). The Act also provides for the recovery of overpayments during a specified retrospective period (section 6). This period began on 2 March 1996 and ended when the Act received the Royal Assent. The Commonwealth is permitted to recover such overpayments as debts due, with the option to deduct the whole or part of the overpayment from amounts payable under the PCS Act as amended by this Act (subsections 6(1), 6(2), and 6(3)). The obligations imposed by the Act on the parties it governs include adherence to the new calculation method for retiring allowances as outlined in section 22T. Specifically, entities must ensure that the preserved rate of the underlying payment is maintained in the calculation of retiring allowances in the event of a decrease in the rate of parliamentary allowance, salary, or allowance by way of salary. Additionally, the Act mandates that overpayments made during the retrospective period be recovered by the Commonwealth as debts due, with the possibility of deducting these overpayments from future payments under the PCS Act (subsections 6(1), 6(2), and 6(3)). Failure to comply with the provisions of the Act may result in civil consequences, particularly in relation to the recovery of overpayments. Under section 6, overpayments made during the retrospective period may be recovered by the Commonwealth. This could involve the deduction of overpaid amounts from future payments owed under the PCS Act. Additionally, the Act may impose administrative burdens on entities required to calculate retiring allowances according to the new method prescribed in section 22T, potentially necessitating adjustments to existing systems and processes. There are no explicit criminal penalties outlined in the Act, but non-compliance with the requirements for recovering overpayments could lead to civil liabilities and financial repercussions for the defaulting party.

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Retirement & Pensions Law
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Amending Act
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.