Overview

The Parliamentary Superannuation (Default Fund) Declaration 2012 was enacted to address the need for updating the default superannuation fund under the Parliamentary Superannuation Act 2004. The original default fund, the Australian Government Employees Superannuation Trust (AGEST), was set to merge with another superannuation fund, AustralianSuper, effective from 1 January 2013. To comply with the requirements of the Parliamentary Superannuation Act 2004, the Minister for Finance and Deregulation was mandated to declare a new default fund, which resulted in this Declaration. This change was necessary to ensure that superannuation contributions made by the Commonwealth for eligible office holders continued seamlessly without interruption. The Declaration revokes the previous default fund and nominates AustralianSuper as the new default fund, effective from 1 January 2013. This legislative instrument was issued under the authority of the Legislative Instruments Act 2003, and due to its nature, no consultation was deemed necessary.

Scope and Application

The Parliamentary Superannuation (Default Fund) Declaration 2012 applies to the superannuation arrangements of members of the Commonwealth Parliament who have entered office on or after 9 October 2004, under the Parliamentary Superannuation Act 2004. This Act ensures that eligible office holders receive superannuation contributions from the Commonwealth, which are payable either to a superannuation fund chosen by the member or, in the absence of such a choice, to the default fund. The declaration establishes AustralianSuper as the new default fund for these contributions, effective from 1 January 2013, replacing the Australian Government Employees Superannuation Trust (AGEST) which ceased operations on 31 December 2012 following its merger with AustralianSuper. This change is necessary to comply with the requirements of the Act and to ensure that superannuation arrangements continue smoothly for eligible members. The declaration operates within the national jurisdiction of Australia, and it is a legislative instrument under the Legislative Instruments Act 2003, exempt from disallowance. No consultation was required for this minor and machinery nature instrument, as stipulated by the Act.

Key Provisions

The main operative sections of the Parliamentary Superannuation (Default Fund) Declaration 2012 are sections 2, 4, and 5. Section 2 of the Declaration sets the date for its commencement, 1 January 2013, which is when the new default fund, AustralianSuper, will take effect. Section 4 revokes the previous declaration made on 16 August 2004, which had established the Australian Government Employees Superannuation Trust (AGEST) as the default fund. The revocation of the old declaration is effective immediately before the commencement of section 5. Finally, section 5 declares AustralianSuper as the new default fund under subsection 17(1) of the Parliamentary Superannuation Act 2004, ensuring it meets the requirements of a complying superannuation fund as defined by the Income Tax Assessment Act 1997. The Declaration imposes certain obligations on the Minister for Finance and Deregulation. As per subsection 17(1) of the Act, the Minister is required to declare a superannuation fund as the default fund for contributions made by the Commonwealth under the Act. This obligation is fulfilled by section 5 of the Declaration, which formally nominates AustralianSuper as the new default fund. Additionally, subsection 17(5) of the Act grants the Minister the power to revoke any existing declaration, which is exercised in section 4 of the Declaration by revoking the previous declaration pertaining to AGEST. There are no explicit offences, penalties, or consequences outlined in the Declaration for breaches of its provisions. However, under the broader framework of the Parliamentary Superannuation Act 2004, any non-compliance with the requirements for superannuation contributions could result in legal consequences. For instance, if a member of parliament is not directed to the correct default fund or if contributions are not made as required by the Act, there may be legal repercussions under the Act itself. The Act, however, does not specify maximum penalties for such breaches within the Declaration, and these would need to be referred to in the Act for detailed understanding. The Legislative Instruments Act 2003 exempts superannuation instruments from disallowance, as mentioned in section 44 of the Act. This means that the Parliamentary Superannuation (Default Fund) Declaration 2012, being a superannuation instrument, is not subject to disallowance by Parliament. Furthermore, no consultation was undertaken for this Declaration, as stipulated in paragraph 18(2)(a) of the Legislative Instruments Act 2003, because the instrument is considered to be of a minor or machinery nature. This reflects the administrative and procedural nature of the Declaration, which is aimed at updating the default fund rather than introducing substantive changes to the law.