EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO.170
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976
DECLARATION UNDER SECTION 110E
The Superannuation Act 1976 (the Act) provides for a superannuation scheme for Commonwealth employees and certain other persons.
Section 64 of the Superannuation Legislation Amendment Act 1990 (the Amending Act) amended the Act by inserting a new Part VIA (comprising new sections 110A to 110S) in the Act to provide, with effect from 1 July 1990, a funded productivity superannuation benefit for members of the scheme.
The new section 110P provides for the productivity benefit to become payable in respect of a person who ceases to be a member of the scheme and who immediately before so ceasing, or earlier, was a “productivity employee” for the purposes of the Act. The term “productivity employee” is defined in the new section 110A as, in effect, a member of the scheme but subject to certain exceptions. These include an employee of the Northern Territory or of an authority of the Northern Territory and a person included in a class of persons specified in a declaration by the Minister for Finance under the new section 110E as not being productivity employees.
In accordance with the new section 110G, a declaration under section 110E is to be a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903 and a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
The Australian Postal Corporation will be providing its statutory office-holders and employees with the productivity superannuation benefit through arrangements outside the Commonwealth superannuation scheme. It is therefore appropriate that those office-holders and employees be excluded from the Commonwealth scheme productivity superannuation arrangements.
The Declaration contained in the Statutory Rule, and cited as “Productivity Employee Exclusion Declaration No 3”, therefore specifies Australian Postal Corporation statutory office-holders and employees as a class of persons who are not to be “productivity employees”.
The Amending Act received Royal Assent on 7 June 1990. In accordance with section 2 of that Act, section 64 is to come into operation on 1 July 1990. Section 4 of the Acts Interpretation Act 1901 enables the power conferred on the Minister for Finance by the new section 110E to be exercised after Royal Assent but before 1 July 1990.
The Declaration will operate on and from 1 July 1990.
Overview
The Superannuation Act 1976, as amended by the Superannuation Legislation Amendment Act 1990, introduced a funded productivity superannuation benefit for members of the scheme, effective from 1 July 1990. The 1990 amendments sought to address the gap in superannuation coverage for Commonwealth employees by establishing a new productivity benefit for those who ceased to be members of the scheme, provided they were classified as "productivity employees." This Act was enacted by the Australian Parliament to provide a structured superannuation scheme for Commonwealth employees and certain other persons, ensuring their retirement benefits were adequately managed and funded. The explanatory statement indicates that the policy objective was to extend superannuation benefits to a broader group of employees while excluding certain categories, such as those employed by the Australian Postal Corporation, from the Commonwealth scheme's productivity arrangements.
Scope and Application
The Superannuation Act 1976 provides for a superannuation scheme applicable to Commonwealth employees and certain other individuals. Specifically, the Act includes provisions for a funded productivity superannuation benefit under a newly inserted Part VIA, effective from 1 July 1990. This benefit applies to "productivity employees," defined as members of the scheme, with certain exceptions. Notably, the legislation excludes statutory office-holders and employees of the Australian Postal Corporation from being considered productivity employees. This exclusion is formalised through a Statutory Rule issued by the Minister for Finance, as permitted under the Statutory Rules Publication Act 1903 and the Acts Interpretation Act 1901. The exclusion declaration, effective from the same date as the amendments, ensures that the productivity benefit arrangements do not apply to these specified individuals within the Australian Postal Corporation.
Key Provisions
The Superannuation Act 1976 (the Act) has been amended by the Superannuation Legislation Amendment Act 1990 (the Amending Act) to include a new Part VIA, which introduces a funded productivity superannuation benefit for members of the scheme. This new benefit is payable to a person who ceases to be a member of the scheme and was a "productivity employee" immediately before ceasing membership (section 110P). The term "productivity employee" is defined in section 110A as a member of the scheme with certain exceptions, including employees of the Northern Territory or authorities of the Northern Territory, and those specified in a declaration by the Minister for Finance under section 110E as not being productivity employees.
The obligations imposed by the Act on the relevant parties include the requirement for the Minister for Finance to make a declaration under section 110E specifying classes of persons who are not to be considered "productivity employees". This declaration is a Statutory Rule under the Statutory Rules Publication Act 1903 and a disallowable instrument under the Acts Interpretation Act 1901. The Productivity Employee Exclusion Declaration No 3, issued under section 110E, excludes statutory office-holders and employees of the Australian Postal Corporation from being considered "productivity employees" and thus not eligible for the productivity superannuation benefit. This exclusion is to be effective from 1 July 1990, as per the provisions of the Amending Act.
The Act and the associated Statutory Rules do not explicitly outline specific offences or penalties for breaches related to the exclusion of certain employees from the productivity superannuation benefit. However, general provisions under the Acts Interpretation Act 1901 may apply, which could include penalties for non-compliance with statutory rules or regulations. The Act's provisions are designed to ensure that the productivity superannuation benefit is administered correctly and that only eligible members receive the benefit. Non-compliance with these provisions could potentially lead to civil or administrative consequences, although the specific penalties are not detailed in the Act itself.