Superannuation Act 1968

Administered by Department of Finance

Legislation au C1968A00049 In force Act

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Superannuation

 

No. 49 of 1968

An Act to amend the Superannuation Act 1922-1967 in relation to Employees who become Contributors to the Defence Forces Retirement Benefits Fund, and for purposes related thereto.

[Assented to 21 June 1968]

BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the Superannuation Act 1968.

(2.) The Superannuation Act 1922-1967 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Superannuation Act 1922-1968.

Commencement.

2. This Act shall come into operation on a date to be fixed by Proclamation.

Parts.

3. Section 3 of the Principal Act is amended by omitting the words and figures—

“Part IX.—Special Provisions in Relation to Certain Former Contributors to the Defence Forces Retirement Benefits Fund (Sections 110-115).”

and inserting in their stead the words and figures—

“Part IX.—Special Provisions in Relation to Certain Former Contributors to the Defence Forces Retirement Benefits Fund (Sections 111-115).”.

Interpretation.

4. Section 4 of the Principal Act is amended by inserting in sub-section (1.), after the definition of “The Board”, the following definition:—

“‘The Defence Forces Retirement Benefits Fund’ means the Defence Forces Retirement Benefits Fund established under the Defence Forces Retirement Benefits Act 1948-1968.”.

5. After section 4 of the Principal Act the following section is inserted:—

Members of the Defence Force.

“4aa.—(1.) A member of the Defence Force shall not, by reason only of being a member of the Defence Force, be deemed to be an employee.


“(2.) Where a member of the Defence Force who is liable to contribute to the Defence Forces Retirement Benefits Fund would, but for this section, by reason of becoming employed in a permanent capacity by the Commonwealth or for any other reason, become an employee, he shall be deemed not to be an employee until he ceases to be liable to contribute to the Defence Forces Retirement Benefits Fund.”.

Employees on leave of absence.

6. Section 34 of the Principal Act is amended by inserting after the word “shall” the words “,subject to section thirty-five a of this Act,”.

Manner of payment—deduction from wages or salaries.

7. Section 35 of the Principal Act is amended by inserting after the word “shall” (first occurring) the words “, subject to the next succeeding section,”.

8. After section 35 of the Principal Act the following section is inserted:—

Deferment of contributions of contributors to Defence Forces Retirement Benefits Fund.

“35a. Where an employee becomes liable to contribute to the Defence Forces Retirement Benefits Fund, his liability to make contributions to the Superannuation Fund is deferred until, for any reason (including death)—

(a) he ceases (otherwise than by reason of the operation of section four aa or section thirty-six of the Defence Forces Retirement Benefits Act 1948-1968) to be liable to contribute to the Defence Forces Retirement Benefits Fund; or

(b) he ceases to be an employee,

whichever first occurs, but, upon his so ceasing to be liable or so ceasing to be an employee, the amount of the deferred contributions shall be paid to the Superannuation Fund.”.

Determination of annual salary.

9. Section 36 of the Principal Act is amended by omitting from subsection (1.) the words “the last preceding section” and inserting in their stead the words “section thirty-five of this Act”.

10. After section 48b of the Principal Act the following section is inserted:—

Pension to or in respect of certain contributors to Defence Forces Retirement Benefits Fund.

“48c—(1.) Where—

(a) the liability of an employee to make contributions to the Superannuation Fund has been deferred by virtue of section thirty-five a of this Act; and

(b) before he has ceased to be liable to contribute to the Defence Forces Retirement Benefits Fund, he ceases to be an employee and becomes entitled to a pension under this Act by reason that he was retired on the ground of invalidity or of physical or mental incapacity to perform his duties,

his entitlement to that pension is suspended until such time as he ceases to be liable to contribute to the Defence Forces Retirement Benefits Fund,


but, if he dies before he ceases to be liable to contribute to the Defence Forces Retirement Benefits Fund, he shall, for the purposes of sections forty-seven and forty-eight of this Act, be deemed to have been a pensioner at the time of his death in receipt of pension at the rate at which pension would, but for this sub-section, have been payable to him at that time.

“(2.) Where—

(a) the liability of an employee to make contributions to the Superannuation Fund has been deferred by virtue of section thirty-five a of this Act;

(b) he ceases to be an employee and, upon so ceasing, becomes entitled to a pension under this Act by reason that he was retired on the ground of invalidity or of physical or mental incapacity to perform his duties;

(c) either of the following applies in relation to him:—

(i) he has been or is discharged from the Defence Force on the ground of invalidity or of physical or mental incapacity to perform his duties, section fifty-two a of the Defence Forces Retirement Benefits Act 1948-1968 applies to him and, in the opinion of the Board, the ground on which he was retired as an employee is related to the ground on which he was discharged from the Defence Force; or

(ii) he dies after ceasing to be an employee but before being discharged from the Defence Force from causes that, in the opinion of the Board, are related to the ground on which he was retired as an employee; and

(d) the number of units of pension for which he was contributing under this Act immediately before he ceased to be an employee was less than the number that, for the purposes of the Defence Forces Retirement Benefits Act 1948-1968, was his category number immediately before he was discharged from the Defence Force or died, as the case may be,

pension payable to or in respect of him under this Act (including pension that became payable before he was discharged from the Defence Force) shall be calculated as if, immediately before he ceased to be an employee, he had been contributing under this Act for a number of units of pension equal to the number that was that category number.

“(3.) Where—

(a) the liability of an employee to make contributions to the Superannuation Fund has been deferred by virtue of section thirty-five a of this Act;


(b) before being discharged from the Defence Force, he dies, or, having been discharged from the Defence Force on the ground of invalidity or of physical or mental incapacity to perform his duties, he dies from causes which, in the opinion of the Board, are related to the ground on which he was discharged from the Defence Force; and

(c) the number of units of pension for which he was contributing under this Act immediately before he died was less than the number that, for the purposes of the Defence Forces Retirement Benefits Act 1948-1968, was his category number immediately before he died or was discharged, as the case may be,

any pension payable in respect of him under this Act shall be calculated as if, immediately before he died, he had been contributing under this Act for a number of units of pension equal to the number that was that category number.

“(4.) An employee who is liable to contribute to the Defence Forces Retirement Benefits Fund shall, for the purposes of this section, be deemed not to have ceased to be liable to contribute to that Fund by reason only of the operation of section four aa or section thirty-six of the Defence Forces Retirement Benefits Act 1948-1968 in relation to him.”.

Refund of contributions on death of contributor without dependants.

11. Section 49 of the Principal Act is amended by inserting in paragraph (a), after the word “retirement”, the words “or the entitlement of a contributor to pension on his retirement is suspended by virtue of subsection (1.) of the last preceding section and he dies before the suspension ceases”.

Definition.

12. Section 110 of the Principal Act is repealed.

Transitional provision.

13.—(1.) Where the Superannuation Board is of the opinion that the amount of any instalment of pension under the Superannuation Act that became payable on or after the twenty-eighth day of June, One thousand nine hundred and sixty-five, and before the commencement of this Act, or that becomes payable after the commencement of this Act, would, if the amendments made by this Act and the Defence Forces Retirement Benefits Act 1968 had come into operation on the twenty-eighth day of June, One thousand nine hundred and sixty-five, have been or be, by virtue of sub-section (2.) or (3.) of section 48c of the Principal Act as amended by this Act, greater than the amount that, apart from this section, was or would be the amount of the instalment, the amount of the instalment shall be increased to the greater amount.

(2.) In this section, “the Superannuation Act” means the Superannuation Act 1922 as amended and in force from time to time.

Overview

The Superannuation Act 1968 was enacted to address specific issues concerning the superannuation contributions and entitlements of employees who are also contributors to the Defence Forces Retirement Benefits Fund. This legislation, introduced by the Parliament of the Commonwealth of Australia, aims to ensure that members of the Defence Force are not considered employees solely by virtue of their service and that their superannuation contributions are appropriately managed in relation to their Defence Force commitments. The policy objective is to provide clarity and continuity in the treatment of superannuation for these individuals, ensuring that their entitlements are preserved and accurately calculated throughout their service and post-service career phases. The Superannuation Act 1968 amends the Superannuation Act 1922-1967 to integrate provisions that cater specifically to the Defence Forces Retirement Benefits Fund. It introduces definitions, defers superannuation contributions where necessary, and outlines conditions under which pensions are payable or suspended. The Act also includes provisions for the adjustment of pension instalments where amendments would have resulted in higher payments, reflecting the intent to fairly compensate contributors based on the most recent legislative changes.

Scope and Application

The Superannuation Act 1968 applies to members of the Defence Forces who become contributors to the Defence Forces Retirement Benefits Fund, as well as to employees who are or were liable to contribute to the Superannuation Fund. The Act amends the Superannuation Act 1922-1967 to provide special provisions for these contributors and their pension entitlements. It is a Commonwealth Act and applies nationally across Australia. The Act does not specify any exclusions or exemptions, but it does note that the manner in which the Act extends or restricts its application may be further defined through subordinate instruments. The Act primarily targets entities such as the Defence Forces Retirement Benefits Fund and the Superannuation Fund, and it regulates the conduct and transactions related to superannuation contributions and pensions for Defence Force members and employees.

Key Provisions

The Superannuation Act 1968 amends the Superannuation Act 1922-1967, now referred to as the Principal Act, to include specific provisions for employees who become contributors to the Defence Forces Retirement Benefits Fund. The Act introduces several key provisions that modify how contributions and pensions are managed for Defence Force members. Section 4aa stipulates that a member of the Defence Force is not to be deemed an employee solely due to their membership, and their status as an employee is deferred until they cease to be liable for Defence Forces Retirement Benefits Fund contributions or cease employment (Section 4aa(1) and (2)). Section 35a introduces a deferment of superannuation contributions for employees who become liable to contribute to the Defence Forces Retirement Benefits Fund. These contributions are deferred until the employee ceases to be liable for Defence Forces contributions or ceases employment, at which point the deferred amount is to be paid to the superannuation fund (Section 35a). The definition of annual salary is adjusted to reflect this deferment (Section 36). Pension entitlements for contributors to the Defence Forces Retirement Benefits Fund are further outlined in Section 48c, which details scenarios where pension entitlements are suspended or recalculated based on the member's circumstances upon ceasing employment or Defence Force service (Section 48c(1)-(4)). Additionally, Section 49 includes provisions for refunding contributions in cases where a contributor dies without dependants, under specific conditions (Section 49(a)). The Act imposes obligations on entities and individuals to ensure compliance with these provisions, particularly concerning the deferment of superannuation contributions and the accurate calculation of pension entitlements. Failure to comply with these provisions could result in civil or administrative penalties, although the Act does not specify exact penalties. The Act also includes transitional provisions to adjust pension instalments retroactively where necessary, ensuring that any amendments do not disadvantage contributors adversely (Section 13).

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Area of Law
Superannuation Law
Instrument
Act
Concepts
Commencement Provisions
Definitions & Interpretation
Reporting & Disclosure Obligations

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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.