Superannuation Act 1976 - Designated Employer Determination No. 2 (16/10/1990)

Overview

The Superannuation Act 1976, enacted by the Parliament of Australia, was introduced to address the need for a structured and regulated framework governing superannuation funds and the rights of employees to superannuation benefits. The 1990 legislative instrument, titled "Designated Employer Determination No 2," made under subparagraph (b)(ii) of the definition of "designated employer" in section 110A of the Act, is a determination by David Lindsay, Assistant Secretary of the Commonwealth Superannuation Branch and a delegate of the Minister for Finance. This determination aims to clarify the identification of designated employers for specific productivity employees, ensuring that the appropriate Department or entity responsible for paying the salaries of these employees is correctly designated. This precision is critical for the accurate administration and enforcement of superannuation obligations and rights as outlined in the Superannuation Act 1976.

Scope and Application

The Designated Employer Determination No 2, made under the Superannuation Act 1976, specifically addresses the definition of a "designated employer" as it relates to productivity employees. This determination applies to any Department or person who pays the salary of a productivity employee, thereby identifying them as the designated employer for superannuation purposes. The legislation applies on a Commonwealth level, impacting entities and individuals within the federal jurisdiction. The scope is limited to those entities or individuals who meet the criteria of paying a productivity employee's salary, thereby being designated as their employer under the Act. This determination does not explicitly state any exclusions or thresholds, but its application is contingent on the specific conditions outlined in the Act. Subordinate instruments may further refine the application and interpretation of this determination, ensuring compliance and clarity in superannuation obligations for designated employers.

Key Provisions

The main operative sections of the Designated Employer Determination No 2, made under subparagraph (b)(ii) of the definition of "designated employer" in section 110A of the Superannuation Act 1976, are straightforward. Section 1 identifies the determination by its citation, "Designated Employer Determination No 2," while Section 2 explicitly designates the employer in relation to a productivity employee as the Department or person who pays the salary of that employee. This essentially means that the entity responsible for the payment of the employee’s salary is identified as the designated employer for the purposes of superannuation contributions. The Act imposes specific obligations on the designated employers identified under Section 2. These employers are required to make regular superannuation contributions for their employees, in line with the provisions set forth in the Superannuation Act 1976. The determination aims to ensure that the appropriate entity is responsible for these contributions, thereby clarifying the employer's role and responsibilities under the Act. This clarity is crucial for compliance and for ensuring that employees receive their entitled superannuation benefits. Non-compliance with the obligations under this Determination can result in serious consequences. Under the Superannuation Act 1976, failure to make the required superannuation contributions can lead to civil and criminal penalties. The Act allows for civil penalties, including fines, to be imposed on designated employers who do not comply with their obligations. Additionally, criminal penalties can be enforced, which may include imprisonment for individuals found guilty of deliberately evading their superannuation obligations. The maximum penalties are detailed in the Superannuation Act 1976 but can include substantial fines and imprisonment terms, reflecting the seriousness of non-compliance with these statutory obligations.