Superannuation Act 1976 - Designated Employers Determination No. 2 (15/09/1995)

Overview

The Superannuation Act 1976 was enacted to provide for the establishment and regulation of superannuation funds in Australia. This legislation was introduced to address the gap in the provision of retirement benefits for employees, ensuring that they have a financial safety net upon reaching retirement age. The policy objective of the Act is to establish a sustainable, efficient and equitable system for retirement savings. This legislative instrument, the "Designated Employers Determination No. 2", was made by David Lindsay, Assistant Secretary, Commonwealth Employees’ Superannuation Branch, a delegate of the Minister for Finance, under subparagraph (1)(b)(ii) of section 3C, "designated employers", of the Superannuation Act 1976. This determination specifies the employers who are responsible for paying superannuation contributions on behalf of their employees, thus clarifying the obligations of certain employers under the Act.

Scope and Application

The Designated Employers Determination No. 2 made under the Superannuation Act 1976 applies to any employer designated under subparagraph (1)(b)(ii) of section 3C, specifically targeting the Department or entity that pays the salary of an eligible employee as defined in subsection 3(1) of the Act. This legislation is applicable to Commonwealth employers and their employees, thereby establishing a clear framework for the administration of superannuation contributions within the federal jurisdiction. The scope of this determination is specifically aimed at ensuring compliance with superannuation obligations for eligible employees, encompassing all sectors and industries under Commonwealth employment. It does not explicitly state any exclusions, exemptions, or thresholds within its provisions, although it can be extended or restricted by subordinate instruments as necessary to adapt to changing legislative requirements or administrative needs.

Key Provisions

The determination, titled "Designated Employers Determination No. 2," made under subparagraph (1)(b)(ii) of section 3C of the Superannuation Act 1976, specifies the Department or person responsible for paying the salary of an eligible employee as a designated employer (section 2). This means that any department or entity that pays an eligible employee's salary is identified as a designated employer under the Act. This provision is crucial as it clarifies the scope of entities that must comply with the superannuation requirements set out in the Act. Designated employers under this determination have several obligations and requirements. They are mandated to ensure that the eligible employees they pay receive superannuation contributions as per the Act (section 3C). This includes calculating, withholding, and remitting superannuation guarantee contributions from the employees' salaries to approved superannuation funds. Designated employers must also keep accurate records of these contributions and provide necessary information to the employees and the relevant authorities. Failure to comply with the obligations set out in the Act can result in various penalties and consequences. For example, designated employers who fail to make the required superannuation contributions can be subject to financial penalties. The penalties can include paying the unpaid superannuation contributions, plus interest and a penalty amount that is calculated based on the period of non-compliance. In more severe cases, non-compliance may lead to prosecution, with potential criminal penalties, including fines and imprisonment for individuals responsible for the oversight. These measures ensure that designated employers adhere to the superannuation requirements to protect the retirement savings of eligible employees.