Superannuation Act 1990 - Determination (31/10/1990)

Overview

The Commonwealth of Australia Superannuation Act 1990 was enacted to address the need for a comprehensive framework governing superannuation for Commonwealth employees and certain other individuals. This legislation was introduced by the Australian Parliament to provide a structured approach to superannuation, ensuring that employees receive benefits that are fair and consistent. The policy objective of the Act is to establish an occupational superannuation scheme for Commonwealth employees and certain other persons, thereby providing a reliable financial foundation for their retirement. This determination by the Commissioner for Superannuation, Geoffrey Noel Vanthoff, under the authority of the Superannuation Act 1990, aims to clarify the calculation of basic salary and recognised allowances for employees within the scheme, ensuring clarity and uniformity in the application of superannuation benefits.

Scope and Application

The Commonwealth of Australia Superannuation Act 1990 Determination pertains to the calculation of basic salary and recognised allowances for the purposes of the Public Sector Superannuation Scheme (PSS scheme). This legislation applies to both regular and casual employees within the Commonwealth sector, including those who are eligible under the Superannuation Act 1976. The geographic and jurisdictional reach of this determination is specifically within the Commonwealth, impacting federal employees and other eligible persons as defined by the Act. This determination provides clarity on the components of "basic salary" and "recognised allowance" by excluding certain payments such as overtime, compensation, and reimbursements for expenses. The calculations are also subject to the Superannuation (Salary) Regulations made under the Superannuation Act 1976, and any exclusions or inclusions are guided by the specific stipulations in these subordinate instruments.

Key Provisions

This legislative instrument, issued under the Superannuation Act 1990, provides detailed definitions and calculations for specific terms used in the Public Service Superannuation Scheme (PSS). Part A of the determination defines key terms such as "casual employee," "PSS scheme," "regular employee," "Regulations," "1976 Act," and "1990 Act" (sections 1-2). It also specifies that the definitions of terms in section 3 of the 1990 Act apply to this determination (section 2). The document further outlines the calculation of "basic salary" for regular and casual employees (sections 5-8) and the criteria for "recognised allowance" (sections 9-13). The obligations imposed by this determination primarily concern the calculation and inclusion of specific components in the determination of basic salary and recognised allowances for both regular and casual employees. For regular employees, basic salary includes the sum of the amount that would be the person’s salary under the 1976 Act if they were an eligible employee, and any higher duties allowance or amount payable on a regular basis for temporary higher duties (section 5). Exclusions from basic salary include overtime, compensation payments, and certain shift allowances (section 6). For casual employees, basic salary includes all payments in the nature of salary except overtime, compensation, and reimbursements for past or anticipated expenses (section 8). The determination also specifies that recognised allowances include amounts that would be treated as salary under the 1976 Act, but exclude any amounts included in basic salary or compensation payments (sections 9-10). It mandates that only the lowest rate of any recognised allowance received in the preceding 12 months should be included, with exceptions for amounts received for 12 months or less prior to age retirement (sections 10-11). For shift allowances, the amount that can be treated as a recognised allowance is determined under the appropriate regulation (section 12), and casual employees are not eligible for recognised allowances (section 13). The legislative instrument does not explicitly state any offences, penalties, or civil/criminal consequences for breaches of its provisions. However, as a determination under the Superannuation Act 1990, any failure to comply with the requirements for calculating basic salary and recognised allowances could potentially result in legal consequences under the broader provisions of the Act, including civil penalties or legal actions to rectify non-compliance.