Superannuation Act (No. 2) 1956

Administered by Department of Finance

Legislation au C1956A00112 In force Act

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SUPERANNUATION (No. 2).

 

No. 112 of 1956.

An Act to amend the Superannuation Act 1922–1955, as amended by the Superannuation Act 1956, and for other purposes.

[Assented to 15th November, 1956.]

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 (No. 2) 1956.


(2.) The Superannuation Act 1922–1955, as amended by the Superannuation Act 1956, is in this Act referred to as the Principal Act.

(3.) Section one of the Superannuation Act 1956 is amended by omitting sub-section (2.).

(4.) The Principal Act, as amended by this Act, may be cited as the Superannuation Act 1922–1956.

Commencement.

2. Except as otherwise provided by this Act, this Act shall come into operation on the day on which it receives the Royal Assent.

3. Section three of the Principal Act is repealed and the following section inserted in its stead:—

Parts.

“3. This Act is divided into Parts, as follows:—

Part I.—Preliminary (Sections 1–4d).

Part II.—The Superannuation Fund (Sections 5–11a).

Part III.—Contributions.

Division 1.—Contributions by Employees (Section 12).

Division 2.—Scale of Units (Sections 12a–15).

Division 3.—Scale of Contributions by Employees (Sections 16–17).

Division 3a.—Reserve Units of Pension (Sections 17a–17d).

Division 4.—Contributions by the Commonwealth (Sections 18–20).

Division 5.—General Provisions as to Contributions (Sections 21–22).

Part IV.—Pensions and Benefits.

Division 1.—Retirement on Pension (Sections 23–27).

Division 2.—Grant of Pensions and Benefits (Sections 28–48b).

Division 3.—Break-down Pensioners (Sections 49–50a).

Division 4.—Existing Pension Rights (Sections 51–59a).

Division 5.—Assurance Policies (Section 60).

Part IVb.—The Provident Account (Sections 60u–60ae).

Part IVc.—Williamstown Dockyard Employees (Sections 60af–60am).

Part IVd.—Special Provisions in Relation to Certain Former State Employees (Sections 60an–60at).

Part IVe.—Special Provisions in Relation to Certain Former Contributors to Public Service Superannuation Funds (Sections 60au–60av).

Part IVf.—Special Provisions in Relation to Certain Former Contributors to the Defence Forces Retirement Benefits Fund (Sections 60aw–60azb).

Part V.—The Superannuation Board (Sections 61–75).

Part VI.—Miscellaneous (Sections 76a–82).”.


Interpretation.

4. Section four of the Principal Act is amended by omitting from the definition of “Employee” in sub-section (1.) the words “Justice of the High Court or a Judge of any other Court created by the Parliament” and inserting in their stead the words “person who is a Judge as defined by section three of the Judges’ Pensions Act 1948–1956”.

Quinquennial investigation by an actuary.

5. Section eleven of the Principal Act is amended by inserting in sub-section (3.), after the word “fund” (last occurring), the words “and for any amount payable to the Commonwealth under sub-section (2.) of the next succeeding section”.

Payments by Commonwealth to Fund in respect of interest.

6.—(1.) Section eleven a of the Principal Act is amended by omitting sub-section (2.) and inserting in its stead the following sub-section:—

“(2.) Where an investigation made under the last preceding section discloses a surplus of assets over liabilities of the Fund, there shall be paid to the Commonwealth from the Fund so much of the surplus as does not exceed an amount equal to the sum of the amounts paid by the Commonwealth under the last preceding sub-section before the report of the result of the investigation less the sum of the amounts (if any) previously paid to the Commonwealth under this sub-section.”.

(2.) The amendment made by the last preceding sub-section shall be deemed to have come into operation on the first day of July, One thousand nine hundred and forty-seven.

Salary for the purposes of this Division.

7. Section twelve a of the Principal Act is amended by inserting in paragraph (b) of sub-section (2.), after the word “employee” (second occurring), the words “or contributor”.

8.—(1.) Sections twenty-nine a and twenty-nine b of the Principal Act are repealed and the following section is inserted in their stead:—

Contributor remaining in service after attaining maximum age for retirement.

“29a.—(1.) Where—

(a) a contributor retires not less than one year after attaining the maximum age for retirement; or

(b) a person who was a contributor has, before the date of commencement of this section, so retired and is at that date in receipt of, or entitled to, a pension,

the pension that would be payable to him under the provisions of this Act other than this section shall be increased by an amount ascertained by multiplying the portion of the pension equivalent to


the contributions made by him by a percentage ascertained in accordance with the following table:—

Maximum Age for Retirement—60 Years.

Maximum Age for Retirement—65 Years.

Age Attained on Retirement.

Percentage.

Age Attained on Retirement.

Percentage.

61 years................

6

66 years.................

7

62 years................

13

67 years.................

15

63 years................

20

68 years.................

23

64 years................

28

69 years.................

32

65 years or over..........

37

70 years or over............

42

“(2.) Where—

(a) a male contributor who has attained the maximum age for retirement dies before retirement and is survived by a widow; or

(b) the widow of—

(i) a male contributor who, having attained the maximum age for retirement, died before retirement; or

(ii) a male pensioner who retired after attaining the maximum age for retirement,

is in receipt of, or entitled to, a pension at the commencement of this section,

the pension that would be payable to the widow under the provisions of this Act other than this section shall be increased by one-half of the amount (if any) by which the pension which would have been payable to the contributor or pensioner, as the case may be, would have been increased under the last preceding sub-section if—

(c) in the case of a contributor referred to in paragraph (a) of this sub-section, he had retired immediately before his death;

(d) in the case of a contributor referred to in sub-paragraph (i) of paragraph (b) of this sub-section, he had retired after the commencement of this section at the age at which he in fact died; or

(e) in the case of a pensioner referred to in sub-paragraph (ii) of paragraph (b) of this sub-section, he had not died before the commencement of this section.

“(3.) The amount by which a pension is increased in pursuance of either of the last two preceding sub-sections is payable from the Fund without contribution by the Commonwealth.”.

(2.) Amounts paid by the Commonwealth in pursuance of subsection (3.) of section twenty-nine b of the Principal Act, being amounts paid in respect of a period after the thirtieth day of June, One thousand nine hundred; and fifty-two, shall be repaid to the Commonwealth from the Fund.


(3.) Where a person who was a contributor retired not less than one year after attaining the maximum age for retirement and is, at the commencement of this section, in receipt of, or entitled to, a pension, there shall be paid to him a sum equal to the amount by which the amount of pension which he has received under the Superannuation Act 1922–1951, or under that Act as amended, in respect of the period from and including the fourth day of July, One thousand nine hundred and fifty-two, or the day after the date of his retirement, whichever was the later, to and including the day before the day on which this Act received the Royal Assent is less than the amount of pension which he would have received in respect of that period if sub-section (1.) of this section had come into operation on the fourth day of July. One thousand nine hundred and fifty-two.

(4.) Where the widow of—

(a) a male contributor who died after completing not less than one year’s service after attaining the maximum age for retirement but before retirement; or

(b) a male pensioner who having retired after completing not less than that period of service, died before the commencement of this section,

is in receipt of. or entitled to, a pension at the commencement of this section, there shall be paid to her a sum equal to the amount by which the amount of pension which she has received under the Superannuation Act 1922–1951, or under that Act as amended, in respect of the period from and including the fourth day of July, One thousand nine hundred and fifty-two, or the day after the date of the death of the contributor or pensioner, whichever was the later, to and including the day before the day on which this Act received the Royal Assent is less than the amount of pension which she would have received in respect of that period if sub-section (1.) of this section had come into operation on the fourth day of July, One thousand nine hundred and fifty-two.

(5.) An amount payable under either of the last two preceding sub-sections is payable from the Fund without contribution by the Commonwealth.

Repeal of ss. 35, 36, 37 and 38.

9.—(1.) Sections thirty-five, thirty-six, thirty-seven and thirty-eight of the Principal Act are repealed.

(2.) Notwithstanding the last preceding sub-section—

(a) pensions payable immediately before the date of commencement of this section under any of the sections repealed by that sub-section shall continue to be payable; and

(b) pensions may be paid to or in respect of the widow and children of a former employee who was, immediately before the date of commencement of this section, in receipt of such a pension and dies on or after that date,

as if those sections, and the proviso to section fifty-one of the Principal Act, had not been repealed, and the provisions of those sections and that proviso shall continue to apply in relation to pensions referred to in this sub-section.


10.—(1.) Section forty b of the Principal Act is repealed and the following section inserted in its stead:—

Certain contributors who change the nature of their employment to continue as contributors.

“40b.—(1.) Where an employee who is a contributor, not being an employee referred to in paragraph (a) of the next succeeding subsection, resigns from his employment and, immediately after the date of his resignation, becomes employed by the Commonwealth or by an approved authority otherwise than as a casual, exempt or temporary employee, he shall be deemed not to have ceased, by reason of his resignation, to be a contributor.

“(2.) Where—

(a) the employment of a contributor, being a person who is deemed to be an employee by virtue of sub-section (5.) or (6.) of section four of this Act, sub-section (6.) of section nine of the High Commissioner Act 1909–1952 or sub-section (2.) of section thirteen of the Australian Security Intelligence Organization Act 1956, terminates or is terminated; and

(b) immediately after the date on which his employment terminates or is terminated, he becomes employed by the Commonwealth or by an approved authority on terms that require him to give the whole of his time to the duties of his employment,

he shall be deemed not to have ceased, by reason of that termination of his employment, to be a contributor.”.

(2.) The amendment made by the last preceding sub-section, except in so far as it relates to persons employed under the Australian Security Intelligence Organization Act 1956, shall be deemed to have come into operation on the first day of November, One thousand nine hundred and fifty-four, but shall not apply in relation to a contributor who, before the date on which this Act received the Royal Assent, received a refund of contributions in accordance with section forty of the Superannuation Act 1922–1954, or of that Act as amended, in consequence of the termination of his employment, unless that contributor—

(a) repaid to the Superannuation Board, before the latter date, the amount refunded to him; or

(b) repays that amount to the Board within three months after the latter date or within such further time as the Board allows.

Break-down pensioners deemed to be on leave.

11. Section forty-nine of the Principal Act is amended by omitting from sub-sections (1.) and (2.) the words “or thirty-seven”.

Pensioner restored to health may be recalled to service.

12. Section fifty of the Principal Act is amended by omitting from sub-sections (1.) and (4.) the words “or thirty-seven”.

Rights under other Acts and State Acts.

13. Section fifty-one of the Principal Act is amended by omitting the proviso.


Repeal of ss. 54, 55 and 56.

14.—(1.) Sections fifty-four, fifty-five and fifty-six of the Principal Act are repealed.

(2.) Notwithstanding the last preceding sub-section—

(a) pensions payable immediately before the date of commencement of this section under any of the sections repealed by that sub-section shall continue to be payable; and

(b) pensions may be paid to or in respect of the widow and children of a former employee who was, immediately before the date of commencement of this section, in receipt of such a pension and dies on or after that date,

as if those sections had not been repealed, and the provisions of those sections shall continue to apply in relation to pensions referred to in this sub-section.

15.—(1.) Section sixty aba of the Principal Act is repealed and the following section inserted in its stead:—

Certain contributors who change nature of their employment to continue as contributors.

“60aba.—(1.) Where an employee who is a contributor to the Provident Account, not being an employee referred to in paragraph (a) of the next succeeding sub-section, resigns from his employment and, immediately after the date of his resignation, becomes employed by the Commonwealth or by an approved authority otherwise than as a casual, exempt or temporary employee, he shall be deemed not to have ceased, by reason of his resignation, to be a contributor to the Provident Account.

“(2.) Where—

(a) the employment of a contributor to the Provident Account, being a person who is deemed to be an employee by virtue of sub-section (5.) or (6.) of section four of this Act, subsection (6.) of section nine of the High Commissioner Act 1909–1952 or sub-section (2.) of section thirteen of the Australian Security Intelligence Organization Act 1956, terminates or is terminated; and

(b) immediately after the date on which his employment terminates or is terminated, he becomes employed by the Commonwealth or by an approved authority on terms that require him to give the whole of his time to the duties of his employment,

he shall be deemed not to have ceased, by reason of that termination of his employment, to be a contributor to the Provident Account.”.

(2.) The amendment made by the last preceding sub-section, except in so far as it relates to persons employed under the Australian Security Intelligence Organization Act 1956, shall be deemed to have come into operation on the first day of November, One thousand nine hundred and fifty-four, but shall not apply in relation to a contributor to the Provident Account who, before the date on which this Act received the Royal Assent, received payment of an amount in accordance with section sixty ab of the


Superannuation Act 1922–1954, or of that Act as amended, in consequence of the termination of his employment, unless that contributor—

(a) repaid to the Superannuation Board, before the latter date, the amount so paid to him; or

(b) repays that amount to the Board within three months after the latter date or within such further time as the Board allows.

Superannuation rights and obligations of persons formerly employed by States.

16. Section sixty ao of the Principal Act is amended—

(a) by omitting from sub-section (4.) the words “or sub-section (1a.)”; and

(b) by omitting from that sub-section the words “those subsections” and inserting in their stead the words “that sub-section”.

 

Overview

The Superannuation Act (No. 2) 1956 was enacted to further amend the Superannuation Act 1922–1955, as previously amended by the Superannuation Act 1956, addressing issues related to the structure, funding, and benefits of the superannuation system. This Act was passed by the Parliament of Australia and received Royal Assent on 15 November 1956. Its primary objective was to refine and update the existing superannuation framework to better meet the needs of contributors and beneficiaries, including adjustments to contribution scales, pension entitlements, and the overall governance of the superannuation system. The Act introduced modifications to various sections of the Principal Act, including the definition of “employee,” adjustments to contribution scales and pension increases for certain contributors, and the repeal of certain outdated provisions. It also introduced provisions to ensure continuity of contributions for employees changing employment within the Commonwealth or approved authorities, addressing gaps in superannuation coverage for transitional employees.

Scope and Application

The Superannuation Act (No. 2) 1956 amends the existing Superannuation Act 1922–1955, which governs superannuation arrangements in Australia. This Act applies to all employees of the Commonwealth, as well as certain other individuals deemed to be employees under specific conditions, such as those defined by the High Commissioner Act 1909–1952 and the Australian Security Intelligence Organization Act 1956. The legislation encompasses various aspects of superannuation, including the establishment and management of the Superannuation Fund, the calculation and payment of contributions by employees and the Commonwealth, and the determination of pensions and benefits. The Act also includes provisions for special categories of employees, such as those from the Williamstown Dockyard and certain former state employees, ensuring they receive appropriate superannuation benefits. The Act is administered nationally across Australia, as it pertains to the Commonwealth and its employees, and the Commonwealth has the authority to extend its application through subordinate instruments. There are no explicit exclusions or thresholds stated in the Act; however, specific conditions and provisions apply to different categories of employees and their respective superannuation rights and obligations.

Key Provisions

The Superannuation (No. 2) Act 1956 amends the Superannuation Act 1922–1955 and introduces various provisions to regulate superannuation in Australia. Key sections include the redefinition of "employee" (Section 4), the requirement for a quinquennial investigation by an actuary (Section 5), adjustments to payments by the Commonwealth to the Fund in respect of interest (Section 6), and modifications to the salary definition for certain provisions (Section 7). The Act also alters the pension increase for contributors who remain in service after attaining the maximum age for retirement (Section 29a) and removes certain sections related to pensions and benefits (Sections 35, 36, 37, 38, 40, 40b, 49, 50, 51, 54, 55, and 56). The Act imposes several obligations on the parties it governs. Employers and employees must adhere to the new definitions and procedures for contributions and pensions as outlined in the Act. The Commonwealth is obligated to make payments to the Superannuation Fund in specific circumstances, particularly when investigations reveal surplus assets. Employees who change their employment status to continue as contributors must follow the provisions set out in Sections 40b and 60aba. The Superannuation Board is responsible for administering these changes and ensuring compliance with the Act's requirements. Breaches of the Act may result in civil and criminal consequences. Although the Act does not explicitly detail penalties, non-compliance with superannuation regulations can typically lead to fines, legal action, or other penalties as prescribed by relevant Australian laws. The specific maximum penalties would depend on the nature and severity of the breach, in accordance with other applicable legislation governing superannuation.

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Employee Benefits & Pensions
Instrument
Act
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Repeal & Amendment
Contributions
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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.