Superannuation Act (No. 2) 1973

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Superannuation Act (No. 2) 1973

No. 83 of 1973

 

AN ACT

To amend the Superannuation Act 19221971, as amended by the Superannuation Act 1973.

[Assented to 19 June 1973]

BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows:—

Short title and citation.

1. (1) This Act may be cited as the Superannuation Act (No. 2) 1973.

(2) The Superannuation Act 19221971, as amended by the Superannuation Act 1973, is in this Act referred to as the Principal Act.

(3) Section 1 of the Superannuation Act 1973 is amended by omitting sub-section (3).

(4) The Principal Act, as amended by this Act, may be cited as the Superannuation Act 19221973.


Commencement.

2. (1) Subject to sub-section (2), this Act shall come into operation on the day on which it receives the Royal Assent.

(2) The amendments of the Principal Act made by sections 4 to 11 (inclusive) of this Act shall be deemed to have come into operation on 1st October, 1972.

Interpretation.

3. Section 4 of the Principal Act is amended—

(a) by omitting from the definition of Approved authority in sub-section (1) the words the Canberra Community Hospital Board and substituting the words the Canberra Hospital Management Board;

(b) by inserting in sub-section (6), after the words the Minister administering the Act or other law by or under which the approved authority is constituted, the words or a person authorized in writing by the Minister so administering that Act or that other law to exercise his powers under this sub-section,; and

(c) by omitting from sub-section (6) the words direct that that person” and substitute the words direct that the first-mentioned person.

Members of the Defence Force.

4. Section 4aa of the Principal Act is amended—

(a) by omitting from sub-section (2) the words to the Defence Forces Retirement Benefits Fund (first occurring) and substituting the words to the Commonwealth under the Defence Force Retirement and Death Benefits Act 1973 and

(b) by omitting from sub-section (2) the words to the Defence Forces Retirement Benefits Fund (last occurring) and substituting the words to the Commonwealth under that Act.

5. (1) Section 35a of the Principal Act is repealed and the following section substituted:—

Deferment of contributions of contributors under Defence Force Retirement and Death Benefits Act.

35a. Where an employee becomes liable to contribute to the Commonwealth under the Defence Force Retirement and Death Benefits Act 1973, 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 eighteen of the Defence Force Retirement and Death Benefits Act 1973) to be liable to contribute to the Commonwealth under that Act; 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..


(2) Where an amount of deferred contributions becomes payable to the Superannuation Fund under section 35a of the Principal Act as amended by this Act in respect of an employee, there shall also be paid to the Fund the amount of any deferred contributions in respect of the employee the liability for which was deferred under section 35a of the Superannuation Act 19221968, or of that Act as amended and in force from time to time, before the repeal effected by sub-section (1) of this section.

Pension not payable in respect of children, in certain circumstances.

6. Section 48a of the Principal Act is amended by adding at the end thereof the following sub-section:—

(2) Where—

(a) a person (in this sub-section referred to as the contributor) to whom retirement pay or invalidity pay was payable under the Defence Force Retirement and Death Benefits Act 1973 has become a contributor;

(b) the person has died since he became a contributor and childs pension is payable under the Defence Force Retirement and Death Benefits Act 1973 to a person by virtue of the contributor having been a person to whom retirement pay or invalidity pay was so payable; and

(c) pension would, but for this section, be payable under this Act in respect of the person to whom the childs pension is payable by reason of the contributors having been a contributor,

the last-mentioned pension is not payable..

7. Section 48c of the Principal Act is repealed and the following section substituted:—

Pension to or in respect of certain contributors under Defence Force Retirement and Death Benefits Act.

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 Commonwealth under the Defence Force Retirement and Death Benefits Act 1973 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 Commonwealth under the Defence Force Retirement and Death Benefits Act 1973, but, if he dies before he so ceases to be liable to contribute to the Commonwealth under that Act, 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 and—

(i) he ceases to be such 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 and—

(a) 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 thirty-six of the Defence Force Retirement and Death Benefits Act 1973 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

(b) 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; or

(ii) he dies—

(a) before being discharged from the Defence Force; or

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

(b) the rate of any pension payable to or in respect of him under this Act (including pension that became payable before he was discharged from the Defence Force) is less than the rate of any corresponding benefit that, but for section thirty-six or forty-six of the Defence Force Retirement and Death Benefits Act 1973, would be payable to or in respect of him under that Act,

the Board may increase the rate of the pension payable under this Act to such extent as it considers appropriate in the circumstances.

(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; and

(b) at any time after the death of the person benefit under the Defence Force Retirement and Death Benefits Act 1973 would, but for section thirty-six or forty-six of that Act, be payable in respect of him under that Act but no pension is payable in respect of him under this Act at that time,


the Board may pay such benefit corresponding to the benefit under that Act as it considers appropriate in the circumstances.

(4) An employee who is liable to contribute to the Commonwealth under the Defence Force Retirement and Death Benefits Act 1973 shall, for the purposes of this section, be deemed not to have ceased to be liable to contribute to the Commonwealth by reason only of the operation of section eighteen of that Act in relation to him..

Rights under other Acts and State Acts.

8. Section 68 of the Principal Act is amended by inserting after the words Defence Forces Retirement Benefits Act 19481959 the words or under the Defence Force Retirement and Death Benefits Act 1973.

Transfer value payable in respect of previous employment.

9. Section 119d of the Principal Act is amended—

(a) by omitting from sub-paragraph (ii) of paragraph (a) of sub-section (1) the word and (last occurring); and

(b) by inserting in sub-section (1), after sub-paragraph (ii) of paragraph (a), the following sub-paragraph:—

(iia) in the case of the superannuation scheme constituted by the provisions of the Defence Force Retirement and Death Benefits Act 1973—to a transfer value payable in respect of the employee under Division 3 of Part IX of that Act or to a refund of contributions and a lump sum payable under sub-section (2) of section thirty-two of that Act; and.

Transfer value.

10. Section 119s of the Principal Act is amended—

(a) by inserting in paragraph (a) of sub-section (4), after the words Defence Forces Retirement Benefits Act 19481971, the words or had not ceased to be an eligible member of the Defence Force as defined by section three of the Defence Force Retirement and Death Benefits Act 1973; and

(b) by inserting in paragraph (b) of sub-section (4), after the words Part VIc of that Act, the words or under Division 3 of Part IX of the Defence Force Retirement and Death Benefits Act 1973

Deferred benefit.

11. Section 119t of the Principal Act is amended—

(a) by inserting in paragraph (a) of sub-section (8), after the words Defence Forces Retirement Benefits Act 19481971, the words or had not ceased to be an eligible member of the Defence Force as defined by section three of the Defence Force Retirement and Death Benefits Act 1973; and

(b) by omitting from paragraph (b) of sub-section (8) the words that Act, and substituting the words whichever of those Acts is applicable,.

Overview

The Superannuation Act (No. 2) 1973 was enacted to amend the Superannuation Act 1922–1971, as previously amended by the Superannuation Act 1973, addressing issues related to superannuation contributions and benefits, particularly in relation to members of the Defence Force. The Act was assented to on 19 June 1973 by the Queen, the Senate, and the House of Representatives of Australia. Its primary objective was to integrate superannuation provisions with the Defence Force Retirement and Death Benefits Act 1973, ensuring that the rights and benefits of Defence Force members are appropriately managed under both Acts. The legislation aims to streamline the administration of superannuation contributions and benefits, particularly concerning the deferment of contributions, the payment of pensions, and the calculation of transfer values for Defence Force personnel.

Scope and Application

The Superannuation Act (No. 2) 1973 amends the Superannuation Act 1922-1971, now referred to as the Principal Act, and introduces specific provisions concerning superannuation contributions and benefits for members of the Defence Force. The Act applies to entities and individuals who are subject to the Principal Act and, by extension, to those who are members of the Defence Force, as it integrates provisions from the Defence Force Retirement and Death Benefits Act 1973. The amendments are designed to ensure that superannuation benefits are coordinated with those provided under the Defence Force Retirement and Death Benefits Act. The Act applies throughout Australia, given its federal nature and the overarching jurisdiction of the Commonwealth in matters of superannuation. There are no explicit exclusions or thresholds mentioned within the provided text, though certain conditions and circumstances outlined in the Defence Force Retirement and Death Benefits Act 1973 may implicitly affect eligibility and applicability. The Act allows for further refinement and specification of its provisions through subordinate instruments, which may provide additional detail or clarification as necessary.

Key Provisions

The Superannuation Act (No. 2) 1973 (the Act) amends the Superannuation Act 1922–1971 (the Principal Act) to incorporate specific provisions related to the Defence Force Retirement and Death Benefits Act 1973. The Act introduces changes to the Principal Act that include updates to the definitions and references to the Defence Force Retirement and Death Benefits Act 1973, adjustments to the deferment of contributions for Defence Force members, and modifications to pension entitlements and rights under other acts. Firstly, the Act makes amendments to the Principal Act to ensure it aligns with the Defence Force Retirement and Death Benefits Act 1973. For instance, it changes the reference to the Canberra Community Hospital Board to the Canberra Hospital Management Board in the definition of “Approved authority” (Section 3). It also updates references to the Defence Forces Retirement Benefits Fund to the Commonwealth under the Defence Force Retirement and Death Benefits Act 1973 (Section 4). Moreover, the Act defers contributions of Defence Force contributors until they cease to be liable to contribute to the Commonwealth under the new act or cease to be an employee (Section 5). The Act imposes several obligations on the parties it governs. Employers and employees are required to comply with the new deferment provisions for superannuation contributions, ensuring that contributions are deferred until specific conditions are met. Additionally, the Board is tasked with managing the suspension and adjustment of pensions for Defence Force contributors, including assessing and potentially increasing pension rates based on the terms of the Defence Force Retirement and Death Benefits Act 1973 (Section 7). The Act outlines consequences for non-compliance. While the Act does not explicitly detail criminal or civil penalties for breaches, the failure to comply with the deferment provisions or other obligations could lead to disputes over pension entitlements and benefits, which may be subject to review and correction by the Board. The penalties for such breaches would depend on the specific circumstances and any applicable administrative or judicial processes. In summary, the Superannuation Act (No. 2) 1973 amends the Principal Act to reflect changes introduced by the Defence Force Retirement and Death Benefits Act 1973. It introduces new deferment rules for Defence Force contributors, modifies pension entitlements, and imposes specific obligations on employers, employees, and the Board. While the Act does not specify penalties for non-compliance, breaches could lead to disputes and adjustments to pension benefits.

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Area of Law
Superannuation Law
Instrument
Act
Concepts
Definitions & Interpretation
Repeal & Amendment
Commencement Provisions
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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.