Superannuation Amendment (PSSAP Membership) Act 2017

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Legislation au C2017A00068 In force Act

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Superannuation Amendment (PSSAP Membership) Act 2017

 

No. 68, 2017

 

 

 

 

 

An Act to amend the Superannuation Act 2005, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Amendments

Superannuation Act 2005

 

 

 

Superannuation Amendment (PSSAP Membership) Act 2017

No. 68, 2017

 

 

 

An Act to amend the Superannuation Act 2005, and for related purposes

[Assented to 23 June 2017]

The Parliament of Australia enacts:

1  Short title

  This Act is the Superannuation Amendment (PSSAP Membership) Act 2017.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

23 June 2017

2.  Schedule 1

A single day to be fixed by Proclamation.

However, if the provisions do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period.

4 December 2017

(F2017N00087)

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

 

Superannuation Act 2005

1  Section 3

Omit:

• Employers must pay contributions to PSSAP for the benefit of ordinary employer‑sponsored members of PSSAP.

substitute:

• Employers must pay contributions to PSSAP for the benefit of most ordinary employer‑sponsored members of PSSAP.

• A former public sector employee may be able to continue to be an ordinary employer‑sponsored member of PSSAP. Employers are not required by this Act or the Trust Deed to make contributions to PSSAP for the benefit of such a member. However, employers can make contributions to PSSAP for the benefit of such a member if PSSAP is the member’s chosen fund under the Superannuation Guarantee (Administration) Act 1992.

2  Subsection 4(1)

Insert:

former Commonwealth ordinary employer‑sponsored member means a person who is an ordinary employer‑sponsored member of PSSAP under subsection 18(7).

3  Paragraph 17(1)(a)

After “PSSAP”, insert “(except a former Commonwealth ordinary employer‑sponsored member)”.

4  Subsection 17(2) (note)

Omit “Note”, substitute “Note 1”.

5  At the end of subsection 17(2)

Add:

Note 2: The designated employer of a former Commonwealth ordinary employer‑sponsored member is not required by this Act or the Trust Deed to make contributions to PSSAP for the benefit of the member. However, the designated employer can make contributions to PSSAP for the benefit of the member if PSSAP is the member’s chosen fund under the Superannuation Guarantee (Administration) Act 1992.

6  Subsection 18(1)

Omit “3”, substitute “4”.

7  At the end of section 18

Add:

Former Commonwealth ordinary employer‑sponsored member

 (7) Subject to subsections (8) and (9), if:

 (a) at a particular time (the relevant time), a person is a member of PSSAP; and

 (b) the person was previously an ordinary employer‑sponsored member of PSSAP under one or more of subsections (2), (3) and (5); and

 (c) the person previously would have been eligible to become a member of PSSAP because of particular employment or holding one or more particular offices, where the periods of any such employment, and the periods of holding any such office, taken together constituted a continuous period of at least 12 months; and

 (d) at the relevant time, none of subsections (2), (3) and (5) apply to the person in respect of any employment of the person or any holding of an office by the person; and

 (e) at the relevant time, the person is in particular employment or holds a particular office; and

 (f) at the relevant time, assuming that the person’s employer (within the meaning of the Superannuation Guarantee (Administration) Act 1992) were to make a basic employer contribution to PSSAP for the benefit of the person, the employer would rely on subsection 32C(1) of that Act to satisfy the choice of fund requirements in relation to the contribution; and

 (g) at the relevant time, the person’s salary or wages (within the meaning of the Superannuation Guarantee (Administration) Act 1992) would be taken into account for the purpose of making a calculation under section 19 of that Act; and

 (h) the person has elected, in a form approved by the CSC and given to the CSC, for this subsection to apply in respect of the employment or the holding of the office referred to in paragraph (e);

the person is an ordinary employer‑sponsored member of PSSAP in respect of the employment or the holding of the office referred to in paragraph (e).

Note: A person who is an ordinary employer‑sponsored member of PSSAP under this subsection is known as a former Commonwealth ordinary employer‑sponsored member.

 (8) To avoid doubt, paragraph (7)(e) does not apply to a person who is a member of the Defence Force by reason only of the person being a member of the Defence Force.

 (9) A person cannot be an ordinary employer‑sponsored member of PSSAP under subsection (7) if the person is included in a class of persons determined in an instrument under subsection (10).

 (10) The Minister may, by legislative instrument, determine a class of persons for the purposes of subsection (9).

 (11) Despite anything in regulations made for the purposes of paragraph 44(2)(b) of the Legislation Act 2003, section 42 (disallowance) of that Act applies to an instrument under subsection (10) of this section.

8  Subsection 19(2) (after table item 5)

Insert:

5A

the person is a former Commonwealth ordinary employer‑sponsored member

the person’s employer mentioned in paragraph 18(7)(f).

9  Paragraph 42(1)(a)

After “PSSAP”, insert “(except a former Commonwealth ordinary employer‑sponsored member)”.

10  Paragraph 43(1)(b)

After “PSSAP”, insert “(except a former Commonwealth ordinary employer‑sponsored member)”.

11  Subsection 44(3)

Omit “An”, substitute “A person,”.

12  Subsection 44(3)

After “in relation to the”, insert “person,”.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 1 December 2016

Senate on 14 February 2017]

 

(189/16)

 

Overview

The Superannuation Amendment (PSSAP Membership) Act 2017 was enacted by the Parliament of Australia to address certain gaps and issues within the Superannuation Act 2005, particularly concerning the Public Service Superannuation Scheme (PSSAP). This legislation was introduced to modify the requirements and provisions for PSSAP membership and contributions. The primary aim of the Act is to refine the conditions under which former public sector employees can remain as ordinary employer-sponsored members of PSSAP, allowing them to maintain their membership status under specific circumstances while providing flexibility for employers in terms of making contributions to PSSAP for these members. The Act came into effect on 23 June 2017, with other provisions commencing on a date to be fixed by proclamation, not later than six months from the Royal Assent.

Scope and Application

The Superannuation Amendment (PSSAP Membership) Act 2017 amends the Superannuation Act 2005 to introduce changes to the eligibility criteria for ordinary employer-sponsored membership in the Public Sector Superannuation Accumulation Plan (PSSAP). This Act applies to employers, particularly those in the public sector, and ordinary employer-sponsored members of PSSAP, including former Commonwealth ordinary employer-sponsored members. It primarily affects the public sector across the Commonwealth of Australia. The Act’s provisions commence on two specified dates: the day the Act receives Royal Assent (23 June 2017) and a later date to be fixed by Proclamation, but no later than six months after Royal Assent (4 December 2017). The Act allows for the exclusion of certain individuals from mandatory employer contributions through the Minister’s power to determine classes of persons via legislative instruments, subject to disallowance under the Legislation Act 2003. This legislative amendment broadens the scope of who can become an ordinary employer-sponsored member of PSSAP by including former Commonwealth ordinary employer-sponsored members, under specific conditions, while also providing flexibility in contribution obligations for such members.

Key Provisions

The Superannuation Amendment (PSSAP Membership) Act 2017 modifies the Superannuation Act 2005, specifically addressing the membership and contributions for the Public Sector Superannuation Scheme (PSSAP). The key amendment is that employers are now required to pay contributions to PSSAP for the benefit of most ordinary employer-sponsored members of PSSAP (Section 3). This Act also allows former public sector employees to continue being ordinary employer-sponsored members of PSSAP. However, employers are not mandated to make contributions to PSSAP for these members, though they can do so if PSSAP is the member's chosen fund under the Superannuation Guarantee (Administration) Act 1992. The Act introduces the term "former Commonwealth ordinary employer-sponsored member" to describe individuals who meet specific eligibility criteria (Subsection 18(7)). The obligations under this Act primarily focus on employers. They must ensure they meet the contribution requirements for most ordinary employer-sponsored members of PSSAP, while having the discretion to decide whether to contribute to former public sector employees who remain in the scheme. Employers must also comply with any determinations made by the Minister under the new subsection (10) regarding classes of persons who cannot be ordinary employer-sponsored members of PSSAP. Additionally, the Act requires that the employer of a former Commonwealth ordinary employer-sponsored member must be mentioned in the relevant form approved by the Commonwealth Superannuation Corporation (CSC) (Subsection 19(2)). For breaches of the provisions under this Act, the penalties can be significant. While the Act does not explicitly state penalties, the Superannuation Act 2005 generally provides for civil and criminal penalties for non-compliance. Civil penalties can include fines up to a substantial amount, while criminal penalties may involve imprisonment for serious breaches. These penalties underscore the importance of adhering to the obligations and requirements set out by the Superannuation Amendment (PSSAP Membership) Act 2017.

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Superannuation Law
Instrument
Act
Concepts
Commencement Provisions
Repeal & Amendment
Licensing & Registration
Reporting & Disclosure Obligations

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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.