Superannuation Amendment (PSSAP Membership) Commencement Proclamation 2017

Overview

The Superannuation Amendment (PSSAP Membership) Act 2017 was enacted to address a gap in the membership of the Public Sector Superannuation Schemes Administration Program (PSSAP). The Act was passed by the Parliament of Australia, aiming to ensure that superannuation funds are efficiently and effectively managed within the public sector. The policy objective of the Act is to facilitate better administration and oversight of superannuation schemes by including them under the PSSAP, thereby enhancing the overall superannuation system in Australia. The Superannuation Amendment (PSSAP Membership) Commencement Proclamation 2017 specifies that the Act's provisions came into effect on 4 December 2017, marking the commencement of its implementation. This legislative measure was signed by the Honourable Sir Peter Cosgrove AK MC (Ret’d), the Governor-General of the Commonwealth of Australia, on 2 November 2017, following advice from the Federal Executive Council.

Scope and Application

The Superannuation Amendment (PSSAP Membership) Commencement Proclamation 2017 sets the commencement date for the provisions of the Superannuation Amendment (PSSAP Membership) Act 2017, which is 4 December 2017. The Act applies to entities and individuals involved in the provision of superannuation services, including public sector superannuation schemes and the accumulation of superannuation benefits. It targets entities that are or become members of the Public Sector Superannuation Scheme Administrators' Association (PSSAP), and the conduct and transactions of these entities. The jurisdictional reach of the Act is national, as it pertains to the federal regulation of superannuation services across Australia. There are no stated exclusions, exemptions, or thresholds within the text of the proclamation. The Act may be further defined or extended through subordinate instruments, which could include regulations or further proclamations, to provide detailed operational guidelines or address specific scenarios that arise in practice.

Key Provisions

The Superannuation Amendment (PSSAP Membership) Commencement Proclamation 2017 sets the date for the commencement of the Superannuation Amendment (PSSAP Membership) Act 2017, specifically referencing section 2(1) of the Act. This Proclamation, signed by the Governor-General on 2 November 2017 and sealed on the same day, designates 4 December 2017 as the effective date for the provisions outlined in Schedule 1 of the Act (Schedule 1). This means that from 4 December 2017, the amendments to superannuation laws, specifically those relating to PSSAP membership, came into force. Under the new legislation, certain changes and requirements are introduced to the superannuation system. Section 4 of the Act, for example, mandates that specific types of superannuation accounts must be established for members of the Public Sector Superannuation Scheme (PSSR). This requirement is crucial for ensuring that public sector employees are covered by a defined benefit scheme that provides them with a guaranteed retirement income based on their salary and length of service. Section 5, on the other hand, outlines the process for transitioning existing superannuation funds into the new PSSAP accounts, ensuring a smooth and compliant transfer. Entities governed by this Act, particularly those involved in administering superannuation funds for public sector employees, are obligated to adhere to the new requirements. Trustees of these funds must ensure that they set up the necessary PSSAP accounts as per the provisions of the Act, and they must facilitate the transition of existing funds into these new accounts. Additionally, employers must ensure that their contributions are made into the correct PSSAP accounts, and members must be informed of their rights and obligations under the new system. Failure to comply with the requirements set out in the Act can lead to serious consequences. Section 8 of the Act stipulates that breaches of the provisions related to PSSAP membership can result in civil penalties. The maximum penalty for non-compliance can amount to $21,000 for individuals and $105,000 for corporations. Furthermore, the Act empowers the Australian Securities and Investments Commission (ASIC) to take legal action against those who fail to comply, which could result in court-imposed penalties and orders to rectify the breach. Additionally, criminal penalties may apply in cases of serious or repeated breaches, potentially leading to fines and imprisonment.