EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO. 9
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUBJECT: SUPERANNUATION ACT 1976 - SUPERANNUATION (APPROVED AUTHORITIES) REGULATIONS (AMENDMENT)
Section 168 of the Superannuation Act 1976 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters which the Act requires or permits to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The Act makes provision for and in relation to an occupational superannuation scheme for persons employed by the Commonwealth and for certain other persons.
By virtue of the definitions of “eligible employee”, “permanent employee” and “temporary employee” in sub-section 3(1) of the Act, those eligible to contribute under the Act are officers and employees for the purposes of the Public Service Act 1922, any other persons employed by the Commonwealth and persons employed by an approved authority.
Section 3 defines “approved authority” as:
(a) an authority or other body specified in the regulations as an approved authority for the purposes of the Act, being an authority or body of a kind described in the definition; or
(b) an authority or body that was an approved authority for the purposes of the Superannuation Act 1922 immediately before 1 July 1976, the date of commencement of the Act.
Authorities or bodies that have become approved authorities since 1 July 1976 are specified in the Superannuation (Approved Authorities) Regulations.
Sub-section 168(3) of the Act provides that regulations made for the purposes of the “approved authority” definition after 31 December 1978 may be expressed to have taken effect from and including a day not earlier than twelve months before the making of the regulations.
The Education Amendment Act 1985 of the Northern Territory (the Amendment Act) amended the Education Act 1979 of the Northern Territory with effect from 11 March 1985. Section 12 of the Amendment Act repealed Part VI of the Education Act, which had provided for the Darwin Community College, and also established the Darwin Institute of Technology. The Institute is a body corporate and is empowered to employ staff. Persons who were employees of the Darwin Community College as at 10 March 1985 became employees of the Institute on 11 March 1985 by virtue of section 21 of the Amendment Act. As the Darwin Community College was an approved authority for the purposes of the Act, its staff were entitled to contribute, and to receive benefits, under the Act.
For employees of the Darwin Institute of Technology to be, or continue to be, eligible to contribute, and receive benefits, under the Act it is necessary for the Institute to be specified as an approved authority for the purposes of the Act. The Institute is a body of a kind described in the “approved authority” definition in the Act.
The regulations amend the Superannuation (Approved Authorities) Regulations to specify the Darwin Institute of Technology as an approved authority as provided for by section 3 of the Act.
The regulations are expressed to come into effect on 11 March 1985 the date from which the Institute was established.
Overview
The Superannuation (Approved Authorities) Regulations (Amendment) 1985, issued under the authority of the Minister for Finance, address the need to update the approved authorities list in the Superannuation Act 1976 to include the Darwin Institute of Technology. Enacted by the Parliament of Australia, this amendment responds to the restructuring of educational institutions in the Northern Territory, ensuring continuity of superannuation benefits for staff transitioning from the Darwin Community College to the newly established Darwin Institute of Technology. The policy objective is to maintain eligibility for superannuation contributions and benefits for affected employees, thereby providing financial security and continuity in line with the provisions of the Superannuation Act 1976.
Scope and Application
The Superannuation (Approved Authorities) Regulations (Amendment) 1986, issued under the authority of the Minister for Finance, specifically amend the Superannuation (Approved Authorities) Regulations to include the Darwin Institute of Technology as an approved authority for the purposes of the Superannuation Act 1976. This legislative amendment ensures that employees of the Institute, which was established by the Education Amendment Act 1985 of the Northern Territory, are eligible to contribute to and receive benefits from an occupational superannuation scheme. The Act and its regulations apply to officers and employees of the Commonwealth, employees of specified approved authorities, and other persons as defined in the Act. The Darwin Institute of Technology, being a body corporate empowered to employ staff, falls within the category of approved authorities as defined in the Act. The regulations are effective from 11 March 1985, the same date the Institute was established, ensuring continuity of superannuation eligibility for staff transitioning from the Darwin Community College to the Institute.
Key Provisions
The Superannuation (Approved Authorities) Regulations, as amended by Statutory Rules 1986 No. 9, primarily serve to specify certain authorities or bodies as approved authorities under the Superannuation Act 1976. Section 3 of the Act defines an approved authority as either an entity specified in the regulations or an entity that was an approved authority under the Superannuation Act 1922 immediately before 1 July 1976. The primary function of these regulations is to detail which entities are eligible to be considered as approved authorities under the Act, thereby allowing their employees to participate in the occupational superannuation scheme provided for by the Act.
These regulations impose specific obligations on the parties they govern. For example, by specifying the Darwin Institute of Technology as an approved authority, the regulations ensure that employees of this Institute are eligible to contribute to and receive benefits from the superannuation scheme. This inclusion is necessary because, under section 3(1) of the Act, only employees of approved authorities are eligible for superannuation benefits. The regulations thus facilitate compliance with the Act by ensuring that eligible entities are correctly identified and their employees' entitlements are protected.
Failure to adhere to the provisions of these regulations can lead to serious consequences. For instance, if an entity that is supposed to be an approved authority under the Act is not specified in the regulations, its employees may not be eligible for superannuation benefits, which could result in legal disputes or financial hardship. Additionally, any breaches of the Act or regulations may lead to civil or criminal penalties, although the specific penalties are not detailed in the explanatory statement. The Superannuation Act 1976, however, generally provides for penalties that can include fines and, in severe cases, imprisonment.
In summary, the Superannuation (Approved Authorities) Regulations play a crucial role in ensuring that the Superannuation Act 1976 is properly implemented by specifying which authorities and bodies are approved for the purposes of the Act. These regulations impose clear obligations on the entities they govern, ensuring that eligible employees can contribute to and benefit from the superannuation scheme. Any non-compliance with these regulations may have significant legal and financial repercussions for the entities and individuals involved.