EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO 96
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976
SUPERANNUATION (APPROVED AUTHORITIES) REGULATIONS (AMENDMENT)
The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme for persons employed by the Commonwealth and for certain other persons.
Section 168 of 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.
By virtue of the definitions of eligible employee, permanent employee and temporary employee in subsection 3(1) of the Act, those required or eligible to contribute under the Act include 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 of the Act 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 (the Principal Regulations).
Subsection 168(3) of the Act provides that regulations for the purposes of the approved authority definition made 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.
Australian Defence Industries Pty. Ltd. was incorporated in the Australian Capital Territory on 21 July 1988 to take over certain responsibilities performed by the Office of Defence Production in the Department of Defence. Staff of that Department, many of whom were eligible employees, were transferred to employment with the Company on 25 May 1989.
Australian Defence Industries Pty. Ltd. is a body of a kind described in the definition of approved authority in subsection 3(1) of the Act. It is appropriate that the Company be specified as an approved authority to enable its staff to become, or to remain, eligible to contribute under the Act.
Regulation 2 of the Regulations amends the Principal Regulations to specify Australian Defence Industries Pty. Ltd. as an approved authority for the purposes of the Act. By regulation 1 of the Regulations, regulation 2 is deemed to have taken effect from and including 25 May 1989.
Overview
The Superannuation (Approved Authorities) Regulations (Amendment) 1990, issued under the authority of the Minister for Finance, amends the existing Superannuation (Approved Authorities) Regulations to address the need for certain employees of Australian Defence Industries Pty. Ltd. to be eligible for the benefits provided under the Superannuation Act 1976. Enacted by the Parliament of Australia, this amendment seeks to ensure that employees who were transferred from the Department of Defence to Australian Defence Industries Pty. Ltd. on 25 May 1989 maintain their eligibility to contribute to and benefit from the superannuation scheme. The policy objective of these regulations is to extend the scope of approved authorities within the Act to include Australian Defence Industries Pty. Ltd., thereby ensuring continuity of superannuation benefits for its staff, who were previously eligible employees under a different arrangement.
Scope and Application
The Superannuation (Approved Authorities) Regulations (Amendment) Statutory Rules 1990 No 96, issued under the authority of the Minister for Finance, amend the existing Superannuation (Approved Authorities) Regulations to include Australian Defence Industries Pty. Ltd. as an approved authority under the Superannuation Act 1976. This Act provides for an occupational superannuation scheme for persons employed by the Commonwealth and certain other persons, including employees of approved authorities. The amendment facilitates the eligibility of staff transferred from the Department of Defence to Australian Defence Industries Pty. Ltd. to contribute to the superannuation scheme. The regulations are designed to ensure that employees of the newly designated approved authority are not disadvantaged in terms of their superannuation entitlements. This amendment reflects the continuity of service and eligibility for superannuation benefits for staff who transitioned from Commonwealth employment to employment with the private sector entity. The regulations are effective as of 25 May 1989, aligning with the date of transfer of staff from the Department of Defence to the Company.
Key Provisions
The Superannuation (Approved Authorities) Regulations (Amendment) pertain to the Superannuation Act 1976 (the Act) and provide clarification and additions to the list of approved authorities (section 3). These regulations specify which authorities or bodies are considered approved authorities, enabling their employees to contribute to a superannuation scheme under the Act (section 3(1)). The amendment introduced by these regulations is significant as it includes Australian Defence Industries Pty. Ltd. as an approved authority, thus allowing its employees to remain eligible to contribute to the superannuation scheme.
The regulations impose obligations on the parties and entities they govern by clearly defining which authorities or bodies are approved authorities under the Act. This definition includes authorities or bodies specified in the regulations and those that were approved authorities under the Superannuation Act 1922 prior to 1 July 1976. Australian Defence Industries Pty. Ltd., having transitioned from the Department of Defence, now falls under this definition, thereby ensuring continuity in superannuation eligibility for its employees.
The Act does not explicitly outline offences, penalties, or consequences for breaches in these regulations. However, any non-compliance with the specified requirements or failure to adhere to the definitions and provisions laid out in the regulations may result in employees losing their eligibility to contribute to the superannuation scheme. This could potentially lead to significant financial implications for the employees involved.
The Superannuation (Approved Authorities) Regulations (Amendment) ensure that Australian Defence Industries Pty. Ltd. is recognised as an approved authority, maintaining the eligibility of its employees to contribute to a superannuation scheme under the Act. By specifying this body as an approved authority, the regulations provide clarity and continuity, ensuring that the employees of Australian Defence Industries Pty. Ltd. can continue to benefit from the provisions of the Act without interruption.