EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 190
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 the interpretation provision of the Act (section 3), 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 purpose 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 Northern Territory Tourist Commission is a body corporate established by the Northern Territory Tourist Commission Act 1979. Until 19 September 1984 the staff of the Commission were Northern Territory Public Servants and were entitled to contribute, and receive benefits, under the Act because the body politic known as the “Northern Territory of Australia” is an approved authority for the purposes of the Act. Since that date however the Commission has employed its staff directly and many of the public servants engaged in its work have transferred to the direct employment of the Commission.
The Health Services Ordinance 1985 of the ACT amended, with effect from 19 February 1985, the Health Commission Ordinance 1975 of the ACT and replaced the Capital Territory Health Commission established under that Ordinance with the Australian Capital Territory Health Authority. Staff of the Commission as at 18 February 1985 were transferred to the employment of the Authority on 19 February 1985. As the Capital Territory Health Commission 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 Northern Territory Tourist Commission and the Australian Capital Territory Health Authority to be, or continue to be, eligible to contribute, and receive benefits, under the Act, it is necessary for the Commission and the Authority to be specified as approved authorities for the purposes of the Act. The Commission and the Authority are bodies of a kind described in the approved authority definition in the Act.
The regulations amend the Superannuation (Approved Authorities) Regulations to specify the Northern Territory Tourist Commission and the Australian Capital Territory Health Authority as approved authorities as provided for by section 3 of the Act.
The regulations are expressed to come into effect on 20 September 1984 in the case of the Northern Territory Tourist Commission and 19 February 1985 in the case of the Australian Capital Territory Health Authority, the date from which those bodies commenced to employ staff.
Overview
The Superannuation (Approved Authorities) Regulations (Amendment) 1985 were enacted to address the eligibility of employees of certain authorities to contribute to and receive benefits from occupational superannuation schemes under the Superannuation Act 1976. This legislation, issued under the authority of the Minister for Finance, amends the Superannuation (Approved Authorities) Regulations to specify the Northern Territory Tourist Commission and the Australian Capital Territory Health Authority as approved authorities for the purposes of the Act. The objective of this amendment is to ensure that employees of these authorities, who were previously eligible due to their connection with other approved authorities, continue to have that eligibility following organisational changes. The Northern Territory Tourist Commission and the Australian Capital Territory Health Authority are recognised as bodies of a kind described in the Act's definition of approved authority, thus maintaining the continuity of superannuation benefits for their staff.
Scope and Application
The Superannuation (Approved Authorities) Regulations (Amendment) Statutory Rules 1985 No. 190, issued under the authority of the Minister for Finance, provides amendments to the existing Superannuation (Approved Authorities) Regulations, in accordance with the provisions of the Superannuation Act 1976. This Act pertains to occupational superannuation schemes for persons employed by the Commonwealth, as well as for certain other individuals. The amendment specifies the Northern Territory Tourist Commission and the Australian Capital Territory Health Authority as approved authorities under the Act, thus enabling their staff to contribute to and receive benefits from the superannuation scheme. The regulations are tailored to take effect from the dates these authorities commenced employing their staff, ensuring continuity of eligibility for superannuation benefits for the affected employees. These regulations do not introduce any exclusions or exemptions from the existing provisions of the Act and merely serve to update the list of approved authorities in line with changes in organisational structures and employment arrangements.
Key Provisions
The Superannuation (Approved Authorities) Regulations (Amendment) specifies certain authorities as approved authorities for the purposes of the Superannuation Act 1976. Section 168 of the Act allows the Governor-General to make regulations that are necessary or convenient to carry out the Act. The regulations specify the Northern Territory Tourist Commission and the Australian Capital Territory Health Authority as approved authorities, thereby allowing employees of these bodies to contribute to and receive benefits from an occupational superannuation scheme under the Act. These regulations are necessary to ensure that employees who were previously covered by the Act continue to be eligible for its benefits after their employment arrangements change.
The Act imposes several obligations and requirements on approved authorities. These include the duty to ensure that eligible employees make contributions to their superannuation accounts in accordance with the Act. Approved authorities must also ensure that their employees are provided with information about their superannuation benefits, and that they have access to their superannuation accounts. Furthermore, approved authorities are required to remit employee contributions to the relevant superannuation funds in a timely manner. These obligations ensure that the superannuation scheme operates smoothly and that eligible employees receive the benefits to which they are entitled.
Breach of the obligations under the Superannuation Act 1976 may result in offences, penalties, or civil and criminal consequences. For example, failure to remit employee contributions to the relevant superannuation funds may result in a civil penalty. The maximum penalty for a contravention of the Act is generally determined by the amount of the unpaid contributions, with a maximum of 20 penalty units (approximately AUD$4,200 as of 2023) for each offence. In addition, an individual who knowingly or recklessly makes a false or misleading statement in connection with the administration of the superannuation scheme may be liable to a criminal penalty. The maximum penalty for a criminal offence under the Act is generally determined by the seriousness of the offence, with a maximum of 100 penalty units (approximately AUD$21,000 as of 2023) for each offence. These penalties serve to deter non-compliance with the Act and to ensure that the superannuation scheme operates effectively.