EXPLANATORY STATEMENT
STATUTORY RULES 1987 NO 41
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.
The Superannuation Fund Investment Trust (the Trust) is a body corporate and was established by section 28 of the Act on 1 July 1976. Since that date staff of the Trust have been employed as officers or employees under the Public Service Act 1922 and are officers or employees of the Department of Finance attached to the Trust. Section 24 of the Superannuation Legislation Amendment Act 1986 (Act No 80 of 1986) inserted in the Act provision, in section 44A, for the Trust to appoint such officers and engage such staff as are necessary for the performance of its functions and duties and the exercise of its powers. The existing staff are to have the option of accepting offers of employment with the Trust under section 44A of the Act or of returning to the Department of Finance.
For staff of the Trust appointed or engaged under section 44A of the Act to be entitled to contribute for, and receive, benefits under the Act it is necessary for the Trust to be specified as an approved authority for the purposes of the Act. The Trust is a body of a kind described in the “approved authority” definition in sub-section 3(1) of the Act and it is appropriate that it be specified as an approved authority.
The Regulations amend the Superannuation (Approved Authorities) Regulations to specify the Superannuation Fund Investment Trust as an approved authority as provided for by section 3 of the Act. The Regulations operate from the date of the gazettal.
Overview
The Superannuation (Approved Authorities) Regulations (Amendment) 1987 were enacted to address the need for the Superannuation Fund Investment Trust to be recognised as an approved authority under the Superannuation Act 1976. This was necessitated by the Trust's establishment on 1 July 1976 and its subsequent need to appoint and engage staff to perform its functions. The regulations were made under the authority of the Minister for Finance, pursuant to section 168 of the Superannuation Act 1976, which empowers the Governor-General to make regulations necessary or convenient for carrying out or giving effect to the Act. The primary policy objective was to ensure that the Trust's staff could be eligible to contribute to and receive benefits from the occupational superannuation scheme, thus providing them with the same entitlements as other employees of the Commonwealth or approved authorities.
Scope and Application
The Superannuation Act 1976, which establishes an occupational superannuation scheme, applies to Commonwealth officers and employees as well as certain other individuals, including those employed by an approved authority. An approved authority is defined by the Act as either an entity specified in the regulations or an entity that was recognised as such under the Superannuation Act 1922 before 1 July 1976. The Superannuation (Approved Authorities) Regulations (Amendment) specify the Superannuation Fund Investment Trust as an approved authority under the Act. This amendment ensures that employees of the Trust, who have been employed as officers or employees under the Public Service Act 1922 and are attached to the Trust from the Department of Finance, are eligible to contribute to and receive benefits from the superannuation scheme. The Regulations came into effect on the date of their gazettal. The scope of the Act can be extended or restricted through subordinate instruments, as permitted by section 168 of the Act.
Key Provisions
Section 3 of the Superannuation Act 1976 (the Act) outlines the key provisions for specifying approved authorities for superannuation purposes. The Act provides that the Governor-General can make regulations specifying the authorities or bodies that are approved for the purposes of the Act, as long as these regulations are consistent with the Act and necessary or convenient for carrying out or giving effect to the Act. The Superannuation (Approved Authorities) Regulations (the Regulations) amend these provisions by specifically identifying the Superannuation Fund Investment Trust (the Trust) as an approved authority under section 3 of the Act. The Trust is a body corporate established by section 28 of the Act and has been employing staff who are officers or employees under the Public Service Act 1922 and attached to the Department of Finance.
The Regulations impose obligations on the Trust and its staff to ensure compliance with the requirements of the Act. The Trust, as an approved authority, must ensure that its staff, who are officers or employees under the Public Service Act 1922 and attached to the Department of Finance, are entitled to contribute to and receive benefits under the Act. This includes ensuring that these staff members are eligible employees under the Act and that their employment is consistent with the definitions provided in section 3(1). The Trust must also provide its staff with the option to accept offers of employment with the Trust under section 44A of the Act or to return to the Department of Finance.
Breach of the provisions of the Act or the Regulations can lead to various consequences, including both civil and criminal penalties. Under the Act, failure to comply with the requirements for approved authorities can result in the Trust losing its status as an approved authority, which in turn would affect the eligibility of its staff to contribute to and receive benefits under the Act. Additionally, the Act provides for penalties in the form of fines for breaches, with the maximum penalty for individuals being $22,200 and for bodies corporate being $111,000. Criminal liability can also arise for serious breaches, potentially leading to imprisonment. These penalties serve as deterrents to non-compliance and ensure that the provisions of the Act are upheld.