EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO 374
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 definition 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 Regulations).
Section 7 of the Australian Trade Commission Act 1985 provides for the establishment of a body corporate to be known as the Australian Trade Commission. Section 60 provides for the Commission to employ staff. Both of these provisions are to come into operation on 6 January 1986.
It is intended that members of the staff of the Commission be entitled to contribute for, and receive, benefits under the Act. The Commission 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.
Bodies specified in the Regulations as approved authorities include the Australian Overseas Projects Corporation. Section 5 of the Australian Trade Commission (Transitional Provisions and Consequential Amendments) Act 1985 repeals the Australian Overseas Projects Corporation Act 1978 and thus abolishes the Corporation. Section 12 of that Act provides for the existing staff of the Corporation to become employed by the Australian Trade Commission. Both of these provisions are to come into operation on 6 January 1986.
It is appropriate, therefore, for the reference to the Australian Overseas Projects Corporation in the Regulations to be deleted with effect from that date.
The regulations amend the Superannuation (Approved Authorities) Regulations to specify the Australian Trade Commission as an approved authority as provided for by section 3 of the Act, and to remove the reference to the Australian Overseas Projects Corporation, both with effect from 6 January 1986.
Overview
The Superannuation (Approved Authorities) Regulations (Amendment) 1985, issued under the authority of the Minister for Finance, aims to update the list of approved authorities eligible to participate in the occupational superannuation scheme established by the Superannuation Act 1976. This Act facilitates superannuation contributions for Commonwealth employees and those employed by approved authorities. The regulations address the need to include the Australian Trade Commission as an approved authority to ensure its staff can contribute to and benefit from the superannuation scheme. Simultaneously, the regulations remove the Australian Overseas Projects Corporation from the list of approved authorities, reflecting its abolition and the transfer of its staff to the Australian Trade Commission, both effective from 6 January 1986. This amendment ensures that the regulations remain current and aligned with legislative changes.
Scope and Application
The Superannuation (Approved Authorities) Regulations, as amended, under the Superannuation Act 1976, detail the entities eligible for participation in occupational superannuation schemes. These regulations identify approved authorities, which include certain bodies specified in the regulations and those that were approved authorities under the Superannuation Act 1922 prior to 1 July 1976. Eligible employees under the Act include officers and employees of the Public Service Act 1922, other Commonwealth employees, and those employed by approved authorities. The amendments specify the Australian Trade Commission as an approved authority, effective from 6 January 1986, and remove the Australian Overseas Projects Corporation from the list of approved authorities, also effective from the same date, reflecting the abolition of the Corporation and its staff's transfer to the Australian Trade Commission. This legislative framework ensures that the intended participants in the superannuation scheme are clearly defined and that the regulations adapt to changes in organisational structures and employment arrangements.
Key Provisions
The Superannuation (Approved Authorities) Regulations (Amendment) provide specific amendments to the list of approved authorities under the Superannuation Act 1976. Section 3(1) of the Act allows for the Governor-General to make regulations prescribing matters necessary for carrying out or giving effect to the Act. The amendment specifies the Australian Trade Commission as an approved authority (subsection 3(1)(a)), which means its staff can contribute to and receive benefits under the Act. This amendment comes into effect on 6 January 1986, as per section 7 and section 60 of the Australian Trade Commission Act 1985. The amendment also removes the Australian Overseas Projects Corporation from the list of approved authorities, reflecting its abolition and transition of staff to the Australian Trade Commission, as per the Australian Trade Commission (Transitional Provisions and Consequential Amendments) Act 1985.
The regulations impose obligations on the Australian Trade Commission as an approved authority. These obligations include ensuring that its employees are eligible to contribute to the superannuation scheme under the Act and are entitled to receive benefits from it. The Commission must adhere to the requirements set forth in the Superannuation Act 1976 and any related regulations to maintain its status as an approved authority. This involves complying with the processes for contributions, benefits, and any other related provisions stipulated in the Act. Furthermore, the Commission must ensure that its employees who are eligible to participate in the scheme are properly enrolled and that their contributions are accurately recorded and managed.
Failure to comply with the provisions of the Superannuation Act 1976 and the amended regulations can lead to various consequences. The Act does not explicitly state penalties for non-compliance in the explanatory statement; however, breaches of superannuation laws generally attract significant penalties. For example, under the Superannuation Industry (Supervision) Act 1993, penalties for breaches can include fines of up to $21,000 for individuals and $105,000 for corporations, depending on the severity of the breach. Additionally, criminal charges can be brought against individuals who deliberately or recklessly breach the Act, potentially resulting in imprisonment. These penalties underscore the importance of compliance for approved authorities like the Australian Trade Commission.