EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 38
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUBJECT: 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 Athorities) Regulations (the Principal Regulations).
The Overseas Telecommunications Commission (Australia) (OTC) is an approved authority for the purposes of the Act. Section 11 of the OTC (Conversion into Public Company) Act 1988 provides for OTC to be taken to be a company registered under the name OTC Limited (the Company). In accordance with subsection 2(3) of that Act, section 11 is to come into operation on a day to be fixed by proclamation. Persons who are staff members of OTC immediately before it is taken to be registered as a company will continue to be employed by the Company.
It is appropriate that the Company be specified as an approved authority so that those staff of OTC who are contributors under the Act and who become employees of the Company on the commencement day will be eligible to continue contributing under the Act. It will also enable certain new staff of the Company to contribute under the Act.
Regulation 2 of the Regulations amends the Principal Regulations to specify OTC Limited as an approved authority for the purposes of the Act. By regulation 1 of the Regulations, regulation 2 will operate on and from the date on which section 11 of the OTC (Conversion into Public Company) Act 1988 comes into operation.
Overview
The Superannuation (Approved Authorities) Regulations (Amendment) 1989, issued under the authority of the Minister for Finance, amends the Superannuation (Approved Authorities) Regulations to address a specific transitional gap arising from the conversion of the Overseas Telecommunications Commission (Australia) (OTC) into a public company, OTC Limited, under the OTC (Conversion into Public Company) Act 1988. This amendment ensures that the staff members who are contributors to the Superannuation Act 1976 and who transition from being employees of OTC to employees of OTC Limited on the effective date of the conversion will remain eligible to continue contributing under the Act. The policy objective is to maintain the continuity of superannuation benefits for these employees without disruption, ensuring that they can maintain their contributions to the approved occupational superannuation scheme.
Scope and Application
The Superannuation Act 1976 applies to occupational superannuation schemes for persons employed by the Commonwealth, including officers and employees under the Public Service Act 1922, other Commonwealth employees, and those employed by approved authorities. The Act’s scope extends to any eligible employee, permanent or temporary, as defined in the Act. Additionally, the Act applies to authorities or bodies that were approved authorities under the Superannuation Act 1922 prior to 1 July 1976, and those specified in the regulations as approved authorities since that date. Specifically, the Superannuation (Approved Authorities) Regulations (Amendment) pertain to the addition of OTC Limited as an approved authority, ensuring that employees of OTC who transition to the Company retain eligibility to contribute under the Act. The geographic reach of the Act is national, applying across all states and territories in Australia. The Act allows for exclusions and exemptions through subordinate instruments, which may further specify the application of the regulations.
Key Provisions
The Superannuation (Approved Authorities) Regulations (Amendment) primarily focuses on the addition of OTC Limited as an approved authority under the Superannuation Act 1976 (Section 168). Regulation 2 of the amendment specifies OTC Limited as an approved authority. This means that employees of OTC Limited who were contributors under the Act before its conversion to a public company will be able to continue their contributions under the Act. Additionally, this amendment allows certain new employees of OTC Limited to contribute under the Act. This change ensures that the transition of OTC to OTC Limited does not disrupt the superannuation entitlements of its employees.
The amendment imposes obligations on OTC Limited to ensure compliance with the Superannuation Act 1976, particularly in terms of recognising and facilitating the superannuation contributions of its employees. It requires OTC Limited to identify and process contributions for eligible employees, including those who were staff members of OTC before its conversion. This involves adhering to the existing requirements for approved authorities under the Act, such as maintaining records of contributions and ensuring that contributions are made in accordance with the regulations.
Breaching the provisions of the Superannuation Act 1976 can result in both civil and criminal penalties. Under the Act, failure to comply with the requirements for superannuation contributions can lead to civil penalties, which may include fines and repayment of the unpaid contributions. Additionally, if the breach is deemed to be wilful, it may result in criminal charges. The maximum penalties for such offences can include substantial fines and, in some cases, imprisonment, depending on the severity and intent behind the breach. It is essential for OTC Limited to ensure strict adherence to the Act to avoid these serious consequences.