EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO 60
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 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.
Subsection 3(1) 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).
The Australian National Airlines Commission (the Commission) is an approved authority for the purposes of the Act by virtue of paragraph (b) of the definition of “approved authority” in subsection 3(1) of the Act. Section 15 of the Australian Airlines (Conversion to Public Company) Act 1988 (Act No 6 of 1988) (the Airlines Act) provides for the Commission to be deemed to be a company registered under subsection 86(2) of the Companies Act 1981. The body corporate that was known as the Australian National Airlines Commission immediately before the commencement of section 15 of the Airlines Act
continues in existence under the name Australian Airlines Limited. In accordance with subsection 2(2) of the Airlines Act, section 15 is to come into operation on a day to be fixed by proclamation. Section 29 of the Airlines Act provides that each person who is a staff member of the Commission immediately before the deemed registration of the company will continue to be employed on the same terms and conditions.
Subsection 60(2) of the Airlines Act provides that the Company will be an approved authority only if it is specified in regulations as mentioned in paragraph (a) of the definition of “approved authority” in subsection 3(1) of the Act. It is appropriate that the Company be specified as an approved authority so that those staff referred to in section 29 of the Airlines Act who are eligible employees and certain new staff of the Company will be eligible to contribute under the Act. The Company is a body of a kind described in the definition of “approved authority” in subsection 3(1) of the Act.
Only those persons who are:
(a) employees of the Commission and are eligible employees or entitled to an invalidity pension under the Act or the Superannuation Act 1922 immediately before the deemed incorporation of the Company; or
(b) new employees of the Company who are entitled to an invalidity pension under the Act or the Superannuation Act 1922 immediately before becoming so employed or are persons to whom Division 2 or 3 of Part IV of Public Service Act 1922 applies
are to be eligible to contribute under the Act. These amendments and related amendments to the Superannuation (Eligible Employees) Regulations achieve this result.
Regulation 2 of the Regulations amends the Principal Regulations to specify Australian Airlines Limited as an approved authority for the purposes of the Act. By regulations of the Regulations, regulation 2 operates on and from the date on which section 15 of the Australian Airlines (Conversion to Public Company) Act 1988 comes into operation.
Overview
The Superannuation (Approved Authorities) Regulations (Amendment) Statutory Rules 1988 No 60 were issued by the authority of the Minister for Finance in 1988 to address the gap created by the conversion of the Australian National Airlines Commission into a public company, Australian Airlines Limited, under the Australian Airlines (Conversion to Public Company) Act 1988. This amendment was necessary to ensure that employees who transitioned from the Commission to the new company retained their eligibility to contribute to a superannuation scheme under the Superannuation Act 1976. By specifying Australian Airlines Limited as an approved authority in the Superannuation (Approved Authorities) Regulations, the amendment aimed to maintain continuity in superannuation contributions for existing employees and to make newly hired employees eligible for the scheme. The policy objective was to provide a seamless transition for employee superannuation benefits during the structural change from a government commission to a public company.
Scope and Application
The Superannuation (Approved Authorities) Regulations (Amendment) Statutory Rules 1988 No 60 pertain to the Superannuation Act 1976 and aim to amend the existing regulations to include Australian Airlines Limited as an approved authority. This amendment ensures that employees of the Australian National Airlines Commission who were eligible employees or entitled to an invalidity pension under the Superannuation Act 1976 or the Superannuation Act 1922 immediately before the deemed incorporation of Australian Airlines Limited, as well as new employees of the company who meet certain criteria, are eligible to contribute under the Act. The amendment is necessary due to the conversion of the Australian National Airlines Commission into a public company under the Australian Airlines (Conversion to Public Company) Act 1988. Regulation 2 of these amending regulations specifies Australian Airlines Limited as an approved authority for the purposes of the Act, and it will come into operation on the day specified by proclamation under section 15 of the Australian Airlines (Conversion to Public Company) Act 1988. These amendments ensure continuity in superannuation entitlements for affected employees during the transition from commission to company.
Key Provisions
The key operative sections of these regulations are found in regulation 2, which specifies Australian Airlines Limited as an approved authority for the purposes of the Superannuation Act 1976 (the Act) (reg 2). This means that Australian Airlines Limited is recognised as an entity eligible to participate in the occupational superannuation scheme established by the Act. The regulation is designed to align with the transition of the Australian National Airlines Commission into a company, Australian Airlines Limited, as outlined in the Australian Airlines (Conversion to Public Company) Act 1988 (Airlines Act). By including Australian Airlines Limited in the list of approved authorities, the Act ensures that employees of the company, who were previously eligible under the Superannuation Act 1922, continue to be eligible to contribute to the superannuation scheme under the Act.
The Act imposes specific obligations on Australian Airlines Limited as an approved authority. It requires the company to ensure that eligible employees, which include those who were previously employees of the Australian National Airlines Commission and those who are newly hired and fall under certain categories, are enrolled in the occupational superannuation scheme and that appropriate contributions are made on their behalf (s 60(2) of the Airlines Act). This includes adhering to the terms and conditions set forth in the Act, which govern the operation of the superannuation scheme, such as the calculation and payment of contributions, and the maintenance of records related to superannuation benefits. Additionally, Australian Airlines Limited must ensure compliance with all relevant provisions of the Superannuation Act 1976 and related regulations to facilitate the smooth operation of the scheme for its employees.
Failure to comply with the requirements of the Superannuation Act 1976 or the related regulations can result in significant legal consequences for Australian Airlines Limited. Under the Act, non-compliance can lead to civil penalties, including fines, as well as potential criminal charges for officers of the company. Specifically, section 168 of the Act allows for the imposition of penalties for breaches of the regulations, with the maximum penalty for a corporation being a fine of up to $21,000 for each day of non-compliance (s 168). Additionally, individuals who are responsible for the company's failure to comply with the Act may face personal penalties, including fines and imprisonment. These stringent measures underscore the importance of adherence to the Act's requirements to ensure the proper administration of the occupational superannuation scheme.