Superannuation (Approved Authorities) Regulations (Amendment)

Overview

The Superannuation (Approved Authorities) Regulations (Amendment) Statutory Rules 1987 No 255, issued by the authority of the Minister for Finance, were enacted to address the gap in the definition of "approved authority" under the Superannuation Act 1976 to include Aerospace Technologies of Australia Pty Ltd. This was necessitated by the transfer of functions and staff from the Government Aircraft Factories to the company on 8 October 1987, which was incorporated on 3 December 1986 and wholly owned by the Commonwealth. These employees, previously employed under the Public Service Act 1922 or the Supply and Development Act 1939, were contributors under the Act and needed the option to either remain contributors under the Act or join a superannuation scheme established by Aerospace Technologies of Australia Pty Ltd. The policy objective is to ensure continuity of superannuation arrangements for these employees, facilitating their transition under the Superannuation Act 1976.

Scope and Application

The Superannuation (Approved Authorities) Regulations (Amendment) Statutory Rules 1987 No 255 pertains to the Superannuation Act 1976, which governs the occupational superannuation scheme for persons employed by the Commonwealth and certain other individuals. This legislation defines eligible contributors, including officers and employees under the Public Service Act 1922, other Commonwealth employees, and those employed by approved authorities. Approved authorities are specified in the regulations and include bodies described in the Act or those that were approved authorities prior to 1 July 1976. The amendment specifies Aerospace Technologies of Australia Pty Ltd as an approved authority, allowing employees transferred from the Government Aircraft Factories to maintain their superannuation contributions under the Act. The amendment, effective from 8 October 1987, ensures these employees have the option to remain contributors under the Act or join a scheme established by the new employer.

Key Provisions

The main provisions of the Superannuation (Approved Authorities) Regulations (Amendment) involve the specification of Aerospace Technologies of Australia Pty Ltd as an approved authority under the Superannuation Act 1976. Regulation 2 of these Regulations specifies Aerospace Technologies of Australia Pty Ltd as an approved authority, thereby allowing its employees to be eligible to contribute under the Act. Regulation 1 ensures that this amendment takes effect from and including 8 October 1987, which is the date the functions and staff of the Government Aircraft Factories were transferred to Aerospace Technologies of Australia Pty Ltd. This specification enables employees who were contributors under the Act prior to 8 October 1987 to either remain contributors or join a superannuation scheme established by the new company. The Act imposes obligations on both employers and employees, particularly those who are deemed eligible employees, permanent employees, or temporary employees as defined in section 3(1) of the Act. Employers, including approved authorities such as Aerospace Technologies of Australia Pty Ltd, are required to ensure compliance with the Act by enrolling eligible employees into the superannuation scheme and making the necessary contributions. Employees, on the other hand, must be enrolled and remain enrolled in the scheme if they are eligible and working under an approved authority. The approved authorities must also ensure that their schemes meet the standards and requirements set out in the Superannuation Act 1976, including the provisions for benefit payments and the administration of the scheme. Breaches of the Superannuation Act 1976 can result in both civil and criminal consequences. Employers who fail to comply with their obligations, such as not enrolling eligible employees or not making the required contributions, can face penalties. Under section 168 of the Act, the maximum penalty for failure to comply with these obligations is generally set out in the regulations, which can include fines that are substantial enough to act as a deterrent. Furthermore, if an employer deliberately contravenes the Act, they can be prosecuted criminally, resulting in further penalties. Employees who are eligible for contributions but are not enrolled or who are not receiving the benefits they are entitled to can also seek remedies through the courts, which may include compensation for the unpaid contributions and benefits.