EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 120
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
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 Authorities) Regulations (the Principal Regulations).
Subsection 168(3) of the Act provides that regulations for the purposes of the “approved authority” definition made after 31 December 1978 may be expressed to have taken effect from and including a day not earlier than twelve months before the making of the regulations.
The Principal Regulations are amended as a consequence of the merger of the Australian Institute of Sport and the Australian Sports Commission which is provided for in the Australian Sports Commission Act 1989.
Paragraph 2(a) of the Regulations amends the Principal Regulations to remove the reference to the Australian Institute of Sport. The Institute was specified as an approved authority for the purposes of the Act with effect from 19 February 1981 and ceased to exist as a body corporate on the repeal of the Australian Institute of Sport Act 1986 by the Australian Sports Commission Act 1989.
Paragraph 2(b) of the Regulations amends the Principal Regulations to specify the Australian Sports Commission as an approved authority for the purposes of the Act. The Australian Sports Commission Act 1989 established a body known as the Australian Sports Commission by the merger of the existing Australian Sports Commission and the Australian Institute of Sport with effect from 1 May 1989.
The new Commission has its own staffing powers and is a body of a kind described in the definition of “approved authority” in subsection 3(1) of the Act, Staff of the old Commission and of the Institute have become staff of the Commission. It is appropriate that the Australian Sports Commision be specified as an approved authority to enable its staff to become or remain eligible to contribute under the Act.
By regulation 1 of the Regulations, regulation 2 shall be deemed to have taken effect from and including 1 May 1989.
Overview
The Superannuation (Approved Authorities) Regulations (Amendment) 1990 was enacted to address the legislative gap arising from the merger of the Australian Institute of Sport and the Australian Sports Commission. This amendment to the Superannuation Act 1976 was issued under the authority of the Minister for Finance and was made pursuant to section 168 of the Act, which allows for the creation of regulations necessary or convenient for the Act’s implementation. The regulations were issued by the Parliament to ensure that the staff of the newly formed Australian Sports Commission would be eligible to contribute to the occupational superannuation scheme. This change was necessary because the Australian Institute of Sport ceased to exist as a body corporate following the merger, and the Australian Sports Commission Act 1989 established a new entity with its own staffing powers. The policy objective was to maintain continuity in superannuation eligibility for the staff transitioning from the Institute to the Commission.
Scope and Application
The Superannuation Act 1976 applies to various individuals and entities, primarily those who are employed by the Commonwealth, as well as those employed by an approved authority. The Act specifies that officers and employees under the Public Service Act 1922, other Commonwealth employees, and personnel of approved authorities are included in its scope. Approved authorities are defined in the Act and include authorities specified in regulations or those that were approved authorities prior to 1 July 1976. The regulations allow for the Governor-General to prescribe matters necessary for the Act's implementation, and any such regulations made after 31 December 1978 can be backdated by up to twelve months. The Superannuation (Approved Authorities) Regulations, which detail the approved authorities, have been amended to reflect the merger of the Australian Institute of Sport and the Australian Sports Commission. The Australian Sports Commission, established by the Australian Sports Commission Act 1989, is now specified as an approved authority, thus enabling its staff to remain eligible for superannuation contributions under the Act. These regulations are effective from 1 May 1989.
Key Provisions
The Superannuation (Approved Authorities) Regulations (Amendment) concern the specification of approved authorities under the Superannuation Act 1976. Section 168 of the Act empowers the Governor-General to make regulations necessary for carrying out or giving effect to the Act, including the definition of “approved authority” (sections 3 and 168(3)). Regulation 2(a) removes the Australian Institute of Sport from the list of approved authorities following its merger with the Australian Sports Commission. Regulation 2(b) adds the Australian Sports Commission to the list, effective from 1 May 1989, the date of the merger.
The Act and the Regulations impose obligations on approved authorities to ensure that their employees are eligible to contribute to a superannuation scheme. Approved authorities must comply with the Act and its regulations to maintain their eligibility status. The Regulations mandate the amendment of the list of approved authorities to reflect the merger of the Australian Institute of Sport and the Australian Sports Commission, ensuring that the new entity, the Australian Sports Commission, continues to be recognised as an approved authority under the Act.
Breaches of the Superannuation Act 1976 and the Superannuation (Approved Authorities) Regulations (Amendment) may result in civil or criminal penalties. The Act includes provisions for the recovery of unpaid superannuation contributions and penalties for non-compliance. Under section 151, a person who fails to make a contribution in accordance with the Act may be liable to pay a penalty of up to 100% of the unpaid contributions. Additionally, section 153 provides for civil penalty provisions, where a person who contravenes the Act may be liable for a penalty of up to $20,200 for individuals and $101,000 for corporations. These provisions ensure compliance and the enforcement of superannuation obligations.