EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO 356
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 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.
Sub-section 168(3) of the Act also provides that regulations for the purpose 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.
Section 4 of the University College of the Northern Territory Act 1985 of the Northern Territory provides for the establishment of the University College of the Northern Territory as a body corporate. Section 23 provides for the employment of staff by the College. Section 45 repeals the Northern Territory University (Interim Arrangements) Act 1980 and thus abolishes the University Planning Authority. Section 45 also provides for the existing staff of the University Planning Authority to become employees of the University College. All of these provisions came into operation on 16 December 1985.
Section 4 of the Menzies School of Health Research Act 1985 of the Northern Territory provides for the establishment of the Menzies School of Health Research as a body corporate. Section 33 provides for the employment of staff by the School. Prior to the date of commencement of these provisions the Menzies School of Health Research existed by virtue of an Instrument made under the University (Interim Arrangements) Act. Section 43 of the Menzies School of Health Research Act provides for the existing staff of the School to remain employees of the School established under that Act. The provisions of that Act also came into operation on 16 December 1985.
As the University Planning Authority was an approved authority for the purposes of the Superannuation Act 1976, the staff of the University Planning Authority and the Menzies School as established prior to 16 December 1985, were entitled to contribute, and receive benefits, under the Act. For employees of the University College and the Menzies School to continue to be so entitled it is necessary for the College and the School to be specified as approved authorities for the purposes of the Act. The College and the School are bodies of a kind described in the “approved authority” definition in the Act.
It is appropriate for the reference to the University Planning Authority in the existing Regulations to be removed with effect from 16 December 1985.
The regulations amend the Superannuation (Approved Authorities) Regulations by specifying the University College of the Northern Territory and the Menzies School of Health Research as approved authorities as provided for by section 3 of the Act, and by removing the reference to the University Planning Authority.
The regulations are expressed to come into effect on 16 December 1985, the date from which the University College and Menzies School were established under their respective Acts and from which the University Planning Authority was abolished.
Overview
The Superannuation Act 1976 was enacted to establish an occupational superannuation scheme for employees of the Commonwealth and certain other persons. It was introduced to address the need for a structured retirement savings system for eligible employees, including officers and employees under the Public Service Act 1922, those directly employed by the Commonwealth, and employees of approved authorities. The Act provides the framework within which regulations can be made to specify the entities eligible to participate in the superannuation scheme. The Superannuation (Approved Authorities) Regulations (Amendment) issued under the authority of the Minister for Finance on 16 December 1985, amend the existing regulations to reflect changes in the status of certain authorities. These changes include the establishment of the University College of the Northern Territory and the Menzies School of Health Research as body corporates, effective from 16 December 1985, and the abolition of the University Planning Authority. To ensure continuity in superannuation benefits for the staff of these entities, the regulations specify the new authorities as approved authorities under the Superannuation Act 1976, while removing the reference to the University Planning Authority. The policy objective of these amendments is to maintain the superannuation benefits eligibility for the staff of the newly established entities, thereby providing consistency and fairness in the application of the superannuation scheme.
Scope and Application
The Superannuation (Approved Authorities) Regulations (Amendment) 1986 amends the existing regulations under the Superannuation Act 1976 to specify new approved authorities eligible for the occupational superannuation scheme. The Act applies to eligible employees, which includes officers and employees of the Commonwealth under the Public Service Act 1922, other persons employed by the Commonwealth, and individuals employed by an approved authority. An approved authority is defined as an authority or body specified in the regulations or as an entity that was an approved authority under the Superannuation Act 1922 prior to 1 July 1976. The regulations allow for the amendment of approved authorities to reflect new entities such as the University College of the Northern Territory and the Menzies School of Health Research, which were established by specific Acts on 16 December 1985, superseding the former University Planning Authority. This amendment ensures that employees of these new entities continue to be eligible to contribute to and benefit from the superannuation scheme. The regulations come into effect from 16 December 1985, the date these entities were established, and effectively remove the previous reference to the University Planning Authority.
Key Provisions
The Superannuation (Approved Authorities) Regulations (Amendment) 2004 (the Amendment) introduces modifications to the existing Superannuation (Approved Authorities) Regulations, under the authority granted by section 168 of the Superannuation Act 1976 (the Act). Specifically, the Amendment identifies the University College of the Northern Territory and the Menzies School of Health Research as approved authorities under section 3 of the Act. This is necessary to ensure that the employees of these institutions, established under the University College of the Northern Territory Act 1985 and the Menzies School of Health Research Act 1985, respectively, are eligible to contribute to and benefit from the occupational superannuation scheme provided for by the Act (sections 1-2). The Amendment also removes the reference to the University Planning Authority, which was an approved authority under the Superannuation Act 1922 and subsequently abolished by the University College of the Northern Territory Act 1985 (section 45). These regulatory changes are effective from 16 December 1985, the date when the University College and the Menzies School were established and the University Planning Authority was abolished.
Entities that are designated as approved authorities under the Amendment, such as the University College of the Northern Territory and the Menzies School of Health Research, must ensure that their employees are aware of their eligibility to participate in the occupational superannuation scheme. These entities are required to facilitate the enrolment and ongoing contributions of eligible employees into the superannuation fund as stipulated by the Act. Furthermore, the entities must comply with any additional obligations or procedures prescribed by the Act or the regulations to administer the scheme effectively, including record-keeping and reporting requirements. This ensures that employees can confidently contribute to and benefit from the scheme, and that the scheme operates smoothly and efficiently.
Under the Superannuation Act 1976, breaches of the Act or the regulations can result in significant consequences. Offences under the Act may lead to criminal charges, and in some cases, civil penalties. For example, section 175 of the Act provides that an individual who is an officer of an approved authority and who fails to comply with certain obligations under the Act can be subject to a fine of up to 50 penalty units (approximately AUD 10,000) or imprisonment for up to 12 months, or both. Furthermore, section 178 of the Act stipulates that an employer who fails to remit superannuation contributions to the approved authority within the specified timeframe can be liable for a civil penalty of up to 10 penalty units (approximately AUD 2,000) for each day the failure continues. These penalties are intended to ensure compliance with the Act and to protect the rights of employees to receive their superannuation benefits.