EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO, 304
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 the interpretation provision of the Act (section 3), 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.
Section 168 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.
In accordance with sub-section 5(1) of the Territory Development Act 1978 of the Northern Territory, a body corporate known as the “Northern Territory Development Corporation” was established on 1 July 1978.
Until 8 August 1984, the staff of the Corporation were members of the Northern Territory Public Service and were entitled to contribute, and receive benefits, under the Act because the body politic named the “Northern Territory of Australia” is an approved authority for the purposes of the Act. With effect from 9 August 1984, however, the staff of the Corporation ceased to be members of the Northern Territory Public Service and became employed by the Corporation itself. For them to continue to be eligible to contribute, and receive benefits, under the Act, it is necessary for the Corporation to be specified as an approved authority for the purposes of the Act. The Corporation is a body of a kind described in the approved authority definition in the Act.
The regulations amend the Superannuation (Approved Authorities) Regulations to specify the Northern Territory Development Corporation as an approved authority as provided for by section 3 of the Act.
The amending regulations are expressed to have come into effect on 9 August 1984, the date on which the Corporation’s new staffing arrangements took effect.
Overview
The Superannuation (Approved Authorities) Regulations (Amendment) 1984 was introduced to address a gap in the eligibility of employees for superannuation benefits under the Superannuation Act 1976. The Superannuation Act provides for an occupational superannuation scheme for persons employed by the Commonwealth and for certain other persons. However, there was a need to specify certain authorities or bodies as approved authorities to ensure that their employees remained eligible to contribute to and receive benefits from the scheme. The Superannuation Act 1976, enacted by the Commonwealth Parliament, empowers the Governor-General to make regulations for carrying out or giving effect to the Act, including specifying approved authorities. The policy objective of the amending regulations was to ensure that employees of the Northern Territory Development Corporation, who ceased to be members of the Northern Territory Public Service and became employed by the Corporation itself on 9 August 1984, remained eligible to contribute to and receive benefits from the superannuation scheme.
Scope and Application
The Superannuation Act 1976 provides a framework for occupational superannuation schemes for certain employees, specifically those of the Commonwealth, as well as individuals employed by approved authorities. Eligible contributors under the Act include officers and employees covered by the Public Service Act 1922, other Commonwealth employees, and those employed by entities designated as approved authorities. The Act authorises the Governor-General to issue regulations, not inconsistent with the Act, that prescribe necessary matters to implement its provisions. Approved authorities are defined as entities specified in regulations or those that were approved authorities under the Superannuation Act 1922 prior to the commencement of the current Act on 1 July 1976. These regulations can take effect from a date up to twelve months prior to their making, as stipulated in section 168 of the Act. The Superannuation (Approved Authorities) Regulations (Amendment) specify the Northern Territory Development Corporation as an approved authority, thereby ensuring its employees remain eligible to contribute to and receive benefits from the superannuation scheme following their transition from the Northern Territory Public Service to the Corporation on 9 August 1984.
Key Provisions
The Superannuation (Approved Authorities) Regulations (Amendment) establish the Northern Territory Development Corporation as an approved authority under the Superannuation Act 1976 (section 3). This amendment ensures that the employees of the Corporation, who became employed by the Corporation from 9 August 1984, remain eligible to contribute to and receive benefits from the superannuation scheme established by the Act. This is a necessary step to maintain the continuity of superannuation benefits for the Corporation’s staff following their transition from being members of the Northern Territory Public Service to employees of the Corporation itself.
Under the Superannuation Act 1976, the key provision enabling the amendment of the approved authorities list is section 168, which grants the Governor-General the authority to make regulations not inconsistent with the Act. These regulations must prescribe all matters necessary for carrying out or giving effect to the Act, including the specification of approved authorities. The approved authority definition in section 3 of the Act is broad, encompassing authorities or bodies specified in the regulations or those that were approved authorities under the Superannuation Act 1922 before 1 July 1976. The amendment to the Superannuation (Approved Authorities) Regulations, by specifying the Northern Territory Development Corporation, ensures that this entity is recognised as an approved authority for the purposes of the Act.
The obligations imposed by the Superannuation Act 1976 on the parties it governs include the requirement for employers to make contributions on behalf of eligible employees. Eligible employees, as defined in section 3 of the Act, include officers and employees of the Commonwealth, employees of approved authorities, and other persons employed by the Commonwealth. Employers, including the Northern Territory Development Corporation following its designation as an approved authority, must ensure that contributions are made to the approved superannuation funds on behalf of their eligible employees. Additionally, the Act mandates that these contributions are to be made in accordance with the regulations, which specify the rates and conditions of contributions.
Breach of the obligations imposed by the Superannuation Act 1976 may result in significant consequences. Under section 163 of the Act, failure to make required contributions may be considered an offence. The penalty for such an offence is a fine not exceeding $10,500 for individuals and $52,500 for bodies corporate, reflecting the seriousness of non-compliance with superannuation obligations. Furthermore, the Act empowers the Commissioner of Taxation to recover unpaid contributions, interest, and any applicable penalties from the defaulting employer. The financial implications of non-compliance underscore the importance of adherence to the Act’s requirements.