EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 109
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).
Regulation 2 of the Regulations amends the Principal Regulations to specify Alice Springs College of Technical and Further Education, Batchelor College, Katherine Rural College and Northern Territory Open College of Technical and Further Education as approved authorities for the purposes of the Act. The Education Amendment Act 1989 of the Northern Territory of Australia amends the Education Act 1989 of the Northern Territory to establish the above institutions as colleges for the purposes of that Act with effect from 1 July 1989.
These colleges will have their own staffing powers. Staff of the colleges are currently employees of the Northern Territory of Australia which is an approved authority for the purposes of the Act. It is appropriate that the colleges be specified as approved authorities so that those staff employed by the Northern Territory of Australia who are eligible employees and are subsequently employed by one of the colleges will be eligible to contribute under the Act. The colleges will be bodies of a kind described in the definition of “approved authority” in subsection 3(1) of the Act.
By Regulation 1 of the Regulations, Regulation 2 will commence on 1 July 1989.
Overview
The Superannuation (Approved Authorities) Regulations (Amendment) 1989, issued under the authority of the Minister for Finance, was enacted to amend the existing Superannuation Act 1976. This amendment was introduced to address the need for recognising new educational institutions as approved authorities under the Act, thereby ensuring that employees of these institutions who are eligible to contribute to the superannuation scheme are appropriately covered. The policy objective of the Superannuation Act 1976 is to provide a superannuation scheme for employees of the Commonwealth and certain other approved authorities, including educational institutions. The amendment specifically identifies Alice Springs College of Technical and Further Education, Batchelor College, Katherine Rural College, and Northern Territory Open College of Technical and Further Education as approved authorities, aligning with their establishment as colleges under the Education Amendment Act 1989 of the Northern Territory. This ensures that staff employed by these institutions, previously covered under the Northern Territory of Australia, continue to be eligible for superannuation contributions under the Act.
Scope and Application
The Superannuation Act 1976 governs the establishment and operation of occupational superannuation schemes for persons employed by the Commonwealth and other specified entities. The Act applies to eligible employees and employees of approved authorities, which include officers and employees of the Commonwealth, and bodies specified in regulations. The Act's reach extends to approved authorities, which encompass authorities or bodies designated in the regulations, as well as those that were approved authorities under the Superannuation Act 1922 prior to 1 July 1976. The Superannuation (Approved Authorities) Regulations provide for the specification of additional approved authorities, with Regulation 2 amending the Principal Regulations to include Alice Springs College of Technical and Further Education, Batchelor College, Katherine Rural College, and Northern Territory Open College of Technical and Further Education, effective from 1 July 1989. This amendment ensures that staff employed by these institutions, who are previously employed by the Northern Territory of Australia, remain eligible to contribute under the Act. The regulations provide the necessary framework for the Act's application and ensure consistency in the eligibility of employees across different authorities.
Key Provisions
The Superannuation (Approved Authorities) Regulations (Amendment) 1989, issued under the authority of the Minister for Finance, make amendments to the existing Superannuation (Approved Authorities) Regulations by specifying four additional institutions as approved authorities under the Superannuation Act 1976. Regulation 2 specifically names Alice Springs College of Technical and Further Education, Batchelor College, Katherine Rural College, and Northern Territory Open College of Technical and Further Education as approved authorities for the purposes of the Act. This amendment ensures that staff members who are eligible employees and are subsequently employed by one of these colleges will be eligible to contribute to a superannuation scheme under the Act. This change is aligned with the Education Amendment Act 1989 of the Northern Territory of Australia, which establishes these institutions as colleges with effect from 1 July 1989.
The Act imposes specific obligations on the parties and entities it governs, particularly those designated as approved authorities. Under section 3, an approved authority is defined as an entity specified in the regulations or one that was an approved authority under the Superannuation Act 1922 before 1 July 1976. By being listed in the amended regulations, the four colleges become approved authorities, thereby subjecting them to the provisions of the Superannuation Act 1976. As approved authorities, these institutions are responsible for ensuring that their staff who qualify as eligible employees contribute to the occupational superannuation scheme as stipulated by the Act. This includes adherence to the regulations regarding the contributions that must be made on behalf of eligible employees.
Failure to comply with the requirements of the Superannuation Act 1976 and the related regulations can lead to both civil and criminal consequences. Section 168 of the Act allows the Governor-General to make regulations necessary for carrying out or giving effect to the Act, which includes prescribing penalties for non-compliance. While the specific penalties are not detailed in the explanatory statement, it is common for breaches of superannuation laws to result in significant fines, both for the individuals and the entities involved. Additionally, in cases of deliberate or reckless non-compliance, criminal charges may be pursued, leading to further penalties such as imprisonment. The precise penalties would be in accordance with the relevant sections of the Act and any subsidiary legislation.