EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO 329
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 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.
Subregulation 3(1) of the Regulations amends the Principal Regulations to specify the Horticultural Research and Development Corporation as an approved authority for the purposes of the Act. The Corporation was established by the Horticultural Research and Development Corporation Act 1987 with effect from 1 August 1988. By subregulation 1(1) of the Regulations, subregulation 3(1) is deemed to have taken effect from and including 1 August 1988.
Paragraph 3(2)(a) of the Regulations amends the Principal Regulations to remove the references to the University College of the Northern Territory and the Darwin Institute of Technology. The University College will cease to exist with effect from 1 January 1989 as a consequence of the repeal of the University College of the Northern Territory Act 1985 of the Northern Territory by the Northern Territory University Act 1988 of the Northern Territory. The Institute of Technology will also cease to exist with effect from 1 January 1989 as a consequence of the repeal of the Advanced Education and Darwin Institute of Technology Act 1985 of the Northern Territory by the Northern Territory University Act 1988 of the Northern Territory. By subregulation 1(2) of the Regulations, paragraph 3(2) (a) commences on 1 January 1989.
Paragraph 3(2) (b) of the Regulations amends the Principal Regulations to specify the Northern Territory University as an approved authority for the purposes of the Act. The University will be established under the Northern Territory University Act 1988 of the Northern Territory with effect from 1 January 1989. The University replaces the University College of the Northern Territory and the Darwin Institute of Technology which are approved authorities for the purposes of the Act. Certain staff of the University College and the Institute of Technology will become employees of the University on or after 1 January 1989. By subregulation 1(2) of the Regulations, paragraph 3(2) (b) commences on 1 January 1989.
The Northern Territory University and the Horticultural Research and Development Corporation are bodies of a kind described in the definition of “approved authority” in subsection 3(1) of the Act. The Regulations enable staff of these bodies to remain, or become, eligible employees for the purposes of the Act.
Overview
The Superannuation (Approved Authorities) Regulations (Amendment) 1988, issued under the authority of the Minister for Finance, amend the existing regulations to address changes in approved authorities as mandated by the Superannuation Act 1976. The Act, which governs occupational superannuation schemes for Commonwealth employees and certain other persons, includes a provision allowing the Governor-General to make regulations necessary for its implementation. These regulations specify matters required or permitted by the Act, including defining "approved authority" as an entity eligible for the purposes of the Act. The 1988 amendments adjust the list of approved authorities to reflect legislative changes, such as the establishment of the Horticultural Research and Development Corporation and the Northern Territory University, and the dissolution of the University College of the Northern Territory and the Darwin Institute of Technology. These adjustments ensure that the eligibility of employees under the superannuation scheme remains consistent with the current legislative framework.
Scope and Application
The Superannuation (Approved Authorities) Regulations (Amendment) concerns amendments to the existing regulations under the Superannuation Act 1976, which governs occupational superannuation schemes for Commonwealth employees and other eligible persons. These regulations are made under section 168 of the Act, which allows the Governor-General to prescribe necessary matters not inconsistent with the Act. Eligible employees under this Act include Commonwealth officers and employees under the Public Service Act 1922, other Commonwealth employees, and those employed by approved authorities. Approved authorities are defined as entities specified in the regulations or those that were approved authorities under the Superannuation Act 1922 prior to 1 July 1976. The amendments specify the Horticultural Research and Development Corporation as an approved authority effective from 1 August 1988, and the Northern Territory University as an approved authority effective from 1 January 1989, while removing references to the University College of the Northern Territory and the Darwin Institute of Technology, which will cease to exist on the same date. These changes ensure that the staff of these entities remain eligible for superannuation benefits under the Act.
Key Provisions
The Superannuation (Approved Authorities) Regulations (Amendment) primarily amend the list of approved authorities under the Superannuation Act 1976. Specifically, subregulation 3(1) designates the Horticultural Research and Development Corporation as an approved authority, effective from 1 August 1988, as per the Horticultural Research and Development Corporation Act 1987. Meanwhile, subregulation 3(2) removes the University College of the Northern Territory and the Darwin Institute of Technology from the list of approved authorities, effective from 1 January 1989, as these institutions are being replaced by the Northern Territory University. Subregulation 3(2) also adds the Northern Territory University as an approved authority, effective from the same date, in accordance with the Northern Territory University Act 1988.
The Superannuation (Approved Authorities) Regulations (Amendment) impose specific obligations on the parties affected by these changes. Firstly, the Horticultural Research and Development Corporation is now required to comply with the provisions of the Superannuation Act 1976, including the obligation to contribute to a superannuation scheme for its eligible employees. Secondly, the University College of the Northern Territory and the Darwin Institute of Technology must cease to be approved authorities under the Act and must ensure the transition of their staff to the Northern Territory University. The Northern Territory University, in turn, must now meet the requirements of the Act and ensure that its staff are eligible employees and that appropriate contributions are made on their behalf.
Failure to comply with the provisions of the Superannuation Act 1976 and the Superannuation (Approved Authorities) Regulations (Amendment) can lead to various civil and criminal consequences. Firstly, employers who fail to make the required superannuation contributions can be liable for the unpaid contributions, plus interest and penalties. Under the Act, the penalties for non-compliance can include fines up to $1,650 for individual offences and up to $82,500 for continuing offences. Additionally, officers of a corporation who are responsible for the non-compliance can face personal criminal liability, potentially resulting in fines up to $55,500 for individual offences and up to $277,500 for continuing offences. These penalties underscore the importance of adherence to the superannuation obligations set forth in the Act and the Regulations.