EXPLANATORY STATEMENT
STATUTORY RULES 1983 NO 342
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 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.
The Fire Service Act 1983 of the Northern Territory (the Territory Act) provides for, inter alia, the establishment of a body known as the Fire Service of the Northern Territory. The Territory Act came into operation on 28 October 1983.
Section 18 of the Territory Act enables persons to be appointed as members of the Fire Service. Members of the Fire Service were members of the Northern Territory Public Service prior to the enactment of the Territory Act and were entitled to contribute to, and receive benefits under, the Act because the body politic named the Northern Territory of Australia is itself an “approved authority”. In order for employees of the Fire Service of the Northern Territory to continue to be contributors under the Act, it is necessary for the Service to be specified as an “approved authority”. The Service 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 Fire Service of the Northern Territory as an “approved authority” as provided for by section 3 of the Act.
The amending regulations are expressed to come into effect on 28 October 1983, the date of commencement of the Fire Service Act 1983 of the Northern Territory.
Overview
The Superannuation Act 1976 was enacted to establish a framework for occupational superannuation schemes for Commonwealth employees and certain other individuals. This legislation aimed to provide a structured means for the accumulation of retirement benefits for eligible employees, thereby addressing the need for financial security in retirement. The Superannuation (Approved Authorities) Regulations (Amendment) 1983 were introduced to address a specific gap by ensuring that the Fire Service of the Northern Territory could be designated as an "approved authority" under the Act. This was necessary to maintain continuity in superannuation contributions for members of the Fire Service, who were previously covered under the Northern Territory Public Service. The regulations were issued under the authority of the Minister for Finance and are designed to align with the policy objective of ensuring consistent and comprehensive superannuation coverage for public sector employees in the Northern Territory.
Scope and Application
The Superannuation (Approved Authorities) Regulations (Amendment) 1983, made under the authority of the Minister for Finance, amend the existing regulations to specify the Fire Service of the Northern Territory as an "approved authority" under the Superannuation Act 1976. This Act pertains to occupational superannuation schemes for persons employed by the Commonwealth and other specified entities. The term "approved authority" refers to authorities or bodies that are either specified in the regulations or were deemed as such under the Superannuation Act 1922 prior to its repeal. The regulations, which can be made retroactively effective, are necessary to ensure continuity in superannuation benefits for employees transitioning from the Northern Territory Public Service to the newly established Fire Service of the Northern Territory under the Fire Service Act 1983. The amendment specifies the Fire Service of the Northern Territory as an approved authority, thus allowing its employees to contribute to and benefit from the superannuation scheme as outlined under the Act. The regulations are set to take effect on 28 October 1983, aligning with the commencement date of the Fire Service Act 1983 of the Northern Territory.
Key Provisions
The Superannuation (Approved Authorities) Regulations (Amendment) under the Superannuation Act 1976 (section 168) amend the regulations to specify the Fire Service of the Northern Territory as an “approved authority”. This amendment allows employees of the Fire Service to be eligible for superannuation benefits under the Act, as the Fire Service Act 1983 of the Northern Territory (section 18) provides for the establishment of the Fire Service and its members were previously entitled to superannuation benefits as members of the Northern Territory Public Service. The amendment comes into effect on 28 October 1983, aligning with the commencement date of the Fire Service Act 1983 of the Northern Territory.
The Superannuation Act 1976 and the Superannuation (Approved Authorities) Regulations impose obligations on employers and employees to ensure that superannuation contributions are made for eligible employees. Employers are required to make contributions to an approved superannuation fund on behalf of eligible employees, while employees may be required to make additional voluntary contributions. The Act and Regulations also require employers to notify the Commissioner of Taxation of superannuation contributions made and to provide employees with statements of their superannuation account balances. The approved authorities, including the Fire Service of the Northern Territory, must comply with these obligations to ensure that eligible employees can access superannuation benefits.
Breach of the obligations imposed by the Superannuation Act 1976 and the Superannuation (Approved Authorities) Regulations can result in civil and criminal penalties. Employers who fail to make superannuation contributions for eligible employees may be liable to pay a penalty of up to 100% of the amount of the unpaid contributions, plus interest. In addition, employers who engage in superannuation evasion, which includes knowingly failing to make contributions or making incorrect contributions, may be liable to criminal penalties, including fines of up to $26,000 for individuals and $130,000 for corporations, and imprisonment for up to five years. The Act and Regulations also provide for the recovery of unpaid superannuation contributions and penalties through the Federal Court.