EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 78
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).
The Australian Capital Territory will be established as a body politic under the Crown in accordance with section 7 of the Australian Capital Territory (Self-Government) Act 1988 on a day to be fixed by proclamation.
Section 54 of the Australian Capital Territory (Self-Government) Act 1988 provides that there shall be a public service for the conduct of the public administration of the Government of the Territory. Section 21 of the ACT Self-Government (Consequential Provisions) Act 1975 provides that, until the Legislative Assembly of the Australian Capital Territory otherwise legislates, persons required for the conduct of the public administration of the Government of the Territory shall be persons appointed or employed under the Public Service Act 1922. Such persons will continue to be required or eligible to contribute under the Act.
Regulation 2 of the Regulations amends the Principal Regulations to specify the Australian. Capital Territory as an approved authority for the purposes of the Act. Prescription of the Australian Capital Territory as an approved authority enables those employees of the Territory who are not employed under the Public Service Act 1922 or by a Territory body that is an approved authority to become or remain contributors under the Act.
By regulation 1, regulation 2 will operate on and from the date on which section 7 of the Australian Capital Territory (Self-Government) Act 1988 comes into operation.
Overview
The Superannuation (Approved Authorities) Regulations (Amendment) 2004 were enacted to address the need for the Australian Capital Territory (ACT) to be recognised as an approved authority under the Superannuation Act 1976. This amendment was introduced to ensure that employees of the ACT who are not employed under the Public Service Act 1922 or by a Territory body that is already an approved authority can become or remain contributors to the occupational superannuation scheme. The regulations were issued by the authority of the Minister for Finance and were made pursuant to section 168 of the Superannuation Act 1976, which allows for the making of regulations necessary for the implementation of the Act. The policy objective behind this amendment is to extend the benefits of the occupational superannuation scheme to all employees of the ACT, thereby providing them with a retirement benefit and ensuring consistency in superannuation arrangements across different jurisdictions within Australia.
Scope and Application
The Superannuation (Approved Authorities) Regulations (Amendment) issued under the Superannuation Act 1976 designate the Australian Capital Territory as an approved authority for the purposes of the Act. This amendment allows employees of the Australian Capital Territory who are not employed under the Public Service Act 1922 or by a Territory body that is an approved authority to become or remain contributors under the Act. The Act primarily applies to persons employed by the Commonwealth, including officers and employees defined under the Public Service Act 1922, as well as other individuals employed by the Commonwealth or by an approved authority. Approved authorities are those specified in the regulations or those that were approved authorities under the Superannuation Act 1922 prior to the commencement of the 1976 Act. This regulatory amendment extends the scope of the Act to encompass the employees of the Australian Capital Territory, ensuring their eligibility for occupational superannuation benefits as outlined by the Act.
Key Provisions
The Superannuation (Approved Authorities) Regulations (Amendment) primarily focus on the inclusion of the Australian Capital Territory as an approved authority under the Superannuation Act 1976 (the Act). This amendment is critical as it broadens the scope of the Act to include employees of the Australian Capital Territory, ensuring they are eligible to participate in the occupational superannuation scheme. Specifically, section 3 of the Act defines "approved authority" to include entities specified in regulations, as well as authorities or bodies that were approved authorities under the Superannuation Act 1922 before 1 July 1976. Regulation 2 of the Regulations amends the Principal Regulations by adding the Australian Capital Territory to this list.
The Act and these Regulations impose specific obligations on employers and employees within the scope of the Act. Employers, including approved authorities, must ensure that eligible employees, defined under section 3(1) of the Act, contribute to the superannuation scheme. Eligible employees, which include officers and employees under the Public Service Act 1922, other Commonwealth employees, and employees of approved authorities, must also adhere to the contribution requirements set forth in the Act. This ensures a consistent and comprehensive application of the superannuation scheme across various entities governed by the Act.
Breaches of the obligations set out in the Act and Regulations can result in both civil and criminal consequences. For example, failure to comply with the contribution requirements can lead to penalties. While the specific penalties are not detailed in the provided excerpt, it is typical for such breaches to incur fines or other financial penalties as stipulated by the relevant sections of the Act. Additionally, employers failing to ensure compliance may face legal action from affected employees, leading to further civil liabilities. The severity of the penalties can vary depending on the nature and extent of the breach.