EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO 372
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. Persons eligible to contribute under the Act are referred to in the Act as “eligible employees”.
By virtue of the definitions of “eligible employee”, “permanent employee” and “temporary employee” in sub-section 3(1) of the Act, the term “eligible employee” includes 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.
Sub-section 3(1) 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.
Sub-section 168(3) of the Act 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 1981 the Council of the University of New South Wales resolved to establish and maintain a University College in the Australian Capital Territory in association with the Australian Defence Force Academy. An agreement to this effect between the Commonwealth and the University of New South Wales was signed on 7 May 1981.
Employees of the College who, immediately before becoming so employed were officers of the Australian Public Service, are eligible to contribute for, and receive benefits under, the Act by virtue of paragraph (ea) of the definition of “eligible employee” in sub-section 3(1), and section 14A, of the Act and of the application to them of the provisions of Part IV of the Public Service Act 1922.
Since 1 January 1986 the College has also employed, and is likely to employ in the future, persons who immediately before becoming so employed were not officers of the Australian Public Service. It is intended that those who were, or are, eligible employees immediately before becoming employed by the College be able to remain eligible employees while employed by the College. To achieve this it was necessary to amend that Superannuation (Approved Authorities) Regulations to specify the College as an approved authority for the purposes of the Act with effect from 1 January 1986.
It is also intended that those who were, or are, not eligible employees immediately before becoming employed by the College be excluded from being eligible employees while employed by the College. However, as a consequence of the specification of the College as an approved authority with effect from 1 January 1986, such persons would become eligible employees from the date they commenced employment with the College. Related amendments to the Superannuation (Eligible Employees) Regulations therefore exclude from remaining, or becoming, eligible employees those employees of the College who were not eligible employees immediately before becoming so employed.
The Regulations amend the Superannuation (Approved Authorities) Regulations to specify the University College, being the college established by the University of New South Wales within the Australian Defence Force Academy, as an “approved authority” as provided for by section 3 of the Act and are expressed to have come into effect on 1 January 1986.
Overview
The Superannuation (Approved Authorities) Regulations (Amendment) 1986, enacted by the Parliament of Australia, addresses the need to specify the University College, established by the University of New South Wales within the Australian Defence Force Academy, as an approved authority under the Superannuation Act 1976. This amendment was introduced to ensure that eligible employees, who were previously officers of the Australian Public Service, could continue to participate in the superannuation scheme while employed by the College. Simultaneously, the amendment sought to exclude those who were not eligible employees prior to their employment at the College from becoming eligible employees under the Act. The Regulations were made to give effect to these changes, with the amendments taking place from 1 January 1986, as mandated by the Act. The policy objective was to maintain the integrity of the superannuation scheme by clearly defining the scope of approved authorities and their associated eligibility criteria for superannuation contributions.
Scope and Application
The Superannuation (Approved Authorities) Regulations (Amendment) under the Superannuation Act 1976 apply to the University College established by the University of New South Wales within the Australian Defence Force Academy, which was set up in association with the Australian Defence Force Academy and commenced employment of personnel on 1 January 1986. These Regulations are designed to maintain the eligibility of certain employees to contribute to and receive benefits under the Superannuation Act by specifying the University College as an "approved authority". This amendment ensures that employees who were eligible employees prior to their employment at the College remain eligible, while excluding those who were not eligible prior to their employment from being eligible while employed at the College. The Regulations were made under the authority provided by section 168 of the Act, which allows the Governor-General to make regulations necessary to carry out or give effect to the Act. These Regulations have a specific commencement date of 1 January 1986, ensuring that they apply to the College from its inception of employing staff.
Key Provisions
The Superannuation (Approved Authorities) Regulations (Amendment) 1985 amends the Superannuation (Approved Authorities) Regulations to include the University College established by the University of New South Wales within the Australian Defence Force Academy as an approved authority under section 3 of the Superannuation Act 1976. This amendment came into effect on 1 January 1986. Eligible employees, including officers of the Australian Public Service, who were employed by the College immediately before it became an approved authority, can continue to contribute to and receive benefits under the Act. However, individuals who were not eligible employees before being employed by the College are excluded from eligibility while employed by the College. This amendment ensures that the superannuation benefits for employees of the College align with their previous employment status.
Under the Superannuation Act 1976, the Minister for Finance has the authority to make regulations that are necessary or convenient to implement the Act. Section 168 of the Act allows the Governor-General to make regulations, provided they do not conflict with the Act. These regulations can cover any matters that the Act requires or permits to be prescribed. The Superannuation (Approved Authorities) Regulations specify the entities that qualify as approved authorities under the Act. The University College's inclusion in these regulations, effective from 1 January 1986, ensures that it is recognised as an approved authority and that its employees' eligibility for superannuation benefits is governed by the Act.
The Superannuation (Approved Authorities) Regulations (Amendment) 1985 imposes specific obligations on the University College and its employees. The College is required to ensure that its employees who were eligible under the Act before joining the College remain eligible, and those who were not eligible continue to be ineligible. The College must also comply with the related amendments to the Superannuation (Eligible Employees) Regulations that exclude non-eligible employees from remaining or becoming eligible while employed by the College. These obligations ensure that the College adheres to the regulatory framework governing superannuation eligibility.
Any failure to comply with the regulations specified in the Superannuation (Approved Authorities) Regulations (Amendment) 1985 could result in legal consequences. While specific penalties are not mentioned in the explanatory statement, breaches of superannuation regulations typically result in financial penalties for the non-compliant entity. The penalties can vary, but they often include fines and potential legal actions. The precise penalties would be determined based on the nature and severity of the breach, in accordance with the relevant legislation and administrative guidelines.