EXPLANATORY STATEMENT
Statutory Rules 1989 No 189
Issued by the authority of the Minister for Finance
Subject - Superannuation Benefit (Interim Arrangement) Act 1988
Superannuation Benefit (Interim Arrangement) (Qualified Employees) Regulations (Amendment)
Section 10 of the Superannuation Benefit (Interim Arrangement) Act 1988 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing 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 interim superannuation benefits for qualified employees of the Commonwealth and Commonwealth authorities that are approved authorities under the Superannuation Act 1976. The superannuation benefits to be provided are those that were agreed to by the Government following the Conciliation and Arbitration Commission’s June 1986 decision that it would ratify consent superannuation agreements costing no more than 3 per cent of ordinary time earnings (a 3 per cent benefit). The Act provides interim benefits until longer term arrangements can be provided either by individual employers or through amendments to the Superannuation Act 1976.
The definition of “qualified employee” in subsection 3(1) of the Act specifies which employees are covered by, or excluded from, the interim arrangement.
Two categories of employees of approved authorities that were not included as qualified employees are:
(a) employees that are covered by employer-sponsored superannuation arrangements other than the Superannuation Act 1976; and
(b) employees that have no employer-sponsored superannuation but their employer has superannuation arrangements for some of its employees, other than under the Superannuation Act 1976.
It was expected that some persons within these two categories of employees would have a 3 per cent benefit provided under alternative arrangements. Nevertheless, it was recognised that some approved authorities might wish to cover either or both of these categories under the interim arrangement. Following advice from certain authorities the Superannuation Benefit (Interim
Arrangement) (Qualified Employees) Regulations were made with effect from 1 January 1988 to cover certain employees.
The principal regulations included a reference in paragraph (k) of regulation 3 to the “Australian Institute of Sport”. As that institution has now become the “Australian Sports Commission”, the first amendment will provide for the alteration of title.
The second amendment will provide for the repeal of regulation 3(n) of the principal regulation because the Australian National Railways Commission is establishing its own superannuation scheme to provide all employees not covered by the Commonwealth Superannuation Scheme (CSS), identical productivity superannuation benefits to that provided in the Act, with a retrospective date of effect of 1 January 1988. The further amendment is required to make allowance for employees who resign prior to the commencement of the new scheme, and who will need to have their entitlements paid under the existing arrangements.
On 1 July 1989 the Australian Industry Development Corporation is to become the AIDC Ltd. At that time some staff members will retain their membership of the CSS and the third amendment will provide these people with continuing cover to a productivity benefit under the interim arrangements.
The proposed Superannuation Benefit (Interim Arrangement) (Qualified Employees) Regulations (Amendment) will give effect to those intentions, and come into operation from 1 January 1988.
Australian Capital Territory Supreme Court Act 1933
The purpose of this amendment is to provide for the constitution of the Supreme Court in respect of proceedings arising under the Australian Capital Territory Administrative Appeals Tribunal Act 1989 (the A.C.T. Act).
Section 8AABA provides that the Supreme Court shall be constituted in a particular manner when exercising jurisdiction conferred under subsections 46(4) and 48(2) of the A.C.T. Act.
In an appeal under subsection 46(4) of the A.C.T. Act, the Supreme Court may be constituted by 3 Judges. However, where the decision appealed from was made by a Tribunal where one member was a presidential member or a Judge, or where, after consulting with the President of the Tribunal the Chief Justice of the Supreme Court considers it appropriate, the Supreme Court shall be constituted by 3 Judges.
In exercising the jurisdiction of the Supreme Court under section 48(2) of the A.C.T. Act, where, after consulting with the President of the Tribunal the Chief Justice of the Supreme Court considers it appropriate, the Supreme Court shall be constituted by 3 Judges.
Overview
The Superannuation Benefit (Interim Arrangement) Act 1988 was enacted to provide interim superannuation benefits to qualified employees of the Commonwealth and Commonwealth authorities approved under the Superannuation Act 1976. This Act was introduced to address the gap in superannuation benefits that followed the Conciliation and Arbitration Commission’s decision in June 1986, which approved a 3 per cent benefit. The Act offers these interim benefits until more permanent arrangements are established, either by individual employers or through amendments to the Superannuation Act 1976. The policy objective is to ensure that eligible employees receive necessary superannuation benefits in the interim period. The amendment to the Superannuation Benefit (Interim Arrangement) (Qualified Employees) Regulations was issued under the authority of the Minister for Finance to adjust the definitions and scope of qualified employees, ensuring that certain categories of employees, such as those covered by alternative superannuation arrangements or those within specific institutions, are appropriately included or excluded from the interim arrangements.
Scope and Application
The Superannuation Benefit (Interim Arrangement) Act 1988 applies to qualified employees of the Commonwealth and Commonwealth authorities that are approved authorities under the Superannuation Act 1976. These interim benefits are intended to provide a temporary solution until longer-term arrangements can be established by individual employers or through amendments to the Superannuation Act 1976. The Act specifically excludes employees that are covered by employer-sponsored superannuation arrangements other than the Superannuation Act 1976 and those with no employer-sponsored superannuation but whose employer has such arrangements for some of its employees, unless these arrangements are under the Superannuation Act 1976. The Act is amended through subordinate instruments, such as the Superannuation Benefit (Interim Arrangement) (Qualified Employees) Regulations (Amendment), which were made to accommodate specific changes in institutional names and the establishment of new superannuation schemes. These amendments include alterations to the title of the Australian Institute of Sport to the Australian Sports Commission, the repeal of certain regulations concerning the Australian National Railways Commission, and provisions for the Australian Industry Development Corporation staff to retain their membership of the Commonwealth Superannuation Scheme upon the corporation's transition to AIDC Ltd.
Key Provisions
The Superannuation Benefit (Interim Arrangement) (Qualified Employees) Regulations (Amendment) addresses the interim superannuation benefits for certain qualified employees as outlined in section 10 of the Superannuation Benefit (Interim Arrangement) Act 1988 (the Act). The main operative sections of this legislation, specifically sections 3(k), 3(n), and 3(p), have been amended to reflect changes in institutional titles and operational structures. Section 3(k) changes the reference from the "Australian Institute of Sport" to the "Australian Sports Commission", ensuring that the interim arrangement remains relevant and accurately referenced. Section 3(n) has been repealed to accommodate the Australian National Railways Commission’s establishment of its own superannuation scheme, which provides identical productivity superannuation benefits. This repeal also considers employees who resign before the new scheme takes effect, ensuring they still receive their entitlements under the existing arrangements. Finally, section 3(p) makes provisions for the Australian Industry Development Corporation staff who retain their membership of the Commonwealth Superannuation Scheme (CSS) and need continued coverage under the interim arrangement after the corporation’s transition to AIDC Ltd.
The amendments impose specific obligations on the approved authorities and employees. Approved authorities must ensure that the interim superannuation benefits are correctly applied to the qualified employees as defined in the Act, taking into account the amendments made in the Regulations. Employees covered by these arrangements must be aware of their entitlements and the conditions under which they can claim benefits, including any changes brought about by the amendments. The authorities must also facilitate the transition of employees who need to be covered under the new superannuation schemes while ensuring that those who resign before the new scheme's commencement still receive their benefits under the interim arrangement.
Failure to comply with the provisions outlined in the Superannuation Benefit (Interim Arrangement) (Qualified Employees) Regulations (Amendment) could result in legal consequences. The Act does not explicitly state penalties for non-compliance; however, the serious nature of superannuation benefits suggests that breaches may lead to legal actions. Approved authorities could face litigation from employees who do not receive their entitled benefits, and this could potentially incur significant financial and reputational costs. The regulations are designed to ensure that employees receive their agreed-upon benefits without interruption, and any failure to adhere to these provisions could result in civil consequences for the authorities involved.