EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Administration
Superannuation Benefits (Supervisory Mechanisms) Act 1990
Determination under paragraph 6(1)(a)
Superannuation Benefits (Prescribed Requirements) Determination 2007 (No. 1)
The Superannuation Benefits (Supervisory Mechanisms) Act 1990 (the Act) establishes a supervisory framework for the provision of superannuation benefits to Australian Government employees.
Section 5 of the Act generally restricts the provision of superannuation benefits in respect of persons employed or appointed:
- under a relevant law (a relevant law is a Commonwealth law subject to those exceptions specified in the Act); or
- by a relevant body (in most cases a body in which the Commonwealth has a controlling interest).
Section 5 allows the provision of superannuation benefits in respect of persons (other than overseas employees) employed or appointed in the above circumstances where:
- a relevant law expressly provides for the provision of those benefits; or
- a relevant law allows the provision of those benefits and the benefits satisfy the relevant prescribed requirements for provision of superannuation benefits under a superannuation arrangement; or
- a relevant body has the power to provide those benefits and the benefits satisfy the relevant prescribed requirements for provision of superannuation benefits under a superannuation arrangement.
Section 6 of the Act provides that the prescribed requirements for the provision of superannuation benefits under a superannuation arrangement for the purposes of section 5 include requirements determined by the Minister.
The Superannuation Benefits (Prescribed Requirements) Determination 2007 (No. 1) (the Determination) applies to an employer of Australian Public Service (APS) employees in the Department of Health and Ageing who perform duties in the Mersey Hospital, Tasmania (called Mersey Hospital APS Employees in this Determination) who immediately before becoming such employees were not eligible employees for the purposes of the Superannuation Act 1976 or members of the Public Sector Superannuation Scheme.
The Determination permits the payment of superannuation contributions into any exempt public sector superannuation scheme, complying superannuation fund or retirement savings account on behalf of a Mersey Hospital APS Employee who is not an eligible employee or PSS member.
Without this Determination, the employer of Mersey Hospital APS Employees would only be able to make contributions to an Australian Government Superannuation Scheme.
Whether superannuation contributions can be made to a particular fund will depend on the rules of the particular scheme and requirements under other legislation relating to superannuation.
As the Determination affects Mersey Hospital APS Employees, the Department of Health and Ageing was consulted.
The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Determination commences on the day after registration on the Federal Register of Legislative Instruments.