Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1991 No. 97
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 97
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976
SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS (AMENDMENT)
The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme for certain Commonwealth employees and other persons.
Section 168 of the Act provides that the Governor-General may make regulations for the purposes of the Act.
Persons eligible to contribute under the Act are referred to as "eligible employees". The term "eligible employee" is defined in subsection 3(1) of the Act. In accordance with paragraph (ea) of the definition, the tern includes a person to whom section 14A of the Act applies. Regulations under section 14A may specify persons to whom the section applies and may modify the Act in respect of such persons. These provisions are contained in the Superannuation (Continuing Contributions for Benefits) Regulations (the Regulations).
The Dairy Research and Development Corporation was established on 1 April 1990 under the Primary Industries and Energy Research and Development Act 1989. The Corporation is not staffed under the Public service Act 1922 and is not an approved authority for the purposes of the Act; as a consequence, employees of the Corporation in general do not have access to the occupational superannuation scheme established under the Act.
Staff of the Corporation presently include persons who are seconded from the Australian Dairy corporation. These persons include persons who are eligible employees for the purposes of the Act. The Dairy Research and Development Corporation proposes to directly employ these and other persons.
It is intended that persons who are eligible employees immediately before becoming employees of the Dairy Research and Development Corporation should be permitted to remain eligible employees. To achieve this it is intended that those persons who are to remain eligible employees be specified as a class of persons to which section 14A of the Act applies.
The amending Regulations provide that employees and the full-time Executive Director of the Dairy Research and Development Corporation shall be eligible employees if, immediately before becoming such employees or Executive Director, they were eligible employees and do not become members of another superannuation scheme applying to employment with the Corporation. In accordance with the provisions of the Act, the amending Regulations exclude persons who become casual employees or temporary part-time employees from remaining eligible employees.
Persons who are eligible employees to whom the mobility provisions of Part IV of the Public Service Act 1922 apply are covered under the existing provisions of the Act and are excluded from the scope of the amending Regulations.
The amending Regulations also provide, by modifications to section 159A of the Act, that the Dairy Research and Development Corporation shall make payments to the Commonwealth in respect of eligible employees who are employees of, or statutory office holders in, the Corporation. Section 159A was previously inserted by the Regulations to provide that a prescribed authority shall make payments to the Commonwealth in respect of relevant persons at such rates as the Minister determines, having regard to the amounts that have become, or are likely to become, payable out of the Consolidated Revenue Fund to or in respect of those persons.
The Regulations give effect to these modifications.
The Regulations operate from the date of gazettal.
Overview
The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1991 No. 97 was enacted to address the specific issue of superannuation eligibility for employees of the Dairy Research and Development Corporation, established under the Primary Industries and Energy Research and Development Act 1989. The Superannuation Act 1976 provides for an occupational superannuation scheme for certain Commonwealth employees and other persons, but due to the unique staffing arrangements of the Dairy Research and Development Corporation, its employees were not automatically included in this scheme. The objective of these amending regulations is to ensure that employees who were eligible for superannuation contributions under the Act prior to their employment with the Corporation can continue to be eligible, while also requiring the Corporation to make payments to the Commonwealth in respect of these eligible employees.
Issued under the authority of the Minister for Finance and pursuant to section 168 of the Superannuation Act 1976, these regulations specify that employees and the full-time Executive Director of the Dairy Research and Development Corporation are eligible employees if they were eligible immediately before their employment with the Corporation and do not become members of another superannuation scheme. The regulations also exclude casual and temporary part-time employees from remaining eligible. Additionally, the amending regulations modify section 159A of the Superannuation Act 1976 to require the Corporation to make payments to the Commonwealth in respect of eligible employees, aligning with the financial obligations stipulated in the original Act.
Scope and Application
The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1991, issued under the Superannuation Act 1976, amend the existing regulations to cater to the specific circumstances of the Dairy Research and Development Corporation (DRDC). These regulations extend the eligibility for superannuation benefits to certain employees of the DRDC, ensuring continuity for those who were previously eligible under another scheme. The Act applies to eligible employees of the DRDC who were eligible employees prior to their employment with the Corporation and who do not become members of another superannuation scheme. The amendment excludes casual and temporary part-time employees from the scope of the regulation. Furthermore, the regulations mandate that the DRDC makes payments to the Commonwealth for these eligible employees, modifying section 159A of the Act to reflect this requirement. The amendments are effective from the date of gazettal and apply nationally, aligning with the jurisdictional reach of the Superannuation Act 1976.
Key Provisions
The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1991 No. 97 (the amending Regulations) provide specific provisions under the Superannuation Act 1976 (the Act) to ensure that certain employees of the Dairy Research and Development Corporation continue to be eligible for the occupational superannuation scheme. Section 14A of the Act is amended to include employees of the Corporation as eligible employees if they were eligible employees prior to their employment with the Corporation and do not join another superannuation scheme applicable to their employment with the Corporation (section 14A(1)). This provision ensures continuity of eligibility for superannuation benefits for these employees, provided they do not transition to casual or temporary part-time employment (section 14A(2)).
The amending Regulations impose obligations on the Dairy Research and Development Corporation to ensure that its employees who were eligible employees before their employment with the Corporation remain eligible. The Corporation must make payments to the Commonwealth in respect of these employees as specified in section 159A of the Act (section 159A(1)). These payments are to be made at rates determined by the Minister, taking into account the amounts that have become, or are likely to become, payable out of the Consolidated Revenue Fund to or in respect of these employees (section 159A(2)). The Regulations also clarify that employees who are covered under the mobility provisions of the Public Service Act 1922 are excluded from the scope of the amending Regulations (section 14A(3)).
Failure to comply with the obligations imposed by the amending Regulations can result in various consequences. Although the specific offences and penalties are not detailed in the explanatory statement, breaches of superannuation regulations generally can lead to significant civil and criminal penalties. Under the Superannuation Industry (Supervision) Act 1993, breaches may result in fines, imprisonment, or both. For example, knowingly providing false or misleading information can incur penalties of up to $21,000 for individuals and $105,000 for corporations, along with potential imprisonment terms. Additionally, the Superannuation Industry (Supervision) Regulations 1994 further detail the specific penalties for various breaches, which can include both monetary fines and imprisonment.