EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO 379
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 in the Act 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 term 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 Regulations have modified the Act by inserting a new section 159A which imposes a liability on a prescribed authority to meet the cost of the employer share of any superannuation benefits that become payable to or in respect of relevant persons employed by the authority.
The term “relevant person”, as defined in subsection 159A(1), includes an eligible employee who is a person to whom Division 2 or 3 of Part IV of the Public Service Act 1922 applies and who is the holder of a Commonwealth office that is declared by the Minister to be an office the holding of which is to be treated, for the purposes of section 159A, as if it were employment by a prescribed authority.
It is intended that a declaration by the Minister under the definition of the term “relevant person” in section 159A of the Act be a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901. This will mean that such declarations will be disallowable by the Parliament in the same way as regulations.
The Regulations give effect to the above intention.
Overview
The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment), issued under the authority of the Minister for Finance, aim to address the gap in superannuation coverage for certain Commonwealth employees by enhancing the provisions of the Superannuation Act 1976. This Act originally established an occupational superannuation scheme for eligible employees, including those who fall under specific sections of the Public Service Act 1922. The amendment introduces a new section 159A, which imposes a liability on prescribed authorities to cover the employer share of superannuation benefits for relevant persons, including employees who hold specific Commonwealth offices. This legislative update ensures that such employees receive the same superannuation benefits as those employed directly by prescribed authorities, thereby providing a more comprehensive coverage. The policy objective of these regulations is to extend and clarify the scope of superannuation contributions and benefits for a defined group of Commonwealth employees, ensuring they are adequately protected under the superannuation scheme.
Scope and Application
The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) issued under the Superannuation Act 1976, extend the application of the Act to ensure that prescribed authorities meet the employer share of superannuation benefits for certain eligible employees. This legislation applies to eligible employees, including those covered under section 14A of the Act, and specifically targets individuals who fall under Division 2 or 3 of Part IV of the Public Service Act 1922 and hold Commonwealth offices declared by the Minister to be equivalent to employment by a prescribed authority. The jurisdiction of this Act is primarily within the Commonwealth, though its application is extended through subordinate regulations which modify the Act to impose specific liabilities on prescribed authorities. These regulations are designed to ensure comprehensive coverage for superannuation benefits, with the scope subject to modifications via disallowable instruments, allowing Parliament to review and potentially disallow certain ministerial declarations.
Key Provisions
The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) under the Superannuation Act 1976 introduce a new section, section 159A, which places a financial responsibility on a prescribed authority to cover the employer's portion of superannuation benefits payable to certain individuals. These individuals, referred to as "relevant persons," are primarily eligible employees who fall under Division 2 or 3 of Part IV of the Public Service Act 1922 and hold a Commonwealth office declared by the Minister to be equivalent to employment by a prescribed authority for the purposes of section 159A. This amendment is designed to ensure that certain superannuation benefits are adequately funded.
These Regulations impose specific obligations on prescribed authorities, requiring them to meet the employer's share of superannuation benefits for relevant persons. This includes ensuring that any superannuation benefits that become payable to or in respect of these individuals are fully funded by the authority. The Act defines "eligible employee" and specifies who qualifies for these benefits, with further detail provided in the Regulations. The prescribed authorities must therefore identify the relevant persons within their purview and ensure compliance with the new financial obligations outlined in section 159A.
Failure to comply with the provisions of the Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) could result in civil or criminal consequences. The Act does not specify particular offences or penalties in this context, but non-compliance could lead to legal action or sanctions. Given that the declaration by the Minister under section 159A is a disallowable instrument, any such declaration can be reviewed and potentially disallowed by Parliament, reinforcing the importance of adherence to these regulations.