Superannuation (Continuing Contributions for Benefits) Regulations (Amendment)

Administered by Department of Finance

Legislation au F1996B03621 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

STATUTORY RULES 1989 NO 168

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 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”.

Section 168 of 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.

Subsection 3(1) of the Act defines the term “eligible employee”. In accordance with paragraph (ea) of the definition, the term includes a person to whom section 14A applies. Subsection 14A(1) of the Act provides that section 14A applies to persons specified in paragraphs 14A(1)(a) to (e) other than those included in a class of persons specified in the regulations as a class of persons to whom the section does not apply. In accordance with paragraph 14A(1)(e), a person to whom the section applies includes a person included in a class of persons specified in the regulations as a class of persons to which the section applies.

Subsection 14A(3) of the Act provides that the regulations may make provision for modifying the Act, or a provision of the Act specified in the regulations, in the application of the Act or that provision to and in relation to a person to whom section 14A applies, or has applied, or to and in relation to a prescribed class of persons to whom the section applies or has applied. Regulations for the purposes of section 14A are contained in the Superannuation (Continuing Contributions for Benefits) Regulations (the Principal Regulations).

The Australian Industry Development Corporation (AIDC) is an approved authority for the purposes of the Act and certain of its employees are therefore eligible employees for the purposes of the Act. Amendments made to the Australian Industry Development Corporation Act 1970 by the Australian Industry Development Corporation Amendment Act 1988 provide for the re-organisation of the business


of AIDC. In accordance with those provisions, AIDC has established a subsidiary company, AIDC Ltd. to which the bulk of AIDC’s existing staff are to be transferred.

It is intended that those transferees who are eligible employees immediately before the transfer to AIDC Ltd. should be eligible to remain eligible employees. No other members of the staff of AIDC Ltd. are to be permitted to remain or become eligible employees. To achieve this it is intended that those transferees who are to remain eligible employees be specified as a class of persons to which section 14A of the Act applies.

The amending Regulations, which are described in detail in the Attachment, achieve this intention. The amendments operate on and from the date of their gazettal.

ATTACHMENT

SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS (AMENDMENT)

Regulation 1

This provides that the term “Principal Regulations” means the Superannuation (Continuing Contributions for Benefits) Regulations.

Regulation 2

This provides for the insertion of a new provision - regulation 3A - in the Principal Regulations which describes the classes of persons to which section 14A of the Superannuation Act 1976 (the Act) applies.

Regulation 3A provides that a class of persons each of whom:

(a) is employed by AIDC Ltd., and

(b) is not a person to whom the mobility provisions contained in Part IV of the Public Service Act 1922 applies, and

(c) immediately before becoming employed by AIDC Ltd. was:

(i) an officer or employee of the Australian Industry Development Corporation; and

(ii) an eligible employee for the purposes of the Act; and

(d) has not at any time ceased to be employed by AIDC Ltd.; and

(e) while employed by AIDC Ltd. has not been a member of a superannuation scheme, other than the scheme constituted under the Act, applying to employees of AIDC Ltd.

is a class of persons to which section 14A of the Act applies. Persons included in such a class of persons are required to contribute under the Act.

Regulation 3

This amends regulation 5 of the Principal Regulations which provides, in accordance with subsection 14A(3) of the Act, that the modifications to the provisions of the Act specified in the Schedule to the Principal Regulations are to apply to the persons specified in regulation 5. Regulation 3 amends regulation 5 of the Principal Regulations to extend the application of that regulation to persons referred to in paragraph 14A(1)(e) of the Act, that is, persons included in a prescribed class of persons to which the section applies.


Regulation 4

This amends the Schedule to the Principal Regulations which sets out the modifications to the provisions of the Act that are to apply to persons specified in regulation 5 of the Principal Regulations. Clause 2 of the Schedule inserts section 159A in the Act. Section 159A provides 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. A prescribed authority is defined, in subsection 159A(1), as a Commonwealth authority that is not an approved authority. A relevant person in relation to a prescribed authority is defined, in subsection 159A(1), as an eligible employee who is a person to whom Part IV of the Public Service Act 1922 applies and who is employed by the prescribed authority or is the holder of a Commonwealth office the holding of which is to be treated as if it were employment by the prescribed authority. Regulation 4 amends subsection 159A(1) by substituting the definitions of “prescribed authority” and “relevant person” in that subsection. The new definition of “prescribed authority” will provide that AIDC Ltd. is a prescribed authority as well as those bodies already covered by the existing definition. The new definition of “relevant person” will ensure that a person included in a class of persons referred to in paragraph 14A(1)(e) is included in that definition as well as persons already covered by the existing definition.

Overview

The Superannuation Act 1976 was enacted to establish an occupational superannuation scheme for employees of the Commonwealth and other specified individuals, referred to as "eligible employees." This Act was intended to address the need for a structured retirement savings plan for certain government employees and those working under Commonwealth authorities. The Parliament of Australia enacted this legislation to ensure that eligible employees have access to superannuation benefits. The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) issued under the authority of the Minister for Finance aims to modify existing regulations to accommodate the restructuring of the Australian Industry Development Corporation (AIDC). Specifically, these regulations ensure that employees transferred from AIDC to its newly established subsidiary, AIDC Ltd., retain their eligibility for superannuation benefits under the Act. The policy objective of these amendments is to maintain the continuity of superannuation benefits for specific employees affected by the corporate restructuring while excluding other employees of AIDC Ltd. from such benefits.

Scope and Application

The Superannuation Act 1976 governs occupational superannuation schemes for persons employed by the Commonwealth and certain other individuals, with eligible employees being defined under section 14A. These employees are subject to regulations that can be modified through the Governor-General's authority, as outlined in section 168. The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) specifically addresses the eligibility of employees transitioning from the Australian Industry Development Corporation (AIDC) to its subsidiary, AIDC Ltd. The amendments ensure that employees who were eligible under the Act prior to the transfer remain eligible, while other employees of AIDC Ltd. are excluded from eligibility. The regulations clarify the class of employees who remain eligible, those who were officers or employees of AIDC and were already eligible, have not left AIDC Ltd., and are not members of another superannuation scheme. The amendments also modify existing regulations and the schedule to include AIDC Ltd. as a prescribed authority, ensuring that these specific employees remain covered by the superannuation provisions. The amendments apply from the date of their gazettal.

Key Provisions

The Superannuation Act 1976 (the Act) sets out the framework for occupational superannuation schemes for Commonwealth employees and certain other individuals. Under this Act, eligible employees can contribute to a superannuation scheme. Section 168 of the Act grants the Governor-General the authority to issue regulations that are consistent with the Act, and necessary or convenient for its implementation. Section 14A of the Act further delineates who is considered an eligible employee, including those who are subject to the provisions of the Act. The Superannuation (Continuing Contributions for Benefits) Regulations (the Principal Regulations) provide further details and modifications for the Act. The recent amendments to these regulations aim to ensure that specific employees of the Australian Industry Development Corporation (AIDC) who are transferred to a new subsidiary, AIDC Ltd., remain eligible employees under the Act. Regulation 3A of the Principal Regulations specifies that employees of AIDC Ltd. who meet certain criteria—such as being former employees of AIDC and having continuously served without interruption—are eligible to remain under the Act’s provisions. Regulation 5 extends these modifications to the relevant persons specified in the Principal Regulations. These amendments impose specific obligations on the parties involved. For instance, eligible employees transferring to AIDC Ltd. must continue to adhere to the requirements set out in the Act, including contributing to the superannuation scheme. AIDC Ltd. must ensure that these employees remain eligible under the Act and comply with any modifications specified in the Principal Regulations. Additionally, the amendments introduce a new definition of “prescribed authority” and “relevant person” in the Schedule to the Principal Regulations, which now includes AIDC Ltd. and certain other entities. Failure to comply with the provisions of the Act or the regulations may result in various consequences. The Act and the regulations do not explicitly detail specific offences or penalties for non-compliance. However, breaches of employment or superannuation laws can generally lead to civil or criminal penalties, including fines and imprisonment, depending on the severity and intent of the breach. The precise penalties would be determined by the relevant courts based on the specific circumstances of the case.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.