Superannuation Act 1976 Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1992 No. 27
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 27
ISSUED BY 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.
A person eligible to contribute under the Act is referred to as an "eligible employee". 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).
ANL Limited employs a number of persons who are eligible employees. ANL Limited has established a subsidiary company, Marine Management Services Pty Ltd, which has entered into a partnership agreement with Associated Steamships Pty Ltd to form ASP Ship Management.
Part of the staff of the partnership will be drawn from the existing staff of ANL Limited, including persons who are eligible employees. Persons who transfer from ANL Limited to ASP Ship Management will not automatically be able to continue to be eligible employees because ASP ship management is not staffed under the Public service Act 1922 and is not an approved authority for the purposes of the Act.
It is intended that persons who are eligible employees and employees of ANL Limited immediately prior to becoming employees of ASP Ship Management 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.
Amending subregulation 2.1 provides for the definitions of "ASP Ship Management" and "employee of ASP Ship Management".
Amending subregulation 3.1 provides that an employee of ASP Ship Management shall be an eligible employee for the purposes of the Act if, immediately prior to becoming an employee of ASP Ship Management, he or she was an eligible employee and an employee of ANL Limited. In accordance with the provisions of the Act, the amendment excludes a person who becomes a casual or temporary part-time employee or a member of another superannuation scheme applying to his or her employment from remaining an eligible employee.
Amending subregulation 4.1 provides that such a person will cease to be an eligible employee if he or she ceases to be an employee of ASP Ship Management. In accordance with the provisions of the Act, the amending subregulation excludes a person who becomes a casual or temporary part-time employee or who becomes a member of another superannuation scheme applying to his or her employment from remaining an eligible employee.
Subregulation 5.1 provides, by insertion of a new version of section 159(1A) into the Act and by amendment of existing subparagraph 159(2)(a)(ii), that ASP Ship Management shall make payments to the Commonwealth in respect of eligible employees who are employees of the partnership. Section 159(1A) was previously inserted by the Regulations to provide that specified bodies shall make payments to the Commonwealth in respect of eligible employees who are employed by those bodies at such rates as the Minister for Finance 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 amendments come into operation on the date of gazettal.
Overview
The Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1992 No. 27, issued under the authority of the Minister for Finance, was enacted to address a specific issue concerning the eligibility of employees transferring from one company to another within a partnership, ensuring continuity of their superannuation benefits. This amendment was made to the Superannuation Act 1976, which governs the occupational superannuation scheme for certain Commonwealth employees and other eligible persons. The Act provides a legislative framework for superannuation contributions and benefits, and section 168 empowers the Governor-General to make regulations necessary for the purposes of the Act. The policy objective of this amendment was to ensure that employees transferring from ANL Limited to ASP Ship Management, a subsidiary formed by ANL Limited in partnership with Associated Steamships Pty Ltd, could maintain their status as eligible employees for superannuation benefits. The amendment achieved this by specifying that employees transferring from ANL Limited to ASP Ship Management would remain eligible employees if they continued to meet the eligibility criteria under the Act, while excluding those who became casual or temporary part-time employees or joined another superannuation scheme.
Scope and Application
The Superannuation Act 1976, as amended by the Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1992 No. 27, applies to eligible employees who are Commonwealth employees and other specified persons. This legislation ensures that employees transferring from ANL Limited to ASP Ship Management, a partnership formed by ANL Limited with Associated Steamships Pty Ltd, can continue to be eligible employees under the Act. The amendments to the Regulations provide that employees of ASP Ship Management who were previously eligible employees of ANL Limited retain their eligibility, provided they are not casual or temporary part-time employees or members of another superannuation scheme. These Regulations also specify that eligibility ceases if the employee leaves ASP Ship Management or transitions to a casual or temporary part-time role or joins another superannuation scheme. Additionally, the Regulations mandate that ASP Ship Management make payments to the Commonwealth for eligible employees, aligning with the provisions outlined in section 159(1A) of the Act. The amendments are applicable nationally, governed by the Commonwealth, and come into effect on the date of their gazettal.
Key Provisions
The Superannuation Act 1976 (the Act) and its associated regulations, as amended by the Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) 1992 No. 27, address the continued eligibility of certain employees for superannuation benefits during transitions between employment entities. The Act specifies that certain employees, termed "eligible employees," may continue to contribute to and benefit from an occupational superannuation scheme. Section 168 of the Act allows the Governor-General to create regulations to implement the Act, with section 14A being particularly relevant as it provides the means to specify and modify the Act's application to certain persons. The Regulations, as amended, aim to ensure that employees transferring from ANL Limited to ASP Ship Management, a partnership involving ANL Limited's subsidiary and another entity, maintain their eligibility for superannuation benefits.
Under these amendments, subregulation 2.1 updates definitions to clarify terms such as "ASP Ship Management" and "employee of ASP Ship Management." Subregulation 3.1 stipulates that an employee of ASP Ship Management who was previously an eligible employee of ANL Limited will remain an eligible employee for the purposes of the Act, unless they become a casual or temporary part-time employee, or join another superannuation scheme related to their employment. Subregulation 4.1 further specifies that such eligibility ceases if the person stops being an employee of ASP Ship Management, with similar exclusions applying if they become casual or temporary, or join another superannuation scheme.
The obligations imposed by these provisions require ASP Ship Management to identify and maintain records of employees who are eligible for continued superannuation benefits under the Act. ASP Ship Management must also ensure that these eligible employees remain within the defined parameters to retain their eligibility. Additionally, subregulation 5.1 mandates that ASP Ship Management make payments to the Commonwealth for these eligible employees, at rates determined by the Minister for Finance, considering the amounts payable from the Consolidated Revenue Fund.
Failure to comply with these requirements can lead to civil and criminal consequences. While the specific penalties are not detailed in the provided text, breaches of superannuation regulations generally attract significant fines and potential imprisonment under Australian law. The precise penalties may depend on the nature and severity of the breach, and are typically outlined in the primary legislation or related enforcement guidelines.