Superannuation (CSS) Approved Authority Amendment Declaration (No. 1) 2019

Overview

The Superannuation (CSS) Approved Authority Amendment Declaration (No.1) 2019 was introduced to address the need for updating the list of approved authorities under the Superannuation Act 1976. This Act, enacted by the Australian Parliament, provides for the Commonwealth Superannuation Scheme (CSS) for Australian Government employees and certain other persons. The policy objective behind the declaration is to ensure that the scheme encompasses the latest entities established to perform specific functions, thereby maintaining its relevance and effectiveness. This amendment declaration specifically seeks to include the National Housing Finance and Investment Corporation (NHFIC) within the list of approved authorities, thereby expanding the scope of entities eligible to engage employees under the CSS. The declaration is subject to disallowance and was formulated following consultations with relevant stakeholders, including the Commonwealth Superannuation Corporation and the NHFIC. The Superannuation (CSS) Approved Authority Amendment Declaration (No.1) 2019 is a legislative instrument governed by the Legislation Act 2003, which mandates consultation before the creation of such instruments. The Office of Best Practice Regulation has assessed that the amendment does not necessitate a Regulations Impact Statement as it pertains to machinery of government and does not significantly alter existing arrangements. The declaration is designed to commence on the day following its registration on the Federal Register of Legislation. Additionally, a Statement of Compatibility with Human Rights has been provided to ensure the declaration aligns with human rights obligations.

Scope and Application

The Superannuation Act 1976 provides the legislative framework for the Commonwealth Superannuation Scheme (CSS), which is designed to offer superannuation benefits to Australian Government employees and certain other persons. The Act defines "eligible employees" as those who are employed by an "approved authority," a term further clarified by the definition in subsection 3(1) of the Act. This definition includes any authority or body declared by the Minister to be an approved authority, which is a body of a kind described within the Act. The Superannuation (CSS) Approved Authority Declaration 1995 lists the bodies that have been declared as approved authorities under the Act. The Superannuation (CSS) Approved Authority Amendment Declaration (No.1) 2019 amends this list by including the National Housing Finance and Investment Corporation (NHFIC) as an approved authority for the purposes of the Act, thereby expanding the scope of entities eligible to participate in the CSS. This amendment is executed under the authority conferred by subsection 33(3) of the Acts Interpretation Act 1901, which allows for the amendment, variation, or repeal of legislative instruments. The Amending Declaration is a legislative instrument subject to disallowance under the Legislation Act 2003, and it was made following consultation with relevant parties, including the Commonwealth Superannuation Corporation and the NHFIC. The changes introduced by the Amending Declaration were assessed by the Office of Best Practice Regulation as not requiring a Regulations Impact Statement because they do not substantially alter existing arrangements and are considered machinery of government changes. The Amending Declaration commences the day after its registration on the Federal Register of Legislation, and a statement of compatibility with human rights is included as Attachment B to the Declaration.

Key Provisions

The Superannuation (CSS) Approved Authority Amendment Declaration (No.1) 2019 (the Amending Declaration) serves to amend the Superannuation (CSS) Approved Authority Declaration 1995 (the Principal Declaration) by adding the National Housing Finance and Investment Corporation (NHFIC) to the list of approved authorities under the Superannuation Act 1976 (the 1976 Act) (section 1). This amendment is detailed in Schedule 1, Item 1, where section 4 of the Principal Declaration is updated to include the NHFIC (section 6). The Amending Declaration, which is a legislative instrument under the Legislation Act 2003, will come into effect on the day following its registration on the Federal Register of Legislation (section 2). The authority for this declaration is derived from the 1976 Act (section 3). Entities and individuals subject to the 1976 Act must now consider the NHFIC as an approved authority for the purposes of the Commonwealth Superannuation Scheme (CSS). This inclusion means that certain employees of the NHFIC are eligible for the benefits and protections provided by the CSS, in accordance with the criteria established by the 1976 Act (subsection 3(1)). Any amendments or repeals of instruments specified in the Schedules to the Amending Declaration will be implemented as outlined, and all other provisions will take effect as written (section 4). The Amending Declaration stipulates various obligations for the NHFIC and its employees who qualify under the CSS. These obligations include adherence to the terms and conditions of the CSS, as well as compliance with any additional requirements imposed by the 1976 Act or any related regulations. The NHFIC must ensure that its employees are properly enrolled in the CSS and that any contributions and benefits are managed in accordance with the Act. In the event of non-compliance with the provisions of the 1976 Act or the terms of the CSS, the NHFIC and its employees may face legal consequences. The Act does not specify the exact penalties for breaches; however, it is likely that penalties could include fines, corrective actions, or other civil remedies as deemed appropriate by the relevant authorities. Given that the NHFIC is a newly included entity in the approved authorities list, it is imperative that it familiarises itself with the existing framework and ensures that it meets all regulatory requirements to avoid any potential penalties.