Superannuation (CSS) Approved Authority Declaration (Amendment) 1997 No.
228
EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 228
Issued by the authority of the Minister for Finance
Superannuation Act 1976
Declaration under paragraph (a) of the definition of "Approved Authority" in subsection 3 (1)
The Superannution Act 1976 (the 1976 Act) makes provision for and in relation to an occupational superannuation scheme, known as the Commonwealth Superannuation Scheme (the CSS), for Commonwealth employees and for certain other persons.
Persons eligible to contribute under the 1976 Act include persons who are employed under the Public Service Act 1922, as well as persons who are employed by an "approved authority". In accordance with paragraph (a) of the definition of "approved authority" in subsection 3(1) of the 1976 Act, an approved authority includes an authority or other body declared by the Minister for Finance to be an approved authority for the purposes of the 1976 Act, being an authority or body of a kind described in the definition.
Declarations made under paragraph (a) of the definition of approved authority are contained in the Superannuation (CSS) Approved Authority Declaration (the Principal Declaration).
Section 4A of the 1976 Act provides that such a declaration is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 and a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903 and may be expressed to have taken effect from and including a day not earlier than 12 months before the making of the declaration.
Health Services Australia (HSA) is a 100% Commonwealth owned company limited by shares which came into being as a result of the restructuring of the Australian Government Health Service (AGHS). Adelaide Symphony Orchestra Pty Ltd., Melbourne Symphony Orchestra Pty Ltd., and Symphony Australia Holdings Pty Ltd. are three new wholly owned subsidiaries of the ABC.
All four bodies were established on 1 July 1997 under Corporations Law. They are bodies of a kind described in paragraph (a) of the definition of "approved authority" in subsection 3(1) of the 1976 Act. It is appropriate that HSA and the three new companies of the ABC be declared to be approved authorities for the purposes of the 1976 Act to enable employees to remain, or resume, membership of the CSS.
The Declaration contained in the Statutory Rule and cited as "Superannuation (CSS) Approved Authority Declaration (Amendment)" amends the Principal Declaration by including Health Services Australia, Adelaide Symphony Orchestra Pty Ltd, Melbourne Symphony Orchestra Pty Ltd and Symphony Australia Holdings Pty Ltd in the list of bodies declared by the Minister for Finance to be approved authorities for the purposes of the 1976 Act.
The Declaration commenced on 1 July 1997.
Overview
The Superannuation (CSS) Approved Authority Declaration (Amendment) 1997 No. 228, issued under the authority of the Minister for Finance, seeks to amend the Superannuation Act 1976 by updating the list of approved authorities eligible for participation in the Commonwealth Superannuation Scheme (CSS). This legislative amendment responds to the creation of new entities such as Health Services Australia and certain subsidiaries of the Australian Broadcasting Corporation, which were established to administer health services and cultural programs, respectively. The primary objective of this amendment is to ensure that employees of these newly formed entities can continue or commence their participation in the CSS, thus maintaining the integrity and continuity of the superannuation scheme for eligible Commonwealth employees.
The Superannuation (CSS) Approved Authority Declaration (Amendment) 1997 No. 228 was enacted by the Parliament of Australia to address the gap created by the formation of new entities that fell under the category of "approved authorities" as defined in the Superannuation Act 1976. By including Health Services Australia, Adelaide Symphony Orchestra Pty Ltd, Melbourne Symphony Orchestra Pty Ltd, and Symphony Australia Holdings Pty Ltd in the list of approved authorities, the amendment ensures that employees of these entities are eligible to contribute to the CSS. This amendment was designed to facilitate the smooth integration of these entities into the existing superannuation framework, thereby preserving the benefits and protections provided by the CSS for their employees.
Scope and Application
The Superannuation (CSS) Approved Authority Declaration (Amendment) 1997 No. 228 pertains to the Superannuation Act 1976, which governs the Commonwealth Superannuation Scheme (CSS) for Commonwealth employees and certain other individuals. The Act applies to employees of bodies declared as approved authorities, including Health Services Australia (HSA) and the three new subsidiaries of the Australian Broadcasting Corporation (ABC): Adelaide Symphony Orchestra Pty Ltd, Melbourne Symphony Orchestra Pty Ltd, and Symphony Australia Holdings Pty Ltd. These entities were established on 1 July 1997 and are recognised as approved authorities under the Act to facilitate the continuation or resumption of CSS membership for their employees. The amendment to the Principal Declaration, which lists approved authorities, commenced on the same date, thereby extending the scope of the Act to cover these newly recognised entities within the Commonwealth framework.
Key Provisions
The Superannuation (CSS) Approved Authority Declaration (Amendment) 1997 No. 228 amends the Superannuation (CSS) Approved Authority Declaration to include Health Services Australia (HSA), Adelaide Symphony Orchestra Pty Ltd, Melbourne Symphony Orchestra Pty Ltd, and Symphony Australia Holdings Pty Ltd as approved authorities under the Superannuation Act 1976 (sections 3 and 4A). This means these entities can now be included in the Commonwealth Superannuation Scheme (CSS) for their employees. This amendment ensures that employees of these newly recognised entities can either remain in, or rejoin, the CSS. The amendment came into effect on 1 July 1997.
The Superannuation Act 1976 requires entities that wish to be approved authorities under the Act to be declared as such by the Minister for Finance. The amended declaration under section 3(1) of the Act now includes HSA and the three new ABC subsidiaries as approved authorities. This declaration is essential for these entities to participate in the CSS, allowing their employees to contribute to and benefit from the scheme. The declaration is a statutory rule that must be made at least 12 months before it takes effect, as outlined in section 4A of the Act.
Entities that are declared as approved authorities under the Act are subject to certain obligations. They must ensure that their employees who are eligible under the Act can contribute to the CSS. This involves adhering to the requirements and conditions stipulated in the Act, such as contributing the appropriate amounts to the scheme and maintaining records of these contributions. These entities also need to comply with any other provisions of the Act that apply to approved authorities and their employees.
Breaches of the obligations under the Superannuation Act 1976 can result in both civil and criminal consequences. For example, failure to comply with the requirements to contribute to the CSS or maintain records can result in penalties. Under section 129 of the Act, an individual or entity found guilty of an offence can be fined up to $21,000 for each offence. In more severe cases, directors or officers of the entity may also face personal liability. Additionally, the Act provides for the recovery of any losses incurred by members of the CSS due to non-compliance.