Superannuation (CSS) Approved Authority Declaration No. 4

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Superannuation (CSS) Approved Authority Declaration No. 4 1991 No. 190
 

EXPLANATORY STATEMENT

STATUTORY RULES 1991 No. 190

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 Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme (the CSS) for certain Commonwealth employees and other persons.

The Superannuation Act 1990 provides for a new occupational superannuation scheme (the PSS scheme) for Commonwealth employees which came into operation on 1 July 1990. Members of the CSS have had the option, to be exercised during the period of 12 months from 1 July 1990, of remaining members of that scheme or of transferring to the new scheme.

Persons eligible to contribute under the Act include certain persons employed by an approved authority. In accordance with paragraph (a) of the definition of "approved authority" in subsection 3(1) of the 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 Act, being an authority or body of a kind described in the definition.

Before 1 July 1990, authorities or other bodies had become approved authorities for the purposes of the Act by prescription in the Superannuation (Approved Authorities) Regulations (the Regulations) made under the Act. The Superannuation Legislation Amendment Act 1990 amended the Act with effect from 1 July 1990 to provide that bodies would become approved authorities for the purposes of the Act by declaration by the Minister for Finance and that such a declaration could amend or repeal the Regulations.

Section 4A of the Act provides that such a declaration by the Minister for Finance 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.

The Declaration contained in the Statutory Rule, and cited as "Superannuation (CSS) Approved Authority Declaration No. 4", repeals the Regulations and declares those authorities or bodies that were prescribed in the Regulations.

A number of new bodies have been declared to be approved authorities. The Australian Sports Drug Agency was established by the Australian Sports Drug Agency Act 1990 on 18 February 1991. The Chief Executive of the Agency may, on behalf of the Agency, employ persons necessary for the performance of its functions and the exercise of its powers.

The Board of Health was established by the Health Services Act 1990 of the Australian Capital Territory on 31 January 1991. It is a body established to provide health services for the residents of the Territory. Persons who were employed by the Australian Capital Territory Community and Health Service prior to 31 January 1991 became members of the staff of the Board on the same terms and conditions as were applicable to them immediately before that date. The Australian Capital Territory Community and Health Service was an approved authority for the purposes of the Act until the Community and Health Service Act 1985, under which the Service was established, was repealed by the Health Services (Consequential Provisions) Act 1990.

The Superannuation Fund Investment Trust is an approved authority for the purposes of the Act. The Commonwealth Funds Management Limited Act 1990 provides for the conversion of the Trust into Commonwealth Funds Management Limited, a wholly Commonwealth-owned company. The transition will occur on 1 July 1991 and staff of the Trust will continue to be employed by the new company on the same terms and conditions after the transition.

The Energy Research and Development Corporation was established under the Primary Industries and Energy Research and Development Act 1989 on 2 July 1990. It is a body corporate with power to engage employees necessary for the performance of its functions. The Corporation commenced engaging employees from 1 September 1990.

The Pig Research and Development Corporation was also established under the Primary Industries and Energy Research and Development Act 1989 as a body corporate with power to engage employees necessary for the performance of its functions and commenced engaging employees from 18 February 1991.

The Private Health Insurance Administration Council was established by amendments to the National Health Act 1953 contained in the Community Services and Health Legislation Amendment Act 1989. It is a body corporate with power to employ staff necessary to assist the Council in the performance of its functions and the exercise of its powers. The Council began employing staff in April 1990.

The Australian Sports Drug Agency, the Board of Health, Commonwealth Funds Management Limited, the Energy Research and Development Corporation, the Pig Research and Development Corporation and the Private Health Insurance Administration Council are bodies of a kind described in the definition of approved authority in the Act. It is appropriate that these bodies be declared to be approved authorities for the purposes of the Act to enable persons who are members of the CSS to continue to be such members on employment with these bodies.

The Declaration does not include two bodies which had been prescribed as approved authorities in the Regulations: the Australian Telecommunications Corporation and the Australian Postal Corporation. The two Corporations established their own superannuation schemes on 1 July 1990 and have ceased to be approved authorities from that date because arrangements have been put in place by amendments to the Superannuation (Continuing Contributions for Benefits) Regulations to permit existing staff of the two Corporations who are members of the CSS to continue to be such members.

The Declaration provides that the repeal of the Regulations is taken to have effect on 1 July 1990. Similarly, authorities or bodies which had been prescribed in the Regulations are declared for the purposes of the Act with effect from and including 1 July 1990. The Declaration is taken to have had effect from and including 1 July 1990 for the Private Health Insurance Administration Council, 1 September 1990 for the Energy Research and Development Corporation, 31 January 1991 for the Board of Health, 18 February 1991 for the Australian Sports Drug Agency and the Pig Research and Development Corporation, and 1 July 1991 for Commonwealth Funds Management Limited.

 

Overview

The Superannuation (CSS) Approved Authority Declaration No. 4 1991 is a statutory rule issued under the authority of the Minister for Finance, made pursuant to the Superannuation Act 1976. The Act, enacted in 1976, establishes and regulates occupational superannuation schemes for Commonwealth employees and other eligible individuals. The Declaration, issued in 1991, addresses the need to update the list of approved authorities eligible for superannuation contributions under the Act, following the establishment of new entities and the restructuring of existing ones. This update ensures that members of the Commonwealth Superannuation Scheme can continue to be members upon employment with these new or restructured entities. The Declaration repeals previous regulations and declares specific authorities or bodies as approved authorities, thereby enabling eligible employees of these entities to participate in the superannuation scheme. The enacting body for this statutory rule is the Parliament of Australia, and the policy objective is to ensure the continuity of superannuation membership for eligible employees transitioning to or from newly established or restructured entities, thus maintaining the integrity and accessibility of the superannuation scheme for eligible individuals.

Scope and Application

The Superannuation Act 1976 applies to occupational superannuation schemes, specifically the Commonwealth Superannuation Scheme (CSS), which pertains to certain Commonwealth employees and other eligible persons. The Act allows members of the CSS to either remain in the scheme or transfer to the new Public Sector Superannuation Scheme (PSS) that came into operation on 1 July 1990. The Act also specifies that certain authorities or bodies can be declared as approved authorities by the Minister for Finance, allowing eligible persons employed by these bodies to contribute to the CSS. These authorities and bodies are declared through statutory rules, with the Superannuation (CSS) Approved Authority Declaration No. 4 1991 being a pertinent example. This declaration repeals the previous regulations and identifies new approved authorities, including the Australian Sports Drug Agency, Board of Health, Commonwealth Funds Management Limited, Energy Research and Development Corporation, Pig Research and Development Corporation, and the Private Health Insurance Administration Council. Conversely, the Australian Telecommunications Corporation and the Australian Postal Corporation are excluded from the approved authorities list as they have established their own superannuation schemes. The Declaration's effect varies, taking into account the operational commencement dates of these entities, ranging from 1 July 1990 to 18 February 1991.

Key Provisions

The Superannuation (CSS) Approved Authority Declaration No. 4 1991 No. 190, issued under the authority of the Minister for Finance, declares certain authorities and bodies as approved authorities for the purposes of the Superannuation Act 1976. This declaration aligns with the definition of "approved authority" in subsection 3(1) of the Act and replaces the previous method of prescribing such authorities by regulations. Specifically, section 4A of the Act allows for the Minister for Finance to declare approved authorities by statutory rule, which must take effect no earlier than 12 months before the declaration is made. The declaration repeals the existing Superannuation (Approved Authorities) Regulations and declares new approved authorities, including the Australian Sports Drug Agency, the Board of Health, Commonwealth Funds Management Limited, the Energy Research and Development Corporation, the Pig Research and Development Corporation, and the Private Health Insurance Administration Council. These bodies are identified as being of the kind described in the definition of approved authority within the Act. The obligations imposed by this declaration on the approved authorities and their employees primarily concern the continued operation and management of the occupational superannuation scheme (CSS) for eligible members. Employees of the newly declared approved authorities who were previously members of the CSS have the option to remain in that scheme or transfer to the new Public Service Superannuation Scheme (PSS), with a 12-month window for making this decision. Approved authorities must ensure that eligible employees are informed of their options and facilitate the transition process. Additionally, these authorities must comply with the requirements set forth by the Superannuation Act 1976 and any subsequent amendments, including the management of contributions and benefits for CSS members. The Superannuation Act 1976, as amended, imposes specific obligations on approved authorities to manage and administer the CSS effectively. This includes ensuring that eligible employees are enrolled in the scheme, that contributions are made on their behalf, and that benefits are calculated and paid in accordance with the Act. Failure to comply with these obligations may result in various civil or criminal consequences. For example, if an approved authority fails to make the necessary contributions or does not properly manage the scheme, they may be subject to penalties under the Act. The maximum penalties for such breaches can include substantial fines, reflecting the seriousness of the non-compliance. Additionally, officers or directors of the approved authorities who are found to have been negligent or have engaged in misconduct may face personal liability, further underscoring the importance of adherence to the statutory obligations.

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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.