Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) 1995 No. 349
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 349
Issued by the Authority of the Minister for Finance
Superannuation Act 1976
Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment)
The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme, the Commonwealth Superannuation Scheme (the CSS), for certain Commonwealth employees and other persons, including employees of approved authorities.
Section 168 of the Act provides that the Governor-General may make regulations for the purposes of that Act.
The purpose of the Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) (the amending Regulations) is to amend the Superannuation (CSS) Continuing Contributions for Benefits Regulations (the Principal Regulations) to ensure that CSS membership continues for certain persons formerly employed by Aerospace Technologies of Australia Limited (ASTA).
Persons eligible to contribute to the CSS (ie, CSS members) are referred to in the Act as eligible employees. In accordance with paragraph (ea) of the definition of "eligible employee" in subsection 3(1), the term includes a person to whom section 14A applies, Section 14A of the Act provides that regulations made under that section may specify a class of persons to whom the section applies and may fix a time at which the section ceases to apply to a person. Regulations for the purposes of section 14A are contained in the Principal Regulations.
Aerospace Technologies of Australia Limited (ASTA) ceased to be under Commonwealth control on 27 June 1995 when the Commonwealth shares in ASTA were sold. As a result of the sale, ASTA ceased to meet the definition of an approved authority in subsection 3(1) of the Act and, because it was no longer an approved authority, CSS membership ceased to be available to employees of ASTA.
As part of the transitional arrangements preceding the sale of ASTA, certain CSS members moved from ASTA employment to employment with either ASTAAS Pty Ltd (ASTAAS), then known as ASTA Aircraft Services Pty Ltd, or Avalon Airport Geelong Pty Ltd (AAG) during the period 21 June to 27 June 1995. This formalised long standing arrangements in respect of those staff who had either been on secondment to work for ASTAkS or had been employed in ASTA's business unit, ASTA Airport, which was incorporated as AAG on 1 June 1995. Both ASTAAS and AAG are bodies in respect of which the Commonwealth has a controlling interest.
In accordance with the arrangements related to the sale of ASTA it is appropriate that those CSS members employed by ASTA prior to its sale should retain CSS membership once they become formally employed by ASTAAS or AAG, CSS membership should also continue for these persons if they move from employment with ASTAAS to AAG or vice versa. CSS membership is not permitted if persons move from employment with ASTAAS or AAG to ASTA.
The amending Regulations provide for continued CSS membership for those persons described above while the body by which they are employed, ie ASTAAS or AAG, continues to be under Commonwealth control.
The amendments contained in the amending Regulations are explained in the Attachment.
The amending Regulations commenced with effect from 21 June 1995. Subsection 168(15) of the Act provides that regulations made for the purpose of section 14A may commence up to 12 months before the making of the regulations.
Overview
The Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) 1995 No. 349 was enacted to address the issue of maintaining superannuation scheme membership for certain former employees of Aerospace Technologies of Australia Limited (ASTA) following its sale and subsequent change in Commonwealth control. The Superannuation Act 1976 provides the legislative framework for the Commonwealth Superannuation Scheme (CSS), an occupational superannuation scheme for certain Commonwealth employees and others, including employees of approved authorities. Section 168 of the Act authorises the Governor-General to make regulations, and these amending regulations were introduced to ensure that CSS membership continues for individuals who transitioned from ASTA to ASTAAS or Avalon Airport Geelong Pty Ltd (AAG) during a specified period before the sale. The policy objective of these amendments is to preserve superannuation benefits for these employees, recognising their ongoing employment under Commonwealth-controlled entities.
Scope and Application
The Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) 1995 No. 349, under the Superannuation Act 1976, pertains to the Commonwealth Superannuation Scheme (CSS) for eligible employees, including certain Commonwealth employees and those of approved authorities. This amendment specifically addresses the continuity of CSS membership for employees who were formerly with Aerospace Technologies of Australia Limited (ASTA) and subsequently transferred to ASTAAS Pty Ltd or Avalon Airport Geelong Pty Ltd during the period leading up to the sale of ASTA on 27 June 1995. The amendment ensures that these individuals retain their CSS membership as long as they remain employed by ASTAAS or AAG, entities in which the Commonwealth retains a controlling interest. However, if these individuals move from employment with ASTAAS or AAG to ASTA, they are no longer eligible for CSS membership. The regulations commenced on 21 June 1995, aligning with the transitional arrangements preceding the sale of ASTA, and are designed to ensure a seamless continuation of benefits for the affected employees.
Key Provisions
The Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) 1995 No. 349 (the amending Regulations) amend the Superannuation (CSS) Continuing Contributions for Benefits Regulations to address the cessation of CSS membership for employees of Aerospace Technologies of Australia Limited (ASTA) following its sale to private ownership. The purpose of the amending Regulations is to ensure that CSS membership continues for certain individuals who were employed by ASTA before its sale and subsequently moved to employment with either ASTAAS Pty Ltd or Avalon Airport Geelong Pty Ltd (AAG) during the period of 21 June to 27 June 1995. Section 14A of the Superannuation Act 1976 provides the legislative basis for these regulations, allowing the Governor-General to make regulations that specify a class of persons and the time at which the regulations cease to apply.
Under the amending Regulations, eligible employees who were previously employed by ASTA and subsequently moved to employment with either ASTAAS or AAG are permitted to retain their CSS membership. This provision ensures continuity of membership for these individuals as long as they remain employed by ASTAAS or AAG, both of which are bodies in which the Commonwealth has a controlling interest. The amending Regulations do not allow for CSS membership to continue if these individuals move from employment with ASTAAS or AAG to ASTA, as ASTA is no longer an approved authority under the Act.
The amending Regulations impose specific obligations on the parties involved, particularly the entities ASTAAS and AAG, which must ensure that eligible employees maintain their CSS membership in accordance with the provisions of the amending Regulations. The Act and the amending Regulations place the onus on these entities to comply with the conditions set out for the continuation of CSS membership, including the requirement that they remain under Commonwealth control. The Commonwealth, in turn, has an obligation to oversee the implementation of these provisions and ensure that eligible employees are not disenfranchised from the benefits of the CSS.
Breaches of the amending Regulations may result in civil or criminal consequences, although the specific penalties are not detailed within the explanatory statement. The penalties for non-compliance with superannuation legislation generally can include fines and imprisonment, depending on the severity of the breach. The Superannuation Act 1976 and related regulations provide for various penalties for non-compliance, which can be substantial, reflecting the importance of ensuring the integrity of superannuation schemes. It is important for the entities involved to adhere strictly to the provisions of the amending Regulations to avoid any potential legal or financial repercussions.