Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) 1996 No. 6
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 6
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 the Act.
The Superannuation Industry (Supervision) Act 1993 and regulations under that Act (SIS) provide for a regulatory system for superannuation schemes which are regulated superannuation funds under that Act and the CSS is a regulated superannuation fund.
To ensure that the CSS complies with SIS requirements, the Regulations amend the Superannuation (CSS) Continuing Contributions for Benefits Regulations (the Principal Regulations) to provide that a regulated superannuation fund not accept contributions made by or in respect of a member over age 65, or allow an additional benefit accrual after that age, other than in special circumstances.
Persons eligible to contribute to the CSS (ie, CSS members) are referred to in the Act as eligible employees. In accordance with paragraph (ca) of the definition of "eligible employee" in subsection 3(1) of the Act the term includes a person to whom section 14A applies. Section 14A of the Act provided that regulations made under that section may specify a class of persons to whom the section does not apply 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.
SIS does not permit the payment of contributions by or on behalf of a member of a regulated superannuation fund in certain circumstances.
Regulation 1 provides that the Principal Regulations are amended as set out in the amending Regulations.
Regulation 2 amends regulation 3 of the Principal Regulations which lists the classes of persons to whom section 14A does not apply to include a new class. A person included in the new class is described as "a contributions-barred person" and is, because of SIS, a person from whom a regulated superannuation fund may not accept contributions.
The amendment further provides for persons who are CSS members at the commencement of this regulation, and who remain members, to be excluded from the effect of this regulation. Also to be excluded are persons who become CSS members after the commencement of this regulation and who later become persons included in the class. This ensures that the existing members (who continue to be members) or future members who join the scheme while still permitted by SIS to contribute are not affected by the amendment.
The amending Regulations commenced on the date of gazettal.
Overview
The Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) 1996 No. 6 was enacted to amend the existing Superannuation (CSS) Continuing Contributions for Benefits Regulations, thereby aligning the Commonwealth Superannuation Scheme (CSS) with the requirements of the Superannuation Industry (Supervision) Act 1993. This amendment was introduced to address the issue of compliance with the Superannuation Industry (Supervision) Act 1993 (SIS), which governs regulated superannuation funds and restricts the acceptance of contributions for members over the age of 65, except under special circumstances. The regulations were issued by the Minister for Finance and seek to ensure that the CSS adheres to these SIS requirements by preventing the CSS from accepting contributions for members over the age of 65, except in specific cases. The intent of this regulation is to maintain the integrity and compliance of the CSS within the broader regulatory framework established by SIS.
Scope and Application
The Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) 1996 No. 6, under the Superannuation Act 1976, applies to the Commonwealth Superannuation Scheme (CSS), which is an occupational superannuation scheme for certain Commonwealth employees and other specified individuals, including employees of approved authorities. These regulations specifically target the acceptance of contributions into the CSS for members over the age of 65, aligning with the requirements of the Superannuation Industry (Supervision) Act 1993. The purpose of this amendment is to ensure compliance with the SIS, which does not allow contributions to be made for members over the age of 65, except under special circumstances. The amendment introduces a new class of persons referred to as "contributions-barred persons," those from whom a regulated superannuation fund may not accept contributions due to SIS stipulations. Existing CSS members and those who join the scheme before reaching the age of 65 remain unaffected by these regulations, ensuring continuity and compliance with the legislative framework.
Key Provisions
The Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) 1996 No. 6 (the Regulations) amend the Superannuation (CSS) Continuing Contributions for Benefits Regulations (the Principal Regulations) to align the Commonwealth Superannuation Scheme (CSS) with the requirements set out in the Superannuation Industry (Supervision) Act 1993 (SIS). Section 1 of the Regulations specifies the commencement of the amending Regulations, which took effect on the date of gazettal. Regulation 2 amends regulation 3 of the Principal Regulations to introduce a new class of persons to whom section 14A of the Superannuation Act 1976 (the Act) does not apply. This new class, referred to as "contributions-barred persons," encompasses individuals from whom a regulated superannuation fund may not accept contributions due to SIS requirements.
The Regulations impose obligations on the CSS to ensure compliance with SIS by not accepting contributions made by or in respect of a member who has reached the age of 65, or allowing an additional benefit accrual after that age, unless in special circumstances. This requirement is designed to maintain the integrity of the CSS by preventing the acceptance of contributions that would contravene SIS provisions. Additionally, the Regulations exclude existing CSS members and future members who join the scheme before being barred from making contributions under SIS, ensuring that the amendment does not negatively impact those who are already eligible to contribute.
The Regulations do not explicitly outline specific offences, penalties, or civil/criminal consequences for breach. However, any failure to comply with the provisions of the Act and the amended Regulations could potentially result in regulatory action under the SIS framework. This may include sanctions, fines, or other penalties imposed by the Australian Prudential Regulation Authority (APRA), the regulator overseeing the superannuation industry. The maximum penalties for breaches of SIS provisions can vary depending on the nature and severity of the breach, and are outlined in the relevant sections of the SIS Act and associated regulations.