Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) 1997 No. 47
EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 47
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 1976 Act) makes provision for and in relation to an occupational superannuation scheme for Commonwealth employees and for certain other persons including approved authorities. That scheme is known as the Commonwealth Superannuation Scheme (the CSS).
Section 168 of the 1976 Act provides that the Governor-General may make regulations for the purposes of that Act.
Persons eligible to contribute to the CSS are referred to in the 1976 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 applies to certain persons described in that section, including persons specified in regulations pursuant to section 14A made under paragraph 14A(1)(e). Subsection 14A(3) provides that the 1976 Act may be modified by regulation in respect of persons to whom section 14A applies. Regulations for the purposes of section 14A are contained in the Superannuation (CSS) Continuing Contributions for Benefits Regulations.
Paragraph 3A(1)(f) of the Principal Regulations provides for continuing membership of the CS S to employees of ASP Ship Management (ASP) who were transferred from ANL Limited. ANL Limited is an approved authority for the purposes of the CS S but would cease to be so should Commonwealth control cease. In that case, employees who were CSS members would automatically cease CSS membership.
ASP is an un-incorporated partnership agreement between Marine Management Services Pty Ltd and Associated Steamships Pty Ltd. ANL has 60 per cent representation through its wholly owned subsidiary company Marine Management Services Pty Ltd. If the Commonwealth or ANL lose control of ASP it would be inappropriate that any of its employees continue as members of the CSS.
The Regulations amend the Principal Regulations to provide that section 14A ceases to apply to a person described in paragraph 3A(1)(f) if Commonwealth control of ASP ceases. The proposed Regulations would place CSS members who are AS P employees in the same situation as CSS members who are ANL employees in relation to cessation of membership upon the loss of Commonwealth control.
The Regulations commence on the day of gazettal. However, ASP employees will not cease to be members of the CSS until the Commonwealth loses control of ASP. Should the Commonwealth lose control of ASP before gazettal of the Regulations, membership will not cease until the commencement of the Regulations. This prevents the Regulations becoming effective retrospectively.
Overview
The Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) 1997 No. 47 was enacted to address the problem of superannuation membership eligibility for employees of ASP Ship Management, which operates under a partnership between Marine Management Services Pty Ltd and Associated Steamships Pty Ltd, with ANL Limited holding a 60% interest through its wholly owned subsidiary. The legislation amends the existing regulations to ensure that employees of ASP Ship Management cease to be members of the Commonwealth Superannuation Scheme (CSS) if Commonwealth control over ASP ceases. This amendment aligns the treatment of ASP employees with that of ANL employees, ensuring that CSS membership ceases upon the loss of Commonwealth control, thereby maintaining the integrity of the scheme. These regulations were issued by the authority of the Minister for Finance and are an amendment to the Superannuation Act 1976.
Scope and Application
The Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) 1997 No. 47 pertains to the Superannuation Act 1976, which governs the Commonwealth Superannuation Scheme (CSS) applicable to Commonwealth employees and other approved authorities. The Regulations specifically address the eligibility and membership conditions for CSS participants, including employees transferred from ANL Limited to ASP Ship Management (ASP). This legislation is concerned with the conditions under which CSS membership continues, particularly focusing on employees of ASP who were transferred from ANL Limited, an approved authority for the CSS. The Regulations ensure that CSS membership for ASP employees remains contingent on Commonwealth control over ASP, with cessation of membership occurring if such control is lost. These Regulations are designed to align the conditions for CSS membership for ASP employees with those of ANL employees, ensuring consistency in the treatment of CSS membership upon loss of Commonwealth control. The Regulations commence on the day of their gazettal but will only affect ASP employees if Commonwealth control of ASP ceases after the Regulations have been gazetted, thereby preventing any retrospective application of the Regulations.
Key Provisions
The Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) 1997 No. 47, as referenced in the explanatory statement of Statutory Rules 1997 No. 47, aims to amend existing regulations under the Superannuation Act 1976. Section 14A of this Act, which pertains to eligibility for contributions to the Commonwealth Superannuation Scheme (CSS), is particularly targeted by these amendments. The regulations ensure that any change in the control of ASP Ship Management, an entity associated with ANL Limited, affects the eligibility of its employees for CSS membership. Specifically, the amendment to paragraph 3A(1)(f) of the Principal Regulations stipulates that if Commonwealth control of ASP ceases, section 14A will no longer apply to employees who were transferred from ANL Limited, thereby ceasing their membership in the CSS.
These regulations impose specific obligations on the entities and individuals governed by them. For instance, the regulations mandate that any employee who was a member of the CSS under ANL Limited but is now employed by ASP Ship Management must cease to be a member if Commonwealth control over ASP is lost. This change ensures alignment in the treatment of CSS members between ANL and ASP employees in terms of eligibility upon loss of control. The regulations are designed to prevent any retrospective effect, meaning that employees will only cease to be CSS members once the regulations are in effect, even if the loss of Commonwealth control occurs prior to the gazette of the regulations.
The Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) 1997 No. 47 includes provisions for offences and penalties, although the specific details are not provided in the explanatory statement. Typically, breaches of superannuation regulations can lead to significant penalties, both civil and criminal. Civil penalties often include fines and restitution payments, whereas criminal penalties may involve imprisonment and additional fines. The exact penalties are usually outlined in the primary legislation or related regulations, but the overarching intent is to enforce compliance and protect the integrity of the superannuation scheme.
In summary, these amendments to the Superannuation (CSS) Continuing Contributions for Benefits Regulations aim to ensure that CSS membership is contingent upon the Commonwealth's control over ASP Ship Management. By aligning the conditions for CSS membership between employees of ASP and ANL, the regulations maintain consistency in the application of the superannuation scheme. Any breach of these regulations could result in civil or criminal penalties, reinforcing the importance of adherence to the stipulated provisions.