explanatory statement
Issued by the Minister for Finance and Deregulation
Superannuation Act 1976
Declaration under paragraph (j) of the definition of eligible employee in subsection 3(1) of the Superannuation Act 1976.
The Superannuation Act 1976 (the Act) makes provision for and in relation to the Commonwealth Superannuation Scheme (CSS) for Australian Government employees and for certain other persons.
Subsection 3(1) of the Act contains the definition of the term “eligible employee” that describes various classes of persons who may contribute to the CSS (that is, CSS members). Paragraph (j) of the definition provides that the Minister may declare a class of persons not to be CSS members.
The Superannuation (CSS) (Eligible Employees — Exclusion) Declaration 2003 (the Principal Declaration) identifies the persons who are not to be declared CSS members under paragraph (j) of the definition of eligible employees.
The purpose of the Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2012 (No. 2) (the Declaration) is to amend the Principal Declaration in order to provide when employees of the Australian Reinsurance Pool Corporation (ARPC) cease CSS membership after the commencement of this amending declaration.
ARPC is a Commonwealth authority established under the Terrorism Insurance Act 2003 to administer the terrorism reinsurance scheme.
ARPC were consulted on the amendments contained in the Declaration.
The Declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Declaration commences on the day after it is registered.
The details of the Declaration are explained in Attachment A.
A Statement of Compatibility with Human Rights is at Attachment B.
Attachment A
Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2012 (no. 2)
Section 1 – Name of Declaration
This section provides that the name of the Declaration is the Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2012 (No. 2).
Section 2 – Commencement
This section provides for the Declaration to commence on the day after it is registered.
Section 3 – Amendment of Superannuation (CSS) (Eligible Employees — Exclusion) Declaration 2003
This clause provides that Schedule 1 of the Declaration amends the Superannuation (CSS) (Eligible Employees — Exclusion) Declaration 2003 (the Principal Declaration).
Schedule 1 – Amendments
Item 1 inserts a definition of ARPC, short for the Australian Reinsurance Pool Corporation.
Item 2 inserts item 26 into the table at Schedule 1 of the Principal Declaration. Item 26 provides that CSS membership ceases for a person who has CSS membership through paragraph 4(2)(r) of the Principal Declaration when any of the following events occur:
- the person ceases employment with ARPC;
- the person becomes a casual or temporary part-time employee of ARPC;
- ARPC ceases to be a Commonwealth authority.
Item 26 also specifies the time that CSS membership is taken to cease for each of the circumstances above.
ATTACHMENT B
Overview
The Superannuation Act 1976, enacted by the Parliament of Australia, was introduced to establish the Commonwealth Superannuation Scheme (CSS) for Australian Government employees and certain other persons. This legislation aims to provide a retirement benefit system for eligible employees. The Act defines who is considered an "eligible employee" and allows the Minister to exclude certain classes of persons from CSS membership through declarations under specific provisions. To address a gap in the exclusion criteria, the Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2012 (No. 2) was issued. This legislative instrument amends the initial exclusion declaration to ensure that employees of the Australian Reinsurance Pool Corporation (ARPC) lose their CSS membership under certain conditions, such as ceasing employment with ARPC or ARPC ceasing to be a Commonwealth authority. The amendments were made following consultation with ARPC, and the Declaration operates under the Legislative Instruments Act 2003, coming into effect the day after registration.
Scope and Application
The Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2012 (No. 2) amends the Superannuation (CSS) (Eligible Employees — Exclusion) Declaration 2003, which identifies classes of persons who are not eligible to contribute to the Commonwealth Superannuation Scheme (CSS). Specifically, this amendment declaration focuses on altering the eligibility criteria for employees of the Australian Reinsurance Pool Corporation (ARPC). The ARPC, established under the Terrorism Insurance Act 2003, administers the terrorism reinsurance scheme. The amendment declaration specifies that CSS membership for ARPC employees will cease under certain conditions, such as when the employee ceases employment with ARPC, becomes a casual or temporary part-time employee, or if ARPC ceases to be a Commonwealth authority. The declaration sets out the exact timing for when CSS membership is deemed to cease in these circumstances. This amendment is designed to align the CSS membership rules with the operational changes within the ARPC, ensuring the superannuation contributions for affected employees are accurately managed according to the prescribed conditions.
Key Provisions
The Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2012 (No. 2) amends the Superannuation (CSS) (Eligible Employees — Exclusion) Declaration 2003 (section 3). This amendment specifically pertains to employees of the Australian Reinsurance Pool Corporation (ARPC). According to the amendment, certain employees of ARPC will cease to be eligible for the Commonwealth Superannuation Scheme (CSS) under specific circumstances (Schedule 1, Item 26). These circumstances include cessation of employment with ARPC, becoming a casual or temporary part-time employee, or ARPC ceasing to be a Commonwealth authority. The Declaration also specifies the exact moment when CSS membership will be considered to cease for each of these events (Schedule 1, Item 26).
The obligations imposed by this Declaration on the parties involved, particularly ARPC and its employees, are straightforward. ARPC must ensure that its employees are aware of the conditions under which CSS membership ceases. Employees of ARPC who fall under the specified conditions must also be informed about the cessation of their CSS membership. The Declaration necessitates that these changes be implemented precisely when the outlined events occur. This means that ARPC has to monitor the employment status of its employees and the operational status of the corporation to determine when CSS membership should cease.
Failure to comply with the provisions of this Declaration could result in various legal consequences. Specifically, if ARPC does not adhere to the stipulated conditions for the cessation of CSS membership, it may face penalties under the legislative framework governing the Superannuation Act 1976. Although the Declaration does not explicitly outline penalties, breaches of the Superannuation Act can lead to substantial fines and other legal repercussions. The exact penalties would be determined based on the specific breach and the relevant provisions of the Superannuation Act 1976. It is essential for ARPC and its employees to understand and comply with these provisions to avoid any legal complications.