explanatory statement
Issued by the Minister for Finance
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, by legislative instrument, declare a class of persons not to be CSS members.
The Superannuation (CSS) (Eligible Employees — Exclusion) Declaration 2003 (the Principal Declaration) identifies persons who are not CSS members and also the circumstances where certain CSS members cease to be contributory members, for example when they body they are employed with ceases to be a Commonwealth body.
The purpose of the Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2014 (No. 1) (the Declaration) is to amend the Principal Declaration to make consequential changes brought about by the commencement of the substantive provisions of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the repeal of the Commonwealth Authorities and Companies Act 1997 (CAC Act).
The PGPA Act will replace the governance arrangements previously applying to Commonwealth entities under the CAC Act.
The Declaration updates relevant references and terminology in the Principal Declaration to bring it into line with the PGPA Act. Bodies which were previously referred to as ‘Commonwealth authorities’ under the CAC Act, will be known as ‘corporate Commonwealth entities’ under the PGPA Act.
In relation to section 17 and 18 of the Legislative Instruments Act 2003, no consultation was undertaken because the instrument is of a minor or machinery nature and does not substantially alter existing arrangements.
The Office of Best Practice Regulation (OBPR) assessed that the changes to be made by the Declaration will have nil or low impacts and no further analysis in the form of a Regulation Impact Statement was required (OBPR ID: 16978).
The Declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003. Although section 44 of the Legislative Instruments Act exempts superannuation instruments from disallowance, the Declaration is subject to disallowance in accordance with subsection 3(1BD) of the Act.
The Declaration commences upon the commencement of sections 6 to 112 of the PGPA Act.
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 2014 (no. 1)
Section 1 – Name of Declaration
This section provides that the name of the Declaration is the Superannuation (CSS) (Eligible Employees — Exclusion) Amendment Declaration 2014 (No. 1).
Section 2 – Commencement
This section provides for the Declaration to commence on the commencement of sections 6 to 112 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Section 3 – Amendment of Superannuation (CSS) (Eligible Employees — Exclusion) Declaration 2003
This section provides that Schedule 1 of the Declaration amends the Superannuation (CSS) (Eligible Employees — Exclusion) Declaration 2003 (the Principal Declaration).
Schedule 1 – Amendments
Item 1 amends relevant definitions to reflect the transition from the Commonwealth Authorities and Companies Act 1997 (CAC Act) to the PGPA Act.
The definition of ‘Commonwealth authority’ is replaced with a definition of ‘corporate Commonwealth entity’, which refers to a corporate Commonwealth entity under the PGPA Act.
The definition of ‘Commonwealth company’ referred to a Commonwealth company within the meaning of the CAC Act. The new definition refers to a Commonwealth company under the PGPA Act.
Item 2 amends the table in Schedule 1 to the Principal Declaration as follows:
The reference to a Commonwealth authority within the meaning of the CAC Act in columns 3 and 4 of item 16 is replaced with a reference to a corporate Commonwealth entity within the meaning of the PGPA Act. This is a consequential amendment following the commencement of the substantive provisions of the PGPA Act and repeal of the CAC Act. From that time, the Australian Government Solicitor will be a corporate Commonwealth entity under the PGPA Act.
The reference to a Commonwealth authority within the meaning of the CAC Act in columns 3 and 4 of item 18 is replaced with a reference to a corporate Commonwealth entity within the meaning of the PGPA Act. This is a consequential amendment following the commencement of the substantive provisions of the PGPA Act and repeal of the CAC Act. From that time, the Sydney Harbour Federation Trust will be a corporate Commonwealth entity under the PGPA Act.
The reference to a Commonwealth authority within the meaning of the CAC Act in columns 3 and 4 of item 26 is replaced with a reference to a corporate Commonwealth entity within the meaning of the PGPA Act. This is a consequential amendment following the commencement of the substantive provisions of the PGPA Act and repeal of the CAC Act. From that time, the ARPC will be a corporate Commonwealth entity under the PGPA Act.
ATTACHMENT B