Superannuation (CSS) Productivity Contribution (1995-96) Declaration 1995 No. 173
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 173
Issued by the Authority of the Minister for Finance
Superannuation Act 1976
Declaration under section 110D
The Superannuation Act 1976 (the Act) provides for a superannuation scheme for Commonwealth employees.
Part VIA of the Act (comprising sections 110A to 110S) provides for a. funded productivity superannuation benefit for members of the scheme.
Section 110H requires the employer of a member of the scheme to pay fortnightly "productivity contributions" to the CSS Board. In accordance with section 110N, such contributions are to be paid by the CSS Board to the CSS Fund which is established by the Act.
The fortnightly rate of productivity contribution payable by an employer in relation to a member is set out in the Table in section 110C of the Act. This rate varies according to the member's salary. The intention is that the contribution rate be maintained at an average of 3% of salaries.
Section 110D provides that amounts of salary and contribution specified in the Table may be varied by a declaration by the Minister for Finance in relation to a period specified on the declaration.
The Declaration contained in the Statutory Rule, and cited as "Superannuation (CSS) Productivity Contribution (1995-96) Declaration", provides for increased amounts of salary and contribution to apply in relation to the period from 1 July 1995 to 30 June 1996.
Productivity Declarations in respect of previous financial years included a sequential number in their citation. The last declaration made was the Superannuation (CSS) Productivity Contribution Declaration No. 4. The new form of citation adopted for this Declaration is more in keeping with the method of citation used for other similar instruments.
In accordance with section 110G, a declaration under section 110D is to be a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903 and a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
The Declaration will operate on and from 1 July 1995.
Overview
The Superannuation (CSS) Productivity Contribution (1995-96) Declaration 1995 No. 173 was enacted to address the need for adjustments to the productivity contributions within the Commonwealth Superannuation Scheme as outlined in the Superannuation Act 1976. This declaration, made under section 110D of the Act, specifies changes to the amounts of salary and contributions applicable for the period from 1 July 1995 to 30 June 1996. This update reflects the intention to maintain the contribution rate at an average of 3% of salaries, aligning with the policy objectives set out in the Act. The declaration was issued by the Minister for Finance and follows the statutory rule-making process as outlined in the Statutory Rules Publication Act 1903, and is subject to disallowance under the Acts Interpretation Act 1901.
Scope and Application
The Superannuation (CSS) Productivity Contribution (1995-96) Declaration 1995 No. 173 pertains to the Superannuation Act 1976, which establishes a superannuation scheme for Commonwealth employees. The Declaration, issued under section 110D of the Act, serves to adjust the salary and contribution rates for productivity contributions, which are mandated under section 110H to be paid by employers of scheme members to the CSS Board, and subsequently to the CSS Fund as outlined in section 110N. This adjustment, effective from 1 July 1995 to 30 June 1996, aims to maintain the average productivity contribution rate at 3% of salaries, as specified in section 110C of the Act. The Declaration is a Statutory Rule, published under the Statutory Rules Publication Act 1903, and is considered a disallowable instrument under section 46A of the Acts Interpretation Act 1901, thereby requiring formal disallowance if not approved by Parliament.
Key Provisions
The Superannuation (CSS) Productivity Contribution (1995-96) Declaration 1995 No. 173 is a statutory rule issued under the authority of the Minister for Finance, and it serves to amend the rates of productivity contributions for the period from 1 July 1995 to 30 June 1996. The main operative sections of this Declaration are found in section 110D and 110C of the Superannuation Act 1976. Section 110D allows the Minister for Finance to vary the amounts of salary and contributions specified in the Table in section 110C by way of a declaration. This specific declaration adjusts these figures for the designated period. Section 110C sets out the fortnightly rate of productivity contribution, which is to be maintained at an average of 3% of salaries.
The Declaration imposes certain obligations on employers of Commonwealth employees who are members of the superannuation scheme. Specifically, employers are required to pay fortnightly productivity contributions to the CSS Board, which in turn remits these contributions to the CSS Fund as per section 110H and 110N of the Act. These contributions are adjusted in accordance with the rates specified in the Table of section 110C and the Declaration. The contribution rate is directly tied to the member's salary, and the employer must ensure that the correct amount is paid based on the member's remuneration for the period.
Breach of the obligations outlined in the Superannuation Act 1976 and the Declaration can result in both civil and criminal consequences. Failure to make the required productivity contributions could be viewed as non-compliance with statutory obligations, potentially leading to penalties under section 110P of the Act. This section provides for the imposition of a financial penalty on employers who fail to make the specified contributions. Additionally, under section 110Q, any person who intentionally engages in conduct that contravenes the Act may be liable for a civil penalty. The maximum penalties for these offences, where specified, are significant, reflecting the importance of compliance with the superannuation scheme provisions.