Superannuation (CSS) Productivity Contribution (1996-97) Declaration 1996
No. 115
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 115
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 who does not pay productivity contributions in respect of the member to another scheme to pay fortnightly "productivity contributions" to the CSS. In accordance with section 110N the CSS Board must pay such contributions 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 in the declaration.
The Declaration contained in the Statutory Rule, and cited as "Superannuation (CSS) Productivity Contribution (1996-97) Declaration", provides for increased amounts of salary and contribution to apply in relation to the period from 1 July 1996 to 30 June 1997.
In accordance with section 110G, a declaration under section 110D is 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 1996.
Overview
The Superannuation (CSS) Productivity Contribution (1996-97) Declaration 1996 No. 115, issued under the Superannuation Act 1976, was enacted to address the need for adjustments in the productivity contributions for Commonwealth employees participating in the superannuation scheme. This Statutory Rule, authorised by the Minister for Finance, aims to update the rates of salary and corresponding contributions, ensuring that the productivity superannuation benefit remains aligned with economic conditions and employee salaries over the specified period of 1 July 1996 to 30 June 1997. The policy objective is to maintain the average contribution rate at 3% of salaries, facilitating adjustments as necessary to support the CSS Fund established by the Act.
Scope and Application
The Superannuation (CSS) Productivity Contribution (1996-97) Declaration 1996 applies to Commonwealth employers who participate in the superannuation scheme established under the Superannuation Act 1976. Specifically, it targets employers of scheme members who are not paying productivity contributions to another scheme, obliging them to remit fortnightly productivity contributions to the Commonwealth Superannuation Scheme (CSS). The Act mandates that these contributions be paid to the CSS Fund, which is created under the Superannuation Act. The rate of productivity contribution is determined by the member’s salary, as outlined in section 110C of the Act, with the aim of maintaining an average contribution rate of 3% of salaries. The Declaration adjusts the amounts of salary and contributions applicable for the financial year 1996-97, and operates from 1 July 1996 to 30 June 1997. The geographical reach of this legislation is limited to Commonwealth employees within Australia, and it does not extend to state or territory employees. Any variations in salary and contribution amounts are subject to a declaration by the Minister for Finance, which, as a statutory rule, is subject to disallowance under the Acts Interpretation Act 1901.
Key Provisions
The Superannuation (CSS) Productivity Contribution (1996-97) Declaration 1996 No. 115 (the Declaration) amends the rates of productivity contributions and salaries specified in the Superannuation Act 1976 (the Act). According to section 110D of the Act, the Minister for Finance may vary these amounts by a declaration for a specified period. The Declaration, therefore, adjusts the rates for the period from 1 July 1996 to 30 June 1997. This adjustment is in line with the intention that the contribution rate be maintained at an average of 3% of salaries, as stipulated in section 110C of the Act. The updated rates are set out in a Table which forms part of the Declaration.
The Act imposes obligations on employers of members of the superannuation scheme to make fortnightly productivity contributions to the Commonwealth Superannuation Scheme (CSS) (section 110H). If an employer does not pay such contributions to another scheme, they must pay them directly to the CSS. The CSS Board is responsible for receiving these contributions and ensuring they are paid to the CSS Fund, which is established by the Act (section 110N). Employers must base their contributions on the salary of the employee, as specified in the Table in section 110C of the Act, which has been updated by the Declaration.
The Declaration itself is a Statutory Rule under section 110G of the Act, meaning it is subject to the provisions of the Statutory Rules Publication Act 1903. Additionally, it is a disallowable instrument under section 46A of the Acts Interpretation Act 1901, which allows for its disallowance by either House of Parliament within a specified period. Any breach of the requirements set out in the Declaration may result in legal consequences, though specific offences and penalties are not detailed in the Act or the Declaration. The implications of non-compliance would need to be determined in the context of the broader legislative framework and any relevant case law or administrative guidelines.