Superannuation (CSS) Productivity Contribution (2000-2001) Declaration 2000 No. 120
EXPLANATORY STATEMENT
STATUTORY RULES 2000 No. 120
Issued by the authority of the Delegate of the Minister for Finance and Administration
Superannuation Act 1976
Superannuation (CSS) Productivity Contribution (2000-2001) Declaration
The Superannuation Act 1976 (the Act) makes provision for, and in relation to, the Commonwealth Superannuation Scheme (CSS) which is an occupational superannuation scheme for Commonwealth employees and for certain other persons.
Part VIA of the Act comprising sections 1 10A to 1 10S provides for a funded productivity superannuation benefit for members of the scheme.
Section 1 10H of the Act 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 1 1ON of the Act 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 1 10C 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 1 10D provides that amounts of salary and contribution specified in the Table may be varied by a declaration by the Minister for Finance and Administration or his or her delegate in relation to a period specified in the declaration.
The Declaration contained in the Statutory Rule, and cited as "Superannuation (CSS) Productivity Contribution (2000-2001) Declaration", provides for increased amounts of salary and contribution to apply in relation to the period from 1 July 2000 to 30 June 2001.
In accordance with section 1 1OG of the Act a declaration under section 1 10D 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 2000.
Overview
The Superannuation (CSS) Productivity Contribution (2000-2001) Declaration 2000 No. 120, issued under the authority of the Delegate of the Minister for Finance and Administration, pertains to the Superannuation Act 1976. This Act governs the Commonwealth Superannuation Scheme (CSS), an occupational superannuation scheme for Commonwealth employees and certain other individuals. The Declaration was introduced to address the need for adjusting the productivity contribution rates within the CSS for the period from 1 July 2000 to 30 June 2001. By enabling the variation of salary and contribution amounts specified in the Table of section 1 10C of the Act, the Declaration ensures the intended average contribution rate of 3% of salaries is maintained and updated as necessary. This statutory rule is essential for the proper functioning of the CSS, ensuring that the contributions align with the scheme's objectives and the economic conditions of the specified period.
Scope and Application
The Superannuation (CSS) Productivity Contribution (2000-2001) Declaration 2000 No. 120 applies to employers who participate in the Commonwealth Superannuation Scheme (CSS) as outlined under the Superannuation Act 1976. This Act pertains to occupational superannuation for Commonwealth employees and certain other individuals, and it imposes an obligation on employers not to pay productivity contributions to other schemes for their members. Instead, employers must remit fortnightly productivity contributions directly to the CSS as stipulated in section 1 10H of the Act. These contributions are to be made in accordance with the rates specified in section 1 10C, which are intended to average at 3% of the employee's salary. The CSS Board is then required under section 1 1ON to allocate these contributions to the CSS Fund established by the Act. The Declaration, which serves to adjust the amounts of salary and contribution for the period from 1 July 2000 to 30 June 2001, operates under the authority of section 1 10D of the Act and is issued by the Minister for Finance and Administration or their delegate. This statutory rule is also recognised as a disallowable instrument under the Acts Interpretation Act 1901, effective from 1 July 2000.
Key Provisions
The Superannuation (CSS) Productivity Contribution (2000-2001) Declaration 2000 No. 120 sets forth the increased amounts of salary and contribution to be applied to the Commonwealth Superannuation Scheme (CSS) for the financial year beginning 1 July 2000 and ending 30 June 2001. As per Section 1 10D of the Superannuation Act 1976, these amounts may be varied by a declaration from the Minister for Finance and Administration or their delegate. This Declaration specifically modifies the salary and contribution amounts for the specified period, ensuring that the productivity contributions remain consistent with the intended average rate of 3% of salaries as per Section 1 10C. The CSS Board is then required under Section 1 10N to pay these contributions to the CSS Fund.
Employers of CSS members who do not pay productivity contributions to another scheme are obligated to make fortnightly contributions as outlined in the Declaration. These contributions are directly tied to the member's salary, with the contribution rate varying according to the salary as detailed in Section 1 10C of the Act. The employer’s duty under Section 1 10H is to ensure that these contributions are made to the CSS Fund on a regular basis, reinforcing the scheme's purpose of providing occupational superannuation benefits. The CSS Board, in turn, must process and allocate these contributions appropriately within the scheme.
Breaches of the obligations imposed by the Act, including the failure to make required productivity contributions, may result in legal consequences. The Act provides for both civil and criminal penalties for non-compliance. While the specific penalties are not detailed in the explanatory statement, they generally include fines and potential imprisonment as stipulated under the relevant sections of the Superannuation Act 1976. Employers found in breach of their obligations could face financial penalties, and in more severe cases, criminal charges. These consequences serve to uphold the integrity and sustainability of the CSS.