Superannuation (CSS) Productivity Contribution (2003-2004) Declaration 2003 2003 No. 173
EXPLANATORY STATEMENT
STATUTORY RULES 2003 No. 173
Issued by the authority of the Delegate of the Minister for Finance and Administration
Superannuation Act 1976
Superannuation (CSS) Productivity Contribution (2003-2004) Declaration 2003
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 110A to 110S provides for a funded productivity superannuation benefit for members of the scheme.
Section 110H 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 110N 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 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 and Administration in relation to a period specified in the declaration. Section 165 enables the Minister to delegate his power to make such Declarations to an officer of the Department of Finance and Administration.
The Declaration contained in the Statutory Rule, and cited as Superannuation (CSS) Productivity Contribution (2003-2004) Declaration, provides for increased amounts of salary and contribution to apply in relation to the period from 1 July 2003 to 30 June 2004.
In accordance with section 110G of the Act 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 2003.
Overview
The Superannuation (CSS) Productivity Contribution (2003-2004) Declaration 2003, enacted in 2003, is a statutory rule designed to address the need for adjustments to the productivity contributions for members of the Commonwealth Superannuation Scheme (CSS). This scheme, governed by the Superannuation Act 1976, provides occupational superannuation benefits for Commonwealth employees and certain other individuals. The declaration specifically adjusts the rates of productivity contributions to be paid by employers in relation to their employees within the CSS for the financial year from 1 July 2003 to 30 June 2004. The policy objective is to ensure that the contribution rates remain aligned with the intended average of 3% of salaries, thereby maintaining the financial sustainability and benefits of the scheme. The declaration was issued under the authority of the Delegate of the Minister for Finance and Administration, in accordance with the legislative framework provided by the Superannuation Act 1976.
Scope and Application
The Superannuation (CSS) Productivity Contribution (2003-2004) Declaration 2003 pertains to the Commonwealth Superannuation Scheme (CSS), an occupational superannuation scheme for Commonwealth employees and certain other persons, as governed by the Superannuation Act 1976. This legislation applies to employers of members of the CSS who do not remit productivity contributions to another scheme, mandating them to pay fortnightly productivity contributions to the CSS, which are then deposited into the CSS Fund by the Board. The rate of these contributions is specified in the Act and is generally maintained at 3% of salaries. The Declaration adjusts the rates of salary and contribution for the period from 1 July 2003 to 30 June 2004, in accordance with the powers conferred by section 110D of the Act, which allows the Minister for Finance and Administration to make such declarations. The Minister has the authority to delegate this power under section 165 to an officer of the Department of Finance and Administration. The Declaration is a statutory rule under the Statutory Rules Publication Act 1903 and is also a disallowable instrument under the Acts Interpretation Act 1901.
Key Provisions
The Superannuation (CSS) Productivity Contribution (2003-2004) Declaration 2003 amends the rates of productivity contributions for members of the Commonwealth Superannuation Scheme (CSS). Under the Superannuation Act 1976, section 110H requires employers to pay productivity contributions to the CSS for employees who do not pay such contributions to another scheme (section 110H). The contribution rates, which aim to average 3% of salaries, are detailed in the Table in section 110C of the Act and can be altered by the Minister for Finance and Administration through a declaration under section 110D. This particular declaration adjusts the salary and contribution amounts for the period from 1 July 2003 to 30 June 2004. The Minister can delegate this power to an officer of the Department of Finance and Administration, as per section 165 of the Act.
The obligations under this Act involve employers ensuring they remit the appropriate productivity contributions to the CSS for eligible employees. These contributions are calculated based on the rates specified in the Table of section 110C, which are subject to adjustments by the Minister for specific periods. Employers must stay informed about these changes to comply with the legislative requirements accurately. The CSS Board, as per section 110N, is responsible for receiving and managing these contributions within the CSS Fund, ensuring the contributions are appropriately allocated and invested.
Breaching the obligations set out in the Superannuation Act 1976 can result in significant consequences. Employers failing to remit the required productivity contributions may face civil or criminal penalties, as stipulated by the Act. The specific penalties for such breaches are not explicitly stated in the provided text but are typically detailed in other sections of the Act or related legislation. The Minister for Finance and Administration has the authority to declare adjustments in the contribution rates, and these declarations are considered Statutory Rules under the Statutory Rules Publication Act 1903 and disallowable instruments under the Acts Interpretation Act 1901. The 2003 Declaration, therefore, serves to ensure that the productivity contributions remain aligned with the intended average rate of 3% of salaries for the specified period.