Superannuation (CSS) Productivity Contribution (2012-2013) Declaration 2012

Overview

The Superannuation (CSS) Productivity Contribution (2012-2013) Declaration 2012 was enacted by the Commonwealth Superannuation Corporation (CSC) to address the need for maintaining a funded productivity superannuation benefit for members of the Commonwealth Superannuation Scheme (CSS). The declaration, which came into effect on 1 July 2012, specifies the new fortnightly productivity contribution rates to be applied under the Superannuation Act 1976. The intention behind these contributions, as outlined in the Act, is to keep the contribution rate at an average of 3% of members' salaries. The declaration amends the rates specified in section 110C of the Act, reflecting changes effective from 1 July 2012. This legislative instrument ensures that productivity contributions are appropriately adjusted and managed within the framework of the CSS, facilitating the ongoing operation of the scheme for Commonwealth employees and certain other persons.

Scope and Application

The Superannuation (CSS) Productivity Contribution (2012-2013) Declaration 2012 applies to employers of members of the Commonwealth Superannuation Scheme (CSS), an occupational superannuation scheme for Commonwealth employees and certain other persons. The declaration sets the productivity contribution rates that employers must pay to the CSS for their employees for the financial year starting 1 July 2012. The Commonwealth Superannuation Corporation (CSC), which administers the CSS, has the power to set these rates through a declaration under the Superannuation Act 1976. The rates are intended to maintain an average productivity contribution of 3% of employees' salaries. The declaration also specifies that any reference to the Australian Reward Investment Alliance in previous instruments should be construed as a reference to the CSC. The instrument applies to the Commonwealth jurisdiction, as it concerns an internal mechanism of government and did not require external consultation. There are no stated exclusions or exemptions, and no subordinate instruments are noted to extend or restrict the application of this declaration.

Key Provisions

The Superannuation (CSS) Productivity Contribution (2012-2013) Declaration 2012 (sections 1 to 7) sets out the productivity contribution rates for the Commonwealth Superannuation Scheme (CSS) for the period 1 July 2012 to 30 June 2013. This declaration, which takes effect from 1 July 2012, aligns with the requirements of the Superannuation Act 1976 (section 2). It involves the calculation of fortnightly productivity contributions that employers must make to the CSS, as outlined in section 110C of the Act. These contributions are intended to average 3% of the members' salaries and are adjusted annually through a declaration by the Commonwealth Superannuation Corporation (CSC) (sections 3 and 4). The declaration specifies the rates of productivity contribution, which vary according to the member's salary, and is detailed in the Table in section 110C of the Act. The CSC is responsible for setting these rates, as per section 110D, and has delegated this authority to relevant officers within the Commonwealth Superannuation Administration. This annual amendment ensures that the contribution rates are updated to reflect changes in salary scales and other relevant factors (section 5). Furthermore, references to the Australian Reward Investment Alliance (ARIA) in instruments made before 1 July 2011 are to be construed as references to the CSC, as per section 6 of the Governance of Australian Government Superannuation Schemes Act 2011. The obligations imposed by this declaration include the requirement for employers to calculate and remit the appropriate productivity contributions to the CSS as per the rates specified in the declaration (section 110H). The CSC, as the administering body, must ensure that these contributions are made to the CSS Fund, as stipulated in section 110N of the Superannuation Act 1976. Employers must adhere to the contribution rates set out in the declaration, and any failure to do so could lead to non-compliance with the Act. The declaration is internal to the machinery of government and does not require consultation with other persons, in accordance with sections 17 and 18 of the Legislative Instruments Act 2003 (section 7). The declaration does not specify any offences, penalties, or civil/criminal consequences for non-compliance within its text. However, under the Superannuation Act 1976, non-compliance with the obligations to make productivity contributions could potentially lead to enforcement actions by the CSC or other relevant authorities. Such actions might include fines, interest on unpaid contributions, or other remedial measures to ensure compliance with the Act. The specific penalties for non-compliance would need to be determined in accordance with the provisions of the Superannuation Act 1976 and any applicable regulations.