Superannuation (CSS) Productivity Contribution (2013-2014) Declaration 2013 – Explanatory Statement
1 Name of Determination
This declaration is the Superannuation (CSS) Productivity Contribution
(2013-2014) Declaration 2013.
2 Commencement
This declaration shall take effect from and including 1 July 2013.
3 Background
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 Commonwealth Superannuation Corporation (CSC) must pay such contributions to the CSS Fund which is established by the Act.
4 Purpose and operation of instrument
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 CSC in relation to a period specified in the declaration. CSC has delegated this power to relevant officers in Commonwealth Superannuation Administration.
The Table set out in section 110C is amended with effect from 1 July each year by a Declaration by CSC.
5 New Productivity Contribution Rates
The new productivity contribution rates to apply with effect from 1 July 2013 are set out in the declaration.
6 References to CSC
Section 5 of the Governance of Australian Government Superannuation Schemes Act 2011 provides that “the board established by section 20 of the Superannuation Act 1990 as the Australian Reward Investment Alliance continues in existence by force of that section as a body corporate, under and subject to the provisions of this Act, under the name Commonwealth Superannuation Corporation (CSC)”.
In accordance with section 25B of the Acts Interpretation Act 1901, any reference to Australian Reward Investment Alliance (ARIA) in an instrument made prior to 1 July 2011 shall be construed as a reference to the CSC.
7 Consultation
As the instrument is for internal machinery of Government purposes only, no consultation was considered necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Overview
The Superannuation (CSS) Productivity Contribution (2013-2014) Declaration 2013 was enacted to address the need for updated productivity contribution rates for the Commonwealth Superannuation Scheme (CSS) as stipulated in the Superannuation Act 1976. This legislation was enacted to ensure that the productivity contributions remain consistent with the intended average rate of 3% of salaries, as outlined in section 110C of the Act. The declaration was issued by the Commonwealth Superannuation Corporation (CSC), which is authorised under section 110D of the Act to adjust the contribution rates annually, with effect from 1 July each year. The declaration specifies the new productivity contribution rates that apply from 1 July 2013, and it was deemed compatible with human rights under the Human Rights (Parliamentary Scrutiny) Act 2011, as it does not engage any applicable rights or freedoms.
Scope and Application
The Superannuation (CSS) Productivity Contribution (2013-2014) Declaration 2013 applies to the Commonwealth Superannuation Scheme (CSS), which is an occupational superannuation scheme designed for Commonwealth employees and certain other persons. The declaration serves to implement productivity contributions under Part VIA of the Superannuation Act 1976, specifically setting out the fortnightly productivity contribution rates payable by employers for scheme members. The Commonwealth Superannuation Corporation (CSC) is responsible for determining these rates, which are intended to maintain an average contribution of 3% of salaries. The declaration takes effect from 1 July 2013, with the rates varying according to the member's salary and being adjusted annually. The CSC, established under the Governance of Australian Government Superannuation Schemes Act 2011, has the authority to make these determinations, and references to the Australian Reward Investment Alliance in previous instruments are construed as references to the CSC. This legislative instrument does not require external consultation as it pertains solely to internal government operations and does not engage with any human rights issues.
Key Provisions
The Superannuation (CSS) Productivity Contribution (2013-2014) Declaration 2013 sets forth the productivity contribution rates for members of the Commonwealth Superannuation Scheme (CSS) for the 2013-2014 period. This declaration, which commences on 1 July 2013, is intended to maintain the productivity contribution rate at an average of 3% of salaries (section 4). The rates vary according to the member's salary and are detailed in the Table set out in section 110C of the Superannuation Act 1976, which is amended annually by a declaration from the Commonwealth Superannuation Corporation (CSC) (section 5).
Employers of CSS members who do not contribute to another scheme must pay these fortnightly productivity contributions to the CSS, as required by section 110H of the Superannuation Act 1976. The CSC is mandated by section 110N of the Act to make these contributions to the CSS Fund. The CSC, as a body corporate under the Governance of Australian Government Superannuation Schemes Act 2011, has the authority to adjust these rates annually and delegate this power to relevant officers within the Commonwealth Superannuation Administration (sections 5 and 6).
The declaration specifies the new productivity contribution rates that are to be applied from 1 July 2013 (section 5). This legislative instrument does not require consultation with other parties, as it pertains solely to the internal operations of the government (section 7). Additionally, this declaration has been assessed for compatibility with human rights under the Human Rights (Parliamentary Scrutiny) Act 2011, and it is deemed compatible as it does not engage any applicable rights or freedoms (section 7).
There are no specific obligations or requirements outlined in this declaration beyond those stipulated in the Superannuation Act 1976. However, the declaration ensures that the productivity contribution rates are updated annually to reflect changes in the economic environment and member salaries. The Superannuation Act 1976 provides the overarching framework for these contributions, and any breaches or non-compliance with the prescribed rates would be subject to the penalties and consequences outlined in that Act, although specific penalties are not detailed in this declaration.