Superannuation (CSS) Productivity Contribution (2014-2015) Declaration 2014 – Explanatory Statement
1 Name of Determination
This declaration is the Superannuation (CSS) Productivity Contribution
(2014-2015) Declaration 2014.
2 Commencement
This declaration shall take effect from and including 1 July 2014.
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 2014 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 (2014-2015) Declaration 2014 was introduced to set the fortnightly rate of productivity contributions for members of the Commonwealth Superannuation Scheme (CSS). Enacted by the Commonwealth Superannuation Corporation (CSC), this legislative instrument addresses the need for regular updates to the contribution rates as specified in the Superannuation Act 1976. The instrument aligns with the policy objective of maintaining an average contribution rate of 3% of salaries and ensures that productivity contributions are appropriately adjusted each year, effective from 1 July. This declaration is an internal administrative measure and does not require consultation with external parties, as indicated by the Legislative Instruments Act 2003. Additionally, the declaration has been assessed for compatibility with human rights, confirming that it does not engage any of the applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Superannuation (CSS) Productivity Contribution (2014-2015) Declaration 2014 applies to employers of members in the Commonwealth Superannuation Scheme (CSS), which is an occupational superannuation scheme for Commonwealth employees and certain other individuals. The Act mandates that employers who do not contribute productivity payments to another scheme must pay fortnightly productivity contributions to the CSS. These contributions are governed by the Superannuation Act 1976, which specifies that they should average 3% of the member's salary. The Commonwealth Superannuation Corporation (CSC) is responsible for these contributions and is required to pay them to the CSS Fund, which is established under the Act. The rates for these contributions are set out in the Act and may be varied by a declaration from the CSC for a specified period. This declaration, effective from 1 July 2014, amends these rates for the financial year 2014-2015. The declaration does not require consultation with external parties as it pertains to the internal machinery of the government.
Key Provisions
The Superannuation (CSS) Productivity Contribution (2014-2015) Declaration 2014 specifies the productivity contribution rates for members of the Commonwealth Superannuation Scheme (CSS) effective from 1 July 2014. Section 110C of the Superannuation Act 1976 outlines the contribution rates, which vary according to a member's salary, with the intention of maintaining an average contribution rate of 3% of salaries. Section 110D allows the Commonwealth Superannuation Corporation (CSC) to vary these rates via a declaration, a power delegated to relevant officers in Commonwealth Superannuation Administration.
The Declaration imposes obligations on employers to pay the specified productivity contributions to the CSS on behalf of their employees. Employers who fail to remit these contributions are required to make direct payments to the CSS. Additionally, the CSC is mandated to disburse these contributions to the CSS Fund, as stipulated in section 110N of the Act. These obligations ensure that contributions are appropriately allocated to the CSS to fund the productivity benefit for scheme members.
Breaches of the obligations imposed by this Declaration may result in civil or criminal consequences. While the Declaration itself does not explicitly state penalties for non-compliance, violations of the Superannuation Act 1976, under which these contributions are governed, could result in penalties. Employers who fail to remit the required contributions may face fines, with the maximum penalty varying depending on the specific provisions of the Act and any applicable regulations. Additionally, officers of the CSC who fail to ensure compliance with the contribution requirements may also face legal repercussions.