Superannuation (CSS) Productivity Contribution (2015-2016) Declaration 2015 – Explanatory Statement
1 Name of Determination
This declaration is the Superannuation (CSS) Productivity Contribution
(2015-2016) Declaration 2015.
2 Commencement
This declaration shall take effect on 1 July 2015.
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 2015 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 (2015-2016) Declaration 2015, enacted in 2015, was introduced to establish the productivity contribution rates for members of the Commonwealth Superannuation Scheme (CSS) for the financial year 2015-2016. The declaration was made by the Commonwealth Superannuation Corporation (CSC) in accordance with the Superannuation Act 1976, which governs the CSS, an occupational superannuation scheme for Commonwealth employees. The purpose of this declaration is to set the productivity contribution rates, ensuring they are maintained at an average of 3% of salaries, and to amend the contribution rates table in section 110C of the Act from 1 July each year. The declaration was made without the need for consultation as it pertains to internal government machinery, and it has been assessed as compatible with human rights under the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Superannuation (CSS) Productivity Contribution (2015-2016) Declaration 2015 applies to Commonwealth employees and certain other individuals who are members of the Commonwealth Superannuation Scheme (CSS) as established under the Superannuation Act 1976. This declaration specifically targets employers of CSS members who do not contribute to other schemes, requiring them to make fortnightly productivity contributions to the CSS. The productivity contribution rate is calculated according to the member's salary and is intended to maintain an average of 3% of salaries. The Commonwealth Superannuation Corporation (CSC), established under the Governance of Australian Government Superannuation Schemes Act 2011, is responsible for these contributions, delegating its authority to relevant officers in Commonwealth Superannuation Administration. The declaration sets new productivity contribution rates effective from 1 July 2015. This instrument does not extend beyond its specified purpose for internal government machinery and thus does not necessitate consultation with external entities. Additionally, any references to the Australian Reward Investment Alliance (ARIA) in instruments prior to 1 July 2011 are construed as references to the CSC.
Key Provisions
The Superannuation (CSS) Productivity Contribution (2015-2016) Declaration 2015 (section 1) sets out the productivity contribution rates for the Commonwealth Superannuation Scheme (CSS) for the 2015-2016 financial year. The declaration (section 2) took effect on 1 July 2015. The CSS is an occupational superannuation scheme for Commonwealth employees and certain other persons, governed by the Superannuation Act 1976 (section 3). Employers of scheme members who do not pay productivity contributions to another scheme must pay fortnightly productivity contributions to the CSS (section 110H), which are then paid to the CSS Fund by the Commonwealth Superannuation Corporation (CSC) (section 110N).
The productivity contribution rates, varying according to the member's salary, are intended to maintain an average of 3% of salaries (section 110C). The rates may be varied by a CSC declaration in relation to a specified period (section 110D). The CSC has delegated this power to relevant officers in Commonwealth Superannuation Administration, who have amended the Table set out in section 110C for the 2015-2016 financial year (sections 4 and 5). The declaration also clarifies that any reference to Australian Reward Investment Alliance (ARIA) in instruments made prior to 1 July 2011 should be construed as a reference to the CSC (section 6).
The declaration does not require consultation with other persons as it is for internal machinery of government purposes only (section 7). The Legislative Instrument is compatible with human rights as it does not raise any human rights issues (section 9). There are no obligations or requirements imposed on parties or entities by this declaration, as it serves to set out the productivity contribution rates for the specified period. The explanatory statement does not mention any offences, penalties, or civil/criminal consequences for breach.