Superannuation (CSS) Productivity Contribution (2016-2017) Declaration 2016 – Explanatory Statement
1 Name of Determination
This declaration is the Superannuation (CSS) Productivity Contribution
(2016-2017) Declaration 2016.
2 Commencement
This declaration shall take effect on 1 July 2016.
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 2016 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 15J(2) and 17 of the Legislation 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 (2016-2017) Declaration 2016, enacted under the Superannuation Act 1976, addresses the need for setting productivity contribution rates for members of the Commonwealth Superannuation Scheme (CSS). This legislation was introduced to ensure that productivity contributions, which are a form of superannuation benefit for Commonwealth employees, are maintained at an average of 3% of salaries, as stipulated in the Act. The declaration, which took effect on 1 July 2016, is issued by the Commonwealth Superannuation Corporation (CSC) and serves to update the productivity contribution rates annually. The intention behind this instrument is to provide a stable and predictable framework for the administration of productivity contributions within the CSS, while ensuring compliance with human rights standards as it does not engage any applicable rights or freedoms.
Scope and Application
The Superannuation (CSS) Productivity Contribution (2016-2017) Declaration 2016 applies to the Commonwealth Superannuation Scheme (CSS), an occupational superannuation scheme for Commonwealth employees and certain other persons. The declaration sets the fortnightly rate of productivity contributions payable by employers in relation to members of the scheme, varying according to the member's salary with the intention of maintaining the contribution rate at an average of 3% of salaries. This declaration operates under the framework of the Superannuation Act 1976, which provides for the CSS and mandates the payment of productivity contributions by employers who do not pay such contributions to another scheme. The Commonwealth Superannuation Corporation (CSC) is responsible for these payments, having this power delegated by the Act. The declaration specifies the productivity contribution rates effective from 1 July 2016, amending the rates set out in section 110C of the Act. The declaration is applicable within the Commonwealth and its territories, reflecting the jurisdictional reach of the Act. No consultation was deemed necessary for this instrument as it pertains solely to the internal machinery of the Government.
Key Provisions
The Superannuation (CSS) Productivity Contribution (2016-2017) Declaration 2016 outlines the productivity contribution rates applicable from 1 July 2016, as set out in section 110C of the Superannuation Act 1976 (the Act). These rates are intended to maintain an average contribution of 3% of salaries for members of the Commonwealth Superannuation Scheme (CSS). The rate varies according to the member's salary and is amended annually by the Commonwealth Superannuation Corporation (CSC) through a declaration. The rates for the financial year 2016-2017 are specified in the Table within section 110C of the Act. Section 110D of the Act allows for the variation of these rates by a declaration, a power delegated by the CSC to relevant officers within the Commonwealth Superannuation Administration.
The obligations under the declaration are primarily placed on employers of members of the CSS who are not paying productivity contributions to another scheme. Under section 110H of the Act, such employers are required to pay fortnightly productivity contributions to the CSS. These contributions are then to be paid by the CSC to the CSS Fund, as mandated by section 110N of the Act. The declaration serves to update the rates specified in the Table in section 110C and ensures that employers are aware of and comply with the new rates.
In terms of legal consequences, the declaration itself does not outline specific offences or penalties for non-compliance. However, the underlying Superannuation Act 1976 does provide for enforcement mechanisms. Employers who fail to make the required productivity contributions can be subject to legal action, which may include fines or other penalties as prescribed by the Act. Additionally, the CSC is empowered to take action to ensure compliance with the declaration and the Act.
The declaration is consistent with human rights as it does not engage any of the applicable rights or freedoms under the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011. This compatibility is confirmed in the Statement of Compatibility with Human Rights, which states that the legislative instrument does not raise any human rights issues. Given that the declaration is for internal government purposes, no external consultation was deemed necessary, as per sections 15J(2) and 17 of the Legislation Act 2003.