Superannuation (CSS) Productivity Contribution (2018-2019) Declaration 2018 – Explanatory Statement
1 Name of Determination
This declaration is the Superannuation (CSS) Productivity Contribution
(2018-2019) Declaration 2018.
2 Commencement
This declaration shall take effect on 1 July 2018.
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 2018 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 (2018-2019) Declaration 2018 was enacted to provide for the setting of the fortnightly rate of productivity contributions for members of the Commonwealth Superannuation Scheme (CSS) for the financial year 2018-2019. This legislation is a declaration made by the Commonwealth Superannuation Corporation (CSC), pursuant to the Superannuation Act 1976. The primary objective of this declaration is to establish the productivity contribution rates that employers must pay to the CSS, ensuring that the average contribution rate remains at approximately 3% of salaries. This declaration is instrumental in maintaining the funding of productivity benefits for CSS members, as required by the Act.
The declaration, which took effect on 1 July 2018, specifies new productivity contribution rates for the designated period. The Superannuation Act 1976 outlines the necessity for the employer of a CSS member to pay productivity contributions, with the CSC responsible for paying these contributions into the CSS Fund. Given the internal nature of this declaration, no external consultation was deemed necessary. Additionally, the Legislative Instrument has been assessed for compatibility with human rights, and it has been determined that it does not engage any applicable rights or freedoms, ensuring alignment with the human rights and freedoms recognised in relevant international instruments.
Scope and Application
The Superannuation (CSS) Productivity Contribution (2018-2019) Declaration 2018 is a legislative instrument that applies to employers of members within the Commonwealth Superannuation Scheme (CSS). This scheme is an occupational superannuation arrangement designed for Commonwealth employees and certain other individuals. The Declaration specifically addresses the fortnightly productivity contributions employers must make to the CSS for their employees, as mandated by the Superannuation Act 1976. The productivity contributions are intended to maintain an average rate of 3% of the employee's salary. The declaration comes into effect on 1 July 2018, and the rates for such contributions are specified in the Table within section 110C of the Act, which may be varied by a declaration from the Commonwealth Superannuation Corporation (CSC). This corporation, established under the Governance of Australian Government Superannuation Schemes Act 2011, is tasked with the administration of these contributions. The instrument applies nationally within the Commonwealth jurisdiction and does not extend to state or territory schemes. It is worth noting that the declaration is for internal government purposes, and as such, no external consultation was deemed necessary. The instrument is also compliant with human rights, as it does not engage any of the applicable rights or freedoms.
Key Provisions
The Superannuation (CSS) Productivity Contribution (2018-2019) Declaration 2018 (sections 1-7) outlines the new productivity contribution rates applicable from 1 July 2018 for members of the Commonwealth Superannuation Scheme (CSS). This scheme is designed for Commonwealth employees and other eligible individuals. According to section 110H of the Superannuation Act 1976, employers of CSS members who do not contribute to another scheme must make fortnightly productivity contributions to the CSS. These contributions are managed by the Commonwealth Superannuation Corporation (CSC), as stipulated in section 110N of the Act. The fortnightly contribution rate, outlined in section 110C, is intended to average 3% of the member's salary, with adjustments made annually from 1 July.
Under the Act, the CSC has the authority to vary the contribution rates through a declaration, as specified in section 110D. This power has been delegated to relevant officers within the Commonwealth Superannuation Administration. The rates set by the declaration are intended to maintain the average contribution at 3% of salaries, with adjustments as necessary. The CSC's role is pivotal in administering these contributions, ensuring they are paid into the CSS Fund as required by the Act.
Entities and individuals governed by the Act must adhere to the specified contribution rates and timelines, ensuring that the contributions are made in a timely and accurate manner. The CSC is responsible for implementing these rates and ensuring that the contributions are appropriately accounted for and managed within the CSS Fund. Employers, in particular, must ensure they are contributing correctly according to the rates set out in the declaration, as failure to do so could result in non-compliance with the Act.
Breach of the obligations under the Act, such as failure to make the required productivity contributions, may result in penalties. While the specific penalties are not detailed in the provided text, non-compliance with superannuation laws generally can lead to financial penalties, legal action, and potential reputational damage for the entities involved. The exact consequences would depend on the severity and intent behind the breach, but it is clear that compliance is crucial to avoid any adverse outcomes.