Superannuation (CSS) Productivity Contribution (2022-2023) Declaration 2022 – Explanatory Statement
1 Name of Determination
This declaration is the Superannuation (CSS) Productivity Contribution
(2022-2023) Declaration 2022.
2 Commencement
This declaration commences on 1 July 2022.
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.
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 2022 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 (2022-2023) Declaration 2022 was enacted to set the new productivity contribution rates applicable under the Superannuation Act 1976 for the period of 1 July 2022 to 30 June 2023. This declaration, issued by the Commonwealth Superannuation Corporation (CSC), aims to ensure that productivity contributions for the Commonwealth Superannuation Scheme (CSS) are adjusted annually to reflect changes in economic conditions and member salaries. The legislation was enacted by the Commonwealth of Australia and its objective is to maintain the integrity and sustainability of the CSS by providing for timely adjustments to the productivity contribution rates.
Scope and Application
The Superannuation (CSS) Productivity Contribution (2022-2023) Declaration 2022 applies to the Commonwealth Superannuation Scheme (CSS), an occupational superannuation scheme designed for Commonwealth employees and certain other individuals. This determination is concerned with setting the fortnightly productivity contribution rates for members of the scheme, as mandated by section 110H of the Superannuation Act 1976. The Commonwealth Superannuation Corporation (CSC), which is established under the Governance of Australian Government Superannuation Schemes Act 2011, is responsible for making these declarations. The declaration specifies the contribution rates effective from 1 July 2022, varying according to the salary of the members, and is applicable nationally within Australia as it pertains to the Commonwealth's internal administrative functions. No consultation was deemed necessary as the instrument is internal to the government. Furthermore, the declaration has been assessed to be compatible with human rights, as it does not engage any of the applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011.
Key Provisions
The Superannuation (CSS) Productivity Contribution (2022-2023) Declaration 2022 (section 1) sets forth the legislative framework for productivity contributions under the Commonwealth Superannuation Scheme (CSS) for the financial year 2022-2023. This declaration, which commences on 1 July 2022 (section 2), is an instrumental part of the Superannuation Act 1976, governing occupational superannuation for Commonwealth employees and certain other individuals. Section 110H of the Act mandates that employers of CSS members who do not contribute to other schemes must make fortnightly productivity contributions to the CSS (section 3). These contributions are to be paid by the Commonwealth Superannuation Corporation (CSC) to the CSS Fund as stipulated in section 110N of the Act.
The declaration outlines specific obligations and requirements for both employers and the CSC. Employers must ensure they make the required fortnightly contributions as per the rates specified in the Table in section 110C of the Act, which are adjusted according to the member's salary. The CSC is responsible for managing these contributions, and section 110D of the Act allows for the variation of salary and contribution amounts via a declaration by the CSC, a power delegated to relevant officers in Commonwealth Superannuation Administration. Each year, the CSC amends the Table in section 110C with effect from 1 July, as specified in the declaration (section 4).
The declaration sets new productivity contribution rates applicable from 1 July 2022 (section 5). The CSC, which continues to exist under the Governance of Australian Government Superannuation Schemes Act 2011 as a body corporate, is tasked with enforcing these rates. Any reference to the Australian Reward Investment Alliance (ARIA) in instruments made before 1 July 2011 should be interpreted as a reference to the CSC (section 6). Given that this instrument is for internal government purposes, no consultation with external parties was deemed necessary (section 7). The Legislative Instrument is compatible with human rights as it does not engage any of the applicable rights or freedoms, as confirmed by the Statement of Compatibility with Human Rights (sections 8 and 9).
In terms of legal consequences, there are no specified offences, penalties, or civil/criminal consequences mentioned in the declaration for breaches of these provisions. However, failure to comply with the requirements set out in the Act could potentially lead to legal action by the CSS or the CSC, as these entities have the authority to enforce compliance. The precise nature and extent of any penalties or consequences would be determined in the context of the relevant legal proceedings.