Superannuation (CSS) Productivity Contribution (2024-2025) Declaration 2024

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Legislation au F2024L00640 In force Legislative Instrument

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Superannuation (CSS) Productivity Contribution (2024-2025) Declaration 2024 – Explanatory Statement

 

1 Name of Determination

 

This declaration is the Superannuation (CSS) Productivity Contribution
(2024-2025) Declaration 2024.

 

2 Commencement

 

    This declaration shall take effect on 1 July 2024.

 

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 2024 are set out in the declaration.

 

6         Sun setting Exemptions

 

The following provisions assert that the CSS Instrument is exempt from sunsetting:

 

(1) s54(2)(b) of the Legislation Act 2003 provides that “This Part [Sunsetting of legislative instruments] does not apply in relation to a legislative instrument if the legislative instrument is prescribed by regulation for the purposes of this paragraph”

 

(2) Regulation 11 (at Item 6 of the table) of the Legislation (Exemptions and Other Matters) (LEOM) Regulation 2015 specifies that “an Instrument (other than a regulation) relating to superannuation” is not subject to sunsetting. The CSS Instrument pertains to superannuation.

 

These two provisions together are the source of the exemption from sunsetting.

 

Justification as to why this exemption is relied upon:

 

The CSS Instruments are used by employers (Government and Government agencies) to determine the rate payable for a member’s productivity contribution for superannuation purposes. It is therefore important that each CSS instrument is exempt from sunsetting because the current and previous instruments are required from time to time to determine rates payable to admit new members retrospectively, to rectify errors and/or changes in salary etc.

 

 

 

7    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.


 

8    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 (2024-2025) Declaration 2024, enacted to address the need for setting productivity contribution rates for the Commonwealth Superannuation Scheme (CSS) for the financial year 2024-2025, was declared by the Commonwealth Superannuation Corporation (CSC) under the Superannuation Act 1976. This instrument specifies the new productivity contribution rates applicable from 1 July 2024, ensuring that contributions remain consistent with the policy objective of maintaining an average contribution rate of 3% of salaries. The declaration exempts the CSS instrument from sunsetting provisions as it is crucial for ongoing administrative purposes, such as admitting new members, rectifying errors, and adjusting for salary changes. The declaration was enacted without external consultation due to its internal government machinery nature and is compatible with human rights as it does not engage any applicable rights or freedoms.

Scope and Application

The Superannuation (CSS) Productivity Contribution (2024-2025) Declaration 2024 applies to employers of members in the Commonwealth Superannuation Scheme (CSS), which includes Commonwealth employees and certain other persons. The Act requires employers who do not pay productivity contributions to another scheme to contribute fortnightly to the CSS, with these contributions managed by the Commonwealth Superannuation Corporation (CSC) and paid to the CSS Fund. The declaration, which takes effect on 1 July 2024, sets out the new productivity contribution rates that vary according to the member's salary, aiming to maintain an average contribution rate of 3% of salaries. This legislative instrument is exempt from sunsetting provisions due to its ongoing relevance for determining rates for current and new members, rectifying errors, and addressing salary changes. The instrument also includes provisions for the interpretation of references to the Commonwealth Superannuation Corporation, ensuring continuity from previous references to the Australian Reward Investment Alliance. The declaration has been prepared in accordance with human rights standards, indicating compatibility with recognised human rights and freedoms.

Key Provisions

The Superannuation (CSS) Productivity Contribution (2024-2025) Declaration 2024 sets forth the productivity contribution rates applicable from 1 July 2024 for members of the Commonwealth Superannuation Scheme (CSS). This instrument is governed by sections 110C, 110D, and 110H of the Superannuation Act 1976, which outline the contribution rates and the obligations of employers and the Commonwealth Superannuation Corporation (CSC) (sections 110C, 110D, 110H). Specifically, section 110C specifies the fortnightly contribution rates based on the member's salary, while section 110H mandates that employers must pay these contributions if they do not already pay equivalent contributions to another scheme. Furthermore, section 110N obligates the CSC to pay these contributions to the CSS Fund. The declaration imposes several obligations on the parties involved. Employers of CSS members are required to make fortnightly productivity contributions as specified in the Table in section 110C of the Act. These contributions are to be paid directly to the CSS Fund by the CSC, as per section 110N. Employers must determine the applicable contribution rate based on the member's salary and ensure timely payments. The CSC is responsible for updating the contribution rates annually and ensuring that these rates are correctly applied and paid into the CSS Fund. The CSC must also ensure that any changes to the contribution rates are properly communicated to employers and that the CSS Instrument is exempt from sunsetting provisions, as outlined in the Legislation Act 2003 and the Legislation (Exemptions and Other Matters) (LEOM) Regulation 2015. Breaches of the obligations set forth in this declaration can lead to civil or administrative penalties. Employers who fail to make the required productivity contributions may face enforcement actions, including fines or other penalties as stipulated in the Superannuation Act 1976. The CSC may also face scrutiny if it fails to accurately determine or pay the required contributions. The exact penalties for non-compliance are not specified in this declaration but can be found in the relevant sections of the Superannuation Act 1976. Ensuring compliance with these provisions is critical to maintaining the integrity and funding of the CSS.

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Area of Law
Superannuation Law
Instrument
Declaration
Concepts
Commencement Provisions
Exemptions & Exclusions
Reporting & Disclosure Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.