Superannuation (CSS) Productivity Contribution Declaration No. 1 1991 No. 128
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 128
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976
DECLARATION UNDER SECTION 110D
The Superannuation Act 1976 (the Act) provides for a superannuation scheme for Commonwealth employees.
Part VIA (comprising sections 110A to 110S) provides for a funded productivity superannuation benefit for members of the scheme.
Section 110H requires the employer of a member of the scheme, to pay fortnightly "productivity contributions" to the Commissioner for Superannuation in relation to the member. In accordance with section 110N, such contributions are to be paid by the Commissioner to the Superannuation Fund where they accumulate with interest for the member's benefit.
The fortnightly rate of productivity contribution payable by an employer in relation to a member is set out in the Table in section 110C. This rate varies according to the member's salary. The intention is that the contribution rate be maintained at an average of 30 of salaries.
Section 110D provides that amounts of salary and contribution specified in the Table may be varied by a declaration by the Minister for Finance in relation to a period specified in the declaration.
The Declaration contained in the Statutory Rule, and cited as "Superannuation (CSS) Productivity Contribution Declaration No. 1", provides for increased amounts of salary and contribution to apply in relation to the period commencing on 1 July 1991.
In accordance with section 1106, a declaration under section 110D is to be a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903, and a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
The Declaration will operate on and from 1 July 1991.
Overview
The Superannuation (CSS) Productivity Contribution Declaration No. 1 1991 is an instrument issued under the authority of the Minister for Finance to amend the Superannuation Act 1976. This Act was enacted to establish a superannuation scheme for Commonwealth employees, providing for a funded productivity superannuation benefit. The Declaration aims to address the need to adjust the salary thresholds and corresponding productivity contributions, ensuring that these remain aligned with changes in salary levels and inflation. The Declaration increases the amounts of salary and contributions to reflect changes occurring from 1 July 1991, as specified in the Statutory Rules 1991 No. 128. By updating these figures, the Declaration seeks to maintain the integrity and effectiveness of the superannuation scheme, ensuring that contributions remain an appropriate percentage of salaries, as mandated by section 110H of the Act.
Scope and Application
The Superannuation Act 1976 provides for a superannuation scheme for Commonwealth employees, with Part VIA specifically addressing a funded productivity superannuation benefit for members of this scheme. This Act applies to Commonwealth employees who are members of the superannuation scheme, as well as their employers, who are required to make fortnightly productivity contributions to the Commissioner for Superannuation. These contributions are subsequently transferred to the Superannuation Fund where they accumulate with interest for the benefit of the members. The rate of these contributions is variable, based on the member's salary, with the intention that it remains an average of 30% of salaries. Section 110D of the Act allows for variations in the specified amounts of salary and contributions through a declaration by the Minister for Finance, which must specify a particular period for which the changes will apply. The "Superannuation (CSS) Productivity Contribution Declaration No. 1", issued under this section, adjusts the salary and contribution amounts to take effect from 1 July 1991. This declaration is a Statutory Rule under the Statutory Rules Publication Act 1903 and is also a disallowable instrument under section 46A of the Acts Interpretation Act 1901.
Key Provisions
The Superannuation (CSS) Productivity Contribution Declaration No. 1, issued under the authority of the Minister for Finance, provides key adjustments to the rates of salary and productivity contributions for members of the Commonwealth superannuation scheme as outlined in the Superannuation Act 1976. Specifically, section 110D of the Act allows for the variation of salary and contribution amounts through a declaration by the Minister, which in this case, is the "Superannuation (CSS) Productivity Contribution Declaration No. 1". This Declaration, effective from 1 July 1991, specifies increased amounts of salary and the corresponding productivity contributions. The primary sections involved in these adjustments are sections 110A to 110S, which govern the funded productivity superannuation benefit for scheme members. Section 110H mandates that employers make fortnightly productivity contributions to the Commissioner for Superannuation, who then transfers these contributions to the Superannuation Fund where they accrue interest for the member's benefit. The contribution rate is set out in section 110C and is intended to average 30% of the member's salary.
Under the Superannuation Act 1976, the employer of a member of the scheme is obligated to pay fortnightly productivity contributions. These payments are directed to the Commissioner for Superannuation, as specified in section 110H. The Commissioner is then responsible for transferring these contributions to the Superannuation Fund, where they accumulate with interest, as outlined in section 110N. The Declaration, which comes into effect on 1 July 1991, adjusts the salary and contribution rates to reflect changes in remuneration levels. This ensures that the productivity contributions remain aligned with the members' salaries, maintaining the scheme's integrity and purpose.
Failure to comply with the obligations set out in the Superannuation Act 1976 and the Superannuation (CSS) Productivity Contribution Declaration No. 1 can lead to significant consequences. The Act imposes strict requirements on employers to ensure that the correct productivity contributions are made in a timely manner. Non-compliance may result in legal penalties, including fines and other sanctions as prescribed by the legislation. The penalties for breaches are intended to enforce adherence to the statutory requirements, thereby protecting the rights and benefits of the scheme members. Under the Statutory Rules Publication Act 1903 and the Acts Interpretation Act 1901, the Declaration is a statutory rule and a disallowable instrument, highlighting its legal significance and the potential for parliamentary scrutiny and disallowance if necessary.