Superannuation (CSS) Productivity Employee Exclusion Declaration (Amendment) 1995 No. 229
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 229
Issued by the Authority of the Minister for Finance
Superannuation Act 1976
Declaration under section 110E
The Superannuation Act 1976 (the 1976 Act) makes provision for and in relation to an occupational superannuation scheme, the Commonwealth Superannuation Scheme (the CSS), for certain Commonwealth employees and other persons. Persons eligible to contribute to the CSS (ie, CSS members) are referred to in the 1976 Act as eligible employees.
Part VIA (comprising sections 110A to 110S) of the 1976 Act provides, with effect from 1 July 1990, a funded productivity superannuation benefit for members of the CSS.
Section 110P provides that a productivity benefit is payable to a person who ceases to be a member of the CSS and who immediately before so ceasing, or earlier, was a "productivity employee" for the purposes of the Act. The term "productivity employee" is defined in section 110A and refers to certain CSS members. The exceptions include persons included in a class of persons specified in a declaration by the Minister for Finance under section 110E.
Section 110E provides that the Minister for Finance may declare that a specified class of members of the CSS are not to be productivity employees if the Minister is satisfied that those persons are entitled to benefits that consist of, or include, amounts like the productivity benefits provided for in the 1976 Act. Section 110E also provides that a declaration under the section takes effect from such day, not earlier than 1 July 1990, as is specified in the declaration. Declarations made under section 110E are contained in the Superannuation (CSS) Productivity Employee Exclusion Declaration (the Principal Declaration).
Section 110G provides that a declaration under section 110E is 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 review of air regulation and safety resulted in the commencement, on 6 July 1995, of the Civil Aviation Legislation Amendment Act 1995 (the CALA Act) (which amends the Civil Aviation Act 1988) and the Air Services Act 1995 (the AA Act). The CALA Act abolishes the Civil Aviation Authority (CAA) and provides for the establishment of the Civil Aviation Safety Authority (CASA). The AA Act provides for the establishment of Airservices Australia (AA).
Persons employed by CAA were declared not to be productivity employees for the purposes of the 1976 Act. Productivity contributions in respect of these persons were directed to the CAA Superannuation Fund. Generally, the superannuation arrangements which applied to CSS members employed by CAA continue to apply to AA employees.
The declaration contained in the Statutory Rules and cited as "Superannuation (CSS) Productivity Employee Exclusion Declaration (Amendment)" amends the Principal Declaration by removing the reference to CAA and substituting a reference to AA. This amendment enables the same arrangements, in respect of productivity contributions, to apply to CSS members employed by AA.
The Declaration commenced on 6 July 1995.
Overview
The Superannuation (CSS) Productivity Employee Exclusion Declaration (Amendment) 1995 No. 229 was enacted to amend the existing Superannuation (CSS) Productivity Employee Exclusion Declaration, addressing the changes in the regulatory landscape following the review of air regulation and safety. This amendment was issued by the authority of the Minister for Finance under section 110E of the Superannuation Act 1976. The original Act provides for an occupational superannuation scheme, the Commonwealth Superannuation Scheme (CSS), for certain Commonwealth employees. However, the amendment was necessitated by the establishment of the Civil Aviation Safety Authority (CASA) and Airservices Australia (AA) under the Civil Aviation Legislation Amendment Act 1995 and the Air Services Act 1995, respectively. The primary policy objective of this amendment is to ensure that the productivity superannuation arrangements continue seamlessly for CSS members who transition to employment with these new entities.
Scope and Application
The Superannuation (CSS) Productivity Employee Exclusion Declaration (Amendment) 1995 No. 229, issued under the authority of the Minister for Finance, pertains to the Superannuation Act 1976. It modifies the existing Superannuation (CSS) Productivity Employee Exclusion Declaration to adapt to the changes in civil aviation regulation and safety. Specifically, the amendment removes the reference to the Civil Aviation Authority (CAA) and replaces it with Airservices Australia (AA) as the entity to which the provisions of the Act now apply. This amendment ensures that the same productivity contributions arrangements, previously applicable to CSS members employed by CAA, now apply to those employed by AA, reflecting the transition from the CAA to AA and the Civil Aviation Safety Authority (CASA) under the new legislative framework. The amendment took effect from 6 July 1995, aligning with the commencement of the Civil Aviation Legislation Amendment Act 1995 and the Air Services Act 1995.
Key Provisions
The Superannuation (CSS) Productivity Employee Exclusion Declaration (Amendment) 1995 No. 229 amends the existing Superannuation (CSS) Productivity Employee Exclusion Declaration under the Superannuation Act 1976 (sections 110A to 110S). This amendment primarily involves the reclassification of employees from the Civil Aviation Authority (CAA) to Airservices Australia (AA), as a result of legislative changes that abolished the CAA and established the Civil Aviation Safety Authority (CASA) and Airservices Australia (AA). The amendment ensures that the productivity superannuation arrangements for Commonwealth Superannuation Scheme (CSS) members are appropriately adjusted to reflect these changes. Specifically, the amendment removes the reference to employees of the CAA and substitutes a reference to employees of AA (section 110E). This change ensures that the productivity benefits and contributions for CSS members employed by AA are aligned with those applicable to CSS members employed by CAA, facilitating a smooth transition of superannuation arrangements following the legislative changes.
The Act imposes obligations on the Minister for Finance to make declarations under section 110E of the 1976 Act, specifying classes of CSS members who are not to be considered productivity employees if they are entitled to benefits that include amounts similar to productivity benefits. The amendment ensures that such declarations are updated to reflect changes in employment entities, such as the transition from CAA to AA, maintaining the integrity of the superannuation arrangements for CSS members. The Minister must ensure that the declarations are made in accordance with the statutory rules and that they are published as required by the Statutory Rules Publication Act 1903. The amendments must also comply with the disallowable instrument provisions under the Acts Interpretation Act 1901.
Failure to comply with the provisions of the Superannuation Act 1976 or the amendments made by the Superannuation (CSS) Productivity Employee Exclusion Declaration (Amendment) 1995 No. 229 may result in civil or criminal penalties. The specific consequences depend on the nature and severity of the breach. For instance, section 110P of the 1976 Act outlines the entitlement to productivity benefits for CSS members who cease to be members and were productivity employees. Any misclassification or failure to correctly apply the provisions could result in disputes over entitlements, which might be subject to review or litigation. Additionally, the Act may include provisions for penalties under other sections, although the exact penalties are not detailed in the provided text. The Minister for Finance's role in ensuring accurate and timely declarations is critical to avoid potential legal and financial repercussions for both the government and affected employees.