EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO 355
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976
DECLARATION UNDER SECTION 110E
The Superannuation Act 1976 (the Act) provides for a superannuation scheme for Commonwealth employees and certain other persons.
Part VIA (comprising sections 110A to 110S) of the Act provides, with effect from 1 July 1990, a funded productivity superannuation benefit for members of the scheme.
Section HOP provides for the productivity benefit to become payable in respect of a person who ceases to be a member of the scheme 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 as, in effect, a member of the scheme but subject to certain exceptions. These include an employee of the Northern Territory or of an authority of the Northern Territory and a person included in a class of persons specified in a declaration by the Minister for Finance under section HOE as not being productivity employees.
In accordance with section HOG , a declaration under section HOE 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 Civil Aviation Authority (CAA) and the Federal Airports Corporation (FAC) will be providing their statutory office-holders and employees with the productivity superannuation benefit through arrangements outside the Commonwealth superannuation scheme. It is therefore appropriate that those office-holders and employees be excluded from the Commonwealth scheme productivity superannuation arrangements.
Australian Defence Industries Ltd (ADI) have award coverage for the productivity superannuation benefit. Accordingly it is appropriate that directors and employees of the company should be excluded from the Commonwealth arrangements.
The Declaration contained in the Statutory Rule, and cited as “Superannuation (CSS) Productivity Employee Exclusion Declaration No 1”, therefore specifies CAA and
FAC statutory office-holders and employees and directors and employees of ADI as classes of persons who are not to be “productivity employees”.
The Declaration is a consolidation of all the previous exclusions made by the Minister under section 110E of the Act and consequently repeals those previous Declarations.
The Declaration will operate on and from 1 July 1990.
Overview
The Superannuation Act 1976, enacted by the Australian Parliament, addresses the need for a superannuation scheme for Commonwealth employees and other specified persons, including the provision of a funded productivity superannuation benefit. This Act facilitates a structured approach to retirement savings and benefits for eligible members. One of the key elements of this legislative framework is the exclusion of certain individuals from the productivity superannuation arrangements. To implement these exclusions, the Minister for Finance issues statutory rules under section 110E of the Act, with the latest such rule being the "Superannuation (CSS) Productivity Employee Exclusion Declaration No 1". This declaration consolidates previous exclusions and specifies that statutory office-holders and employees of the Civil Aviation Authority and the Federal Airports Corporation, as well as directors and employees of Australian Defence Industries Ltd, are not considered "productivity employees" and thus not eligible for the productivity superannuation benefit. This measure ensures that the benefits are appropriately targeted and managed within the broader superannuation scheme.
Scope and Application
The Superannuation Act 1976, through its various provisions including Part VIA, establishes a superannuation scheme for Commonwealth employees and certain other persons, which includes a funded productivity superannuation benefit for members of the scheme. This legislation is applicable to a wide range of persons and entities, primarily those who are members of the scheme and certain Commonwealth employees. Notably, the Act’s scope extends to include statutory office-holders and employees of the Civil Aviation Authority and the Federal Airports Corporation, as well as directors and employees of Australian Defence Industries Ltd, who are provided with productivity superannuation benefits through arrangements outside the Commonwealth superannuation scheme. However, these entities and their employees are excluded from the Commonwealth scheme’s productivity superannuation arrangements, as specified in the Declaration under section 110E. This Declaration, which operates from 1 July 1990, consolidates and repeals previous exclusions made by the Minister for Finance, thereby clarifying and updating the application of the Act in these contexts.
Key Provisions
The Superannuation Act 1976, specifically Part VIA (sections 110A to 110S), introduces a funded productivity superannuation benefit for members of the scheme, effective from 1 July 1990. Section 110P ensures that the productivity benefit becomes payable to a person who ceases to be a member of the scheme and was a "productivity employee" immediately before their cessation. The term "productivity employee" is defined in section 110A, with certain exceptions including employees of the Northern Territory or an authority of the Northern Territory, and persons specified in a Minister for Finance declaration under section 110E. The declaration, as per section 110G, is a Statutory Rule under the Statutory Rules Publication Act 1903 and a disallowable instrument under section 46A of the Acts Interpretation Act 1901.
The obligations imposed by the Act on the parties it governs include the provision of a productivity superannuation benefit for eligible members. However, certain classes of employees are excluded from this benefit. Specifically, statutory office-holders and employees of the Civil Aviation Authority (CAA) and the Federal Airports Corporation (FAC), as well as directors and employees of Australian Defence Industries Ltd (ADI), are not considered "productivity employees" and thus excluded from the benefit. This exclusion is outlined in the "Superannuation (CSS) Productivity Employee Exclusion Declaration No 1", which consolidates previous exclusions and repeals them, effective from 1 July 1990. The declaration specifies that CAA and FAC statutory office-holders and employees and directors and employees of ADI are not eligible for the productivity benefit.
For breaches of the provisions outlined in the Superannuation Act 1976, the Act imposes various civil and criminal consequences. While specific offences, penalties, and maximum penalties are not detailed in the provided text, the legislation generally allows for enforcement actions to ensure compliance with the Act’s requirements. Non-compliance could potentially lead to legal action, including fines or other penalties as prescribed by law. The exclusion declarations and their enforcement are crucial to maintaining the integrity of the superannuation scheme and ensuring that benefits are distributed to the correct beneficiaries.