EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Superannuation Act 1976
Declaration under section 110F
The Superannuation Act 1976 (the 1976 Act) establishes the Commonwealth Superannuation Scheme (CSS) for Australian Government employees and certain other persons.
Since 1 July 1990 employers of CSS members, referred to as “eligible employees” for the purposes of the 1976 Act, have been required to pay “productivity contributions” in respect of “productivity employees” into the CSS. The terms “productivity contributions” and “productivity employee” are defined in section 110A of the 1976 Act.
The definition of “productivity employee” excludes certain CSS members, such as those who are employed by an employer other than the Commonwealth, and have productivity superannuation paid to another superannuation scheme, as well as CSS members engaged for work outside Australia only. However, it is intended that those CSS members engaged by the Australian Civilian Corps (ACC) for employment outside Australia only have productivity contributions paid into the CSS.
Section 110F of the 1976 Act provides that the Minister for Finance and Deregulation may declare a CSS member who is not a productivity employee though the application of subparagraphs (a)(i), (a)(ii), or (a)(iii) of the definition of “productivity employee” to be a productivity employee for the purposes of Part VIA of the 1976 Act.
CSS members engaged otherwise than in a permanent capacity by the ACC for employment outside Australia only are not productivity employees because they are excluded by subparagraph (a)(iii) of the definition of “productivity employee”.
The purpose of the Superannuation (CSS) Productivity Employee Inclusion Declaration 2011 (No.1) is to allow productivity contributions to be paid to the CSS for ACC employees who are engaged otherwise than in a permanent capacity to work outside Australia only.
AusAID was consulted on the amendments contained in the Declaration.
The Declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Declaration commences on the day after it is registered on the Federal Register of Legislative Instruments.
The details of the Declaration are explained in the Attachment.
ATTACHMENT
Superannuation (CSS) Productivity Employee Inclusion Declaration 2011 (No.1)
Section 1 – Name of Declaration
This section provides that the name of the Declaration is the Superannuation (CSS) Productivity Employee Inclusion Declaration 2011 (No.1).
Section 2 – Commencement
This section provides for the Declaration to commence on the day after it is registered on the Federal Register of Legislative Instruments.
Section 3 – Temporary Employees
This section provides that a person who is a CSS member engaged otherwise than in a permanent capacity, as an Australian Civilian Corps employee for employment outside Australia only, is a productivity employee for the purposes of Part VIA of the 1976 Act.