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.
Overview
The Superannuation (CSS) Productivity Employee Inclusion Declaration 2011 (No.1) was enacted to address a specific gap in the Commonwealth Superannuation Scheme (CSS) under the Superannuation Act 1976. This legislation, issued by the authority of the Minister for Finance and Deregulation, aims to ensure that productivity contributions are appropriately made for CSS members engaged by the Australian Civilian Corps (ACC) for employment outside Australia, who are otherwise excluded from being classified as productivity employees. The Declaration specifically seeks to include these temporary ACC employees within the scope of productivity employees for the purposes of Part VIA of the 1976 Act. By doing so, the policy objective is to rectify the oversight in the original definition of "productivity employee" that inadvertently excluded these ACC employees from receiving the intended productivity contributions. The Declaration is a legislative instrument under the Legislative Instruments Act 2003 and will come into effect on the day after it is registered on the Federal Register of Legislative Instruments.
Scope and Application
The Superannuation (CSS) Productivity Employee Inclusion Declaration 2011 (No.1) is a legislative instrument under the Superannuation Act 1976, which pertains to the Commonwealth Superannuation Scheme (CSS). This Declaration specifically addresses the payment of productivity contributions for certain Australian Civilian Corps (ACC) employees engaged outside Australia. The Declaration applies to CSS members who are employed by the ACC on a non-permanent basis for work outside Australia, who would otherwise be excluded from being considered productivity employees due to the specific exclusions outlined in the Act. By declaring these ACC employees as productivity employees, the Declaration ensures that productivity contributions are made to the CSS on their behalf. The Declaration is designed to amend the scope of who is considered a productivity employee under Part VIA of the 1976 Act, thus extending its application to include the aforementioned ACC employees. The Declaration is subject to registration on the Federal Register of Legislative Instruments and will commence on the day following its registration.
Key Provisions
The Superannuation (CSS) Productivity Employee Inclusion Declaration 2011 (No.1) primarily serves to amend the definition of "productivity employee" under the Superannuation Act 1976 (1976 Act) to include certain Commonwealth Superannuation Scheme (CSS) members who are temporarily employed by the Australian Civilian Corps (ACC) for work outside Australia. Section 3 of the Declaration specifically identifies these temporary ACC employees as productivity employees for the purposes of Part VIA of the 1976 Act, thus making them eligible for productivity contributions. This inclusion is significant as it ensures that these employees receive the benefits associated with being a productivity employee, despite their temporary and overseas nature of employment.
Under the obligations imposed by this Declaration, employers of the newly defined productivity employees are required to make productivity contributions for these employees into the CSS, as stipulated in section 110A of the 1976 Act. This requirement ensures that the CSS members who are now classified as productivity employees receive the appropriate superannuation contributions. The Declaration aims to clarify and extend the scope of who is considered a productivity employee, thereby ensuring these employees are not excluded from the benefits of the CSS.
Failure to comply with the requirements set out in this Declaration could result in legal consequences for the employers. While specific offences, penalties, or civil/criminal consequences are not detailed in the text provided, the general legislative framework under which this Declaration operates may impose penalties for non-compliance with superannuation obligations. Such penalties could include fines or other sanctions as provided under the 1976 Act or related legislation. Ensuring compliance with these provisions is critical for employers to avoid any potential legal ramifications.