Superannuation (CSS) Salary Regulations (Amendment) 1995 No. 407
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 407
Issued by the Authority of the Minister for Finance
Superannuation Act 1976
Superannuation (CSS) Salary Regulations (Amendment)
The Superannuation Act 1976 (the 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.
Section 168 of the Act provides that the Governor-General may make regulations for the purposes of the Act.
The purpose of the Superannuation (CSS) Salary Regulations (Amendment) (the amending Regulations) is to amend the Superannuation (CSS) Salary Regulations (the Principal Regulations) to set the annual rate of salary for superannuation purposes, in respect of the General Manager and certain employees of the Indigenous Land Corporation (ILC) on flexible remuneration packages, at 70 per cent.
Section 5 of the Act provides, among other things, that the regulations may prescribe an annual rate of salary for certain eligible employees. Regulations for the purposes of section 5 are contained in the Principal Regulations.
Some CSS members are employed under employment agreements known as flexible remuneration arrangements which enable them to receive part of their remuneration as non-cash benefits.
Division 1 of Part 2E of the Principal Regulations (regulations 8P to 8QA inclusive) provides for the annual rate of salary of certain eligible employees who are employed on flexible remuneration packages. The annual rate of salary is described in Schedule 1 of the Principal Regulations as a prescribed percentage of the total value of the respective packages. Part 1 of Schedule 1 prescribes the percentage rate for employees of certain authorities or bodies and Part 3 prescribes the percentage rate for persons holding certain offices.
The ILC was established by the Aboriginal And Torres Strait Islander Commission Act 1989 (as amended by the Land Fund and Indigenous Land Corporation (ATSIC Amendment) Act 1995) on 1 June 1995, for the purposes of purchasing land on behalf of Aboriginal and Torres Strait Islander people. That Act also provides for the appointment of a General Manager who has the power to engage employees for the performance of the Corporation's functions and to determine the terms and conditions of their employment.
The regulations amend the Principal Regulations to provide:
• for employees of the ILC to be included in Part 1 of Schedule 1; and
• for the office of General Manager of the ILC to be included in Part 3 of Schedule 1; and,
that the percentage, for the purposes of calculating a person's annual rate of salary for superannuation purposes is 70 per cent in each case.
The Regulations commenced on the date of gazettal.
Overview
The Superannuation (CSS) Salary Regulations (Amendment) 1995 No. 407 was enacted to amend the Superannuation (CSS) Salary Regulations under the Superannuation Act 1976. This Act, introduced by the Commonwealth Parliament, aims to provide for and regulate occupational superannuation schemes, including the Commonwealth Superannuation Scheme (CSS) for specific Commonwealth employees and other individuals. The objective of the amending Regulations is to adjust the annual rate of salary for superannuation purposes for the General Manager and certain employees of the Indigenous Land Corporation (ILC) on flexible remuneration packages, setting it at 70 per cent. This amendment ensures that the regulations reflect the specific employment arrangements of these employees, aligning with the provisions outlined in the Principal Regulations.
Scope and Application
The Superannuation (CSS) Salary Regulations (Amendment) 1995 No. 407 applies to the Commonwealth Superannuation Scheme (CSS) for certain Commonwealth employees, including those of the Indigenous Land Corporation (ILC) and its General Manager, under flexible remuneration arrangements. The Act, established under the Superannuation Act 1976, provides a framework for occupational superannuation schemes. The regulations amend the existing Superannuation (CSS) Salary Regulations to set the annual rate of salary for superannuation purposes at 70 per cent for eligible employees of the ILC on flexible remuneration packages, as well as for the ILC's General Manager. This amendment is specific to the ILC, which was established to purchase land on behalf of Aboriginal and Torres Strait Islander people, as outlined in the Aboriginal And Torres Strait Islander Commission Act 1989. The regulations commenced on the date of gazettal, indicating their immediate applicability to the specified entities and roles within the ILC.
Key Provisions
The Superannuation (CSS) Salary Regulations (Amendment) 1995 No. 407 primarily amends the Superannuation (CSS) Salary Regulations to adjust the annual rate of salary for superannuation purposes for the General Manager and certain employees of the Indigenous Land Corporation (ILC) on flexible remuneration packages. This adjustment is set at 70 per cent of the total value of their respective packages, as per the amended regulations (section 1). The amendments are intended to align the salary calculation for superannuation purposes with the specific conditions and roles within the ILC, ensuring that these employees are appropriately included in the scheme.
The Superannuation Act 1976 provides the legislative framework for the Commonwealth Superannuation Scheme (CSS) and allows the Governor-General to make regulations to support the operation of the CSS (section 168). Section 5 of the Act further enables the regulation of the annual rate of salary for certain eligible employees, which is further detailed in the Principal Regulations. The amending Regulations specifically target the flexible remuneration packages of the ILC employees, ensuring they are considered under the CSS framework. These amendments are crucial for maintaining the integrity and applicability of the superannuation scheme to all eligible employees, including those on flexible remuneration arrangements.
Entities and individuals governed by the amending Regulations have specific obligations to ensure compliance with the new salary rates set forth. Employers, such as the ILC, must accurately calculate the annual rate of salary for superannuation purposes at 70 per cent for the General Manager and relevant employees. This involves ensuring that the salary figures used for superannuation contributions are based on the amended percentage, as detailed in Schedule 1 of the Principal Regulations. Employees must also be informed of these changes and how they affect their superannuation contributions, ensuring transparency and compliance with the scheme requirements.
There are potential consequences for failure to comply with the provisions of the amending Regulations. Breaches of the regulations may lead to civil or criminal penalties, depending on the nature and extent of the non-compliance. The maximum penalties for such breaches are not explicitly stated in the amending Regulations but may be found within the broader framework of the Superannuation Act 1976. These penalties could include fines and other sanctions that serve to enforce adherence to the prescribed salary rates for superannuation purposes. It is imperative for all parties involved to understand and comply with these regulations to avoid any adverse legal consequences.