Superannuation (CSS) Salary Regulations (Amendment) 1995 No. 348
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 348
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 reflect the arrangements brought about by the restructuring of the Civil Aviation Authority (CAA) and to update the flexible remuneration arrangement provisions applicable to certain employees of the Civil Aviation Safety Authority (CASA) and Airservices Australia (AA).
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 and to van, the components of the package from time to time.
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 for those employees. Schedule 1 provides, among other things, for the annual rate of salary of persons who are employees of the CAA, or are appointed or employed under the Civil Aviation Act 1988 (the CAA Act), to be 70 per cent of the total value of their remuneration package.
The recent review of air regulation and air safety resulted in the enactment of the Civil Aviation Legislation Amendment Act 1995 (the CALA Act) (which amended the CAA Act) and the Air Services Act 1995 (the AA Act). The CALA Act abolished the CAA and provided for the establishment of CASA. The AA Act provided for the establishment of AA. CAA staff were transferred to either CASA or AA on 6 July 1995.
The amendments to the Principal Regulations reflect the change in employment arrangements for former staff of CAA. The annual rate of salary of the employees of AA employed on flexible remuneration packages is 70% of the total value of their remuneration package and in respect of such staff of CASA is now 77% of the total value of their remuneration package.
The Regulations commenced on gazettal.
Overview
The Superannuation (CSS) Salary Regulations (Amendment) 1995 No. 348 was enacted to address the need for updating the Superannuation (CSS) Salary Regulations following the restructuring of the Civil Aviation Authority (CAA) and the establishment of the Civil Aviation Safety Authority (CASA) and Airservices Australia (AA). This amending legislation was issued under the authority of the Minister for Finance, and it operates under the framework established by the Superannuation Act 1976. The primary policy objective of these amendments is to ensure that the annual rate of salary for certain eligible employees within the restructured entities aligns with their new employment arrangements. This is achieved by adjusting the prescribed percentages of the total value of remuneration packages for employees of CASA and AA, reflecting their new roles and responsibilities post-restructuring.
Scope and Application
The Superannuation (CSS) Salary Regulations (Amendment) 1995 No. 348 applies to employees who are members of the Commonwealth Superannuation Scheme (CSS), specifically those who are employed under flexible remuneration arrangements within the Civil Aviation Safety Authority (CASA) and Airservices Australia (AA) following the restructuring of the Civil Aviation Authority (CAA). The regulations amend the Superannuation (CSS) Salary Regulations to reflect the new employment arrangements post the enactment of the Civil Aviation Legislation Amendment Act 1995 and the Air Services Act 1995. These regulations are designed to update the flexible remuneration provisions for CSS members in these restructured entities, with specific percentages for the annual rate of salary set at 70% for Airservices Australia employees and 77% for Civil Aviation Safety Authority employees. These amendments ensure that the salary regulations continue to align with the changes in employment structures and legislative frameworks governing these entities.
Key Provisions
The Superannuation (CSS) Salary Regulations (Amendment) 1995 No. 348 (the amending Regulations) modifies the Superannuation (CSS) Salary Regulations (the Principal Regulations) under section 168 of the Superannuation Act 1976 (the Act). The amendments reflect changes resulting from the restructuring of the Civil Aviation Authority (CAA) and updates to flexible remuneration arrangements applicable to certain employees of the Civil Aviation Safety Authority (CASA) and Airservices Australia (AA). These changes are crucial for ensuring that the regulations continue to apply correctly in light of the new legislative framework created by the Civil Aviation Legislation Amendment Act 1995 and the Air Services Act 1995.
The Act, through section 5, allows for the regulation of an annual rate of salary for certain eligible employees, a provision that is detailed in the Principal Regulations. For employees under flexible remuneration arrangements, these arrangements allow for a portion of their remuneration to be non-cash benefits, with the ability to vary the components of their package over time. Division 1 of Part 2E of the Principal Regulations (regulations 8P to 8QA inclusive) specifies the annual rate of salary for eligible employees on flexible remuneration packages. The annual rate of salary is determined as a prescribed percentage of the total value of the respective packages, with specific percentages outlined in Schedule 1.
The obligations imposed by these regulations require that the annual rate of salary for employees of AA be set at 70% of the total value of their remuneration package, while for CASA employees, it is now set at 77% of their total remuneration package. This change ensures that the remuneration calculations remain consistent with the new employment arrangements following the dissolution of the CAA and the establishment of CASA and AA. These amendments are effective from the date of gazette, thereby immediately applying to the affected employees.
Failure to comply with the provisions of these regulations could result in civil or criminal consequences. Although specific penalties are not detailed in the explanatory statement, breaches of superannuation regulations can generally result in substantial financial penalties, including fines that can extend to thousands of dollars, depending on the severity and intent of the breach. Additionally, non-compliance could lead to legal actions against the employer or the individual responsible, further enforcing adherence to the stipulated requirements.