Superannuation (CSS) (SG Minimum Contribution) Determination 2013 – Explanatory Statement
1 Name of Determination
This determination is the Superannuation (CSS) (SG Minimum Contribution) Determination 2013.
2 Commencement
This determination shall take effect from the day after the date of registration on the Federal Register of Legislative Instruments (FRLI).
3 Background
The Superannuation Act 1976 (the Act) makes provision for, and in relation to, the Commonwealth Superannuation Scheme (CSS) which is an occupational superannuation scheme for Commonwealth employees and for certain other persons.
Section 110SC of the Act stipulates that the SG minimum contribution is 4% of the fortnightly rate of salary payable to an eligible employee. The Commonwealth Superannuation Corporation (CSC), the Trustee of the CSS, is empowered to increase this percentage from time to time. The power was originally reposed in the Minister for Finance but was transferred to the then Trustee of the CSS in 1994 and subsequently to CSC.
Section 110SC(2) allows CSC to amend the SG minimum contribution rate on an annual basis through determinations, having regard to the rates set out in subsection 19(2) of the Superannuation Guarantee (Administration) Amendment Act 2012.
On 9 August 2008 the Superannuation (CSS) (Superannuation Guarantee) Regulations 2008 (the Regulations) commenced operation. The Regulations provide for the SG minimum contribution to be calculated by reference to a percentage of Ordinary Time Earnings, with a starting rate of 9%. The Regulations apply from 9 August 2008 and apply instead of section 110SC of the Act.
4 Purpose and operation of instrument
The purpose of the instrument is to set out a consolidation of the progressive variations to the SG minimum contribution rate under section 110SC(2) of the Act in the period before 9 August 2008 when the Regulations commenced operation.
5 Repeal of Superannuation (CSS) (SG Minimum Contribution) Determination No. 1
Clause 4 of the determination repeals Superannuation (CSS) (SG Minimum Contribution) Determination No.1 [ComLaw ref: F2008B00220, SR 1992 No. 461] which had varied the SG minimum contribution rate from 4% to 5% in the period from 1 January 1993 to 30 June 1995. The effect of the repealed determination in the period from 1 January 1993 to 30 June 1995 is included within paragraph (a) of clause 6 of the determination.
6 References to CSC
Section 5 of the Governance of Australian Government Superannuation Schemes Act 2011 provides that “the board established by section 20 of the Superannuation Act 1990 as the Australian Reward Investment Alliance continues in existence by force of that section as a body corporate, under and subject to the provisions of this Act, under the name Commonwealth Superannuation Corporation (CSC)”.
In accordance with section 25B of the Acts Interpretation Act 1901, any reference to Australian Reward Investment Alliance (ARIA) in an instrument made prior to 1 July 2011 shall be construed as a reference to CSC.
7 Consultation
As the instrument is for internal machinery of Government purposes only, no consultation was considered necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Overview
The Superannuation (CSS) (SG Minimum Contribution) Determination 2013 was enacted to consolidate the progressive variations to the Superannuation Guarantee (SG) minimum contribution rate under section 110SC(2) of the Superannuation Act 1976 before the commencement of the Superannuation (CSS) (Superannuation Guarantee) Regulations 2008 on 9 August 2008. This Determination serves to streamline and clarify the SG minimum contribution rates for Commonwealth employees and certain other persons, replacing the Superannuation (CSS) (SG Minimum Contribution) Determination No. 1, which had previously varied the SG minimum contribution rate from 4% to 5% between 1 January 1993 and 30 June 1995. The Commonwealth Superannuation Corporation (CSC), as the Trustee of the Commonwealth Superannuation Scheme (CSS), has the authority to amend the SG minimum contribution rate annually, in accordance with the Superannuation Guarantee (Administration) Amendment Act 2012.
Scope and Application
The Superannuation (CSS) (SG Minimum Contribution) Determination 2013 pertains to the Commonwealth Superannuation Scheme (CSS), which is an occupational superannuation scheme for Commonwealth employees and certain other individuals. The determination establishes the minimum superannuation guarantee (SG) contribution rate, currently set at 4% of the fortnightly salary of an eligible employee. The Commonwealth Superannuation Corporation (CSC), as the Trustee of the CSS, has the authority to adjust this percentage annually, in line with the Superannuation Guarantee (Administration) Amendment Act 2012. This determination consolidates the variations in the SG minimum contribution rate prior to 9 August 2008 when the Superannuation (CSS) (Superannuation Guarantee) Regulations 2008 took effect, which set the SG minimum contribution to be calculated as a percentage of Ordinary Time Earnings, with an initial rate of 9%. The determination also repeals the previous Superannuation (CSS) (SG Minimum Contribution) Determination No. 1, which had varied the SG minimum contribution rate from 4% to 5% between 1 January 1993 and 30 June 1995. The instrument does not engage any applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011, and it is compatible with human rights as it does not raise any human rights issues.
Key Provisions
The Superannuation (CSS) (SG Minimum Contribution) Determination 2013 consolidates the progressive variations to the Superannuation Guarantee (SG) minimum contribution rate prior to 9 August 2008, when the Superannuation (CSS) (Superannuation Guarantee) Regulations 2008 commenced. The main operative sections of this determination are set out in clauses 5 and 6, which provide for the SG minimum contribution rates before the Regulations came into effect and repeal the previous determination (clause 4) that varied the SG minimum contribution rate from 1 January 1993 to 30 June 1995. This determination ensures that the SG minimum contribution rates for the specified period are accurately reflected in the legislative framework.
The obligations and requirements imposed by the Superannuation (CSS) (SG Minimum Contribution) Determination 2013 include the calculation and payment of SG minimum contributions by employers for eligible employees under the Commonwealth Superannuation Scheme (CSS). The determination sets out the rates applicable before the commencement of the Superannuation (CSS) (Superannuation Guarantee) Regulations 2008. Employers are required to adhere to these rates when calculating the SG contributions they must make on behalf of their employees. The Commonwealth Superannuation Corporation (CSC), as the Trustee of the CSS, has the authority to increase the SG minimum contribution rate annually, subject to the guidelines provided in section 110SC(2) of the Superannuation Act 1976.
In terms of offences, penalties, or civil/criminal consequences for breach, the Superannuation (CSS) (SG Minimum Contribution) Determination 2013 does not explicitly outline specific penalties for non-compliance with the SG minimum contribution rates. However, non-compliance with the Superannuation Act 1976 and related regulations can result in civil and criminal penalties. For example, under the Superannuation Guarantee (Administration) Act 1992, employers who fail to make the required SG contributions may be subject to penalties, including financial penalties of up to 200% of the unpaid contributions, plus interest. In cases of serious or repeated non-compliance, criminal penalties, including fines and imprisonment, may apply. The specific penalties and enforcement mechanisms are detailed in the relevant superannuation legislation, not in this determination.