Superannuation (CSS) (SG Minimum Contribution) Determination No. 1 1992 No.
461
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 461
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976
DETERMINATION UNDER SECTION 110SC
The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme for Commonwealth employees and for certain other persons. Members of the scheme are referred to in the Act as eligible employees.
Part VIAA (comprising sections 110SA to 110SJ) provides for the calculation and payment of a Superannuation Guarantee Top-up Benefit for members of the scheme in circumstances where other superannuation benefits to be paid to the member, either under the Act or by their employer, are not sufficient to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992 (the SG Act).
Section 110SC of the Act provides for an SG minimum contribution rate for all eligible employees. That rate is used to calculate a minimum benefit that is sufficient to satisfy the minimum required at any time under the SG Act.
Subsection 110SC(1) provides that the SG minimum contribution rate on a contribution day is 4% of the fortnightly rate of salary applicable to an eligible employee under the Act. Subsection 110SC(2) provides that the Minister may vary, the percentage mentioned in subsection (1) by determination. Subsection 110SC(3) provides that the Minister, in making a determination, is to have regard to the charge percentages set out in sections 20 and 21 of the SG Act. The percentage provided for by those sections has been increased to 5% with effect from 1 January 1993, by regulation under the SG Act.
The Determination contained in the Statutory Rule, and cited as "Superannuation (CSS) (SG Minimum Contribution) Determination No. 1" provides that the SG minimum contribution as described in section 110SC of the Act will be increased to 5% from 1 January 1993.
Subsection 110SC(4) and (5) provide that a determination under the section is to be a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903, and a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
The Determination will operate on and from 1 January 1993.
Overview
The Superannuation (CSS) (SG Minimum Contribution) Determination No. 1, 1992, was introduced under the Superannuation Act 1976 to address the need for setting a minimum contribution rate for superannuation benefits, ensuring that eligible employees receive adequate retirement benefits in accordance with the Superannuation Guarantee (Administration) Act 1992. This determination was enacted by the authority of the Minister for Finance and was established as a Statutory Rule under the Statutory Rules Publication Act 1903. The policy objective of this legislation is to align the minimum contribution rate with the Superannuation Guarantee rate, which was increased to 5% from 1 January 1993. The determination ensures that the minimum superannuation contributions meet the requirements stipulated under the SG Act, thereby providing a safety net for eligible employees' retirement benefits.
Scope and Application
The Superannuation (CSS) (SG Minimum Contribution) Determination No. 1 1992 No. 461 pertains to the Superannuation Act 1976, which governs the occupational superannuation scheme for Commonwealth employees and certain other persons. This legislation applies to eligible employees who are members of the superannuation scheme. The Act's provisions are designed to ensure that the superannuation contributions meet the minimum requirements set out in the Superannuation Guarantee (Administration) Act 1992. The determination under Section 110SC of the Act establishes a minimum contribution rate, initially set at 4% of the fortnightly salary applicable to eligible employees, and allows for adjustments by the Minister. Notably, the Determination increases the SG minimum contribution rate to 5%, effective from 1 January 1993, aligning with the charge percentages specified in the SG Act. This legislation applies nationally across Australia, as it concerns a Commonwealth Act, and is subject to the Statutory Rules Publication Act 1903 and the Acts Interpretation Act 1901 for disallowance provisions.
Key Provisions
The Superannuation (CSS) (SG Minimum Contribution) Determination No. 1 1992 No. 461 sets out the framework for adjusting the Superannuation Guarantee (SG) minimum contribution rate for eligible employees under the Superannuation Act 1976. According to section 110SC(1) of the Act, the SG minimum contribution rate is set at 4% of the fortnightly salary of an eligible employee. However, the determination, as stated in subsection 110SC(2), allows the Minister for Finance to vary this percentage through a statutory rule. The determination specifies that this rate will increase to 5% from 1 January 1993, aligning with the changes mandated by sections 20 and 21 of the Superannuation Guarantee (Administration) Act 1992. This increase is to ensure that the minimum superannuation benefit provided to employees meets the requirements set out in the SG Act.
Entities governed by the Superannuation Act 1976, particularly employers of eligible employees, have obligations to adhere to the specified SG minimum contribution rate. They must ensure that contributions are made at the prescribed rate to meet the superannuation guarantee for their employees. Employers must also ensure accurate record-keeping and reporting of these contributions to comply with the statutory requirements. The Act imposes a duty on employers to remit the correct amount of superannuation contributions to the relevant super funds by the stipulated deadlines to avoid non-compliance.
Breaches of the Superannuation Act 1976, including failure to comply with the SG minimum contribution requirements, can lead to significant civil and criminal consequences. Employers found to be non-compliant may face penalties, including fines and legal action. The Superannuation Guarantee (Administration) Act 1992 also outlines additional penalties for non-compliance, which can include substantial financial penalties and, in some cases, imprisonment. The maximum penalties for such breaches are determined by the severity of the non-compliance and the extent of the shortfall in superannuation contributions.