EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Superannuation Act 1976
Approval under subsection 3(1)
The Superannuation Act 1976 (the 1976 Act) establishes the Commonwealth Superannuation Scheme (CSS) for Australian Government employees and certain other persons.
Subsection 3(1) of the 1976 Act contains the definition of the term “eligible employee” that describes various classes of persons who may contribute to the CSS (CSS members). Accordingly, persons who come within the definition of “temporary employee” may become members of the CSS.
The term “temporary employee” is defined in subsection 3(1) of the 1976 Act as a person employed otherwise than in a permanent capacity by the Commonwealth or by an approved authority, but does not include a person who is engaged or appointed for employment outside Australia only (other than such a person who is declared, in writing, by the Minister to be a person to whom the definition of “temporary employee” applies).
The purpose of the Superannuation (CSS) Temporary Employee Approval 2011 (No.1) (the Approval) is to approve persons who are engaged as Australian Civilian Corps (ACC) employees for employment on a full-time basis outside Australia only, and who were members of the CSS immediately before becoming so engaged, to be temporary employees for the purposes of the 1976 Act. The Approval enables CSS members to continue their CSS membership while engaged as ACC employees for employment outside Australia only.
AusAID was consulted on the amendments contained in the Approval.
The Approval is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Approval commences immediately after the commencement of Part 3 of the Australian Civilian Corps Act 2011.
The details of the Approval are explained in the Attachment.
ATTACHMENT
SUPERANNUATION (CSS) TEMPORARY EMPLOYEE APPROVAL 2011 (No.1)
Section 1 – Name of Approval
This section provides that the name of the Approval is the Superannuation (CSS) Temporary Employee Approval 2011 (No.1).
Section 2 – Commencement
This section provides for the Approval to commence immediately after the commencement of Part 3 of the Australian Civilian Corps Act 2011.
Section 3 – Temporary Employees
This section provides that persons who were CSS members engaged for full-time employment outside Australia as Australian Civilian Corps employees are “temporary employees” for the purposes of the 1976 Act. This enables such persons to continue their membership of the CSS during engagement as Australian Civilian Corps employees in full‑time employment outside Australia only.
Overview
The Superannuation (CSS) Temporary Employee Approval 2011 (No.1) was enacted to address a specific gap in the Commonwealth Superannuation Scheme (CSS) for Australian Government employees. This legislative instrument, issued under the authority of the Minister for Finance and Deregulation, amends the definition of “temporary employee” in the Superannuation Act 1976 to include certain Australian Civilian Corps (ACC) employees engaged on a full-time basis outside Australia. The primary objective of this Approval is to ensure that employees who were previously members of the CSS continue their membership while they are employed by the ACC overseas. This provision facilitates the uninterrupted continuation of superannuation benefits for these employees, thereby maintaining their financial security. The Approval is a legislative instrument under the Legislative Instruments Act 2003 and comes into effect immediately after the commencement of Part 3 of the Australian Civilian Corps Act 2011.
Scope and Application
The Superannuation (CSS) Temporary Employee Approval 2011 (No.1) applies to individuals who were members of the Commonwealth Superannuation Scheme (CSS) and are subsequently engaged as Australian Civilian Corps (ACC) employees for full-time employment outside Australia. The approval specifies that these individuals can be classified as "temporary employees" under the Superannuation Act 1976, thereby enabling them to maintain their CSS membership while serving overseas. The scope of the Approval is limited to those ACC employees who were CSS members prior to their overseas engagement. Notably, it excludes employees engaged solely for work outside Australia unless they were previously CSS members and are specifically declared by the Minister to be covered by the Approval. The Approval operates within the Commonwealth and its operation is contingent upon the commencement of Part 3 of the Australian Civilian Corps Act 2011. The Approval itself is a legislative instrument under the Legislative Instruments Act 2003 and its provisions can be extended or modified through subordinate instruments as necessary.
Key Provisions
The Superannuation (CSS) Temporary Employee Approval 2011 (No.1) (the Approval) under subsection 3(1) of the Superannuation Act 1976 (the 1976 Act) allows certain Australian Civilian Corps (ACC) employees to maintain their Commonwealth Superannuation Scheme (CSS) membership while working outside Australia. Section 3 of the Approval explicitly states that ACC employees who were already CSS members before being deployed overseas on a full-time basis are considered “temporary employees” for the purposes of the 1976 Act. This designation permits these employees to continue contributing to and receiving benefits from the CSS during their overseas engagement.
Under the Approval, the obligations and requirements imposed on the relevant parties primarily focus on the eligibility and continuation of CSS membership for ACC employees working outside Australia. The key requirement is that the individuals must have been CSS members before their deployment as ACC employees. Additionally, the Approval ensures that these individuals are granted the status of “temporary employees” as defined under the 1976 Act. This status is crucial for maintaining their superannuation benefits and contributions while working overseas.
There are no specific offences or penalties outlined in the Approval itself. However, any failure to comply with the conditions set by the Approval could potentially lead to complications regarding the individual’s CSS membership and benefits. The 1976 Act may impose penalties for misrepresentation or fraud related to superannuation contributions and benefits, but these are not explicitly detailed in the Approval. The primary consequence of non-compliance would likely be the loss of continued CSS membership and the benefits associated with it, unless the individual meets the criteria outlined in the Approval.
In summary, the Approval under the 1976 Act is designed to ensure that ACC employees who were previously CSS members can continue their membership while working overseas. This legislative instrument facilitates the maintenance of superannuation benefits for these employees, ensuring they are not disadvantaged by their overseas deployment. The obligations are clear and focus on maintaining the eligibility and status of these employees within the CSS framework. While the Approval does not detail specific penalties, any breach of its conditions could impact the individual’s superannuation entitlements.