Superannuation (Distribution of Surplus) Act 1974

Administered by Department of Finance

Legislation au C2004A00074 In force Act

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Superannuation (Distribution of Surplus) Act 1974

 

No. 15 of 1974

 

 

 

 

 

An Act relating to Superannuation

 

 

 

Contents

1  Short title

2  Commencement

3  Interpretation

4  Object of Act

5  Distribution of surplus

6  Payment of shares of surplus to individual contributors and pensioners

7  Assignment and attachment of amounts payable

 

 

Superannuation (Distribution of Surplus) Act 1974

No. 15 of 1974

 

 

 

An Act relating to Superannuation

[Assented to 11 April 1974]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Superannuation (Distribution of Surplus) Act 1974.

2  Commencement

  This Act shall come into operation on the day on which it receives the Royal Assent.

3  Interpretation

 (1) In this Act, unless the contrary intention appears:

actuary means the actuary who was appointed by the Superannuation Board under section 17 of the Superannuation Act 1922‑1971 to make an investigation as to the state and sufficiency of the Fund at 30 June 1972 or, if the actuary so appointed dies or the Treasurer certifies that the actuary so appointed is not available to perform functions under this Act, such other actuary as the Treasurer appoints.

contributor, in relation to a particular time, means a person who was or is, at that time, contributing under Part III of the Superannuation Act 1922 , or of that Act as amended, to the Fund.

eligible contributor means a person whose obligation to contribute under Part III of the Superannuation Act 1922, or of that Act as amended, to the Fund came into existence before the end of the relevant period and who:

 (a) is a contributor on the date on which this Act receives the Royal Assent;

 (b) has become a pensioner after the commencement of the relevant period but before the date referred to in paragraph (a); or

 (c) has died, after the commencement of the relevant period but before the date referred to in paragraph (a), while he was a contributor, leaving a widow or leaving children who were eligible children at the date of his death or who have become eligible children since that date,

other than such a person in respect of whom deferred benefits had become applicable under section 119W of the Superannuation Act 1922‑1971 on or before 30 June 1972.

eligible pensioner means a person who or in respect of whom, at any time during the relevant period, pension, other than a non‑contributory pension, was payable or would, but for the pension having been suspended, have been payable under:

 (a) the Superannuation Act 1922 as amended;

 (b) section 12 of the Superannuation Act 1957;

 (c) section 27 of the Superannuation Act 1963;

 (d) section 5 of the Superannuation (Pension Increases) Act 1961;

 (e) section 5 of the Superannuation (Pension Increases) Act 1967; or

 (f) section 10 of the Superannuation (Pension Increases) Act 1971,

whether or not the person was a contributor at any other time during the relevant period.

non‑contributory pension means:

 (a) a pension that became payable under section 57 of the Superannuation Act 1922 or of that Act as amended, not being a pension for which contributions were made to a State Fund as defined by section 101 of the Superannuation Act 1922‑1973;

 (b) a pension that became payable under section 58 of the Superannuation Act 1922 or of that Act as amended; or

 (c) a pension to which subsection 9(2) or subsection 14(2) of the Superannuation Act (No. 2) 1956 applies;

relevant period means the period of 10 years that ended on 30 June 1972.

 (2) Where deferred benefits were applicable in respect of a person under section 119W of the Superannuation Act 1922‑1971 on 30 June 1972 but had not become payable to or in respect of the person on or before that date, the person shall be deemed to be an eligible pensioner within the meaning of this Act whether or not the person was a contributor at any time during the relevant period.

 (3) Expressions used in this Act that are also used in the Superannuation Act 1922‑1973 have in this Act, unless the contrary intention appears, the same respective meanings as they have in the Superannuation Act 1922‑1973.

4  Object of Act

  The object of this Act is to make provision for and in relation to the distribution out of the Fund, to or in respect of eligible contributors and eligible pensioners, of the amount of $70,015,000, being the amount by which the Fund was, according to the Report to the Board by the Actuary on his Investigation of the Fund as at 30 June 1972, more than sufficient to provide for the benefits that were a charge upon it at that time, and, for the purposes of this Act:

 (a) the amount available for distribution to or in respect of eligible contributors is the amount of $52,525,000; and

 (b) the amount available for distribution to or in respect of eligible pensioners is the amount of $17,490,000.

5  Distribution of surplus

 (1) The Treasurer shall, by notice published in the Gazette:

 (a) fix a date as at which the amount referred to in paragraph (2)(b) shall be distributed to or in respect of eligible contributors; and

 (b) fix a date as at which the amount referred to in paragraph (3)(b) shall be distributed to or in respect of eligible pensioners.

 (2) As soon as practicable after the date has been fixed in accordance with paragraph (1)(a), the Board shall:

 (a) ascertain the amount (in this subsection referred to as the relevant amount) that is equal to the sum of:

 (i) the amount available for distribution to or in respect of eligible contributors; and

 (ii) an amount determined by the Treasurer, after receiving advice from the Board, to be the amount that will have accrued to the Fund, in respect of the period that commenced on 1 July 1972 and ends on the date so fixed by reason of the retention in the Fund during that period of the amount available for distribution to or in respect of eligible contributors; and

 (b) allocate among eligible contributors, in such manner as the Treasurer, after receiving advice from the actuary, determines, the amount nearest to the relevant amount that it is practicable to allocate in that manner among eligible contributors.

 (3) As soon as practicable after the date has been fixed in accordance with paragraph (1)(b), the Board shall:

 (a) ascertain the amount (in this subsection referred to as the relevant amount) that is equal to the sum of:

 (i) the amount available for distribution to or in respect of eligible pensioners; and

 (ii) an amount determined by the Treasurer, after receiving advice from the Board, to be the amount that will have accrued to the Fund in respect of the period that commenced on 1 July 1972 and ends on the date so fixed by reason of the retention in the Fund during that period of the amount available for distribution to or in respect of eligible pensioners; and

 (b) allocate among eligible pensioners, in such manner as the Treasurer, after receiving advice from the actuary, determines, the amount nearest to the relevant amount that it is practicable to allocate in that manner among eligible pensioners.

 (4) In furnishing advice to the Treasurer for the purposes of subsection (2) or (3), the actuary shall have regard to actuarial principles and practice and shall take into account all matters relevant to ensure that the amount to be distributed will be allocated among the persons concerned on a fair and reasonable basis.

6  Payment of shares of surplus to individual contributors and pensioners

 (1) Subject to subsection (2), as soon as practicable after the allocation in respect of eligible contributors, or the allocation in respect of eligible pensioners, has been made under section 5, there shall be paid out of the Fund to each eligible contributor or eligible pensioner, as the case requires, who is entitled to an amount under the allocation an amount equal to that amount.

 (2) Where an eligible contributor or eligible pensioner who is entitled to an amount under the allocation made under subsection 5(2) or (3), as the case may be, has died before the time of payment of the amount:

 (a) if the widow of the contributor or pensioner is alive at the time of payment—an amount equal to the amount to which the contributor or pensioner is so entitled shall be paid out of the Fund to that widow; or

 (b) in any other case—an amount equal to, or amounts aggregating, the amount to which the contributor or pensioner is so entitled shall be paid out of the Fund to such person (if any), or to such persons (if any), as the case requires, as the Board determines.

7  Assignment and attachment of amounts payable

  Sections 143 and 143A of the Superannuation Act 1922‑1973 apply in relation to any moneys payable under Part III as if those moneys were a benefit under the first‑mentioned Act and, where the moneys are payable in respect of a person who has died, as if the person had been an employee and the moneys were payable on his death.

 

 

 

 

 

Overview

The Superannuation (Distribution of Surplus) Act 1974 was enacted by the Parliament of Australia to address the issue of surplus funds in the superannuation system as of 30 June 1972. The Act was designed to distribute a specific surplus amount of $70,015,000 to eligible contributors and pensioners, with $52,525,000 earmarked for eligible contributors and $17,490,000 for eligible pensioners. The primary objective of the Act is to ensure that the surplus is allocated in a fair and reasonable manner, as determined by the Treasurer with advice from the actuary. The Act outlines the process for fixing distribution dates, calculating the amounts to be allocated, and making payments to the beneficiaries, whether they are still alive or have passed away, in which case the funds are to be paid to their widows or other designated persons.

Scope and Application

The Superannuation (Distribution of Surplus) Act 1974 applies to the distribution of a surplus within the Superannuation Fund to eligible contributors and eligible pensioners. An eligible contributor is defined as a person who was contributing to the Fund under the Superannuation Act 1922 or its amendments at the time of the Act's assent, or who became a pensioner after a specified period but before the Act's assent. An eligible pensioner is defined as a person in respect of whom a pension, other than a non-contributory pension, was payable during a certain period under various specified Acts. The Act operates within the Commonwealth of Australia and sets out the method by which the surplus will be distributed to these eligible individuals, with specific allocations for contributors and pensioners. The Act does not explicitly state any exclusions or exemptions, but it does clarify that certain deferred benefits will be considered in determining eligibility. The Act allows for the extension of its application through subordinate instruments, though such provisions are not detailed within the text provided.

Key Provisions

The Superannuation (Distribution of Surplus) Act 1974 (the "Act") outlines the process for distributing a surplus in the superannuation fund to eligible contributors and pensioners. According to Section 5, the Treasurer must publish a notice in the Gazette, setting the dates for distribution to eligible contributors (subsection 5(1)(a)) and eligible pensioners (subsection 5(1)(b)). The Board, in consultation with the actuary, must then ascertain and allocate the relevant amounts to be distributed to the eligible contributors (subsection 5(2)) and eligible pensioners (subsection 5(3)). Payments must be made to eligible contributors and pensioners, or their beneficiaries, as soon as practicable after the allocation has been made (Section 6). The Act imposes several obligations on the parties involved. The Treasurer must fix the distribution dates and consult with the Board and actuary on the allocation of the surplus amounts (Section 5). The Board is responsible for ascertaining the relevant amounts and allocating them among eligible contributors and pensioners (subsection 5(2) and (3)). The actuary must provide advice to the Treasurer, taking into account actuarial principles and practices to ensure a fair and reasonable allocation (subsection 5(4)). Payments must be made from the Fund to eligible contributors, pensioners, or their beneficiaries (Section 6). Breaches of the Act may result in civil or criminal consequences. However, the Act does not explicitly state any offences, penalties, or specific consequences for non-compliance. The general legal principle is that failure to comply with the provisions of an Act may result in legal action being taken against the party or entity responsible for the breach. The consequences may include financial penalties, legal costs, or other remedies as determined by the court. It is essential for parties involved to adhere to the Act's provisions to avoid any potential legal repercussions.

Legal classification tags

Area of Law
Superannuation Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Distribution of Surplus
Payment of Shares
Assignment and Attachment

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.