EXPLANATORY STATEMENT
STATUTORY RULES 1984 No. 113
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976 - SUPERANNUATION (ELIGIBLE EMPLOYEES) REGULATIONS (AMENDMENT)
Section 168 of the Superannuation Act 1976 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters that the Act requires or permits to be prescribed, or that are necessary or convenient to be prescribed, for carrying out or giving effect to the Act.
The Act makes provision for and in relation to an occupational superannuation scheme for persons employed by the Commonwealth, and for certain other persons.
Persons eligible to contribute under the Act are referred to in the Act as eligible employees.
In accordance with the definition of “eligible employee” in sub-section 3(1) of the Act, the term includes officers and employees for the purposes of the Public Service Act 1922 and any other person employed in a permanent or temporary capacity by the Commonwealth or an approved authority. In accordance with paragraph (j) of the definition, the term does not include a person included in a prescribed class of persons. The classes of persons so excluded are prescribed in the Superannuation (Eligible Employees) Regulations (the Regulations).
Paragraph 4(a) of the Regulations provides that persons who are employees of an approved authority and who are members of a superannuation scheme applying to persons employed by that approved authority (not being the scheme constituted by the provisions of the Act) or who are required by the terms and conditions of their employment to become such members are included in a prescribed class of persons for the purposes of the definition of “eligible employee”. Paragraph 4(aa) makes similar provision in respect of persons who are holders of statutory offices. A “superannuation scheme” for the purposes of the Regulations is defined in regulation 3 as “a scheme, fund or arrangement, however established, under which superannuation or retirement benefits are payable”.
Members of the Police Force of the Northern Territory are eligible employees for the purposes of the Act by virtue of their employment by the Northern Territory of Australia which is an approved authority for the purposes of the Act. Certain statutory office holders under the Northern Territory Police Administration Act may also be eligible to contribute under the Act.
Members of the Northern Territory Police Force are required to retire at age 60. As reduced age retirement benefits are payable under the Act on retirement at an age lower than 65 years, the Northern Territory Government intends providing members of the Northern Territory Police Force with benefits to supplement the age retirement benefits payable under the Act. These arrangements are to be provided under a scheme to be known as the “Northern Territory Police Supplementary Benefit Scheme” that will be established pursuant to the provisions of sections 9 and 51 of the Northern Territory Police Administration Act and that will be entirely separate from those under the Act. The scheme is to operate from 1 July 1984.
The Northern Territory Police Supplementary Benefit Scheme would constitute a “superannuation scheme” for the purposes of the Regulations and members of the Police Force and persons holding statutory offices under the Northern Territory Police Administration Act who become members of the Supplementary Benefit Scheme therefore would be excluded from being eligible employees for the purposes of the Act. As the Supplementary Benefit Scheme is intended to supplement the benefits provided under the Act, members of the Supplementary Benefit Scheme should remain eligible employees for the purposes of the Act.
The Regulations therefore amend the definition of “superannuation scheme” in regulation 3 of the Superannuation (Eligible Employees) Regulations to exclude from its scope the Northern Territory Police Supplementary Benefit Scheme. They also make minor drafting amendments to the Regulations to consolidate in the definition of “superannuation scheme” references elsewhere in the Regulations excluding from the operation of the Regulations the scheme established under the Act.
The amending Regulations are expressed to come into effect on 1 July 1984.
Overview
The Superannuation (Eligible Employees) Regulations (Amendment) 1984, issued under the authority of the Minister for Finance, aims to amend the Superannuation (Eligible Employees) Regulations 1976 to address a specific issue related to the eligibility of members of the Northern Territory Police Force under the Superannuation Act 1976. The Act provides for an occupational superannuation scheme for Commonwealth employees and certain other individuals. The amendment seeks to ensure that members of the Northern Territory Police Force who are part of the Northern Territory Police Supplementary Benefit Scheme remain eligible employees under the Act, despite being members of a supplementary superannuation scheme. This change is necessary to maintain the intended eligibility of these members while ensuring that the supplementary benefits scheme does not inadvertently exclude them from the Act's provisions. The Regulations come into effect on 1 July 1984.
Scope and Application
The Superannuation (Eligible Employees) Regulations (Amendment) issued under the Superannuation Act 1976 applies to eligible employees within the Commonwealth and approved authorities, encompassing officers and employees of the Public Service as defined by the Public Service Act 1922, and those employed by the Commonwealth or approved authorities on a permanent or temporary basis. This includes certain statutory office holders, but explicitly excludes those who are members of a superannuation scheme established under an approved authority's legislation, such as the Northern Territory Police Supplementary Benefit Scheme. The Regulations clarify that these schemes, which are designed to supplement the benefits provided under the Act, should not be considered as affecting the eligibility of employees under the Superannuation Act 1976. The amendments aim to ensure that members of such supplementary schemes remain eligible to contribute to the Commonwealth superannuation scheme, thereby maintaining their eligibility as employees under the Act. The jurisdictional reach of the Act is national, as it applies to the Commonwealth and approved authorities across Australia. The Regulations came into effect on 1 July 1984, aligning with the commencement of the Northern Territory Police Supplementary Benefit Scheme.
Key Provisions
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rules 1984 No. 113, issued under the authority of the Minister for Finance, amends the existing Superannuation (Eligible Employees) Regulations (the Regulations) in relation to the definition of "eligible employee" as stipulated in the Superannuation Act 1976 (the Act) (section 4(a)). The primary changes include the exclusion of certain superannuation schemes from the definition of "superannuation scheme" in regulation 3 of the Regulations. These amendments are necessary to ensure that members of the Northern Territory Police Force, who are to be covered by a supplementary benefit scheme, remain eligible employees under the Act.
The Regulations impose specific obligations on the entities and individuals they govern, primarily focusing on the definition and scope of "eligible employees" and "superannuation scheme". For example, the Regulations clarify that individuals employed by an approved authority and who are members of a superannuation scheme that is not established under the Act, or who are required to join such a scheme as a condition of their employment, are excluded from being eligible employees under the Act (regulation 4(a)). Similarly, statutory office holders who are members of a superannuation scheme not established under the Act are also excluded (regulation 4(aa)). The amendments further refine the definition of "superannuation scheme" to exclude the Northern Territory Police Supplementary Benefit Scheme from its scope, ensuring that members of this supplementary scheme remain eligible to contribute under the Act.
The Regulations do not explicitly state any new offences or penalties for breaches of the amended provisions. However, any breach of the Regulations could potentially lead to civil or administrative consequences under the Act, including financial penalties, enforcement actions, or other remedies available under the Act. The precise penalties would depend on the nature and severity of the breach, as well as the specific provisions of the Act that are contravened. The maximum penalties for breaches of the Superannuation Act can vary widely, depending on the specific offence and the context in which it occurs, but they can include fines and imprisonment in more serious cases.