EXPLANATORY STATEMENT
STATUTORY RULES 1987 NO 10
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 provides a contributory superannuation scheme for Commonwealth employees. Persons eligible to contribute under the Act are referred to in the Act as “eligible employees”.
Sub-section 3(1) of the Act defines the term “eligible employee”. In accordance with paragraph (j) of the definition, the term does not include a person included in a prescribed class of persons. Thus, certain classes of employees may be excluded by regulation from becoming, or remaining, contributors. The classes of persons so excluded are prescribed in the Superannuation (Eligible Employees) Regulations (the Regulations).
The Western Australian domestic meat inspection function and associated staff are to be transferred to the Commonwealth on 16 February 1987. The transferred staff are to be appointed as officers for the purposes of the Public Service Act 1922 on that date.
None of the transferees will be a member of a Western Australian superannuation scheme immediately before the date of transfer. It is intended that they have the option of becoming eligible employees for the purposes of the Act at, or at any time after, the date of transfer.
Under the Act, permanent employees, including officers for the purposes of the Public Service Act 1922, are required to become eligible employees for the purposes of the Act. Thus, the transferees will be required to become eligible employees unless excluded from doing so by the Regulations. Amendment of the Regulations is, therefore, necessary to exclude the transferees from becoming eligible employees unless they elect to do so.
The Statutory Rule amends the Regulations accordingly.
The amendments are to come into operation on 16 February 1987.
Overview
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rule 1987 No. 10, issued under the authority of the Minister for Finance, was enacted to address the need for regulatory adjustments in response to the transfer of Western Australian domestic meat inspection staff to Commonwealth employment on 16 February 1987. The Superannuation Act 1976 established a contributory superannuation scheme for Commonwealth employees, defining "eligible employees" who are required to contribute to the scheme. However, certain classes of employees can be excluded by regulation, as stipulated under section 3(1) of the Act. This regulatory amendment seeks to exclude the transferred staff from becoming eligible employees unless they choose to elect this status. The policy objective is to provide these transferees with the option to join the Commonwealth superannuation scheme while ensuring regulatory consistency with the existing framework. The changes were set to take effect on the same date as the transfer of staff, ensuring a smooth transition for the affected employees.
Scope and Application
The Superannuation (Eligible Employees) Regulations, as amended by the Statutory Rule, pertains to the eligibility criteria for Commonwealth employees to contribute to the superannuation scheme under the Superannuation Act 1976. The Act applies to eligible employees who are required to contribute to a contributory superannuation scheme, and these employees are defined under the Act as permanent employees, including officers for the purposes of the Public Service Act 1922. The amended Regulations exclude certain classes of employees from becoming eligible employees unless they elect to do so, specifically addressing the transferees from the Western Australian domestic meat inspection function who will be appointed as officers under the Public Service Act 1922 on 16 February 1987. This amendment ensures that these transferees will not be automatically included as eligible employees unless they make a conscious decision to opt-in, thereby extending or restricting the application of the Act to these specific employees. The jurisdictional reach of these Regulations is the Commonwealth, and they are implemented through statutory rules issued by the authority of the Minister for Finance.
Key Provisions
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rule 1987 No 10, issued under the authority of the Minister for Finance, primarily amends the existing Superannuation (Eligible Employees) Regulations (F1996B02239) in relation to the eligibility of employees for superannuation contributions under the Superannuation Act 1976. Section 168 of the Act allows the Governor-General to make regulations to prescribe matters necessary or convenient for carrying out or giving effect to the Act, provided they are not inconsistent with it. The amendment, which comes into operation on 16 February 1987, specifically addresses the eligibility of staff involved in the Western Australian domestic meat inspection function upon their transfer to Commonwealth service.
The Superannuation Act 1976 establishes a contributory superannuation scheme for Commonwealth employees, defined as “eligible employees” under the Act. Section 3(1) of the Act outlines the criteria for eligibility, excluding certain classes of persons by regulation. The Regulations, which are being amended here, specify the classes of employees excluded from superannuation eligibility. The recent amendment is necessary to address the eligibility of staff transferred from Western Australian service to Commonwealth employment, ensuring these employees are not automatically eligible for superannuation unless they choose to become so.
The amended Regulations impose specific obligations on the parties involved. For the transferred employees, the primary obligation is that they are not automatically eligible to become contributors to the superannuation scheme unless they actively elect to do so. This exclusion is in place to give these employees a choice regarding their superannuation membership. The amendment ensures that the transferred employees, who were not members of a Western Australian superannuation scheme before the transfer, have the option to become eligible employees under the Commonwealth scheme.
Failure to comply with the requirements of the Superannuation Act 1976 and the Regulations could lead to civil or criminal consequences. While the specific penalties for non-compliance are not detailed in the explanatory statement, the Act generally provides for enforcement mechanisms, including fines and potential criminal charges for more serious breaches. The precise penalties would depend on the nature and severity of the non-compliance, as outlined in the Act. The regulation aims to ensure that the transferees are not coerced into joining the superannuation scheme but rather have the informed choice to opt-in if they wish.