EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO 343
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 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 contributors. The classes of persons so excluded are prescribed in the Superannuation (Eligible Employees) Regulations (the Regulations).
Paragraphs 4(a), 4(aa) and 4(o) of the Regulations prescribe as a class of persons those to whom a superannuation scheme or arrangement other than that provided under the Act applies.
Paragraph 4(a) of the Regulations includes in a prescribed class employees of an “approved authority” who are, or are required to become, members of a superannuation scheme applying to employees of that “approved authority”. Paragraph 4(aa) includes in a prescribed class persons who are the holders of a statutory office and who are, or are required to become, members of a superannuation scheme applying to holders of that office. Paragraph 4(o) includes as a prescribed class of persons those persons:-
- who are permanent or temporary employees or the holders of a statutory office,
- who remain members of a superannuation scheme applying to them by reason of some previous employment, and
- in respect of whom the Commonwealth has agreed to pay the employer superannuation liability in respect of benefits payable to or in respect of the person from that scheme.
Cases are arising, however, where persons not included in a class prescribed in paragraph 4(a) or 4(aa) are being provided with superannuation arrangements outside the Superannuation Act 1976 that are not related to their previous employment. Such persons are not included in the class of persons prescribed in paragraph 4(o).
The Statutory Rule would amend paragraph 4(o) to encompass all persons who are members of another superannuation scheme in respect of whom the Commonwealth or an authority or other body by which they are employed has agreed to meet the employer superannuation liability in respect of the person’s membership of that scheme.
The amendments are to come into operation on the date of gazettal.