EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO 149
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 all 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”.
Subsection 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 persons 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 Principal Regulations).
Certain persons employed in a temporary capacity by the Department of Administrative Services under section 82AC of the Public Service Act 1922 are to be appointed as officers for the purposes of the Public Service Act 1922 pursuant to section 42 or 42A of that Act on 1 July 1988. Some of the persons concerned are not eligible employees for the purposes of the Act and it is intended that they have the option of becoming eligible employees at, or at any time after, the date of appointment.
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 appointees concerned 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 appointees from becoming eligible employees unless they elect to do so.
The Statutory Rule amends the Principal Regulations accordingly.
Regulation 1 provides that the amendments operate on and from 1 July 1988.
Regulation 2 inserts in the Principal Regulations a new paragraph (ze) which provides that certain persons employed in a temporary capacity under section 82AC of the Public Service Act 1922 who are appointed as officers for the purposes of that Act on 1 July 1988 pursuant to section 42 or 42A of that Act and who have not requested that they be treated as eligible employees are a prescribed class of persons for the purposes of the definition of “eligible employee” in subsection 3(1) of the Act.
Overview
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rule 1988 was enacted to address the eligibility of certain temporary employees of the Department of Administrative Services under the Superannuation Act 1976. This amendment was issued under the authority of the Minister for Finance and made pursuant to section 168 of the Superannuation Act 1976, which empowers the Governor-General to make regulations necessary for carrying out or giving effect to the Act. The primary objective of this amendment is to ensure that certain temporary employees appointed as officers under the Public Service Act 1922 on 1 July 1988 are appropriately classified under the Superannuation Act. Specifically, it excludes these appointees from becoming eligible employees unless they actively elect to do so, thereby providing them with the option to join the contributory superannuation scheme. This amendment was necessary to align the regulatory framework with the new employment classifications introduced under the Public Service Act 1922.
Scope and Application
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rules 1988 pertain to the Superannuation Act 1976, which provides a contributory superannuation scheme for Commonwealth employees. This legislation applies to eligible employees, who are defined under the Act and includes most permanent employees. However, the regulation specifically addresses certain persons employed in a temporary capacity by the Department of Administrative Services under section 82AC of the Public Service Act 1922 who are appointed as officers for the purposes of the Public Service Act 1922 on or after 1 July 1988. These appointees are excluded from being eligible employees unless they elect to become so. The regulation operates from 1 July 1988, and the amendment inserts a new paragraph to the Principal Regulations, which prescribes that these specific temporary appointees are a class of persons excluded from becoming eligible employees unless they choose to be so. This amendment ensures that these appointees are not automatically considered eligible employees unless they specifically request this status.
Key Provisions
The main operative sections of these regulations, particularly as amended, include Regulation 1, which specifies the commencement date of the amendments, 1 July 1988, and Regulation 2, which introduces a new exclusion for certain temporary employees of the Department of Administrative Services. Regulation 1 (1) sets the effective date for the amendments, ensuring that the changes apply from a specific date. Regulation 2 (2) then inserts a new paragraph (ze) in the Principal Regulations, detailing that certain persons employed temporarily under section 82AC of the Public Service Act 1922, who are appointed as officers on 1 July 1988, are classified as a prescribed class of persons. This means that unless these individuals opt to become eligible employees, they are excluded from the definition of “eligible employee” under the Superannuation Act 1976.
The Superannuation (Eligible Employees) Regulations, as amended, impose specific obligations and requirements on the parties involved. Firstly, the amendments clarify the status of temporary employees appointed on or after 1 July 1988. These employees are not automatically considered eligible employees unless they specifically request to be treated as such. This requirement ensures that only those who choose to participate in the superannuation scheme are included. Additionally, the regulations mandate that these temporary employees, unless they elect otherwise, remain outside the scope of the Act’s provisions for eligible employees. This exclusion helps maintain the integrity of the superannuation scheme by ensuring that only those who meet the specified criteria are included as contributors.
Breach of the provisions outlined in these regulations can lead to significant consequences. Firstly, if an individual who is not eligible to participate in the superannuation scheme is included without proper classification, this could result in legal and financial repercussions. The Superannuation Act 1976 provides for various penalties for non-compliance. For example, failure to comply with the regulations could result in the individual being required to make back payments into the superannuation scheme, potentially leading to financial strain. Furthermore, persistent non-compliance might attract additional penalties, including fines or other legal actions as deemed necessary by the governing authorities. These penalties serve to enforce the correct application of the regulations and to uphold the integrity of the superannuation scheme for eligible employees.