EXPLANATORY STATEMENT
STATUTORY RULES 1900 NO 142
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976
SUPERANNUATION (ELIGIBLE EMPLOYEES) REGULATIONS (AMENDMENT)
The Superannuation Act 1976 (the Act) provides a contributory superannuation scheme for Commonwealth employees and certain other persons. Persons eligible to contribute under the Act are referred to in the Act as “eligible employees”.
Section 168 of 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.
Subsection 3(1) of the Act defines the term “eligible employee” and includes persons employed in a permanent capacity by a body that is an approved authority for the purposes of the Act. 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).
The Australian Wheat Board (AWB) is an approved authority for the purposes of the Act. As a consequence all permanent employees of the AWB are eligible employees unless excluded by the Regulations. A report of the Auditor-General dated 19 March 1987 revealed that a number of permanent employees had not been treated as eligible employees by AWB. Five of those employees do not wish to be eligible employees. In accordance with previous practice, it is intended to permit those permanent employees of AWB, who have requested in writing not to be treated as eligible employees, to be excluded from the definition.
The proposed Statutory Rule will insert paragraph 4(zk) in the Principal Regulations to give effect to this intention.
The proposed Statutory Rule will come into operation on the date of its gazettal.
SR No /90
Overview
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rules 1990, issued under the authority of the Minister for Finance, were enacted to address a gap in the application of the Superannuation Act 1976 for certain employees of the Australian Wheat Board (AWB). This piece of legislation aims to clarify and amend the eligibility criteria for superannuation contributions among AWB employees by modifying the Superannuation (Eligible Employees) Regulations. The policy objective of this amendment is to ensure that only those employees who have explicitly requested in writing to not be considered eligible for superannuation contributions are excluded, thereby aligning the regulation with the AWB's administrative practices as identified by the Auditor-General's report of 19 March 1987. This amendment ensures that the regulations accurately reflect the wishes of the employees and maintain consistency in the application of the superannuation scheme.
Scope and Application
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rules 1990 pertain to the application and administration of the Superannuation Act 1976, which establishes a contributory superannuation scheme for Commonwealth employees and certain other individuals. These regulations specifically address the definition and scope of "eligible employees" who are entitled to participate in the superannuation scheme. The Act and its subsidiary regulations apply to individuals employed in a permanent capacity by bodies approved as authorities under the Act, such as the Australian Wheat Board (AWB). However, certain classes of persons may be excluded from eligibility by regulation, as outlined in the Superannuation (Eligible Employees) Regulations. The amendment introduced by the Statutory Rules 1990 seeks to exclude from the definition of "eligible employee" those permanent AWB employees who have expressly opted out of the superannuation scheme by written request, aligning with prior practices identified by the Auditor-General's report. This amendment ensures that the regulations accurately reflect the wishes of eligible employees regarding their participation in the superannuation scheme, thereby maintaining the integrity and intended operation of the Act. The Statutory Rule will be effective from the date of its gazettal.
Key Provisions
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rule introduces a modification to the existing Superannuation (Eligible Employees) Regulations, specifically through the insertion of a new paragraph 4(zk) (paragraph not provided in the excerpt). This amendment is intended to address the situation where certain permanent employees of the Australian Wheat Board (AWB), an approved authority under the Superannuation Act 1976, have not been treated as eligible employees. The new regulation aims to provide a formal process for excluding employees from the definition of "eligible employee" if they have expressly requested in writing not to be included in the superannuation scheme. The amendment will come into effect immediately upon gazettal of the Statutory Rule.
The obligations and requirements imposed by this amendment are relatively straightforward. Firstly, the amendment allows for the exclusion of specified employees from the category of "eligible employees" if they have submitted a written request to opt out of the superannuation scheme. This process ensures that employees who do not wish to be covered by the superannuation scheme can formally exclude themselves. The regulation mandates that the AWB, as the governing authority, must adhere to this process when handling employee requests. Additionally, the regulation necessitates that the AWB maintains accurate records of all such requests and the corresponding actions taken to ensure compliance with the Superannuation Act.
In terms of potential breaches and consequences, the Superannuation Act 1976 does not explicitly outline specific offences or penalties for failing to comply with the newly inserted regulation. However, the Act does provide for general enforcement mechanisms under which non-compliance with the Act or its regulations can result in civil or criminal penalties. For civil penalties, the Act generally allows for fines of up to $21,000 for each offence, with additional penalties potentially applying for continuing offences. Criminal penalties may also apply, with maximum fines up to $126,000 for individuals and $630,000 for bodies corporate, depending on the severity and nature of the breach. These penalties underscore the importance of adhering to the regulatory requirements to avoid legal repercussions.