EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO 345
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) 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 regulations from becoming, or remaining, contributors. The classes of persons so excluded are prescribed in the Superannuation (Eligible Employees) Regulations (the Regulations).
Northern Territory meat inspection staff are to be transferred to Commonwealth employment on 15 December 1986. The transferred staff are to be appointed as officers for the purposes of the Public Service Act 1922 on that date.
Some of the transferees will be eligible employees for the purposes of the Act immediately before the date of transfer and it is intended that they remain eligible employees following their transfer to Commonwealth employment. The remainder will not be members of any superannuation scheme immediately before the date of transfer and 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, those Northern Territory transferees who are not members of a superannuation scheme immediately before the date of transfer will be required to become eligible employees unless excluded from doing so by the Regulations. Amendment of the Regulations is, therefore, necessary to exclude them 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 15 December 1986.
Overview
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rules 1986, issued under the authority of the Minister for Finance, were enacted to address a gap in the Superannuation Act 1976. This Act provides a contributory superannuation scheme for Commonwealth employees, with eligibility defined by the term "eligible employee." However, there was a need to modify the eligibility criteria for certain employees, specifically Northern Territory meat inspection staff, who were set to be transferred to Commonwealth employment. The problem at hand was to ensure that while some transferees would remain eligible employees, others who were not members of a superannuation scheme before the transfer would have the option to become eligible employees, contingent on their election and regulatory exclusion. The policy objective of these amendments was to provide clarity and an opt-in mechanism for the new employees, aligning their superannuation status with the existing legislative framework. The changes were made to ensure that the transferred employees’ superannuation eligibility was appropriately managed, with the amendments taking effect from 15 December 1986.
Scope and Application
The Superannuation Act 1976 provides a contributory superannuation scheme for Commonwealth employees, specifically targeting those who are eligible to contribute and are referred to as "eligible employees." The Act applies to permanent employees, including officers appointed under the Public Service Act 1922. The Act's scope can be modified through the Superannuation (Eligible Employees) Regulations, which may exclude certain classes of employees from becoming or remaining contributors. The recent amendment to the Regulations aims to specifically address the transfer of Northern Territory meat inspection staff to Commonwealth employment, who will be appointed as officers under the Public Service Act 1922 on 15 December 1986. The amendment seeks to exclude some of these transferees from automatic eligibility as contributors under the Superannuation Act unless they explicitly elect to become eligible employees. These changes are intended to be operational from 15 December 1986, aligning with the date of transfer for the affected staff.
Key Provisions
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rules 1986 No. 345 primarily revise the Superannuation (Eligible Employees) Regulations, as stipulated under section 168 of the Superannuation Act 1976. These regulations clarify and adjust the classes of persons who are eligible to be considered "eligible employees" under the Act (section 3(1)). The changes are aimed at ensuring that certain classes of employees, specifically Northern Territory meat inspection staff, are appropriately categorised regarding their superannuation contributions. The amendment is necessary because these staff members are being transferred to Commonwealth employment on 15 December 1986, and it is important to delineate their eligibility for superannuation contributions post-transfer.
The Superannuation (Eligible Employees) Regulations impose specific obligations on parties involved, particularly concerning the eligibility of employees for superannuation contributions. The Act mandates that permanent employees, including those appointed as officers under the Public Service Act 1922, must become eligible employees unless they fall into a prescribed class of exclusions. For Northern Territory meat inspection staff, the Regulations now explicitly state that unless they choose to become eligible employees, they will be excluded from this status following their transfer to Commonwealth employment. This provision ensures that only those who opt-in will be eligible employees, aligning with the broader framework of the Act.
Breaches of the provisions outlined in the Superannuation (Eligible Employees) Regulations could lead to various consequences. The Act provides for both civil and criminal penalties for non-compliance. While specific maximum penalties are not detailed in the explanatory statement, non-compliance could potentially result in fines or other civil penalties under the Act, and in severe cases, criminal penalties could be imposed. These consequences underscore the importance of adhering to the regulations to avoid legal repercussions.