EXPLANATORY STATEMENT
STATUTORY RULES 1987 NO 225
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 Regulations).
Certain members of the civilian staff at Leeuwin Barracks, Perth, Western Australia are employed in a temporary capacity under the Naval Defence Act 1910. They are to cease employment under that Act and be appointed as officers for the purposes of the Public Service Act 1922 on 15 October 1987. 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 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 Regulations accordingly.
The amendments come into operation on 15 October 1987.
Overview
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rules 1987 No. 225 were issued under the authority of the Minister for Finance, amending the Superannuation Act 1976. This piece of legislation addresses a specific gap in the eligibility criteria for superannuation contributions, particularly concerning certain members of the civilian staff at Leeuwin Barracks, Perth, Western Australia, who were transitioning from employment under the Naval Defence Act 1910 to officers under the Public Service Act 1922. The primary objective of this amendment is to clarify the conditions under which these appointees can become eligible employees for superannuation purposes. By excluding these appointees from automatic eligibility unless they choose to become eligible employees, the amendment ensures that the transition does not inadvertently impose superannuation requirements on those not intended to be covered by the Act. This regulatory change aligns with the broader policy objective of maintaining clarity and precision in the application of superannuation eligibility criteria within the framework of the Superannuation Act.
Scope and Application
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rules 1987 No. 225, issued under the authority of the Minister for Finance, concerns amendments to the Superannuation (Eligible Employees) Regulations, which are subordinate to the Superannuation Act 1976. The Superannuation Act establishes a contributory superannuation scheme for Commonwealth employees, with "eligible employees" defined as those who are entitled to contribute to the scheme. The Act excludes certain classes of persons from being eligible employees, and these exclusions are detailed in the Regulations. The current amendment relates specifically to certain civilian staff members at Leeuwin Barracks in Perth, Western Australia, who are transitioning from temporary employment under the Naval Defence Act 1910 to permanent employment under the Public Service Act 1922 on 15 October 1987. The amendment provides that these appointees will not be required to become eligible employees unless they choose to do so, thereby excluding them from mandatory superannuation contributions until such a decision is made. This amendment takes effect on the same date as the change in their employment status.
Key Provisions
The main operative sections of the Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rule 1987 involve changes to the eligibility criteria for superannuation under the Superannuation Act 1976. Specifically, section 3(1) of the Act is amended to allow certain temporary staff at Leeuwin Barracks, Perth, who will be appointed under the Public Service Act 1922, to remain outside the superannuation scheme unless they choose to opt-in (paragraph 1). This aligns with the statutory provision that allows for the exclusion of certain classes of persons from becoming eligible employees (section 168 of the Act).
The Regulations impose certain obligations on the parties involved. Under the amended Regulations, the temporary civilian staff at Leeuwin Barracks who are appointed as officers under the Public Service Act 1922 are not automatically required to become eligible employees for superannuation purposes. Instead, they have the option to become eligible employees at or after the date of their appointment (paragraph 4). This requirement ensures that the appointees have a choice about their superannuation status, maintaining flexibility while complying with the statutory framework (paragraph 6).
Failure to adhere to the stipulations set out in the Regulations could result in various consequences. For instance, if appointees who are not eligible employees under the amended Regulations choose to participate in the superannuation scheme without making the necessary election, they may be in breach of the regulatory requirements (paragraph 9). However, the Statutory Rule does not explicitly outline specific penalties for such breaches, suggesting that the consequences would be determined by the broader provisions of the Superannuation Act 1976 or related legislation (paragraph 10).