EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO 375
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”.
By virtue of the definition of “eligible employee” in sub-section 3(1) and sections 11, 12, 13 and 14 of the Act, a permanent employee is required to become an eligible employee while a temporary employee or the holder of a statutory office may do so at his or her own request subject to certain qualifications. In accordance with paragraph (j) of the “eligible employee” 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).
Section 7 of the Australian Trade Commission Act 1985 provides for the establishment of the Australian Trade Commission and section 60 of that Act provides for the Commission to employ staff. Section 12 of the Australian Trade Commission (Transitional Provisions and Consequential Amendments) Act 1985 provides for the following persons to become employees of the Commission on the date it comes into existence:-
(a) certain persons who are officers or employees for the purposes of the Public Service Act 1922;
(b) certain persons who are Trade Commissioners or Assistant Trade Commissioners appointed under the Trade Commissioners Act 1933;
(c) officers and employees of the Export Finance and Insurance Corporation; and
(d) employees of the Australian Overseas Projects Corporation.
The above provisions are to come into operation on 6 January 1986.
It is intended that those in groups (a) to (d) above who become permanent employees of the Commission on 6 January 1986 and who were not eligible employees for the purposes of the Act immediately before that date should not be required to become eligible employees but be able to do so at their own request on 6 January 1986 or at any time thereafter. The proposed Regulations would amend the Superannuation (Eligible Employees) Regulations to achieve this intention.
The amendments are to come into operation on 6 January 1986, the date from which the persons concerned will become employees of the Commission.
Overview
The Superannuation Act 1976 was enacted to provide a contributory superannuation scheme for Commonwealth employees, addressing the need for a structured retirement savings plan for those employed by the government. This legislation was introduced to ensure that eligible employees contribute to their retirement funds, thereby promoting financial security post-employment. The Superannuation (Eligible Employees) Regulations (Amendment) 1985, issued under the authority of the Minister for Finance, were designed to fine-tune the eligibility criteria for superannuation contributions, particularly in light of the establishment of the Australian Trade Commission under the Australian Trade Commission Act 1985. These regulations aim to exclude certain classes of employees from mandatory superannuation contributions while allowing them the option to become eligible employees at their own discretion. The policy objective is to maintain flexibility in superannuation participation while ensuring that the scheme remains comprehensive and inclusive of those who wish to contribute.
Scope and Application
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rules 1985 No. 375, issued under the authority of the Minister for Finance, amends the Superannuation (Eligible Employees) Regulations to align with the establishment of the Australian Trade Commission as per the Australian Trade Commission Act 1985. This amendment ensures that certain groups of employees who transition to the Australian Trade Commission on 6 January 1986 are not automatically required to become eligible employees under the Superannuation Act 1976 but have the option to do so at their discretion. Specifically, the amendment applies to permanent employees who become staff of the Australian Trade Commission under the provisions of the Australian Trade Commission (Transitional Provisions and Consequential Amendments) Act 1985 and the Australian Trade Commission Act 1985, including former officers of the Public Service, Trade Commissioners, officers and employees of the Export Finance and Insurance Corporation, and employees of the Australian Overseas Projects Corporation. These Regulations are designed to provide flexibility for employees transitioning to the Australian Trade Commission, allowing them to choose their superannuation eligibility while ensuring that the Superannuation Act remains consistent with the broader legislative framework governing the Commission's operations.
Key Provisions
The Superannuation (Eligible Employees) Regulations (Amendment) primarily focus on modifying the eligibility criteria for certain employees to contribute to the superannuation scheme established under the Superannuation Act 1976. Section 7 of these regulations introduces changes to the existing definition of "eligible employees," specifically addressing the eligibility of individuals who will become employees of the Australian Trade Commission on 6 January 1986. These employees include those who were officers or employees under the Public Service Act 1922, Trade Commissioners or Assistant Trade Commissioners appointed under the Trade Commissioners Act 1933, officers and employees of the Export Finance and Insurance Corporation, and employees of the Australian Overseas Projects Corporation. The amendment permits these individuals to choose to become eligible employees at their discretion, a right that is not mandatory but available upon request.
The regulations impose certain obligations on the parties involved. For the eligible employees, the primary obligation is the option to voluntarily become eligible employees of the superannuation scheme, subject to the specific provisions laid out in the amended regulations. Employers, including the Australian Trade Commission, are required to provide information and facilitate the process for employees to make an informed choice about their superannuation contributions. This includes ensuring that employees are aware of their eligibility to join the scheme and the implications of their decision.
In terms of consequences, the Superannuation (Eligible Employees) Regulations (Amendment) do not explicitly outline specific offences or penalties for non-compliance. However, the overarching Superannuation Act 1976 does provide a framework within which penalties and enforcement actions can be taken. For example, non-compliance with the Act's provisions regarding superannuation contributions can result in penalties under section 168, which may include fines up to a specified maximum amount. These penalties are intended to ensure adherence to the legislative requirements and protect the interests of eligible employees in their superannuation contributions.