EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO 178
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976
SUPERANNUATION (ELIGIBLE EMPLOYEES) REGULATIONS (AMENDMENT)
The Superannuation Act 1976 (the Act) provides for the current superannuation scheme for Commonwealth employees. Persons eligible to contribute under the Act are referred to in the Act as “eligible employees”.
The Superannuation Act 1990 provides for a new superannuation scheme for Commonwealth employees which is to come into operation on 1 July 1990. Eligible employees are to have the option, to be exercised during the period of 12 months from 1 July 1990, of remaining members of the current scheme or of transferring to the new scheme. The current scheme will continue in operation under the Act to accommodate those who opt to remain eligible employees and the limited number of persons who will be able to become 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 to the term “eligible employee”. Certain persons may be excluded by regulation from becoming, or remaining, eligible employees. The persons so excluded are prescribed in the Superannuation (Eligible Employees) Regulations (the Regulations).
Paragraphs 4(a), 4(aa) and 4(o) of the Regulations exclude from becoming, or remaining, eligible employees certain persons who are members of other superannuation schemes applicable to their employment. The term “superannuation scheme” is defined in regulation 3 of the Regulations.
It is not appropriate that paragraphs 4(a), 4(aa) and 4(o) apply so that a person who is to receive his or her 3% productivity superannuation benefit otherwise than under the Act be excluded from becoming, or remaining, an eligible employee. Regulation 2 will amend the definition of “superannuation scheme” in regulation 3 to exclude from the meaning of the term a scheme, or part of a scheme, that has been established solely to provide the productivity benefit.
In accordance with section 51 of the Act, a person who is on leave without pay for a period in excess of 12 weeks remains an eligible employee but, unless the Minister for Finance otherwise directs, is neither required nor permitted to contribute during the period of the leave. As paragraphs 4(aa) and 4(o) of the Regulations presently operate, such a person who is employed and a member of a superannuation scheme applicable to the employment is excluded from remaining an eligible employee. This is not appropriate and regulation 3 will amend paragraphs 4(aa) and 4(o) so that they will not apply in such circumstances.
The amendments will come into operation on 1 July 1990.