EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 121
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. 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.
By virtue of the definitions of “eligible employee”, “permanent employee” and “temporary employee” in subsection 3(1) of the Act, the term “eligible employee” includes officers and employees for the purposes of the Public Service Act 1922, other persons employed by the Commonwealth and persons employed by an “approved authority”. In accordance with paragraph (j) of the definition of “eligible employee”, 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 Meat and Live-stock Corporation is an approved authority for the purposes of the Act and persons appointed as officers or engaged as employees of the Australian Meat and Live-stock Corporation are therefore either required or eligible to contribute under the Act. The Managing Director of the Corporation may also be eligible to contribute.
The Corporation will introduce a superannuation scheme for its officers and employees with effect from 1 July 1989. It is intended, as a consequence, that new employees of the Corporation, with certain exceptions, should not be eligible to contribute under the Act. Paragraph 4(a) of the Principal Regulations will continue to operate to ensure that persons who are members of a superannuation scheme run by the Corporation are excluded from becoming or remaining contributors under the Act. The Statutory Rule inserts in the Principal Regulations new paragraphs 4(zh) and 4(zi) which will provide that the following classes of persons are also excluded from becoming contributors under the Act:
(a) persons who are, immediately before 1 July 1989, officers or employees of the Corporation and not contributors under the Act; and
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(b) persons appointed or engaged as Managing Directors, officers or employees of the Corporation on or after 1 July 1989 who, immediately before their appointment or engagement, are not contributors under the Act.
The above groups do not include persons:
(i) who are appointed or engaged while on leave without pay from employment by the Commonwealth or another approved authority;
(ii) who are invalidity pensioners as defined in regulation 3 of the Regulations; or
(iii) to whom Division 2 or 3 of Part IV of the Public Service Act 1922 applies.
The amendments operate on and from 1 July 1989.
Overview
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rules 1989 No 121, issued by the authority of the Minister for Finance, amends the Superannuation (Eligible Employees) Regulations made under the Superannuation Act 1976. The primary objective of these amendments is to address the inclusion of officers and employees of the Australian Meat and Livestock Corporation within the superannuation scheme governed by the Act. By virtue of these amendments, the eligibility of these individuals to contribute to the superannuation scheme is altered, effective from 1 July 1989. Specifically, the amendments exclude certain classes of employees from becoming contributors under the Act, ensuring alignment with the Corporation's newly introduced superannuation scheme. This legislative adjustment aims to prevent overlap and redundancy in superannuation contributions for the affected employees, thereby maintaining the integrity and efficiency of the superannuation system.
Scope and Application
The Superannuation Act 1976 is designed to provide a contributory superannuation scheme for eligible Commonwealth employees, which includes officers and employees under the Public Service Act 1922, other Commonwealth employees, and those employed by approved authorities such as the Australian Meat and Live-stock Corporation. Eligible employees must contribute to the scheme unless they are specifically excluded by regulation. The Act allows the Governor-General to make regulations necessary for the implementation of the scheme, and these regulations can exclude certain classes of employees from contributing. The Superannuation (Eligible Employees) Regulations, which can be amended to exclude additional classes of employees, currently exclude those who are members of a superannuation scheme run by the Australian Meat and Live-stock Corporation. The regulations will be further amended to exclude officers and employees of the Corporation who were not contributors immediately before 1 July 1989, and those appointed or engaged on or after that date who were not contributors immediately prior. These amendments, effective from 1 July 1989, do not apply to those appointed or engaged while on leave without pay, invalidity pensioners as defined in regulation 3 of the Regulations, or those to whom Division 2 or 3 of Part IV of the Public Service Act 1922 applies.
Key Provisions
The Superannuation (Eligible Employees) Regulations (Amendment) under the Superannuation Act 1976 introduce significant changes to the eligibility criteria for superannuation contributions. These amendments, effective from 1 July 1989, specifically exclude certain classes of employees from contributing under the Act. Section 4(zh) of the Principal Regulations excludes persons who were officers or employees of the Australian Meat and Livestock Corporation immediately before 1 July 1989, and were not contributors under the Act. Similarly, section 4(zi) excludes persons appointed or engaged as Managing Directors, officers, or employees of the Corporation on or after 1 July 1989, if they were not contributors under the Act immediately before their appointment or engagement.
These regulations impose specific obligations on the Australian Meat and Livestock Corporation, requiring them to implement a superannuation scheme for their officers and employees from 1 July 1989. This means that, with certain exceptions, new employees of the Corporation will not be eligible to contribute under the Act. The exceptions include individuals who are on leave without pay from employment by the Commonwealth or another approved authority, those who are invalidity pensioners as defined in regulation 3 of the Regulations, and those to whom Division 2 or 3 of Part IV of the Public Service Act 1922 applies. This ensures a smooth transition to the new scheme while maintaining certain benefits for specific categories of employees.
Breaching the provisions of the Superannuation Act 1976 or the amended regulations can lead to various consequences. Firstly, failure to comply with the eligibility criteria for superannuation contributions can result in penalties under the Act. The specific penalties, however, are not detailed in the statutory rule but are likely to be prescribed in the Act or related regulations. Additionally, there may be civil or criminal consequences for non-compliance, depending on the severity and intent behind the breach. It is important for the Corporation and its employees to adhere strictly to the new regulations to avoid any legal ramifications.