EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 98
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, 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).
Certain persons employed in a temporary capacity by the Department of Administrative Services under section 82AC of the Public Service Act 1922 are to be appointed as officers under section 42 or 42A of the Public Service Act 1922 on 1 June 1989. Some of the persons concerned are not eligible employees 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, however, permanent employees, including officers for the purposes of the Public Service Act 1922, are automatically eligible employees unless excluded from being so by the Regulations.
The Regulations amend the Principal Regulations by inserting a new paragraph 4(zg) to exclude the appointees from becoming eligible employees unless they elect to do so. The amendments operate on and from 1 June 1989.
Overview
The Superannuation (Eligible Employees) Regulations (Amendment) 1989 were introduced to address a specific gap in the eligibility criteria for certain temporary employees within the Commonwealth, particularly those under the Department of Administrative Services. Enacted under the authority of the Minister for Finance and issued by the Parliament of Australia, the purpose of these amendments to the Superannuation Act 1976 is to provide clarity and options for eligibility in superannuation contributions for a particular class of employees transitioning to permanent positions. The policy objective is to ensure that these employees, who are appointed as officers under the Public Service Act 1922 on 1 June 1989, have the choice to become eligible employees under the superannuation scheme, thereby aligning their employment status with their superannuation contribution eligibility.
Scope and Application
The Superannuation (Eligible Employees) Regulations (Amendment) Statutory Rules 1989 No. 98 amends the Principal Regulations under the Superannuation Act 1976, which provides a contributory superannuation scheme for Commonwealth employees. This legislation applies to certain employees who are eligible to contribute under the Act, referred to as “eligible employees.” These include 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. However, certain classes of persons may be excluded from becoming or remaining contributors by regulation, as specified in the Principal Regulations. The amendment introduces a new exclusion under paragraph 4(zg) of the Principal Regulations, which applies to persons employed in a temporary capacity by the Department of Administrative Services under section 82AC of the Public Service Act 1922 who are to be appointed as officers under section 42 or 42A on 1 June 1989. These appointees are not eligible employees unless they elect to become so, and the amendment operates from 1 June 1989. The scope of the Act is thus extended by these subordinate instruments to ensure specific employee groups are appropriately managed within the superannuation scheme.
Key Provisions
The Superannuation (Eligible Employees) Regulations (Amendment) under the Superannuation Act 1976 introduce specific changes to the eligibility criteria for certain temporary employees. These amendments are detailed in section 168 of the Act, which allows the Governor-General to make regulations necessary to carry out the Act. Section 3(1) of the Act defines "eligible employee" and includes officers and employees under the Public Service Act 1922, as well as persons employed by the Commonwealth or an approved authority. However, certain classes of persons may be excluded by regulation. This regulation specifically targets temporary employees who are to be appointed as officers under section 42 or 42A of the Public Service Act 1922 from 1 June 1989.
The new paragraph 4(zg) inserted into the Principal Regulations ensures that certain temporary appointees are not automatically considered eligible employees unless they actively choose to become so. This amendment applies from 1 June 1989 and clarifies that while some temporary employees may become eligible upon appointment, others will need to elect their eligibility. This provision ensures that the eligibility criteria are met without automatically including those who do not meet the necessary conditions.
The obligations imposed by these regulations require that eligible employees, including those appointed as officers, must meet the criteria set out in the Act and the Regulations. This includes the clear stipulation that certain temporary appointees will not automatically qualify as eligible employees and must elect their eligibility. Additionally, the regulations mandate that all changes and exclusions must be in line with the definitions and provisions of the Superannuation Act 1976 and the Public Service Act 1922.
Failure to comply with the requirements set out in these regulations may result in legal consequences. While the specific offences and penalties are not detailed in the explanatory statement, breaches of regulations under the Superannuation Act 1976 could lead to civil or criminal penalties. These may include fines or other sanctions as prescribed by law. The exact penalties would depend on the nature and severity of the breach, as outlined in relevant sections of the Act and any applicable penalties listed in the regulations.