Superannuation (Interest) Regulations

Legislation au C1976L00258 Regulations Not in force Legislative Instrument

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Statutory Rules

1976 No. 258

REGULATIONS UNDER THE SUPERANNUATION ACT 1976.*

THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Superannuation Act 1976.

Dated this thirtieth day of November, 1976.

JOHN R. KERR

Governor-General.

By His Excellency’s Command,

ERIC ROBINSON

Minister of State for Post and Telecommunications for

and on behalf of the Treasurer.

_____

SUPERANNUATION (INTEREST) REGULATIONS

Citation.

1. These Regulations may be cited as the Superannuation (Interest) Regulations.

Commencement.

2. These Regulations shall be deemed to have taken effect from and including 1 July 1976.

Interpretation.

3. (1) In these Regulations, unless the contrary intention appears—

“ day of payment ”, in relation to an amount paid into the Fund in respect of an eligible employee, means—

(a) where the amount is a contribution deducted from the salary of the eligible employee—

(i) if the day on which the amount was so deducted was a contribution day—that day; or

(ii) if that day was not a contribution day—the contribution day next following that day;

(b) where the amount is deemed by virtue of sub-section 177 (9), (10) or (11) of the Act to be an amount of basic contributions or supplementary contributions, as the case may be, paid by an existing contributor under the Act—the commencing day; or

(c) where paragraph (a) or (b) does not apply—

(i) if the day on which the amount was paid was a contribution day—that day; or

(ii) if that day was not a contribution day—the contribution day next following that day;

 

* Notified in the Australian Government Gazette on 3 December 1976.


“ termination day ”, in relation to a person who has ceased to be an eligible employee, means—

(a) subject to paragraph (b), where no benefit other than lump sum benefit is payable to or in respect of that person—

(i) his last day of service; or

(ii) the day 14 days after the day on which the Commissioner has determined the amount of benefit payable to or in respect of that person,

whichever is later;

(b) where, after his so ceasing to be an eligible employee, deferred benefits become payable to or in respect of that person under Division 3 of Part IX of the Act—

(i) the pension pay day next following the day on which the deferred benefits become payable; or

(ii) the second pension pay day after the day on which the Commissioner has determined the amount of any pension or lump sum benefit constituting or forming part of the deferred benefits payable to or in respect of that person,

whichever is later; or

(c) in any other case—

(i) the pension pay day next following that person’s last day of service; or

(ii) the second pension pay day after the day on which the Commissioner has determined the amount of benefit payable to or in respect of that person,

whichever is later;

“ the Act ” means the Superannuation Act 1976.

(2) A reference in these Regulations to an amount paid into the Fund is a reference to—

(a) a basic or supplementary contribution paid to the Commissioner;

(b) an amount paid to the Superannuation Fund under sub-section 112 (5) of the Act;

(c) an amount deemed by virtue of paragraph 128 (2) (a) of the Act to be basic contributions paid by a person to the Commissioner under the Act;

(d) an amount deemed by virtue of sub-section 129 (2) of the Act to be an amount of supplementary contributions paid by a person under the Act;

(e) an amount deemed by virtue of sub-section 177 (9), (10) or (11) of the Act to be an amount of basic contributions or supplementary contributions, as the case may be, paid by an existing contributor under the Act; or

(f) an additional contribution paid to the Commissioner under sub-section 186 (9) of the Act.

Interest payable on contributions, &c.

4. For the purpose of ascertaining the accumulated basic contributions or the accumulated supplementary contributions of a person who has ceased to be an eligible employee, interest calculated in accordance with regulation 5 is payable in respect of an amount paid into the Fund in respect of that person.


Calculation of interest.

5. For the purposes of regulation 4, interest payable in respect of an amount paid into the Fund in respect of a person shall be deemed—

(a) to have accrued at the prescribed rate from and including the day of payment of that amount to and including the day that is the termination day in relation to that person; and

(b) to have been compounded each year on 30 June.

Rate of interest for purposes of sub-paragraphs 145 (8) (a) (i) and 145 (9) (a) (i) of the Act.

6. For the purposes of sub-paragraphs 145 (8) (a) (i) and 145 (9) (a) (i) of the Act, compound interest shall be calculated at the prescribed rate.

Prescribed rate of interest.

7. For the purposes of regulations 5 and 6, the prescribed rate is 7.842 per centum per annum.

Overview

The Superannuation (Interest) Regulations 1976, made under the Superannuation Act 1976, were introduced to address the need for clear guidelines on the calculation and payment of interest on superannuation contributions. Enacted by the Governor-General of the Commonwealth of Australia, acting on the advice of the Federal Executive Council, these regulations aim to provide a consistent and legally binding framework for the calculation of interest on superannuation contributions. The policy objective is to ensure that the interest on superannuation contributions is calculated and compounded correctly, thereby enhancing the benefits and overall value of superannuation funds for eligible employees.

Scope and Application

The Superannuation (Interest) Regulations 1976, made under the Superannuation Act 1976, establish the framework for the calculation and payment of interest on contributions to superannuation funds. These regulations apply to all superannuation funds governed by the Act, affecting eligible employees, employers, and other contributors to these funds. The geographic scope of these regulations is national, as they are issued under Commonwealth law. The Act and its subordinate instruments, like these regulations, govern the entire Australian superannuation system, including private, public, and industry-specific funds. These regulations do not explicitly state exclusions or exemptions, but the application is inherently tied to the conditions set by the Superannuation Act 1976. The interest rate prescribed in these regulations, 7.842 percent per annum, is a fixed rate applicable to the calculation of interest on contributions made into superannuation funds, as per the stipulations of the Act. The regulations also extend their application through the use of subordinate instruments, which may further define or adjust the rates and conditions under which interest is calculated and paid.

Key Provisions

The Superannuation (Interest) Regulations, made under the Superannuation Act 1976, primarily deal with the calculation of interest on superannuation contributions. Regulation 4 stipulates that interest is payable on contributions made to the Fund for individuals who have ceased to be eligible employees, to ascertain their accumulated basic or supplementary contributions. The interest is calculated according to the rules set out in Regulation 5, which provides that interest on contributions is deemed to accrue at a prescribed rate from the day of payment to the termination day, which is defined in Regulation 3. Regulation 5(b) also specifies that this interest is compounded annually on 30 June. For the purposes of sub-paragraphs 145(8)(a)(i) and 145(9)(a)(i) of the Act, the Regulations establish that compound interest shall be calculated at the prescribed rate, as stated in Regulation 6. Regulation 7 sets the prescribed rate of interest at 7.842 per centum per annum for these calculations. The Superannuation (Interest) Regulations impose specific obligations on entities and individuals dealing with superannuation contributions. Trustees of superannuation funds must ensure that interest is calculated and paid in accordance with these Regulations, particularly for former eligible employees whose contributions are subject to interest accrual as per Regulation 4. Employers and contributors must be aware of the definition of the "day of payment" and "termination day" as outlined in Regulation 3, to correctly determine when interest starts to accrue and when it ceases. The Regulations also mandate that the prescribed rate of interest, as stated in Regulation 7, is applied uniformly in all calculations, ensuring consistency and fairness in the interest computation process. The Superannuation (Interest) Regulations do not explicitly list offences or penalties for non-compliance. However, breaches of these Regulations could lead to civil consequences under the Superannuation Act 1976, as failing to adhere to the prescribed interest calculation and payment procedures might result in disputes over the correct amount of superannuation benefits due to former employees. Trustees who do not comply with these Regulations may face litigation from affected employees or beneficiaries, and could be liable for any resulting losses. Although the Regulations themselves do not stipulate maximum penalties, the overarching Act could impose fines or other sanctions for non-compliance, depending on the severity and impact of the breach.

Legal classification tags

Area of Law
Superannuation Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Interest payable on contributions, &c.
Calculation of interest

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.