EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO 274
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976 - SUPERANNUATION (INTEREST) 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 all matters which the Act requires or permits to be prescribed, or which are necessary or convenient to be prescribed, for carrying out or giving effect to the Act.
The Act makes provision for and in relation to an occupational superannuation scheme for persons employed by the Commonwealth, and for certain other persons.
Sections 45 and 46 of the Act require a member of the scheme to pay fortnightly basic contributions of 5% of salary and, under section 48, a member may pay supplementary contributions of up to a further 5% of salary. In a number of circumstances, the amount of a member’s accumulated basic, and accumulated supplementary (if any), contributions form part of the benefits payable under the Act. Subsection 3(1) of the Act defines the terms “accumulated basic contributions” and “accumulated supplementary contributions” as meaning an amount equal to the sum of the contributions paid by the member and the amount of any interest that, in accordance with the regulations, is payable in respect of those contributions, together with any amount that is, in certain circumstances, to be added to the amount of the person’s accumulated basic or supplementary contributions in accordance with section 7A of the Act.
Regulations for the purposes of the definitions are contained in the Superannuation (Interest) Regulations. Regulation 5 of those Regulations provides for interest to be payable in accordance with regulation 6 on any amount that is, for the purposes of the Regulations, a prescribed amount in relation to the member. Regulation 4 defines “prescribed amount” as meaning any of a number of amounts described in the definition. These include certain amounts referred to in section 7A of the Act.
Section 180 of the Act enables the Act to be modified by regulations in relation to existing invalidity pensioners (persons in receipt of pension under the Superannuation Act 1922 on 1 July 1976) who became contributors on or after 1 July 1976, or become contributors, under the Superannuation Act 1976. The Superannuation (Existing Invalidity Pensioners) Regulations modify the Act to provide particular arrangements under the Act in relation to such persons.
Included is a modification to subsection 7A(1) to refer to the amount to be paid from the Consolidated Revenue Fund to the Superannuation Fund in accordance with subsection 180(1) in relation to an existing invalidity pensioner who becomes a contributor under the Act. The Statutory Rule amends regulation 4 of the Superannuation (Interest) Regulations to include such an amount as a “prescribed amount” for the purposes of those Regulations.
Like the Superannuation (Existing Invalidity Pensioners) Regulations, the amendments to the Superannuation (Interest) Regulations are expressed to have come into effect on 1 July 1976, the date of commencement of the Superannuation Act 1976.