Statutory Rules 1981 No. 381
_______________
Superannuation (Interest) Regulations2
(Amendment)
I, 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 12 March 1981.
ZELMAN COWEN
Governor-General
By His Excellency’s Command,
MARGARET GUILFOYLE
Minister of State for Finance
_______________
Commencement
1. These Regulations shall come into operation on 15 March 1981.
Interpretation
2. Regulation 4 of the Superannuation (Interest) Regulations is amended—
(a) by omitting “and” from paragraph (d) of the definition of “first day of interest”;
(b) by adding at the end of the definition of “first day of interest” the following word and paragraph:
“and (f) where the prescribed amount is a prescribed amount referred to in paragraph (m) of the definition of ‘prescribed amount’—
(i) if the day on which the amount was paid to the Commissioner was a contribution day—that day; or
(ii) if that day was not a contribution day—the contribution day next following that day;”;
(c) by omitting “and” from paragraph (j) of the definition of “prescribed amount”; and
(d) by adding at the end of the definition of “prescribed amount” the following word and paragraph:
“and (m) an amount paid to the Commissioner by an eligible employee to whom section 14A applies, being an amount so paid under section 124C of the Act as modified in its application to that employee by regulation 5 of the Superannuation (Continuing Contributions for Benefits) Regulations;”.
1. Notified in the Commonwealth of Australia Gazette on 13 March 1981.
2. Statutory Rules 1978 No. 253 as amended by 1980 No. 98; 1981 No. 17.
Overview
The Superannuation (Interest) Regulations 1981 (Amendment) were enacted by the Governor-General on the advice of the Federal Executive Council under the Superannuation Act 1976. These regulations were introduced to address specific technical issues in the calculation of interest for superannuation contributions, particularly focusing on the timing of contributions and the associated interest accrual. The objective of these amendments is to refine the definitions and application of certain terms within the superannuation interest regulations to ensure more precise and equitable treatment of superannuation contributions and the interest accrued on them.
These amendments seek to clarify the definition of "first day of interest" and "prescribed amount" to better align with the provisions of section 14A and section 124C of the Superannuation Act 1976, as modified by other regulations. By doing so, the regulations aim to provide greater certainty and consistency in the application of interest to superannuation contributions, thereby addressing potential gaps or ambiguities in the existing framework.
Scope and Application
The Superannuation (Interest) Regulations 1981 (Amendment) applies to the prescribed interests on superannuation benefits, specifically targeting the circumstances under which interest accrues on contributions paid to the Commissioner of Taxation. This regulation applies to eligible employees and their employers who participate in the superannuation system governed by the Superannuation Act 1976. The amendment affects the definitions of "first day of interest" and "prescribed amount", thereby influencing the calculation and timing of interest accruals for specific contributions. The regulation is a Commonwealth instrument, meaning it applies across the entire nation, and its impact is felt by those subject to the Superannuation Act 1976, including superannuation funds, employers, and employees. The regulation does not specify any exclusions or exemptions, implying that the changes apply broadly to the entities and transactions governed by the Superannuation Act 1976. Additionally, the regulation does not mention any subordinate instruments that might extend or restrict its application.
Key Provisions
The Superannuation (Interest) Regulations (Amendment) 1981 outline key amendments to the definition of the "first day of interest" and the "prescribed amount" as per Regulation 4 (subparagraphs 2(a) to 2(d)). Specifically, it modifies the definition of "first day of interest" by removing "and" from paragraph (d) and adding a new subparagraph (f) which specifies that if a prescribed amount is paid on a contribution day, the first day of interest is that day. If the payment day is not a contribution day, the first day of interest is the next contribution day. Similarly, it revises the definition of "prescribed amount" by removing "and" from paragraph (j) and adding a new subparagraph (m) that includes an amount paid by an eligible employee under section 124C of the Superannuation Act 1976, as modified by regulation 5 of the Superannuation (Continuing Contributions for Benefits) Regulations.
These amendments impose specific obligations on entities and individuals who contribute to superannuation funds. They require that the first day of interest for prescribed amounts paid on or after a particular day be determined according to the new rules. For entities, this means adjusting their calculation methods to align with the changes specified in the regulations. For employees, it means that their contributions will now accrue interest from the specified first day of interest as outlined in the regulations.
Failure to comply with these provisions may result in civil or administrative penalties. While the specific penalties are not detailed in the text, breaches of superannuation regulations can typically lead to financial penalties, corrective action orders, or other administrative consequences. The severity of these penalties can vary based on the nature and extent of the breach, but they may include fines or other financial sanctions up to the limits prescribed by law. It is important for both trustees and employees to adhere to these regulations to avoid any potential legal or financial repercussions.