EXPLANATORY STATEMENT
STATUTORY RULES 19 86 NO 234
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUBJECT: SUPERANNUATION ACT 1976 - SUPERANNUATION (INVESTMENT) REGULATIONS (REPEAL)
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.
Contributions by contributors to the scheme are paid into the Superannuation Fund (the Fund) which is managed and invested by the Superannuation Fund Investment Trust (the Trust).
Section 42 of the Act sets out the manner in which the Fund may be invested by the Trust. Prior to the enactment of the Superannuation Legislation Amendment Act 1986 (No 80, assented to on 24 June 1986) (the Amendment Act), paragraphs 42(2)(a) to (i) of the Act listed a number of specific ways in which moneys standing to the credit of the Fund could be invested by the Trust. In addition, paragraph 42(2)(j) provided that the moneys could be invested in any manner that was prescribed.
Regulations made pursuant to paragraph 42(2)(j) (which add to the list of permissable investments) are contained in the Superannuation (Investment) Regulations. These regulations also include a number of qualifications made pursuant to paragraph 42(2)(e) that apply to investments in an estate or interest in land.
Section 21 of the Amendment Act amended section 42 of the Act by repealing sub-sections (2), (3) and (4) and inserting a new sub-section (2) which provides, in part, that moneys that are required to be invested by the Trust may now be invested in any manner whatsoever.
Consequently, the Superannuation (Investment) Regulations have no application in relation to moneys invested on or after the date of Royal Assent (24 June 1986) of the Amendment Act.
Accordingly, the regulation repeals the Superannuation (Investment) Regulations.
The repealing regulation is to operate from the date of gazettal.