Superannuation Legislation Amendment Act (No. 1) 2006

Administered by Department of Finance

Legislation au C2006A00048 In force Act

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Superannuation Legislation Amendment Act (No. 1) 2006

 

No. 48, 2006

 

 

 

 

 

An Act to amend the law relating to superannuation, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Amendment of the Superannuation Act 1976

Schedule 2—Amendment of the Rules for the Administration of the Public Sector Superannuation Scheme

 

 

 

Superannuation Legislation Amendment Act (No. 1) 2006

No. 48, 2006

 

 

 

An Act to amend the law relating to superannuation, and for related purposes

[Assented to 29 May 2006]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Superannuation Legislation Amendment Act (No. 1) 2006.

2  Commencement

  This Act commences on the day on which it receives the Royal Assent.

3  Schedule(s)

 (1) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

 (2) The Rules for the Administration of the Public Sector Superannuation Scheme contained in the Schedule to the Trust Deed (within the meaning of the Superannuation Act 1990) are amended or repealed as set out in the applicable items in Schedule 2 to this Act, and any other item in Schedule 2 to this Act has effect according to its terms.


Schedule 1—Amendment of the Superannuation Act 1976

 

1  After subsection 5(3AA)

Insert:

 (3AB) Subsection (3AC) applies if:

 (a) a Minister makes a determination under an Act in respect of the remuneration of a person appointed under that Act; or

 (b) the Presiding Officers (within the meaning of the Parliamentary Service Act 1999) make a determination under that Act in respect of the remuneration of a person appointed under that Act; or

 (c) a determination is made under the Remuneration Tribunal Act 1973 in respect of the remuneration of a person;

and an annual rate of salary of the person can be ascertained under the determination. (To avoid doubt, subsection (3AC) applies whether a determination is expressed to apply to a person or an office.)

 (3AC) Despite subsections (1), (2) and (3), for the purposes of the application of this Act on a particular day, the annual rate of salary of the person is the annual rate of salary ascertained for the purposes of this Act under the determination on that day.

2  Application

(1) The amendment made by this Schedule applies:

 (a) for a determination made under the Remuneration Tribunal Act 1973 (other than a determination made under section 12C of that Act)—in respect of any determination made in respect of the remuneration of a person after this item commences; and

 (b) for any other determination (including a determination made under section 12C of the Remuneration Tribunal Act 1973)—in respect of any determination made in respect of the remuneration of a person (whether the determination is made before or after this item commences).

(2) However, if:

 (a) a determination in respect of the remuneration of a person is made before this item commences; and

 (b) an amount is paid to or in respect of the person under the Superannuation Act 1976 before this item commences; and

 (c) the amount paid is more than the amount that would have been paid if the annual rate of salary had been ascertained under the determination;

the amendment made by this Schedule does not apply in respect of the determination for the purposes of determining the amount of the payment.

(3) In addition, if:

 (a) the amount mentioned in paragraph (2)(b) is an amount of a pension; and

 (b) the pension continues to be paid to or in respect of the person after this item commences;

the amendment made by this Schedule does not apply in respect of the determination for the purposes of determining the amount of any payments of the pension that are paid to or in respect of the person after this item commences.


Schedule 2—Amendment of the Rules for the Administration of the Public Sector Superannuation Scheme

 

1  Rule B1.2.1 (definition of basic salary)

Repeal the definition, substitute:

basic salary of a member means:

(a) the amount, or the element or elements of remuneration, ascertained under the determination of basic salary made by the Board under the Rules applicable at 30 June 1995 (unless any one of paragraphs (b) to (d) applies in relation to the member); and

(b) if Rule B1.2.3 applies in relation to the member—the amount, or the element or elements of remuneration, ascertained under the determination mentioned in that Rule (unless paragraph (c) or (d) applies in relation to the member); and

(c) if Rule B1.2.4 applies in relation to the member—the amount ascertained under the determination mentioned in that Rule (unless paragraph (d) applies in relation to the member); and

(d) if the member and his/her designated employer have agreed on an amount to be his/her basic salary—that amount.

2  Rule B1.2.1 (definition of recognised allowances)

Repeal the definition, substitute:

recognised allowances of a member means:

(a) the amount, or the element or elements of remuneration, ascertained under the determination of recognised allowances made by the Board under the Rules applicable at 30 June 1995 (unless any one of paragraphs (b) to (d) applies in relation to the member); and

(b) if Rule B1.2.3 applies in relation to the member—the amount, or the element or elements of remuneration, ascertained under the determination mentioned in that Rule (unless paragraph (c) or (d) applies in relation to the member); and

(c) if Rule B1.2.4 applies in relation to the member—the amount ascertained under the determination mentioned in that Rule (unless paragraph (d) applies in relation to the member); and

(d) if the member and his/her designated employer have agreed on an amount to be his/her recognised allowances—that amount.

3  At the end of Division 2 of Part B1

Add:

Minister may make determinations of basic salary and recognised allowances

 

B1.2.3 This rule applies in relation to a member if the Minister makes a determination of an amount, or an element or elements of remuneration, as basic salary or recognised allowances, that applies in relation to the member.

 

Members to whom a determination applies

 

B1.2.4 This rule applies in relation to a member if:

(a) the member is appointed under an Act and a Minister makes a determination under that Act in respect of the remuneration of the member; or

(b) the member is appointed under the Parliamentary Service Act 1999 and the Presiding Officers (within the meaning of that Act) make a determination under that Act in respect of the remuneration of the member; or

(c) a determination is made under the Remuneration Tribunal Act 1973 in respect of the remuneration of the member;

and:

(d) an amount of basic salary of the member can be ascertained under the determination; or

(e) an amount of recognised allowances of the member can be ascertained under the determination and the determination expressly mentions recognised allowances.

4  Application

(1) The amendments made by this Schedule apply:

 (a) for a determination made under the Remuneration Tribunal Act 1973 (other than a determination made under section 12C of that Act)—in respect of any determination made in respect of the remuneration of a person after this item commences; and

 (b) for any other determination (including a determination made under section 12C of the Remuneration Tribunal Act 1973)—in respect of any determination made in respect of the remuneration of a person (whether the determination is made before or after this item commences).

(2) However, if:

 (a) a determination in respect of the remuneration of a person is made before this item commences; and

 (b) an amount is paid to or in respect of the person under the Superannuation Act 1990 before this item commences; and

 (c) the amount paid is more than the amount that would have been paid if the basic salary or recognised allowances had been ascertained under the determination;

the amendments made by this Schedule do not apply in respect of the determination for the purposes of determining the amount of the payment.

(3) In addition, if:

 (a) the amount mentioned in paragraph (2)(b) is an amount of a pension; and

 (b) the pension continues to be paid to or in respect of the person after this item commences;

the amendments made by this Schedule do not apply in respect of the determination for the purposes of determining the amount of any payments of the pension that are paid to or in respect of the person after this item commences.

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 17 November 2004

Senate on 2 December 2004]

(170/04)

 

Overview

The Superannuation Legislation Amendment Act (No. 1) 2006 was enacted by the Parliament of Australia to amend the existing superannuation laws, specifically addressing issues related to the calculation of superannuation contributions based on remuneration determinations. This Act was designed to ensure that superannuation contributions for certain individuals, such as members of parliament and public sector employees, are calculated accurately based on the remuneration determined by relevant authorities. It provides clarity and consistency in the application of superannuation laws across different types of remuneration determinations, including those made under the Remuneration Tribunal Act 1973 and the Parliamentary Service Act 1999. The policy objective of this Act is to maintain the integrity and fairness of the superannuation system by ensuring that superannuation contributions are appropriately calculated in accordance with the remuneration determinations. The Act aims to prevent overpayment or underpayment of superannuation contributions by aligning the calculation of superannuation with the remuneration determined by specified Acts and authorities. This amendment helps to address any discrepancies that may arise from differing methods of remuneration determination and ensures that superannuation contributions are based on the correct remuneration figures.

Scope and Application

The Superannuation Legislation Amendment Act (No. 1) 2006 is an Act of the Parliament of Australia that amends the law relating to superannuation. The Act applies to determinations of remuneration made under various Acts, including the Remuneration Tribunal Act 1973, and for the purposes of the application of this Act on a particular day, the annual rate of salary of a person is the annual rate of salary ascertained for the purposes of this Act under the determination on that day. The amendments made by this Act apply for a determination made under the Remuneration Tribunal Act 1973 (other than a determination made under section 12C of that Act) in respect of any determination made in respect of the remuneration of a person after this item commences. However, the amendments do not apply in respect of the determination for the purposes of determining the amount of the payment if a determination in respect of the remuneration of a person is made before this item commences and an amount is paid to or in respect of the person under the Superannuation Act 1976 before this item commences, and the amount paid is more than the amount that would have been paid if the annual rate of salary had been ascertained under the determination. Additionally, the amendments do not apply in respect of the determination for the purposes of determining the amount of any payments of the pension that are paid to or in respect of the person after this item commences if the amount mentioned in paragraph (2)(b) is an amount of a pension and the pension continues to be paid to or in respect of the person after this item commences. The Act has a Commonwealth jurisdictional reach. There are no stated exclusions, exemptions, or thresholds. The Act does not extend or restrict application through subordinate instruments.

Key Provisions

The Superannuation Legislation Amendment Act (No. 1) 2006 primarily focuses on altering the Superannuation Act 1976 and the Rules for the Administration of the Public Sector Superannuation Scheme. The Act modifies the method by which the annual rate of salary is determined for superannuation purposes under certain conditions (Schedule 1, items 1 and 2). Specifically, it introduces a new subsection (3AB) that applies if a determination regarding remuneration is made by a Minister, the Presiding Officers, or the Remuneration Tribunal, and an annual rate of salary can be ascertained from the determination. Subsection (3AC) then stipulates that, for the purposes of applying the Act on a particular day, the annual rate of salary is the one ascertained under the determination on that day. The obligations imposed by this Act require parties involved in superannuation to adhere to the new rules for determining salary rates as specified. For example, when a determination of remuneration is made by a Minister, the Presiding Officers, or the Remuneration Tribunal, and it pertains to a person's salary, the annual rate of salary must be ascertained according to the determination for the purposes of applying the Superannuation Act 1976. The Act also specifies that if a determination was made before the Act commenced and an amount was already paid based on that determination, the new rules do not apply to the amount already paid or any subsequent pension payments based on that amount. Regarding the Rules for the Administration of the Public Sector Superannuation Scheme, the Act amends the definitions of 'basic salary' and'recognised allowances' (Schedule 2, items 1 and 2). It also introduces new rules (B1.2.3 and B1.2.4) that allow the Minister to make determinations regarding basic salary and recognised allowances, which then apply to members under specific conditions. The amendments apply to determinations made after the Act commences, but not to any amounts already paid or pensions already in effect before the Act's commencement (Schedule 2, item 4). The Act does not explicitly state any offences, penalties, or consequences for breaches. However, non-compliance with the new rules for determining salary rates could potentially lead to disputes over superannuation entitlements, which might necessitate legal recourse. The precise penalties or consequences for such breaches would depend on the specific circumstances and any relevant court decisions interpreting the Act.

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Superannuation Law
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Commencement Provisions
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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.