Superannuation Legislation Amendment (Indexation) Act 2001

Administered by Department of Finance

Legislation au C2004A00924 In force Act

Legislation content

 

 

 

 

Superannuation Legislation Amendment (Indexation) Act 2001

 

No. 148, 2001

 

 

 

 

Superannuation Legislation Amendment (Indexation) Act 2001

 

No. 148, 2001

 

 

 

 

An Act to amend certain Acts relating to superannuation, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Superannuation Act 1922

Superannuation Act 1922

Schedule 2—Superannuation Act 1976

Superannuation Act 1976

Schedule 3—Defence Force Retirement and Death Benefits Act 1973

Defence Force Retirement and Death Benefits Act 1973

Superannuation Legislation Amendment (Indexation) Act 2001

No. 148, 2001

 

 

 

An Act to amend certain Acts relating to superannuation, and for related purposes

[Assented to 1 October 2001]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Superannuation Legislation Amendment (Indexation) Act 2001.

2  Commencement

 (1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.

 (2) If the Superannuation Act 1922 is repealed before the day on which this Act receives the Royal Assent, this Act has effect as if the amendments of the Superannuation Act 1922 made by Schedule 1 to this Act were amendments of the Superannuation Act 1922 as that Act continues to apply under section 19 of the Superannuation Legislation (Commonwealth Employment—Saving and Transitional Provisions) Act 2001.

 (3) If the Superannuation Act 1976 is repealed before the day on which this Act receives the Royal Assent, this Act has effect as if the amendments of the Superannuation Act 1976 made by Schedule 2 to this Act were amendments of the Superannuation Act 1976 as that Act continues to apply under section 11 of the Superannuation Legislation (Commonwealth Employment—Saving and Transitional Provisions) Act 2001.

 (4) If the Superannuation Legislation Amendment (Post‑retirement Commutations) Act 2001 commenced before the day on which this Act receives the Royal Assent, items 7, 8 and 9 in Schedule 2 to this Act commence on that day.

 (5) If the Superannuation Legislation Amendment (Post‑retirement Commutations) Act 2001 commences on or after the day on which this Act receives the Royal Assent, items 7, 8 and 9 in Schedule 2 to this Act commence on the day on which that Act commences, immediately after the commencement of that Act.

3  Schedule(s)

  Subject to section 2, 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.


Schedule 1—Superannuation Act 1922

 

Superannuation Act 1922

1  Paragraph 100A(3)(a)

Repeal the paragraph.

2  Paragraph 107A(3)(a)

Repeal the paragraph.

3  Part XB

Repeal the Part.

4  Part XI (heading)

Repeal the heading, substitute:

Part XI—Pension increases on and after 1 January 2002

5  Subsection 120(1)

Insert:

first quarter, in relation to a half‑year, means:

 (a) for a half‑year beginning on 1 January in a year—the March quarter of the year; and

 (b) for a half‑year beginning on 1 July in a year—the September quarter of the year.

6  Subsection 120(1)

Insert:

half‑year means a period of 6 months beginning on 1 January or 1 July in any year.

7  Subsection 120(1)

Insert:

prescribed half‑year means the half‑year commencing on 1 January 2002 or a subsequent half‑year.

8  Subsection 120(1) (definition of prescribed year)

Repeal the definition.

9  Subsection 120(2)

Omit “March quarter”, substitute “first quarter in a half‑year”.

10  Subsection 121(1)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

11  Subsection 121(1)

Omit “year” (wherever occurring), substitute “half‑year”.

12  Subsection 121(2)

Omit “year”, substitute “half‑year”.

13  Subsection 121(3)

Omit “year” (wherever occurring), substitute “half‑year”.

14  Subsection 121(3)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

15  Subsection 121(4)

Omit “year” (wherever occurring), substitute “half‑year”.

16  Subsection 121(4)

Omit “30 June” (wherever occurring), substitute “30 June or 31 December (as the case requires)”.

17  Subsection 122(1)

Repeal the subsection, substitute:

 (1) The following provisions of this section have effect if:

 (a) a person would, but for this section, be entitled to an increase in the amount of the annual pension that was payable in accordance with section 119W to the person immediately before the commencement of a prescribed half‑year; and

 (b) if the pension was payable to the person otherwise than as a widow or widower—the pension became payable during the half‑year immediately preceding the relevant prescribed half‑year; and

 (c) if the pension was payable to the person as a widow or widower and:

 (i) if a pension in accordance with section 119W was not payable to the husband or wife of the person immediately before his or her death—the pension became payable during the half‑year immediately preceding the relevant prescribed half‑year; or

 (ii) if a pension in accordance with that section was payable to the husband or wife of the person immediately before his or her death—the pension that was payable to that husband or wife became payable during the half‑year immediately preceding the relevant prescribed half‑year.

18  Subsection 122(2)

Omit all the words from and including “the retirement referred to” to and including “the relevant prescribed year, or”.

19  Subsection 122(2)

Omit “clause (1)(c)(ii)(B)”, substitute “subparagraph (1)(c)(ii)”.

20  Subsection 122(2)

Omit “16 June in the year immediately preceding the relevant prescribed year”, substitute “16 June or 16 December (as the case requires) in the half‑year immediately preceding the relevant prescribed half‑year”.

21  Subsection 122(3)

Omit all the words from and including “the retirement referred to” to and including “the relevant prescribed year, or”.

22  Subsection 122(3)

Omit “clause (1)(c)(ii)(B)”, substitute “subparagraph (1)(c)(ii)”.

23  Subsection 122(3)

Omit “16 June in the year immediately preceding the relevant prescribed year”, substitute “16 June or 16 December (as the case requires) in the half‑year immediately preceding the relevant prescribed half‑year”.

24  Subsection 122(3)

Omit “the period that commenced on the day next following the day on which the retirement or death took place, or”.

25  Subsection 122(3)

Omit “30 June in that immediately preceding year bears to 12”, substitute “30 June or 31 December (as the case requires) in that immediately preceding half‑year bears to 6”.

26  Section 123

Repeal the section.

27  Subsection 124(1)

Omit “Part XB or of”.

28  Subsection 124(2)

Omit “Part XB or of”.

29  Subsection 124(3)

Omit “Part XB or of”.

30  Section 126

Omit “123 or”.

31  Section 126

Omit “30 June in a year”, substitute “30 June or 31 December (as the case requires) in a half‑year”.

32  Sections 127 and 128

Repeal the sections.

33  Application

(1) The amendments and repeals made by this Schedule apply:

 (a) for the purpose of working out an increase in the rate of a pension that is payable immediately before:

 (i) the prescribed half‑year beginning on 1 January 2002; and

 (ii) each subsequent prescribed half‑year; and

 (b) for any other purpose related to the purpose mentioned in paragraph (a).

(2) To avoid doubt:

 (a) the repeal of Part XB of the Superannuation Act 1922 by this Schedule does not affect any increase in the amount of an annual pension that arose from the operation of that Part; and

 (b) the other repeals and amendments made by this Schedule do not affect any increase in the rate of a pension that arose from the operation of any provision repealed or amended by this Schedule.


Schedule 2—Superannuation Act 1976

 

Superannuation Act 1976

1  Subsection 73A(1) (definition of prescribed maximum rate)

Repeal the definition, substitute:

prescribed maximum rate means:

 (a) immediately before 1 January 2002—the rate that was the prescribed maximum rate under this section immediately before the commencement of item 1 of Schedule 2 to the Superannuation Legislation Amendment (Indexation) Act 2001; or

 (b) on or after 1 January 2002—the rate that is the prescribed maximum rate because of subsection (2).

2  Subsection 73A(1) (definition of prescribed percentage)

Repeal the definition, substitute:

prescribed percentage, in relation to a prescribed half‑year, means the prescribed percentage in relation to that half‑year for the purposes of section 148.

3  Subsection 73A(1)

Insert:

prescribed half‑year means a prescribed half‑year within the meaning of Part X.

4  Subsection 73A(1) (definition of prescribed year)

Repeal the definition.

5  Subsection 73A(1) (definition of relevant percentage)

Repeal the definition.

6  Subsection 73A(2)

Omit “year” (wherever occurring), substitute “half‑year”.

7  Paragraphs 146C(9)(a) and (b)

Repeal the paragraphs, substitute:

 (a) beginning on 1 January or 1 July in a year; and

 (b) ending at the end of the first pension pay day after that 1 January or 1 July;

Note: The heading to subsection (9) is altered by omitting “in a financial year”.

8  Paragraphs 146E(9)(a) and (b)

Repeal the paragraphs, substitute:

 (a) beginning on 1 January or 1 July in a year; and

 (b) ending at the end of the first pension pay day after that 1 January or 1 July;

Note: The heading to subsection (9) is altered by omitting “in a financial year”.

9  Paragraphs 146G(8)(a) and (b)

Repeal the paragraphs, substitute:

 (a) beginning on 1 January or 1 July in a year; and

 (b) ending at the end of the first pension pay day after that 1 January or 1 July;

Note: The heading to subsection (8) is altered by omitting “in a financial year”.

10  Part X (heading)

Repeal the heading, substitute:

Part X—Pension increases on and after 1 January 2002

11  Subsection 147(1)

Insert:

first quarter, in relation to a half‑year, means:

 (a) for a half‑year beginning on 1 January in a year—the March quarter of the year; and

 (b) for a half‑year beginning on 1 July in a year—the September quarter of the year.

12  Subsection 147(1)

Insert:

half‑year means a period of 6 months beginning on 1 January or 1 July in any year.

13  Subsection 147(1)

Insert:

prescribed half‑year means the half‑year commencing on 1 January 2002 or a subsequent half‑year.

14  Subsection 147(1) (definition of prescribed year)

Repeal the definition.

15  Subsection 147(2)

Omit “March quarter”, substitute “first quarter in a half‑year”.

16  Subsection 148(1)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

17  Subsection 148(1)

Omit “year” (wherever occurring), substitute “half‑year”.

18  Subsection 148(2)

Omit “year”, substitute “half‑year”.

19  Subsection 148(3)

Omit “year” (wherever occurring), substitute “half‑year”.

20  Subsection 148(3)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

21  Subsection 148(4)

Omit “year” (wherever occurring), substitute “half‑year”.

22  Subsection 148(4)

Omit “30 June” (wherever occurring), substitute “30 June or 31 December (as the case requires)”.

23  Section 149

Omit “year” (wherever occurring), substitute “half‑year”.

24  Subsection 150(1)

Omit “year” (wherever occurring), substitute “half‑year”.

25  Section 150(2)

Omit “year”, substitute “half‑year”.

26  Subsection 150(2)

Omit “16 June in the preceding year”, substitute “16 June or 16 December (as the case requires) in the preceding half‑year”.

27  Subsection 150(3)

Omit “16 June in the preceding year”, substitute “16 June or 16 December (as the case requires) in the preceding half‑year”.

28  Subsection 150(3)

Omit “30 June in the preceding year bears to 12”, substitute “30 June or 31 December (as the case requires) in the preceding half‑year bears to 6”.

29  Subsection 153(1)

Omit “30 June in a year”, substitute “30 June or 31 December (as the case requires) in a half‑year”.

30  Sections 153A and 153AAA

Repeal the sections.

31  At the end of section 168

Add:

 (19) Regulations made within one year after the commencement of this subsection for purposes arising from any amendment of this Act made by the Superannuation Legislation Amendment (Indexation) Act 2001 may commence on a day:

 (a) earlier than the day on which they are made; but

 (b) not earlier than the commencement of this subsection.

32  Application

(1) The amendments and repeals made by this Schedule apply:

 (a) for the purpose of working out an increase in the rate of a pension that is payable immediately before:

 (i) the prescribed half‑year beginning on 1 January 2002; and

 (ii) each subsequent prescribed half‑year; and

 (b) for the purpose of working out the prescribed maximum rate (within the meaning of section 73A of the Superannuation Act 1976) on or after 1 January 2002; and

 (c) for any other purpose related to the purposes mentioned in paragraphs (a) and (b).

(2) To avoid doubt, the repeals and amendments made by this Schedule do not affect any increase in the rate of a pension that arose from the operation of any provision repealed or amended by this Schedule.

Schedule 3—Defence Force Retirement and Death Benefits Act 1973

 

Defence Force Retirement and Death Benefits Act 1973

1  Subsection 98A(1)

Insert:

first quarter, in relation to a half‑year, means:

 (a) for a half‑year beginning on 1 January in a year—the March quarter of the year; and

 (b) for a half‑year beginning on 1 July in a year—the September quarter of the year.

2  Subsection 98A(1)

Insert:

half‑year means a period of 6 months beginning on 1 January or 1 July in any year.

3  Subsection 98A(1)

Insert:

prescribed half‑year means the half‑year commencing on 1 January 2002 or a subsequent half‑year.

4  Subsection 98A(1) (definition of prescribed year)

Repeal the definition.

5  Subsection 98A(2)

Omit “March quarter”, substitute “first quarter in a half‑year”.

6  Subsection 98B(1)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

7  Subsection 98B(1)

Omit “year” (wherever occurring), substitute “half‑year”.

8  Subsection 98B(2)

Omit “year” (wherever occurring), substitute “half‑year”.

9  Subsection 98B(3)

Omit “year” (wherever occurring), substitute “half‑year”.

10  Subsection 98B(3)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

11  Subsection 98B(4)

Omit “year” (wherever occurring), substitute “half‑year”.

12  Subsection 98B(5A)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

13  Subsection 98B(5A)

Omit “year” (wherever occurring), substitute “half‑year”.

14  Paragraph 98B(5B)(a)

Repeal the paragraph, substitute:

 (a) in relation to the prescribed half‑year that commenced on 1 July 2001—the amount that was the existing amount in relation to that provision, as calculated under this section immediately before the commencement of [this amending item]; and

15  Paragraph 98B(5B)(b)

Omit “year”, substitute “half‑year”.

16  Subsection 98B(7)

Omit “30 June” (wherever occurring), substitute “30 June or 31 December (as the case requires)”.

17  Subsection 98B(7)

Omit “year” (wherever occurring), substitute “half‑year”.

18  Section 98C

Omit “year” (wherever occurring), substitute “half‑year”.

19  Subsection 98D(1)

Omit “year” (wherever occurring), substitute “half‑year”.

20  Subsection 98D(2)

Omit “year” (wherever occurring), substitute “half‑year”.

21  Subsection 98D(3)

Omit “16 June in the preceding year”, substitute “16 June or 16 December (as the case requires) in the preceding half‑year”.

22  Subsection 98D(4)

Omit “16 June in the preceding year”, substitute “16 June or 16 December (as the case requires) in the preceding half‑year”.

23  Subsection 98D(4)

Omit “30 June in the preceding year bears to 12”, substitute “30 June or 31 December (as the case requires) in the preceding half‑year bears to 6”.

24  Section 98E

Omit “30 June in a year”, substitute “30 June or 31 December (as the case requires) in a half‑year”.

25  Subsection 98F(1)

Omit “year” (wherever occurring), substitute “half‑year”.

Note: The heading to section 98F is altered by omitting “year” and substituting “half‑year”.

26  Subsection 98F(2)

Repeal the subsection.

27  Subsection 98F(3)

Omit “year” (wherever occurring), substitute “half‑year”.

28  Subsection 98G(2)

Omit “year” (wherever occurring), substitute “half‑year”.

Note: The heading to section 98G is altered by omitting “year” and substituting “half‑year”.

29  Subsection 98G(3)

Repeal the subsection.

30  Sections 98GA and 98GB

Repeal the sections.

31  Application

(1) The amendments and repeals made by this Schedule apply:

 (a) for the purpose of working out an increase in the rate of a pension benefit that is payable immediately before:

 (i) the prescribed half‑year beginning on 1 January 2002; and

 (ii) each subsequent prescribed half‑year; and

 (b) for any other purpose related to the purpose mentioned in paragraph (a).

(2) To avoid doubt, the amendments and repeals made by this Schedule do not affect any increase in the rate of a pension benefit that arose from the operation of any provision amended or repealed by this Schedule.

 

 

[Minister’s second reading speech made in—

House of Representatives on 28 June 2001

Senate on 20 September 2001]

 

 

(134/01)


 

 

Overview

The Superannuation Legislation Amendment (Indexation) Act 2001 was enacted to amend various pieces of superannuation legislation, addressing the need for updated indexing mechanisms for superannuation pensions. The Act was passed by the Parliament of Australia and received Royal Assent on 1 October 2001. The primary purpose of this legislation was to ensure that the indexation of pensions is calculated and applied accurately and consistently across different superannuation acts, particularly focusing on the transition from annual to half-yearly indexation starting from 1 January 2002. The Act amends the Superannuation Act 1922, the Superannuation Act 1976, and the Defence Force Retirement and Death Benefits Act 1973 to align the indexation processes, definitions, and calculations with the new half-yearly framework, ensuring that pension increases are computed correctly and effectively.

Scope and Application

The Superannuation Legislation Amendment (Indexation) Act 2001 is a Commonwealth Act that amends various superannuation-related Acts to modify the indexation of superannuation benefits. The Act applies to individuals who are recipients of superannuation benefits and to entities that provide or manage such benefits, including superannuation funds, trustees, and employers. It has a broad jurisdictional reach as it pertains to the Commonwealth superannuation system, impacting both private and public sector employees. The Act primarily targets the Superannuation Act 1922, Superannuation Act 1976, and Defence Force Retirement and Death Benefits Act 1973, altering their provisions to change how indexation is calculated for pensions. The amendments focus on changing the calculation periods from yearly to half-yearly, beginning from 1 January 2002. The Act does not explicitly state exclusions or exemptions, but the changes are designed to apply to all relevant pensions and benefits governed by the specified Acts, ensuring that the new indexation method is uniformly applied across the board. The Act also allows for the making of subsidiary legislation to further implement and clarify the changes it introduces.

Key Provisions

The Superannuation Legislation Amendment (Indexation) Act 2001 primarily amends the Superannuation Act 1922, the Superannuation Act 1976, and the Defence Force Retirement and Death Benefits Act 1973, making changes to the calculation and indexing of pension increases. Key sections include the introduction of definitions for terms such as "first quarter," "half-year," and "prescribed half-year," and the replacement of references to "year" with references to "half-year" in several subsections across these Acts (sections 6, 12, 13, 18, 20, 21, 25, 26, 27, 30, 31, 32, 33, and 34). Additionally, it repeals certain parts and sections, such as Part XB of the Superannuation Act 1922, and sections 153A and 153AAA of the Superannuation Act 1976, reflecting the transition to half-yearly indexing (sections 3, 26, 27, 28, 29, 30, and 31). These amendments impose obligations on the administrators of superannuation funds to ensure compliance with the new indexing provisions. They must adjust pension calculations to reflect the new half-yearly indexation cycle starting from 1 January 2002. This includes recalculating pension increases based on half-year periods rather than annual periods, as defined in the Act (sections 6, 12, 13, 18, 20, 21, 25, 26, 27, 30, 31, 32, 33, and 34). The changes also require that any regulations made within one year after the commencement of this Act may commence on a day earlier than the day on which they are made, but not earlier than the commencement of this subsection (section 31). Failure to comply with the requirements of the Act could lead to legal consequences. Although the Act does not explicitly outline offences or penalties, breaches of superannuation laws generally can result in civil or criminal penalties. Civil penalties can include fines and compensation orders, while criminal penalties can include imprisonment and fines, depending on the severity of the breach. The exact penalties would be determined by the courts based on the specific circumstances of the case and applicable laws at the time of the breach.

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Superannuation Law
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