Superannuation Legislation (PSSAP Trust Deed) Amendment Instrument 2026 (No. 1)

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EXPLANATORY STATEMENT

Issued by authority of the Minister for Finance

Superannuation Act 2005

Superannuation Legislation (PSSAP Trust Deed) Amendment Instrument 2026 (No. 1)

On 29 June 2005 the Minister for Finance, for and on behalf of the Commonwealth, made a deed (PSSAP Trust Deed) under section 10 of the Superannuation Act 2005 to, among other things, establish a superannuation scheme known as the Public Sector Superannuation Accumulation Plan (PSSAP), and the PSSAP Fund from 1 July 2005. The Schedule to the PSSAP Trust Deed includes Rules for the administration of the PSSAP (the Rules).

PSSAP is established for Commonwealth public sector employees and certain other persons who first commenced relevant employment from 1 July 2005. Commonwealth Superannuation Corporation (CSC) is the trustee of PSSAP.

Section 11 of the Superannuation Act 2005 provides that the Minister may amend the PSSAP Trust Deed by signed instrument, subject to obtaining the consent of CSC to the amendment where necessary.

Amendment Instrument

The Minister has amended the PSSAP Trust Deed by signed instrument called the Superannuation Legislation (PSSAP Trust Deed) Amendment Instrument 2026 (No. 1), referred to as the Amendment Instrument in this Explanatory Statement.

The purpose of the Amendment Instrument is to amend the Rules to enable PSSAP members and PSSAP pensioners to make a non-lapsing binding member nomination governing, subject to certain limitations, the payment of their PSSAP benefit in the event of their death. The Amendment Instrument also makes consequential amendments to the Rules to take account of changes to the Superannuation Guarantee framework made by the Treasury Laws Amendment (Payday Superannuation) Act 2025, removes redundant provisions and corrects, simplifies and consolidates a range of provisions. The Amendment Instrument includes application, saving and transitional provisions in the Rules to support some of the amendments.

Details of the Amendment Instrument are at Attachment A.

CSC Approval

Section 32 of the Superannuation Act 2005 requires CSC to consent to amendments proposed by the Minister in most circumstances. CSC has consented to the Amendment Instrument.

Legislation Act 2003

The Amendment Instrument is a legislative instrument. The amendments to the Trust Deed are subject to disallowance in accordance with section 11 of the Superannuation Act 2005.

The Amendment Instrument and the principal instrument that it amends are not subject to sunsetting because section 11 of the Legislation (Exemptions and Other Matters) Regulation 2015 specifies, via item 6 of the table in that section, ‘an instrument (other than a regulation) relating to superannuation’ to be a class of legislative instrument that is not subject to sunsetting under Part 4 of Chapter 3 of the Legislation Act 2003. The exemption was put in place because it was considered that sunsetting of instruments relating to superannuation could cause commercial uncertainty, as well as uncertainty for superannuation fund members and providers. These instruments are intended to have enduring operation and it would not be appropriate to subject them to sunsetting.

Consultation

Section 17 of the Legislation Act 2003 specifies that rule makers should consult before making legislative instruments. CSC, the trustee of the PSSAP, was consulted on the Amendment Instrument and advised that it has no concerns with the proposed amendments.

Commencement

Sections 1 to 4, the amendments in Schedule 1 and item 1 of Schedule 3 come into effect on the day after registration of the Amendment Instrument on the Federal Register of Legislation (FRL).

Schedule 2 comes into effect on the later of the same time as the Treasury Laws Amendment (Payday Superannuation) Act 2025 commences and immediately after the commencement of Schedule 1, which commences on the day after registration of the Amendment Instrument on FRL. Item 2 of Schedule 3 comes into effect at the same time as Schedule 2.

Statement of Compatibility with Human Rights

A Statement of Compatibility with Human Rights is at Attachment B.


ATTACHMENT A

Details of the Amendment Instrument

Name

  1.              Section 1 provides that the name of the instrument is the Superannuation Legislation (PSSAP Trust Deed) Amendment Instrument 2026 (No. 1).

Commencement

  1.              Section 2 sets out the commencement provision for the Amendment Instrument. It provides for the commencement of:
  • sections 1 to 4, Schedule 1 and item 1 of Schedule 3 on the day after the Amendment Instrument is registered on the Federal Register of Legislation (FRL); and
  • Schedule 2 and item 2 of Schedule 3 on the later of the same time as the Treasury Laws Amendment (Payday Superannuation) Act 2025 commences and immediately after the commencement of Schedule 1.

Authority

  1.              Section 3 identifies the authority for the Amendment Instrument as subsection 11(1) of the Superannuation Act 2005.

Schedules

  1.              Section 4 provides that each instrument that is specified in a Schedule to the Amendment Instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the Amendment Instrument has effect according to its terms.

 


Schedule 1—Amendments of the PSSAP Trust Deed Rules

 

Part 1 – Amendments relating to the introduction

 

  1.              Item 1 repeals Rule 1.1.1, which provides a guide to the parts of the PSSAP Trust Deed Rules (the Rules) and substitutes a new Rule 1.1.1 that updates the guide to include new Part 8, which is inserted by items 1 and 2 of Schedule 3. Part 8 contains application, saving and transitional provisions.

 

  1.              Rule 1.2.1 sets out definitions of certain words and phrases used in the PSSAP Rules. Item 2 repeals the definition of ‘binding member nomination’ in Rule 1.2.1, as item 49 of Schedule 1 replaces Division 2 of Part 3 of the Rules, dealing with death benefits, with an updated version of the division that uses the term ‘lapsing binding member nomination’ instead of ‘binding member nomination’.

 

  1.              Item 3 repeals the definition of ‘employer contribution shortfall’ as item 25 repeals Rule 2.2.10 which currently contains a reference to that term.

 

  1.              Item 4 repeals the note at the end of the definition of ‘death and invalidity cover’ in Rule 1.2.1 for simplification.

 

  1.              Item 5 repeals the definition of ‘directed termination payment’ as item 38 replaces Rule 2.4.1 with a new Rule that has no reference to the term ‘directed termination payment’.

 

  1.          Item 6 inserts a definition of ‘lapsing binding member nomination’ after the definition of ‘invalidity retirement’ in Rule 1.2.1. The definition replaces the former definition of ‘binding member nomination’ to reflect the new term used under updated Division 2 of Part 3 of the Rules, dealing with death benefits. A lapsing binding member nomination is defined as a nomination provided for by regulation 6.17A of the Superannuation Industry (Supervision) Regulations 1993 (SIS Regulations) and Rules 3.2.1 and 3.2.2, which ceases to have effect in accordance with subregulation 6.17A(7) of the SIS Regulations. Under regulation 6.17A of the SIS Regulations, these kinds of nominations automatically lapse after 3 years.

 

  1.          Item 7 inserts a new definition of ‘non-lapsing binding member nomination’ after the definition of ‘non-commutable pension’ in Rule 1.2.1. This reflects a new kind of nomination by a member of a person to receive the balance of their PSSAP benefit after their death under updated Division 2 of Part 3 of the Rules, dealing with death benefits. A non-lapsing binding member nomination is defined as a nomination with continuing effect, provided for by Rules 3.2.1 and 3.2.2 and to which it has been consented to by the Commonwealth Superannuation Corporation (CSC). This will allow members to make a nomination for their death benefit that does not automatically lapse.

 

  1.          Item 8 repeals the notes at the end of the definition of ‘ordinary employer-sponsored member’ in Rule 1.2.1 for simplification.

 

  1.          Item 9 repeals the definition of ‘pay advice document’ from Rule 1.2.1, as the definition is no longer required. Rule 2.2.11, which uses this term, is repealed by item 25 of this Schedule.

 

  1.          Item 10 replaces the note at the end of the definition of ‘pay day’ in Rule 1.2.1 with a simplified note.

 

  1.          Item 11 repeals the definition of ‘quarter’ from Rule 1.2.1, as the only rules that use the term, being Rules 2.2.8 to 2.1.10, are repealed by item 25 of this Schedule.

 

  1.          Item 12 repeals the definition of ‘shortfall component’ as item 38 replaces Rule 2.4.1 with a new Rule that has no reference to the term ‘shortfall component’.

 

  1.          Item 13 replaces the definition of ‘transfer amount’ with an updated definition of the term. The updated definition excludes a reference to an amount transferred or rolled-over under Rule 2.4.1A, as that rule is repealed by item 39 of this Schedule, and adds a reference to amounts transferred or rolled-over by a PSSAP pensioner under Rule 2.4.1D and Rule 2.4.1E for completeness.

 

Part 2 – Amendments relating to membership and contributions

 

  1.          The items in this part amend provisions in Part 2 of the Rules, which deals with the membership of, and contributions to, PSSAP. Many items restructure or streamline existing rules, including by consolidating similar requirements, and, therefore, do not have an operational impact.

 

  1.          Item 14 replaces Division 1 of Part 2, dealing with membership, with an updated division. The updated division comprises Rules 2.1.1 to 2.1.4, all relating to concurrent PSSAP membership.
  • The note under the heading ‘becoming a PSSAP member’ has been shortened.
  • New Rule 2.1.1, which enables certain persons to have concurrent PSSAP memberships, consolidates arrangements previously covered by Rules 2.1.1, 2.1.4 and 2.1.7.
  • New Rule 2.1.2, which enables CSC to maintain one personal accumulation account for certain members with concurrent memberships, consolidates arrangements previously covered by Rules 2.1.3, 2.1.6 and 2.1.8.
  • New Rules 2.1.3 and 2.1.4 restructure requirements previously contained in Rules 2.1.2 and 2.1.5. The new rules, among other things, continue to ensure a person’s status as an ordinary employer-sponsored member or a current government scheme member where they cease one or more, but not all, employment in respect of which they held concurrent PSSAP membership.

 

  1.          Rule 2.2.1 requires contributions be paid to CSC by the designated employers of a certain ordinary employer-sponsored members each pay day, subject to, among other rules, Rule 2.2.1B, which requires CSC to reject the contributions in certain circumstances. Item 15 amends Rule 2.2.1 by replacing a reference to Rule 2.2.1B, which is repealed by item 19 of the Schedule, with a reference to new Rule 2.4B.2, inserted by item 47 of Schedule 1, dealing with the method of payment of contributions and other amounts to CSC. The amendment is of a minor and technical nature and will not have an operational impact.

 

  1.          Under Rule 2.2.1AA, basic contribution requirements that apply to the designated employers of certain ordinary employer-sponsored members under Rule 2.2.1 do not apply to the designated employers of eligible PSSAP members or eligible CSS/PSS members or former members. Item 16 replaces the note following the Rule 2.2.1AA with a revised note that omits certain information contained in the original note, includes new information explaining how Rule 2.2.1 applies in certain circumstances because of the definition of ‘pay day’, and refers readers to new Division 4B of Part 2 dealing with the method of payment of contributions and certain other matters.

 

  1.          Item 17 amends Rule 2.2.1A, dealing with contributions by the designated employer of an eligible PSSAP member and an eligible CSS/PSS member or former member. Item 18 replaces the note following Rule 2.2.1A with a shorter note.

 

  1.          Rule 2.2.1B requires CSC to reject basic contributions paid by designated employers under Rule 2.2.1 or Rule 2.2.1A in certain circumstances. Similar rules apply to other contributions and amounts paid under Part 2 of the Rules. Item 19 repeals Rule 2.2.1B as these requirements are consolidated in Rule 2.4B.3 of new Division 4B of Part 2 for streamlining purposes.

 

  1.          Item 20 replaces the note following Rule 2.2.3, which prescribes the circumstances in which the superannuation salary of an ordinary employer-sponsored member under subsection 18(2), 18(3) or 18(5) of the Superannuation Act 2005 will be ordinary time earnings, with a shorter note.

 

  1.          Item 21 replaces Rule 2.2.4, dealing with additional employer contributions, with a simplified rule that removes the requirement for CSC to reject such contributions in certain circumstances. This requirement has been consolidated with similar provisions relating to other contributions and amounts paid under Part 2, and is now set out in Rule 2.4B.3 of new Division 4B of that part.

 

  1.          Item 22 replaces Rule 2.2.4A, dealing with salary sacrifice contributions for a current government scheme member, with a simplified rule. The simplified rule, among other things, omits a requirement relating to the method of payment of the contributions that is now contained in Rule 2.4B.2, which is part of new Division 4B of Part 2. The note following updated Rule 2.2.4A refers readers to new Division 4B of Part 2 for rules regarding the method of payment of contributions and other amounts and certain other matters.

 

  1.          Item 23 repeals Rule 2.2.4B, which requires CSC to reject salary sacrifice contributions paid in respect of current government scheme members under Rule 2.2.4A in certain circumstances. This requirement is consolidated with similar provisions relating to other contributions, in Rule 2.4B.3 of new Division 4B of Part 2.

 

  1.          Item 24 repeals Rules 2.2.5 to 2.2.6A, dealing with the method of payment of basic and additional employer contributions, and Rule 2.2.7, dealing with the payment of such contributions to the PSSAP Fund. These provisions are replaced by new Division 4B of Part 2, inserted by item 47 of the Schedule, which contains a consolidated set of rules covering these matters and applying to most contributions and other amounts paid under that part.

 

  1.          Item 25 repeals Rules 2.2.8 to 2.2.11, which relate to reporting employer contributions to PSSAP members, as they are no longer required. PSSAP members have visibility of contributions paid by their designated employers via their pay slips and the Australian Taxation Office’s online services, available through the myGov website.

 

  1.          Items 26, 27 and 28 replace Rule 2.3.1 (when employee contributions can be made), Rule 2.3.4 (when eligible spouse contributions can be made) and Rule 2.3.4A (payment of an income protection superannuation contribution amount to CSC), with simplified rules that exclude requirements that are now contained in new Division 4B of Part 2, dealing with the method of payment and rejection of contributions and other amounts. The simplified rules make the payment of contributions subject to new Rule 2.4B.2, contained in the new division, relating to the method of payment of contributions and other amounts. The note following Rule 2.3.4A informs readers of the matters dealt with by Division 4B of Part 2.

 

  1.          Item 29 repeals Rules 2.3.5 and 2.3.6, dealing, in turn, with the method of payment of employee contributions, eligible spouse contributions and income protection superannuation contribution amounts, and the payment of such contributions and amounts to the PSSAP Fund. The requirements contained in the repealed rules are now covered Rules 2.4B.1 and 2.4B.4, contained in new Division 4B of Part 2.

 

  1.          Item 30 replaces Rule 2.3A.1, dealing with when current government scheme member contributions can be made, with a simplified Rule 2.3A.1 that excludes a requirement relating to the method of payment of the contributions that is contained in new Division 4B of Part 2. The simplified rule makes the payment of employee contributions to CSC by a current government scheme member subject to the relevant new rule, being Rule 2.4B.2.

 

  1.          Item 31 repeals Rule 2.3A.2, requiring CSC to reject employee contributions made by a current government scheme member under Rule 2.3A.1 in certain circumstances, as Rule 2.4B.3 of new Division 4B of Part 2 establishes a similar requirement that applies to all contributions and other amounts paid under that part.

 

  1.          Item 32 replaces Rule 2.3A.4, enabling eligible spouse contributions to be made on behalf of a current government scheme member, with a simplified Rule 2.3A.4 that removes requirements relating to the method of payment of the contributions that are now contained in new Division 4B of Part 2. The simplified rule makes the payment of these contributions subject to the relevant new rule, being Rule 2.4B.2. The note following new Rule 2.3A.4 describes the matters covered by rules in Division 4B of Part 2.

 

  1.          Item 33 repeals Rules 2.3A.5, 2.3A.6 and 2.3A.7, dealing, in turn, with the rejection, by CSC, of eligible spouse contributions made on behalf of a current government scheme member made under Rule 2.3A.4 in certain circumstances, the method of payment of employee contributions and eligible spouse contributions, and the payment of employee contributions and eligible spouse contributions on behalf of a current government scheme member into the PSSAP Fund. These matters are covered by new Rules 2.4B.1, 2.4B.3 and 2.4B.4 of new Division 4B of Part 2, inserted by item 47 of Schedule 1. These rules prescribe similar requirements to those in the repealed rules, for most or all contributions and other amounts paid under the Part 2.

 

  1.          Item 34 replaces Rule 2.3B.1, dealing with when employee contributions can be made for consolidation with a pension account, with a simplified rule that, among other things, removes requirements regarding the method of payment of such contributions. This requirement is included in new Division 4B of Part 2, which contains a single set of rules that apply to most or all contributions and other amounts paid under Part 2.

 

  1.          Item 35 repeals Rule 2.3B.2, requiring CSC to reject employee contributions made under Rule 2.3B.1 (contributions made for consolidation with an account-based pension) in certain circumstances, as the requirement is now contained in Rule 2.4B.3 of new Division 4B of Part 2. This rule prescribes a similar requirement to that in the repealed rule for all contributions and other amounts paid under Part 2.

 

  1.          Item 36 replaces Rule 2.3B.4, which deals with when eligible spouse contributions may be made on behalf of a PSSAP member, with a simplified Rule 2.3B.4. The changes to the rule are like those made to Rule 2.3B.1 by item 34. The note following Rule 2.3B.4 refers readers to Division 4B of Part 2 for rules regarding the method of payment of contributions and other amounts, their rejection by CSC in certain circumstances and the payment of contributions and other amounts to the PSSAP Fund.

 

  1.          Item 37 repeals Rules 2.3B.5, 2.3B.6 and 2.3B.7 dealing with CSC’s rejection of eligible spouse contributions made on behalf of a PSSAP member in certain circumstances, the method of payment of employee contributions and eligible spouse contributions and the payment by CSC of employee contributions and eligible spouse contributions to the PSSAP Fund. These rules are no longer required as new Division 4B of Part 2 contains consolidated set of rules for most contributions and amounts paid under that part that apply similar requirements.

 

  1.          Rule 2.4.1 prescribes amounts that an ordinary employer-sponsored member may transfer or roll-over to the PSSAP Fund. Item 38 replaces Rule 2.4.1 with a new rule that enables an ordinary employer‑sponsored member to transfer or roll-over any amount to CSC as a transfer amount, subject to the Superannuation Industry (Supervision) Act 1993 (SIS Act), the regulations in force under that Act and Rule 2.4B.2 of new Division 4B of Part 2 (deals with the method of payment of contributions and other amounts). This change ensures that the rule is enduring.

 

  1.          Item 39 repeals Rule 2.4.1A, which enables a PSSAP member to transfer or roll-over to PSSAP an amount payable under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003 for a period when they were an ordinary employer-sponsored member, as there is no continuing need for the rule. Most persons in this cohort will be able to transfer or roll-over these amounts to PSSAP under updated Rule 2.4.1. The exception is a person with less than 12 months continuous Commonwealth service who will, instead, be able to transfer or roll-over the relevant amounts to another superannuation fund. There are likely to be few such people.

 

  1.          Items 40, 41, and 42 replace Rule 2.4.1B, Rule 2.4.1C, and Rule 2.4.1D dealing, in turn, with transfers or roll-overs of certain amounts and superannuation benefits by current government scheme members, former government scheme members, and PSSAP members or PSSAP pensioners, with simplified and updated rules. Each updated rule reflects that the transfers or roll-overs to CSC are subject to, among other requirements, new Rule 2.4B.2 - contained in new Division 4B of Part 2 - which relates to the method of payment of contributions and other amounts.

 

  1.          Item 43 replaces Rule 2.4.1E, prescribing the circumstances in which PSSAP pensioners may transfer or rollover a roll-over superannuation benefit to CSC, with a simplified rule. The simplified rule reflects that the transfers or roll-overs provided for by the rule are subject, among other requirements, to new rule 2.4B.2 – included in new Division 4B of Part 2 – which relates to the method of payment of contributions and other amounts paid under the part. The note at the end of Rule 2.4.1E advises that Division 4B of Part 2 contains certain rules relating to contributions and other amounts.

 

  1.          Item 44 repeals Rules 2.4.2 and 2.4.3 which enable CSC to determine the way in which transfer amounts are to be paid to CSC and require CSC to pay transfer amounts to the PSSAP Fund. The requirements in the repealed rules are consolidated with other similar rules in new Rules 2.4B.1 and 2.4B.4, which apply to most contributions and other amounts paid under Part 2.

 

  1.          Item 45 replaces Rule 2.4A.1, relating to when contributions-splitting superannuation benefits can be paid to CSC, with a simplified rule. The simplified rule provides that payment of the contributions-superannuation benefit is subject, among other requirements, to Rule 2.4B.2 in new Division 4B of Part 2, dealing with the method of payment of most contributions and other amounts paid under that part. The simplified rule no longer refers to Rule 2.4A.2, which has been superseded by a provision in the new division that applies to most contributions and other amounts paid under Part 2. The note at the end of the simplified rule advises readers that Division 4B of Part 2 contains certain rules relating to contributions and other amounts.

 

  1.          Item 46 repeals Rule 2.4A.2 and Rule 2.4A.3, which enable CSC to determine the way in which contributions-splitting superannuation benefits are to be paid to CSC and require CSC to pay contributions-splitting superannuation benefits received, to the PSSAP Fund. These rules have been superseded by Rules 2.4B.1 and 2.4B.4 in new Division 4B of Part 2, which set out similar requirements for most contributions and other amounts paid under Part 2.

 

  1.          Item 47 inserts new Division 4B, dealing with the method of payment and rejection of contributions and other amounts and their payment by CSC to the PSSAP Fund, after Division 4A of Part 2 of the Rules. Division 4B contains a consolidated set of rules, comprising new Rules 2.4B.1 to 2.4B.4, which apply to contributions and other amounts paid under Part 2 other than contributions mentioned in Rule 2.2.1A. These rules replace previous provisions that were duplicated for different types of contributions and other amounts.

 

Part 3 – Amendments relating to benefits

 

  1.          Item 48 corrects the note at the end of Rule 3.1.13 by changing references to ‘roll over’ to ‘roll-over’ and applying bold formatting to the term. The bolding indicates that the term is defined.

 

  1.          Item 49 replaces Division 2 of Part 3, dealing with death benefits, with an expanded and updated division. The new division includes additional rules on lapsing binding member nominations (previously known as binding member nominations) and introduces rules for non-lapsing binding member nominations.
  • The note before Rule 3.2.1 advises that the rules in relation to lapsing binding member nominations operate in conjunction with regulation 6.17A of the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations) and how a non-lapsing member nomination can be made.
  • Rule 3.2.1 broadly enables PSSAP members and PSSAP pensioners to make a lapsing or non-lapsing binding member nomination.
  • Rule 3.2.2 requires a nomination to made in the form and manner specified by CSC from time to time, while providing that a lapsing binding member nomination must comply with the requirements of subregulation 6.17A(6) of the SIS Regulations relating to lapsing binding member nominations.
  • Rule 3.2.2 also prescribes that a non-lapsing binding member nomination is valid only if CSC has consented to the nomination. This requirement ensures compliance with paragraph 59(1)(a) of the Superannuation Industry (Supervision) Act 1993, which is relevant to these nominations.
  • Rule 3.2.3 provides that a valid non-lapsing binding member nomination ceases to be valid in certain circumstances, including where the nomination is revoked by a PSSAP member or PSSAP pensioner, where CSC consents to a new valid non-lapsing binding member nomination provided by a PSSAP member or PSSAP pensioner, or in other circumstances determined by CSC. This discretion allows CSC to prescribe other circumstances, based on experience, in which a non‑lapsing binding member nomination will be invalid.
  • Rule 3.2.4 sets out circumstances in which CSC is not required to provide benefits in accordance with a non-lapsing binding member nomination. These circumstances mirror those applying to lapsing binding member nominations under subregulation 6.17A(4A) of the SIS Regulations.
  • Rules 3.2.5 to 3.2.7 prescribe who is entitled to be paid death benefits on the death of a PSSAP member or PSSAP pensioner who does not have a valid nomination of a reversionary beneficiary under Rule 3.6.13. The rules supersede previous Rules 3.2.1 to 3.2.3 relating to PSSAP members and previous Rules 3.6.14(b) and 3.6.14(c) relating to PSSAP pensioners. The new rules reflect the introduction of non-lapsing binding member nominations and the renaming of binding member nominations as lapsing binding member nominations. The changes do not alter who is entitled to death benefits in respect of a PSSAP member or a PSSAP pensioner.

 

  1.          Item 50 amends the heading of Division 3 of Part 3 of the Rules by inserting the words ‘of certain ordinary employer-sponsored members’ after ‘Permanent invalidity’. This clarifies that the division deals with permanent invalidity of this cohort, rather than the permanent invalidity of all PSSAP members.

 

  1.          Item 51 repeals Rule 3.3.1A, which deals with the scope of Division 3 of Part 3. The rule is no longer required as the amendments made by items 52 to 54 make it clear that the division applies only to ordinary employer-sponsored member under subsection 18(2), 18(3) or 18(5) of the Superannuation Act 2005. These persons are ordinary employer‑sponsored members because, in turn, PSSAP is their chosen fund or stapled fund, their mandated fund, or because the Superannuation Guarantee (Administration) Act 1992 does not apply to the person.

 

  1.          Item 52 amends Rule 3.3.1, dealing with applications for approval of invalidity retirement, to clarify that an application may be made to CSC only in respect of an ordinary employer-sponsored member under subsection 18(2), 18(3) or 18(5) of the Superannuation Act 2005.

 

  1.          Items 53 and 54 amend Rules 3.3.3 and 3.3.4, relating to the invalidity retirement process, to clarify that these rules are only relevant to the invalidity retirement of an ordinary employer‑sponsored member under subsection 18(2), 18(3) or 18(5) of the Superannuation Act 2005.

 

  1.          Item 55 replaces Rule 3.4.2, which concerns the assessment of applications for income protection benefits, with an updated rule that more accurately reflects Rule 3.4.1, which relates to income protection benefits and is referenced in the rule.

 

  1.          Item 56 replaces Rule 3.4.4 with an updated rule that clearly identifies income protection benefits that do not form part of the personal accumulation account of the PSSAP member. The change does not affect the operation of the rule.

 

  1.          Item 57 amends paragraph 3.6.3(c), which concerns the payment of account-based pensions, by correcting a grammatical error. The amendment inserts the word ‘the’ after the words ‘greater than’.

 

  1.          Item 58 replaces the reference to ‘Taxation Administration Act 1953’ in paragraph 3.6.3(i), which concerns the payment of account-based pensions, with the bolded term ‘taxation legislation’. This phrase is defined, in Rule 1.2.1, to mean the Taxation Administration Act 1953, the Income Tax Assessment Act 1997 or the Income Tax (Transitional Provisions) Act 1997. The change does not affect the operation of the rule.

 

  1.          Item 59 amends paragraph 3.6.8A(a), which concerns the commutation of amounts held in a pension account, by replacing a bolded reference to ‘rollover’ with ‘roll-over’ for consistency with other references in the Rules. The term is bolded because it is defined in the Rules.

 

  1.          Item 60 replaces Rule 3.6.11, dealing with references to ‘PSSAP member’ in certain other rules, with an updated rule that omits a reference to repealed Rule 3.1.1(f). The updated rule has also been reworded for accuracy. The rewording does not affect the operation of the rule.

 

  1.          Item 61 replaces Rule 3.6.12, which deals with references to ‘total benefit’ in certain rules, with an updated rule that omits a reference to Rule 3.1.11A and includes a reference to Rules 3.2.5 to 3.2.7. The reference to Rule 3.1.11A has been removed because that rule, which provides for CSC to make payments in accordance with release authorities in certain circumstances, does not use the term ‘total benefit’.

 

  1.          Item 62 replaces Rule 3.6.14, which concerns the death of a person with a pension account, with a shorter provision that omits requirements contained in Division 2 of Part 3, relating to death benefits. The updated rule essentially provides that, on the death of a PSSAP pensioner, CSC must continue to pay the account-based pension to the PSSAP pensioner’s reversionary beneficiary if, among other requirements, there is a valid nomination of a reversionary beneficiary in place. If this is not the case, the rule provides for CSC to deal with the balance of the deceased PSSAP pensioner’s account in accordance with new Rules 3.2.5 to 3.2.7, inserted by item 49 of this Schedule, which sets down who is entitled to be paid death benefits. Rule 3.6.12 as updated by item 61 provides that a reference to ‘total benefit’ includes the balance of a person’s pension account.

 

Part 4 – Amendments relating to other matters

 

  1.          Item 63 inserts a new note after Rule 4.1.3, relating to claims by CSC against a policy providing death and invalidity cover. The note explains the cohorts of ordinary employer-sponsored members to whom Rules 3.3.1 and 3.1.1(aa), referenced in Rule 4.1.3, apply. The note is included to assist readers.

 

  1.          Item 64 replaces the note at the end of Rule 4.3.5, relating to income protection cover, with an updated note that replaces a reference to Rule 2.3.6, which has been repealed by item 29 of Schedule 1, with references to Rule 2.3.4A and to Rule 2.4B.4, which supersedes that rule. Minor revisions have also been made to the note for simplification.

 

  1.          Rule 5.1.5 requires amounts listed in the rule to be credited to a PSSAP member’s personal accumulation account, if they are paid to the PSSAP Fund. Item 65 replaces paragraph 5.1.5(f), which refers to certain amounts paid by an insurance company, with an updated provision that corrects the bolding of defined terms and adds detail about the amounts that are not credited to a PSSAP member’s personal accumulation account. This detail is intended to assist readers.

 

  1.          Rule 5.1.6 prescribes amounts which must be debited from a PSSAP member’s personal accumulation account. Item 66 replaces paragraph 5.1.6(g), covering benefits paid to or in respect of a PSSAP member from their accumulation amount following an application for an account-based pension under Rule 3.1.1(g), with an updated paragraph that more accurately describes the benefit covered.

 

  1.          Item 67 repeals Division 3 of Part 5, dealing with the superannuation surcharge. The division has no continuing application, as the superannuation surcharge was abolished from 1 July 2005.

 

  1.          Item 68 replaces Rule 5.5.2, requiring CSC to take steps to correct the matter if amounts are paid to, or withdrawn from, certain accounts by mistake, with an updated rule. The updated rule replaces the reference to ‘PSSAP Fund’ in paragraph (b) with ‘account’, which is the correct term, and inserts a reference to amounts paid into or withdrawn from an account of a non-member spouse, which was inadvertently omitted from the rule.

 

  1.          Item 69 makes a minor correction to the heading before Rule 7.3.1, which enables CSC to determine terms and conditions for a non-member spouse interest, by replacing ‘non member’ with ‘non‑member’. The amendment ensures consistency with other references in the division.

 

  1.          Item 70 amends the heading before Rule 7.3.8, which prevents CSC from accepting certain contributions and amounts for crediting to a non-member spouse interest account, by replacing the words ‘employee contributions’ with ‘amounts’. The amendment reflects that the prohibition in the rule is not limited to employee contributions.

 


Schedule 2 – Amendments to the PSSAP Trust Deed Rules Consequential to the Treasury Laws Amendment (Payday Superannuation) Act 2025

 

  1.          Schedule 2 makes amendments to the Rules consequential to the Treasury Laws Amendment (Payday Superannuation) Act 2025, which, among other things, amends the Superannuation Guarantee (Administration) Act 1992 to incentivise employers to make superannuation contributions for their employees on, or shortly after, the day that their employees are paid wages or salary.

 

  1.          Items 1 and 2 insert, in turn, a note following the definition of ‘additional employer contributions’ and ‘basic employer contributions’ in Rule 1.2.1. The notes indicate that Rule 2.2.1AAA, inserted by item 4 of Schedule 2, provides for certain non-mandatory basic employer contributions made under Rule 2.2.1 to be treated as if they were additional employer contributions made under Rule 2.2.4.

 

  1.          Item 3 amends Rule 2.2.1, which requires the designated employer of an ordinary employer-sponsored member under subsection 18(2), 18(3) of 18(5) of the Superannuation Act 2005 to pay contributions equal to 15.4 per cent of the person’s superannuation salary to CSC each pay day, so that the requirement is subject to Rule 2.2.1AAAA, inserted by item 4 of Schedule 2, in addition to Rule 2.4B.2.

 

  1.          Item 4 inserts new Rules 2.2.1AAAA and 2.2.1AAA following Rule 2.2.1.

 

  1.          New Rule 2.2.1AAAA addresses the impact of a change to the definition of ‘ordinary time earnings’ in the Superannuation Guarantee (Administration) Act 1992 (SG Act), as amended by the Treasury Laws Amendment (Payday Superannuation) Act 2025. The updated definition of ordinary time earnings is no longer capped quarterly at the maximum contribution base set down in the SG Act; rather the cap is applied on an annual basis when calculating shortfalls under that Act. Because the definition of ordinary time earnings is used by the Rules, these structural changes to the SG Act would otherwise have the effect of increasing the basic employer contributions required under Rule 2.2.1 for certain PSSAP members whose superannuation salary is based on ordinary time earnings. To maintain existing arrangements, Rule 2.2.1AAAA provides that the designated employer of a person whose superannuation salary is based on ordinary time earnings, is not required to make basic employer contributions under Rule 2.2.1 on any amount of ordinary time earnings of the person that exceeds the maximum contribution base. The note following Rule 2.2.1AAAA explains, among other things, the operation of the rule and its interaction with new Rule 2.2.1AAA.

 

  1.          New Rule 2.2.1AAA provides for contributions paid under Rule 2.2.1 to be treated as additional employer contributions made under Rule 2.2.4, if the contributions were not required to be paid because of new Rule 2.2.1AAAA. This essentially preserves the existing treatment of employer contributions paid in respect of any amount of a person’s ordinary time earnings that exceeds the maximum contribution base.

 

  1.          Item 5 replaces the note at the end of Rule 2.2.4, which deals with additional employer contributions, with an updated note that reinstates text that was unintentionally omitted by Superannuation Amendment (PSSAP Trust Deed – Membership) Instrument 2020. The note also refers readers to relevant provisions.


Schedule 3 – Amendment of the PSS Trust Deed Rules – Application, Saving and Transitional Provisions

 

  1.          Schedule 3 amends the Rules to prescribe application, saving and transitional provisions to support the changes made by Schedules 1 and 2.

 

  1.          Item 1 inserts a new Part 8 – Application, Saving and Transitional Provisions in the Rules, comprising of new Division 1, which deals with amendments made to the Rules by Schedule 1. Division 1 comprises of new Rules 8.1.1 to 8.1.3.
  • Rule 8.1.1 saves the repealed definitions of ‘pay advice document’ and ‘quarter’ and Rules 2.2.8 to 2.2.11, dealing with reporting of employer contributions, in relation to a quarter ending before the commencement of Schedule 1.
  • Rule 8.1.2 is an application provision that provides, for avoidance of doubt, if CSC was in receipt of a binding member nomination in respect of a PSSAP member, including a PSSAP pensioner, immediately before the repeal of the definition of ‘binding member nomination’ by item 2 of Schedule 1, the binding member nomination is not invalid only because of the repeal.
  • Rule 8.1.3 is a transitional provision that provides for valid binding member nominations in place immediately before the commencement of Schedule 1 to be treated as lapsing binding member nominations made under new Rule 3.2.1, inserted by item 49 of Schedule 1, from commencement. Rule 8.1.3 also provides that the nomination continues to have effect for the balance of the period that remained immediately before commencement of Schedule 1 or as otherwise provided by subregulation 6.17A(7) of the SIS Regulations, which governs when lapsing binding member nominations cease to have effect.

 

  1.          Item 2 inserts a new Division 2 after Division 1. Division 2 sets out application provisions in relation to amendments made by Schedule 2 that are consequential to the Treasury Laws Amendment (Payday Superannuation) Act 2025. Division 2 comprises new Rules 8.2.1 to 8.2.3.
  • Rule 8.2.1 sets out definitions of two terms used in Division 2. The term ‘new Deed’ is defined as the Superannuation (PSSAP) Trust Deed as amended by Schedule 2. The phrase ‘old Deed’ is defined as the Superannuation (PSSAP) Trust Deed as in force immediately before the commencement of Schedule 2.
  • Rule 8.2.2 is an application provision that prescribes that the new Deed applies to basic employer contributions and additional employer contributions by the designated employer of certain ordinary employer-sponsored members on a pay day that falls on or after the commencement of the payday superannuation reforms on 1 July 2026.
  • Rule 8.2.3 is an application provision that prescribes that the old Deed continues to apply on and after 1 July 2026 in relation to basic employer contributions by the designated employer of certain employer sponsored members in relation to a pay day that falls before 1 July 2026. The note after Rule 8.2.3 provides context for the provisions in Division 2.

 


ATTACHMENT B

 

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Superannuation Legislation (PSSAP Trust Deed) Amendment Instrument 2026 (No. 1)

 

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of Legislative Instrument

 

The Superannuation Legislation (PSSAP Trust Deed) Amendment Instrument 2026 (No. 1), signed by the Minister, amends the Public Sector Superannuation Accumulation Plan Trust Deed which, together with the Superannuation Act 2005, establishes the Public Sector Superannuation Accumulation Plan (PSSAP) for Commonwealth public sector employees and certain other persons who first commenced relevant employment from 1 July 2005.

 

The purpose of the Legislative Instrument is to amend the PSSAP Trust Deed Rules (the Rules) to:

  • enable PSSAP members and PSSAP pensioners to make a non-lapsing binding member nomination governing, subject to certain limitations, the payment of their PSSAP benefit in the event of their death;
  • make consequential amendments to the Rules to take account of changes to the Superannuation Guarantee framework made by the Treasury Laws Amendment (Payday Superannuation) Act 2025;
  • remove redundant provisions and correct, simplify and consolidate a range of provisions; and
  • prescribe application, saving and transitional provisions to support some of the amendments made by the Legislative Instrument.

 

Human Rights Implications

 

This Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Senator the Hon Katy Gallagher, Minister for Finance

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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.