Statutory Rules
1974 No. 87
REGULATION UNDER THE SUPERANNUATION ACT 1922-1973.*
WHEREAS it is enacted by sub-section (4) of section 90 of the Superannuation Act 1922-1973 that, in making a regulation prescribing a rate of interest in respect of a financial year for the purposes of sub-section (3) of that section, the Governor-General is not required to act on the recommendation of the Superannuation Hoard but he shall not make a regulation prescribing a rate of interest in respect of a financial year unless the Superannuation Board has furnished a report to the Treasurer specifying—
(a) the average rate of interest that is determined by the Superannuation Board to have been earned by the Superannuation Fund in that financial year; and
(b) the rate of interest that, in the opinion of the Superannuation Board should, having regard to that average rate of interest and to such other matters as the Superannuation Board thinks relevant, be prescribed in respect of that financial year:
AND WHEREAS the Superannuation Board has furnished a report to the Treasurer in accordance with sub-section (4) of section 90 of the Superannuation Act 1922-1973 in respect of the financial years that commenced on 1 July 1971 and 1 July 1972;
NOW THEREFORE I, the Governor-General of Australia, acting with the advice of the Executive Council, hereby make the following Regulation under the Superannuation Act 1922-1973.
Dated this fifteenth day of May, 1974.
Paul Hasluck
Governor-General.
By His Excellency’s Command,
Treasurer.
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Amendment of the Superannuation (Prescribed Rates of Interest) Regulations†
The Schedule.
The Schedule to the Superannuation (Prescribed Rates of Interest) Regulations is amended by adding at the end thereof the following words and figures:—
“Financial year that commenced on 1 July 1971......................... | 6.383 |
Financial year that commenced on 1 July 1972........................ | 6.508”. |
* Notified in the Australian Government Gazette on 21 May 1974.
† Statutory Rules 1966, No. 63, as amended by Statutory Rules 1967, No. 36; 1963, Nos. 64 and 142; 1972, No. 174; 1973, No. 210; and 1974, No. .
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Printed by Authority by the Government Printer of Australia
12389/74—Price 5c 9/10.4.1974
Overview
The Superannuation (Prescribed Rates of Interest) Regulations 1974 were enacted to amend the rates of interest prescribed under the Superannuation Act 1922-1973. The problem or gap this legislation aimed to address was the need to update the interest rates for the financial years commencing on 1 July 1971 and 1 July 1972, in accordance with the Superannuation Board's recommendations. This regulation was introduced by the Governor-General of Australia, acting on the advice of the Executive Council. The Superannuation Board had already submitted a report to the Treasurer specifying the average rate of interest earned by the Superannuation Fund for these financial years and recommending the rates that should be prescribed. This regulation ensures that the prescribed rates of interest reflect the actual performance of the Superannuation Fund and other relevant considerations.
Scope and Application
The regulation, Statutory Rules 1974 No. 87, applies specifically to the Superannuation Act 1922-1973, governing the interest rates prescribed for the Superannuation Fund. It is pertinent to the Superannuation Board and the Treasurer, who must interact in providing and receiving reports regarding the average interest earned and recommended interest rates for specific financial years. This legislative instrument impacts the Superannuation Fund, as it determines the interest rates applied to this fund. The geographic and jurisdictional reach of this regulation is national, as it pertains to the Commonwealth of Australia and its Superannuation Fund. The regulation does not explicitly mention exclusions or exemptions, but its application is confined to the prescribed financial years mentioned in the schedule. The regulation extends its application through subordinate instruments, specifically through the amendment of the Superannuation (Prescribed Rates of Interest) Regulations, as detailed in the schedule.
Key Provisions
This legislative instrument, Statutory Rules 1974 No. 87, amends the Superannuation (Prescribed Rates of Interest) Regulations under the Superannuation Act 1922-1973. The regulation pertains specifically to the prescribed rates of interest for the financial years commencing on 1 July 1971 and 1 July 1972. Section 90(4) of the Superannuation Act 1922-1973 requires the Superannuation Board to furnish a report to the Treasurer detailing the average rate of interest earned by the Superannuation Fund for a given financial year and recommending an appropriate prescribed rate of interest based on this and other relevant factors. The Governor-General is empowered to make a regulation prescribing the rate of interest but must do so only if the Superannuation Board has provided the necessary report.
The obligations imposed by this Act require the Superannuation Board to conduct an assessment of the average interest earned by the Superannuation Fund for each financial year and to provide a report to the Treasurer. This report must include the average rate of interest earned and a recommendation for the prescribed rate of interest for that financial year. The Governor-General, in turn, must ensure that any regulation prescribing a rate of interest is based on the report furnished by the Superannuation Board. The regulation must reflect the Board’s findings and recommendations, as outlined in the report.
There are no specific offences or penalties outlined in this legislative instrument for failing to comply with the provisions of the Act. However, the failure to adhere to the mandated process for determining and prescribing the rate of interest could potentially lead to legal challenges or administrative actions. The prescribed rates of interest are crucial for determining the interest earned on superannuation funds, and any deviation from the process could impact the financial benefits of superannuation fund members. It is essential for the Superannuation Board to accurately assess and report the average interest rates to ensure that the prescribed rates are fair and reflective of actual earnings.