STATUTORY RULES
1968 No.
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REGULATION UNDER THE SUPERANNUATION ACT 1922-1967*
WHEREAS it is enacted by sub-section (4.) of section 90 of the Superannuation Act 1922-1967 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 Board but that 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 1922-1967 in respect of the financial year that commenced on 1 July, 1966:
NOW THEREFORE I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the Superannuation Act 1922-1967.
Dated this thirteenth day of May, 1968.
CASEY
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, 1966................. | 5.484”. |
* Notified in the Commonwealth Gazette on 1968.
† Statutory Rules 1966, No. 63 as amended by Statutory Rules 1967, No. 36.
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By Authority: A. J. Arthur, Commonwealth Government Printer, Canberra
16856/68—Price 5c 9/23.5.1968
Overview
The Superannuation (Prescribed Rates of Interest) Regulations 1968 are a legislative instrument designed to amend the rates of interest prescribed under the Superannuation Act 1922-1967. Enacted by the Governor-General in accordance with the authority granted by the Act, these regulations respond to the need for a structured and transparent process in determining the interest rates applicable to the Superannuation Fund. This legislative instrument was introduced to address the gap in ensuring that the interest rates are set in consultation with the Superannuation Board, thereby providing a more accurate reflection of the average interest earned by the Fund and considering other relevant factors. The primary policy objective is to ensure that the prescribed interest rates are fair and based on comprehensive financial assessments.
Scope and Application
This legislative instrument is a regulation made under the Superannuation Act 1922-1967, specifically addressing the prescribed rates of interest for the financial year commencing on 1 July 1966. It applies to the Superannuation Fund, which includes entities such as superannuation funds and possibly the trustees or administrators of these funds. The regulation sets the rate of interest based on the report provided by the Superannuation Board to the Treasurer, and it is applicable within the jurisdiction of the Commonwealth of Australia. The regulation does not specify any exclusions, exemptions, or thresholds, but rather focuses on the procedural aspect of determining the interest rate by mandating that the Superannuation Board furnish a report. The regulation extends the application of the Superannuation Act by detailing a specific rate of interest for the stated financial year, thus ensuring that the prescribed rates are set in accordance with the statutory requirements.
Key Provisions
The Superannuation (Prescribed Rates of Interest) Regulations 1968, as amended, set out the prescribed rates of interest for the purposes of the Superannuation Act 1922-1967. The main operative sections of these regulations specify the interest rates to be applied to superannuation funds for financial years. For example, section 3(1) of the regulation states that the Governor-General may prescribe the rate of interest for a financial year, as long as the Superannuation Board has reported on the average interest earned and the recommended rate. In this case, the regulation prescribes an interest rate of 5.484% for the financial year commencing 1 July 1966 (Schedule).
The obligations imposed by these regulations on the parties and entities they govern primarily relate to compliance with the prescribed interest rates. Trustees of superannuation funds must ensure that the interest earned on the fund’s investments aligns with the rates prescribed by these regulations. This requirement ensures consistency and fairness in the management of superannuation funds. The Superannuation Board, on the other hand, is obligated to furnish a report to the Treasurer that includes both the average interest earned by the Superannuation Fund for the financial year and the recommended interest rate, as per section 90(4) of the Superannuation Act 1922-1967.
Breaching these regulations can result in various consequences. While the specific civil or criminal penalties are not detailed within the regulations themselves, the Superannuation Act 1922-1967 provides a framework for potential enforcement actions. Non-compliance with prescribed interest rates might result in penalties under the act, which could include fines or other corrective measures. Additionally, trustees who fail to comply with the prescribed rates may face disciplinary actions or be held liable for any resulting financial discrepancies within the superannuation funds they manage.