STATUTORY RULES
1968 No.
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REGULATION UNDER THE SUPERANNUATION ACT 1922-1968*
WHEREAS it is enacted by sub-section (4.) of section 90 of the Superannuation Act 1922-1968 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 1922-1968 in respect of the financial year that commenced on 1 July, 1967:
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 1922-1968.
Dated this twenty-first day of November, 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, 1967............ | 5.705”. |
* Notified in the Commonwealth Gazette on 1968.
† Statutory Rules 1966, No. 63, as amended by Statutory Rules 1967, No. 36; and 1968, No. 64.
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By Authority: A. J. Arthur, Commonwealth Government Printer, Canberra
25186/68—Price 5c 9/12.11.1968
Overview
The Superannuation Act 1922-1968 was enacted to provide for the regulation of superannuation funds, ensuring their proper management and the fair distribution of benefits to members. This legislation was designed to address the need for a structured and regulated approach to the administration of superannuation funds, which were increasingly becoming a critical component of Australia's social security system. The Act was enacted by the Commonwealth Parliament, aiming to protect the interests of superannuation fund members by establishing clear guidelines for the management and investment of these funds. The policy objective underpinning the Act was to safeguard the retirement savings of Australians, thereby providing a reliable income stream during their retirement years. This was achieved through the establishment of a regulatory framework that mandated the reporting and oversight of superannuation funds, ensuring they operated in the best interests of their members.
Scope and Application
The Superannuation (Prescribed Rates of Interest) Regulations, 1968, made under the Superannuation Act 1922-1968, establish the prescribed rate of interest for the financial year commencing on 1 July 1967. This regulation applies to the determination of interest rates applicable to the Superannuation Fund, overseen by the Superannuation Board. The Board's report to the Treasurer, detailing the average rate of interest earned by the Fund and the recommended rate for the financial year, is crucial for the Governor-General's decision-making process. The Governor-General is mandated by the Act to make this regulation without necessarily following the Superannuation Board's recommendation, provided the Board has submitted the requisite report. The amendment to the existing regulations, as specified in the Schedule, sets the interest rate at 5.705% for the mentioned financial year. This regulation has a Commonwealth reach, impacting all entities governed by the Superannuation Act 1922-1968 within the Australian jurisdiction.
Key Provisions
The Superannuation (Prescribed Rates of Interest) Regulations, made under the Superannuation Act 1922-1968, specify the rate of interest to be applied to superannuation funds for a particular financial year. According to section 90(4) of the Act, the Governor-General is empowered to set this rate but must do so based on a report from the Superannuation Board, detailing both the average interest earned by the Superannuation Fund for that financial year and the recommended prescribed rate of interest. This ensures that the rate set is informed by the actual performance of the fund and expert opinion. For the financial year commencing 1 July 1967, the Superannuation Board has reported an average interest rate of 5.705%, which is now prescribed in the regulations.
The obligations imposed by these regulations are primarily on the Superannuation Board. The Board is required to furnish a detailed report to the Treasurer, including the average interest rate earned by the Superannuation Fund and its recommended prescribed rate. This process ensures that the prescribed rate of interest is both data-driven and considered, reflecting the fund's performance and relevant market conditions. The Treasurer, in turn, must rely on this report when making the regulation, ensuring transparency and accountability in the interest rate setting process.
Failure to comply with the provisions of these regulations could potentially lead to legal consequences, although specific offences and penalties are not detailed within the text. Typically, such regulatory breaches might lead to civil or administrative penalties, depending on the severity and intent of the breach. The exact penalties would be determined by the courts or relevant regulatory bodies in the context of broader legislative frameworks governing superannuation funds. It is crucial for the Superannuation Board and the Treasurer to adhere to these obligations to maintain the integrity and stability of the superannuation system.