STATUTORY RULES
1967 No.
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REGULATION UNDER THE SUPERANNUATION ACT 1922-1966.*
WHEREAS it is enacted by sub-section (4.) of section 90 of the Superannuation Act 1922-1966 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 1922-1966 in respect of the financial year that commenced on the first day of July, 1965:
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 1922-1966.
Dated this day of , 1967.
CASEY
Governor-General.
By His Excellency’s Command,
William McMahon
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, 1965........................ | 5.551”. |
* Notified in the Commonwealth Gazette on 1967.
† Statutory Rules 1966, No. 63
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By Authority: A. J. Arthur, Commonwealth Government Printer, Canberra
3884/67—Price 5c 9/17.3.1967
Overview
The Superannuation (Prescribed Rates of Interest) Regulations 1967, enacted under the Superannuation Act 1922-1966, address the need for setting specific interest rates for superannuation funds. This legislation was introduced to ensure that the interest rates applied to superannuation funds were determined in a manner that considered both historical performance and other relevant factors. The Superannuation Board was tasked with advising on these rates, and the Governor-General was authorised to set the rates without needing to follow the Board's recommendation, provided the Board had submitted a report. This approach aimed to provide clarity and consistency in managing the financial interests of superannuation funds, ensuring they were appropriately aligned with market conditions and other pertinent considerations.
Scope and Application
The Superannuation (Prescribed Rates of Interest) Regulations 1967 is a legislative instrument under the Superannuation Act 1922-1966 that pertains specifically to the prescription of interest rates for the Superannuation Fund in relation to a particular financial year. The regulation applies to the Superannuation Fund and its management, which involves the Superannuation Board and the Treasurer. The geographic reach of this Act is federal, as it concerns the Commonwealth of Australia and its national superannuation framework. The Act does not specify any exclusions or exemptions but instead focuses on the process and criteria for determining the prescribed interest rate for the Superannuation Fund. The Governor-General has the authority to make these regulations, but the Superannuation Board must provide a report to the Treasurer, detailing the average interest earned by the Fund and recommending an appropriate interest rate based on this information and other relevant factors. The regulation extends its application by incorporating amendments through subordinate instruments, ensuring that the prescribed interest rates are periodically updated to reflect economic conditions and the performance of the Fund.
Key Provisions
The primary operative sections of this legislation (Statutory Rules 1967 No. ————) involve the amendment of the Superannuation (Prescribed Rates of Interest) Regulations. Section 4(3) of the Superannuation Act 1922-1966 mandates that the Governor-General may prescribe a rate of interest for the financial year, but only after receiving a report from the Superannuation Board, as outlined in section 4(4). This report must specify the average rate of interest earned by the Superannuation Fund for the financial year and the recommended prescribed rate of interest based on this average and other relevant factors. In this case, the Superannuation Board has provided a report to the Treasurer, and the Governor-General has made a regulation based on that report, specifying a rate of 5.551% for the financial year that commenced on 1 July 1965.
The obligations and requirements imposed by this legislation on the Superannuation Board and other relevant entities include the preparation and submission of a detailed report to the Treasurer. This report must include the average rate of interest earned by the Superannuation Fund for the specified financial year and the Board’s recommended prescribed rate of interest. This ensures that the prescribed rate is informed by actual earnings and other relevant considerations. The Board’s report is a critical step in the regulatory process, as the Governor-General is not permitted to prescribe a rate of interest without it.
Regarding the consequences of non-compliance or breach, the legislation does not explicitly state any civil or criminal penalties for failing to meet the obligations imposed by the Superannuation Act 1922-1966 or these regulations. However, the failure of the Superannuation Board to submit the required report to the Treasurer could potentially result in the inability to prescribe a rate of interest for the financial year, thereby impacting the financial planning and management of superannuation funds. This indirectly underscores the importance of compliance with the legislative requirements to maintain the integrity and functionality of the superannuation system.