Statutory Rules
1974 No. 269
REGULATION UNDER THE SUPERANNUATION ACT 1922-1974.*
WHEREAS it is enacted by sub-section (4) of section 90 of the Superannuation Act 1922-1974 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 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 1922-1974 in respect of the financial year that commenced on 1 July 1973:
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 1922-1974.
Dated this nineteenth day of December, 1974.
John R. Kerr
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 1973................. | 6.966 ”. |
* Notified in the Australian Government Gazette on 23 December 1974.
† Statutory Rules 1966, No. 63, as amended by Statutory Rules 1967, No. 36; 1968, Nos. 64 and 142; 1972, No. 174; 1973, No. 210; and 1974, Nos. 43 and 87.
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Printed by Authority by the Government Printer of Australia
17164/74—Recommended retail price 5c 10/22.11.1974
Overview
The Statutory Rules 1974 No. 269 were enacted to amend the Superannuation (Prescribed Rates of Interest) Regulations under the Superannuation Act 1922-1974. This legislative instrument was introduced to address the need to prescribe an appropriate rate of interest for the financial year commencing on 1 July 1973, as mandated by the Superannuation Act. The Superannuation Board provided a report to the Treasurer, outlining the average rate of interest earned by the Superannuation Fund for that year and recommending a rate to be prescribed. The Governor-General, acting with the advice of the Executive Council, then issued the regulation to amend the prescribed rates of interest, reflecting the Superannuation Board’s recommendations. This process ensures that the rates are set based on the actual performance and relevant considerations, thereby maintaining the integrity and reliability of the superannuation system.
Scope and Application
The Superannuation (Prescribed Rates of Interest) Regulations, enacted under the Superannuation Act 1922-1974, outline the specific rates of interest that are to be applied to the Superannuation Fund for financial years. These regulations apply to the Superannuation Fund, which is overseen by the Superannuation Board and managed by the Treasurer. The legislation extends across the Commonwealth, affecting entities and individuals who are participants in the superannuation system. The prescribed rates of interest are determined based on the average rate of interest earned by the Superannuation Fund and other relevant factors, as reported by the Superannuation Board. While the primary focus of these regulations is on financial rates, they may indirectly impact superannuation trustees, members, and associated financial transactions. The application of these rates is a critical aspect of the superannuation system, ensuring that superannuation funds are managed with appropriate interest earnings.
Key Provisions
The key operative sections of this regulation establish a specific rate of interest for the financial year that commenced on 1 July 1973, as prescribed by the Superannuation (Prescribed Rates of Interest) Regulations. This rate, 6.966%, is specified in the Schedule to the regulations (Schedule, clause 1). This rate is determined based on the average interest earned by the Superannuation Fund for that financial year, as well as other relevant factors considered by the Superannuation Board. The regulation is made under the authority provided by sub-section (4) of section 90 of the Superannuation Act 1922-1974, which outlines the process for setting interest rates without requiring the Governor-General to act on the recommendation of the Superannuation Board, provided the Board has submitted a report to the Treasurer.
This regulation imposes specific obligations on the Superannuation Board, primarily to report to the Treasurer on the average rate of interest earned by the Superannuation Fund and to recommend a rate that should be prescribed for the financial year. The Superannuation Board must furnish a report detailing these two pieces of information: the average rate of interest earned by the Fund, and the recommended rate to be prescribed (section 90(4) of the Superannuation Act 1922-1974). The Governor-General, in turn, must not make a regulation prescribing a rate of interest unless this report has been submitted by the Superannuation Board. This ensures that the interest rate set is based on a thorough analysis and consideration of relevant factors by the Board.
Failure to comply with the requirements of this regulation could lead to civil or administrative consequences, though specific penalties are not detailed within the text of the regulation itself. Generally, breaches of regulations made under the Superannuation Act 1922-1974 may result in fines or other penalties as prescribed by the Act or related legislation. The Superannuation Board’s failure to submit the required report could potentially disrupt the process of setting the interest rate for the financial year, leading to delays or administrative issues. Additionally, if the prescribed rate does not accurately reflect the average interest earned or other relevant factors, it may lead to disputes or require corrective action to ensure compliance with the regulatory framework.