Statutory Rules
1975 No. 221
REGULATION UNDER THE SUPERANNUATION ACT 1922-1974.*
WHEREAS it is enacted by sub-section 90 (4) 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 90 (3) of that Act 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 90 (4) of the Superannuation Act 1922-1974 in respect of the financial year that commenced on 1 July 1974:
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 twenty-second day of December, 1975.
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 1974........................ | 7.364 ”. |
* Notified in the Australian Government Gazette on 23 December 1975.
† 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, 87 and 269.
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Printed by Authority by the Government Printer of Australia
17501/75—Recommended retail price 5c 10/18.11.1975
Overview
Statutory Rules 1975 No. 221, made under the Superannuation Act 1922-1974, was enacted by the Governor-General of Australia to amend the Superannuation (Prescribed Rates of Interest) Regulations. This legislative instrument addresses the need to specify the rate of interest for the financial year that commenced on 1 July 1974, based on the average rate earned by the Superannuation Fund and other relevant factors as assessed by the Superannuation Board. The Superannuation Board provided a report to the Treasurer, and pursuant to the Act, the Governor-General issued these regulations, thereby formalising the interest rate for that financial year. The policy objective, as mandated by the Act, was to ensure that the prescribed interest rate was both reflective of the fund’s performance and considered appropriate in light of other relevant factors.
Scope and Application
This legislation, the Statutory Rules 1975 No. 221, constitutes a regulation made under the Superannuation Act 1922-1974, specifically addressing the rate of interest to be applied to superannuation funds for the financial year commencing on 1 July 1974. The Act applies to superannuation funds within the Commonwealth of Australia, encompassing all entities and persons involved in the management and administration of such funds. It is pertinent to note that the regulation does not explicitly state any exclusions or exemptions; however, it is implicitly understood that it applies universally to all superannuation funds governed by the Act. The geographic reach of this regulation is confined to Australia, as it is a Commonwealth enactment. The regulation is an amendment to the Superannuation (Prescribed Rates of Interest) Regulations, extending the application of prescribed interest rates to include the specified financial year. The Superannuation Board's report, which includes the average interest earned by the Superannuation Fund and the recommended prescribed rate, serves as the foundation for this regulatory amendment, ensuring that the interest rates are both informed and justified.
Key Provisions
The main operative sections of this legislation pertain to the prescribed rate of interest for superannuation funds, specifically for the financial year starting 1 July 1974. Section 90(4) of the Superannuation Act 1922-1974 states that the Governor-General can only make a regulation prescribing a rate of interest if the Superannuation Board has provided a 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 recommended rate of interest based on that average and other relevant factors. The Schedule of the Superannuation (Prescribed Rates of Interest) Regulations is amended to include this new rate for the specified financial year.
The obligations imposed on the Superannuation Board under this legislation are clear and specific. The Board must furnish a report to the Treasurer detailing two critical pieces of information: the average rate of interest earned by the Superannuation Fund during the financial year in question, and the recommended rate of interest for that year. These details are to be provided in accordance with sub-section 90(4) of the Superannuation Act 1922-1974. The Board's report must be comprehensive and based on the average interest earned and other relevant considerations.
In terms of consequences for non-compliance, the regulation does not explicitly outline civil or criminal penalties for failing to meet these obligations. However, the failure to provide the required report could result in the Governor-General not being able to prescribe a rate of interest for that financial year, which could have significant implications for the operation of superannuation funds. There are no stated maximum penalties in this particular regulation; however, the absence of a prescribed interest rate could lead to legal challenges or disputes regarding the management and distribution of superannuation funds.