Statutory Rules
1973 No. 210
REGULATION UNDER THE SUPERANNUATION ACT 1922-1973.*
WHEREAS it is enacted by sub-section (4) of section 90 of the Superannuation Act 1922-1973 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 1922-1973 in respect of the financial year that commenced on 1st July, 1969:
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 1922-1973.
Dated this twenty-fifth day of October, 1973.
PAUL HASLUCK
Governor-General.
By His Excellency’s Command,
FRANK CREAN
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, 1969 | 5.884 ”. |
* Notified in the Australian Government Gazette on 26 October 1973.
† Statutory Rules 1966, No. 63, as amended by Statutory Rules 1967, No. 36; 1968, Nos. 64 and 142; and 1972, No. 174.
Overview
The Superannuation (Prescribed Rates of Interest) Regulations 1973 were enacted to address the need for setting specific interest rates for the financial year commencing 1st July 1969 under the Superannuation Act 1922-1973. This regulation was introduced to provide clarity and precision in determining the interest rates applicable to superannuation funds. The Superannuation Board, as part of its role under the Act, was required to furnish a report to the Treasurer specifying the average interest rate earned by the Superannuation Fund and the recommended interest rate for the financial year. This legislative instrument was made by the Governor-General, Paul Hasluck, with the advice of the Executive Council, and the Treasurer, Frank Crean, ensuring compliance with the legislative framework and the advice of the Superannuation Board. The regulation was enacted to ensure that interest rates are prescribed accurately for superannuation funds, aligning with the policy objective of maintaining financial stability and predictability for superannuation beneficiaries.
Scope and Application
The Legislative instrument F1997B02391, which is a regulation under the Superannuation Act 1922-1973, pertains to the setting of prescribed rates of interest for superannuation funds. This Act applies to entities managing superannuation funds, including trustees and fund managers, across Australia as a Commonwealth legislation. The regulation specifically amends the Superannuation (Prescribed Rates of Interest) Regulations to set the rate of interest for the financial year commencing on 1 July 1969 at 5.884%. The Governor-General makes these regulations without needing the recommendation of the Superannuation Board, but only after the Board has reported to the Treasurer the average rate of interest earned by the Superannuation Fund and their recommended rate based on that average and other relevant considerations. This regulation does not exclude any entities or specify any thresholds, and its application is broad across the entities managing superannuation funds in Australia.
Key Provisions
The Superannuation (Prescribed Rates of Interest) Regulations 1973, under the Superannuation Act 1922-1973, establish specific rates of interest for the superannuation fund for the financial year beginning on 1 July 1969. This regulation amends the existing rates by adding a new rate of 5.884% for that particular financial year (Schedule). The Superannuation Board is required to provide a report to the Treasurer that includes the average interest rate earned by the Superannuation Fund for the financial year and the recommended rate of interest based on this average and other relevant factors (subsection 4 of section 90 of the Superannuation Act 1922-1973). The Governor-General is mandated to not only consider this report but also to implement the prescribed rate of interest as outlined in the report.
The Superannuation Board bears the responsibility of calculating and reporting the average rate of interest earned by the Superannuation Fund for the specified financial year, along with its recommended rate of interest. This involves a comprehensive analysis of the fund's performance and relevant factors that could impact the interest rate (subsection 4 of section 90 of the Superannuation Act 1922-1973). The Treasurer, upon receiving this report, is obligated to review the information and make a decision on the prescribed interest rate. The Governor-General, guided by the advice of the Executive Council, then issues the regulation that sets the prescribed interest rate.
The regulation does not explicitly state any offences, penalties, or consequences for breaches within the provided text. However, under the broader framework of the Superannuation Act 1922-1973, non-compliance with the prescribed rates or failure to adhere to the reporting requirements could lead to legal repercussions. These may include fines or other penalties as stipulated by the overarching legislation. The specific penalties would depend on the nature and severity of the breach, as well as any additional regulations or guidelines provided under the Superannuation Act 1922-1973.