Superannuation (Productivity Benefit) (1999-2000 Continuing Contributions) Declaration 1999 1999 No. 135
EXPLANATORY STATEMENT
STATUTORY RULES 1999 No. 135
SUPERANNUATION (PRODUCTIVITY BENEFIT) ACT 1988
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE AND ADMINISTRATION
DECLARATION UNDER SECTION 3D
VARIATION OF TABLE
The Superannuation (Productivity Benefit) Act 1988 (the PB Act) provides the mechanism by which the Superannuation Guarantee (SG) minimum superannuation contribution is made available to Australian Government employees (and certain other employees) who have no other employersponsored superannuation cover. Prior to 1 July 1992, the PB Act provided productivity superannuation to these employees.
Since 1 July 1990, the designated employers of employees covered by the PB Act arrangements have been required to pay periodic contributions based on the salary of the employee to the superannuation fund nominated by the Minister for Finance and Administration, or another superannuation fund approved by the Minister. Where the employee is eligible, contributions may be paid to a regulated fund as defined by the Superannuation Industry Supervision legislation. The amount to be contributed is calculated using a table set out in the Schedule to the Act. The Table is structured so that a proportionately greater benefit is provided to lower paid wage earners. The amount to be contributed is adjusted where the employee is not employed full-time.
This Declaration, made under section 3D of the PB Act and cited as the Superannuation (Productivity Benefit) (1999-2000 Continuing Contributions) Declaration 1999 provides substituted amounts for the Table in the Schedule to the Act in relation to the financial year commencing on 1 July 1999.
The benefits provided under the PB Act comply with the requirements of the SG legislation. The only employees receiving superannuation under the Act who do not receive a flat rate superannuation equivalent to 7 per cent of their salaries (as provided under SG), are those for whom that amount would represent a reduction (ie below the minimum weekly benefit for lower paid wage earners of $13.53) and those on salaries in excess of $100,960 per annum who receive a flat contribution equivalent to 7 per cent of $100,960 (ie $135.91 per week), as required by the SG legislation. Historically, the benefit is skewed so that low income earners receive more than 7 per cent of salary while higher income earners receive less.
The Declaration commenced on gazettal.
Overview
The Superannuation (Productivity Benefit) (1999-2000 Continuing Contributions) Declaration 1999 was enacted to address the need for updating the superannuation contributions for the financial year commencing on 1 July 1999, as stipulated in the Superannuation (Productivity Benefit) Act 1988. This Act, enacted by the Parliament of Australia, was designed to provide the Superannuation Guarantee (SG) minimum superannuation contributions to Australian government employees and certain other employees who lack other employer-sponsored superannuation cover. This legislative measure ensures that the contributions align with the requirements of the SG legislation, offering a proportionately greater benefit to lower-paid wage earners while maintaining the flat rate superannuation equivalent to 7 per cent of their salaries for those above the minimum threshold. The Declaration, issued under section 3D of the PB Act, ensures the continuity of these contributions by updating the amounts specified in the Schedule to the Act.
Scope and Application
The Superannuation (Productivity Benefit) (1999-2000 Continuing Contributions) Declaration 1999 applies to Australian Government employees and certain other employees who do not have other employer-sponsored superannuation cover, ensuring they receive a productivity benefit under the Superannuation (Productivity Benefit) Act 1988. This legislation applies across the Commonwealth, and it mandates employers designated under the Act to make periodic contributions to the superannuation fund nominated by the Minister for Finance and Administration or another approved superannuation fund. The contributions are calculated using a table within the Act, with the amount varying based on the employee’s salary, ensuring lower-paid employees receive a proportionately greater benefit. The Declaration provides updated amounts for this table effective from the financial year beginning 1 July 1999. Notably, while the Act provides for contributions that generally comply with the Superannuation Guarantee legislation, specific adjustments are made for employees with salaries below a certain threshold to ensure they receive a minimum weekly benefit of $13.53, and for those with salaries exceeding $100,960, who receive contributions calculated at 7 per cent of $100,960. The Declaration was effective from the date of its gazettal.
Key Provisions
The main operative sections of this legislation, specifically Section 3D, allow for the variation of the table set out in the Schedule of the Superannuation (Productivity Benefit) Act 1988. This is done to provide updated contributions for the financial year commencing on 1 July 1999, as outlined in the Superannuation (Productivity Benefit) (1999-2000 Continuing Contributions) Declaration 1999. This variation ensures that the contributions made are reflective of the current economic conditions and are fair to all parties involved. The contributions are calculated based on the salary of the employee and are paid to a superannuation fund approved by the Minister for Finance and Administration or a regulated fund as defined by the Superannuation Industry Supervision legislation.
The Act imposes certain obligations and requirements on the designated employers of employees covered by the PB Act arrangements. Firstly, these employers must make periodic contributions based on the salary of the employee to the superannuation fund nominated by the Minister for Finance and Administration or another approved superannuation fund. These contributions are calculated using the table set out in the Schedule to the Act, which ensures a proportionately greater benefit for lower paid wage earners. Employers must also ensure that the contributions are made in accordance with the Superannuation Industry Supervision legislation, where applicable. Furthermore, employers are required to provide the necessary information to their employees regarding their superannuation contributions and the benefits they are entitled to under the Act.
Breach of the obligations and requirements set out in the Act can result in various consequences, including civil and criminal penalties. The specific consequences depend on the nature and severity of the breach. For example, failure to make the required contributions to an approved superannuation fund can result in civil penalties, including fines and interest on the unpaid contributions. Additionally, criminal offences can be charged against individuals or entities who deliberately or recklessly fail to comply with their obligations under the Act. The maximum penalties for these criminal offences can include substantial fines and imprisonment, depending on the circumstances of the breach. It is important for designated employers and employees to be aware of their obligations and requirements under the Act to avoid any potential consequences.