EXPLANATORY STATEMENT
SUPERANNUATION (PRODUCTIVITY BENEFIT) ACT 1988
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE AND ADMINISTRATION
DECLARATION UNDER SUBSECTION 4C(1)
SUPERANNUATION (PRODUCTIVITY BENEFIT) (APPROVED FUNDS) DECLARATION 2006
APPROVED FUNDS
The Superannuation (Productivity Benefit) Act 1988 (the PB Act) provides the mechanism by which the Superannuation Guarantee (SG) minimum employer superannuation support is made available to Australian Government employees and certain other persons (employees) who have no other employer-sponsored superannuation cover. Prior to 1 July 1992, the PB Act provided productivity superannuation to these employees.
The PB Act was amended by the Superannuation (Consequential Amendments) Act 2005 to close the superannuation arrangements under that Act to new employees from 1 July 2006. However, the PB Act will continue to apply to employees covered by the Act at 30 June 2006 until they no longer meet the qualifications for PB Act coverage (i.e. because they cease all relevant employment or, if eligible, become members of an Australian Government superannuation scheme).
Since 1 July 1990, the designated employers of employees covered by the PB Act arrangements have been required to pay periodic contributions in respect of those employees to a superannuation fund nominated or approved by the Minister for Finance and Administration. Where the employee is eligible, contributions may be paid to another regulated superannuation fund as defined by the Superannuation Industry (Supervision) Act 1993.
Subsection 4C(1) of the PB Act enables the Minister to declare a superannuation fund to be an approved fund for the purposes of the PB Act. Section 4D of the PB Act provides that the Minister is not to declare a superannuation fund to be an approved fund unless the fund is a complying fund within the meaning of Part IX of the Income Tax Assessment Act 1936.
The previous Declaration cited as the Superannuation (Productivity Benefit) (Approved Funds) Declaration 2004 requires amendment due to the merger of two of the seven approved funds, the Australian Retirement Fund and the Superannuation Trust of Australia, into as single entity called AustralianSuper with effect from 1 July 2006. There are no changes to the other declared funds.
This Declaration cited as the Superannuation (Productivity Benefit) (Approved Funds) Declaration 2006 revokes all previous declarations made under subsection 4C(1) of the PB Act. Six superannuation funds are declared to be approved funds:
1) AustralianSuper
2) Construction and Building Unions Superannuation Fund
3) Health Employees Superannuation Trust Australia
4) JUST SUPER
5) Labour Union Co-operative Retirement Fund
6) TWU Superannuation Fund
These superannuation funds have previously been declared to be approved funds and continue to be active. All funds included in the list of approved funds are complying funds in accordance with section 4D of the PB Act. This declaration has no effect on the current or future membership of these superannuation funds. No new approved funds have been declared.
The Declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
No consultation was undertaken in relation to this Declaration. Consultation was considered to be unnecessary because the instrument is minor or machinery in nature.
The Declaration commences on 1 July 2006.