EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO. 172
SUPERANNUATION (PRODUCTIVITY BENEFIT) ACT 1988
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
DECLARATION UNDER SECTION 3D
VARIATION OF TABLE
The Superannuation (Productivity Benefit) Act 1988 provides the mechanism by which a 3 per cent superannuation benefit is made available to Australian Government employees without other superannuation coverage.
The designated employers of such employees are required to pay to either the superannuation fund nominated by the Minister for Finance or another fund approved by the Minister periodic contributions based on the salary of the employee. The amount to be contributed is calculated using a Table set out in a Schedule to the Act. The Table is structured so that a proportionally greater benefit is provided to lower paid wage earners. The amount to be contributed is adjusted where the employee is not employed full-time.
Employers are required as well to pay to the same fund, on a once-only basis, an amount being the entitlement accrued by the employee under the former Superannuation Benefit (Interim Arrangement) Act 1988 and an amount in respect of contributions which would have been paid after 1 July 1990 had the employee joined a fund on that date.
The employer is required to pay extra amounts as interest on the once-only payment and on any contributions which were not made. The employer is also required to pay penalty interest in respect of any period of delay between the date when an amount should have been paid to a fund and the date when it was paid.
The Act also provides a mechanism for the continued payment of a benefit directly by the employer where the employee does not become a member of a fund before becoming entitled to a benefit.
Section 3D of the Superannuation (Productivity Benefit) Act 1988 permits the Minister for Finance to vary the amounts set out in the Table. The variations set out in the Table allow for increases in Australian Public Service remuneration since the Table set out in the Act was first devised and maintain the bias in favour of lower paid employees.
Following the changes set out in the declaration, employers will be required to make a contribution of:
• a flat amount of $13.20 per week (formerly $12.70) in respect of an employee whose full-time rate of salary is or would be less than $440 per week (formerly $423);
• 3% of the weekly rate of salary in respect of an employee whose weekly rate of salary is $440 (formerly $423) or more, but less than $709 (formerly $650);
• a flat amount of $21.27 per week (formerly $19.50) in respect of an employee whose weekly rate of salary is $709 (formerly $650) or more, but less than $1063.50 (formerly $975); and
• 2% of the weekly rate of salary in respect of an employee whose weekly rate of salary is greater than $1063.50.