Superannuation (Productivity Benefit) Declaration No. 6

Overview

The Superannuation (Productivity Benefit) Declaration No. 6 1991 No. 123, issued under the authority of the Minister for Finance, amends the table specified in the Superannuation (Productivity Benefit) Act 1988. This legislation was enacted to address the need for a standardised superannuation benefit mechanism for Australian Government employees who do not have other superannuation coverage. The policy objective of the Act is to ensure that eligible employees receive a 3 per cent superannuation benefit proportionate to their salary, with a particular emphasis on providing greater benefits to lower-paid wage earners. The declaration adjusts the amounts set out in the table to reflect increases in Australian Public Service remuneration since the original table was established, ensuring the benefit remains relevant and equitable. This amendment aims to maintain the bias in favour of lower paid employees, ensuring the superannuation system remains fair and supportive of those with lower incomes.

Scope and Application

The Superannuation (Productivity Benefit) Declaration No. 6 1991 No. 123, issued under the authority of the Minister for Finance, pertains to the Superannuation (Productivity Benefit) Act 1988, which applies to Australian Government employees who do not have other superannuation coverage. The Act mandates designated employers of such employees to make periodic contributions towards superannuation based on the employee’s salary, directed to either the superannuation fund nominated by the Minister for Finance or another approved fund. This contribution is determined by a Table within the Act, designed to provide a greater proportionate benefit to lower paid wage earners. The declaration, which amends the Table, is intended to reflect increases in Australian Public Service remuneration since the original Table was established, while continuing to favour lower paid employees. The declaration came into effect on 1 July 1991. The Act's scope is confined to Australian Government employees without other superannuation coverage, and its jurisdiction is national, applying across the Commonwealth. The Act allows for variations through subordinate instruments, specifically under Section 3D, enabling the Minister for Finance to adjust the amounts in the Table as necessary.

Key Provisions

The Superannuation (Productivity Benefit) Declaration No. 6 1991 No. 123 amends the Table set out in the Superannuation (Productivity Benefit) Act 1988 (the Act). This Act ensures that Australian Government employees who do not have other superannuation coverage receive a 3% superannuation benefit. Employers, referred to as designated employers in Section 2 of the Act, are mandated to make periodic contributions to a superannuation fund. These contributions are calculated based on the employee’s salary, with the amounts detailed in a Table set out in the Schedule of the Act. The Table ensures that lower-paid employees receive a proportionally greater benefit. Designated employers have specific obligations under this Act. They must remit the calculated contributions to either the superannuation fund nominated by the Minister for Finance or an approved alternative, as outlined in Section 2 of the Act. Employers must also adjust the contribution amounts for employees who are not employed on a full-time basis, in accordance with Section 3 of the Act. This adjustment ensures the benefit is fairly distributed according to the employee's actual hours worked. Employers are required to maintain accurate records of these contributions to comply with the provisions of Section 4. Failure to comply with the requirements of this Act can result in serious consequences. Section 5 of the Act delineates various offences and penalties for non-compliance. The Act empowers the Minister for Finance to impose fines on employers who fail to make the required contributions. The maximum penalties for breaches can include significant financial penalties as stipulated in Section 6 of the Act. Additionally, continued non-compliance may result in legal action, including potential prosecution, thereby underscoring the seriousness of adhering to the Act’s provisions.