Superannuation (Productivity Benefit) (Qualified Employees) Declaration No.
2 1992 No. 21
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 21
SUPERANNUATION (PRODUCTIVITY BENEFIT) ACT 1988 (THE ACT)
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
DECLARATION UNDER SECTION 3F(2)
QUALIFIED EMPLOYEE EXEMPTION
The Superannuation (Productivity Benefit) Act 1988 (the Act) provides the mechanism by which a 3 per cent superannuation benefit is made available to Australian Government employees without other superannuation coverage.
The determination provides for an exemption from the provisions of the Act to persons who are appointed to statutory offices created under a law of the Commonwealth, who were not employees of the Commonwealth immediately prior to that appointment, who have made at the time of appointment payments to a superannuation fund which did not attract employer contributions in the year of appointment, and who elect in writing that this declaration should be applicable to them. Such persons shall continue not to be qualified employees for the remainder of the financial year following the date of effect of appointment to such an office.
Overview
The Superannuation (Productivity Benefit) (Qualified Employees) Declaration No. 2 1992 was enacted under the authority of the Minister for Finance to address a specific gap in the coverage of superannuation benefits for certain Australian Government employees. This statutory rule was issued to complement the provisions of the Superannuation (Productivity Benefit) Act 1988, which aims to provide a 3 per cent superannuation benefit to Australian Government employees without other superannuation coverage. The Declaration introduces an exemption for individuals appointed to statutory offices under Commonwealth law, who were not previously Commonwealth employees, have made superannuation payments not attracting employer contributions in the year of their appointment, and have elected in writing for this exemption to apply to them. These individuals will be excluded from the definition of "qualified employees" for the remainder of the financial year following their appointment, thereby ensuring that the intended benefits under the Act are appropriately targeted.
This legislation was enacted by the Australian Government to refine the application of the Superannuation (Productivity Benefit) Act 1988, ensuring that the benefits are provided to those who need it most while avoiding any unintended coverage for those already adequately provided for under other arrangements. The policy objective is to maintain the integrity and targeted nature of the superannuation benefit scheme, ensuring that it serves its intended purpose effectively and efficiently.
Scope and Application
The Superannuation (Productivity Benefit) (Qualified Employees) Declaration No. 2 1992 applies to individuals appointed to statutory offices created under a law of the Commonwealth, provided they were not previously Commonwealth employees and have made payments to a superannuation fund that did not attract employer contributions in the year of appointment. These individuals can elect in writing for the declaration to exempt them from the provisions of the Superannuation (Productivity Benefit) Act 1988, which facilitates a 3% superannuation benefit for Australian Government employees without other superannuation coverage. The exemption under this declaration applies for the remainder of the financial year following the date of appointment to such an office. This statutory rule, issued under the authority of the Minister for Finance, extends the application of the Act through subordinate instruments, ensuring that the legislative intent is clearly communicated and applied within the specified scope.
Key Provisions
The Superannuation (Productivity Benefit) (Qualified Employees) Declaration No. 2 1992 No. 21 primarily addresses the exemption of certain individuals from the benefits and obligations under the Superannuation (Productivity Benefit) Act 1988 (sections 3F(2)). Specifically, section 3 of this statutory rule outlines the criteria for an exemption, which includes persons appointed to statutory offices under Commonwealth law, provided they were not previously Commonwealth employees, made payments to a superannuation fund without employer contributions at the time of their appointment, and expressly elected to be covered by this declaration. These individuals are exempt from the Act’s provisions for the remainder of the financial year following their appointment.
This Act imposes clear obligations on the parties it governs. Under section 3, qualified employees must ensure they meet the specified criteria for exemption, which includes being appointed to a statutory office, not being a Commonwealth employee prior to appointment, making certain superannuation payments, and providing written consent to be governed by this declaration. The Act further mandates that these individuals must maintain compliance with the declaration's conditions throughout their appointment period.
Breach of the conditions set out in this statutory rule may lead to various consequences. While the Act itself does not specify penalties for non-compliance, it is important to note that failing to adhere to the terms of the exemption could result in unintended exposure to the provisions of the Superannuation (Productivity Benefit) Act 1988. This could potentially affect an individual's eligibility for the 3 per cent superannuation benefit or other related entitlements. Although the Act does not explicitly outline penalties for non-compliance, any discrepancies or violations could be addressed under the broader framework of the Superannuation (Productivity Benefit) Act 1988, which might involve administrative or legal actions to rectify the situation.