Superannuation (PSS) Approved Authority Inclusion Amendment Declaration (No. 1) 2019

Overview

The Superannuation (PSS) Approved Authority Inclusion Amendment Declaration (No.1) 2019 was enacted to address a specific gap in the list of approved authorities under the Superannuation Act 1990. The primary purpose of this declaration is to include the National Housing Finance and Investment Corporation (NHFIC) within the consolidated list of bodies recognised as approved authorities for the purposes of the Superannuation Act 1990. This Act is instrumental in setting out provisions for the Public Sector Superannuation Scheme (PSS), ensuring that employees of the Australian Government and certain other persons are eligible to contribute to the scheme if they are employed by an approved authority. By adding NHFIC to this list, the amendment aligns with the legislative framework that ensures all relevant entities are eligible to participate in the PSS. The declaration was issued under the authority of the Minister for Finance and is subject to disallowance in accordance with the provisions of the Superannuation Act 1990. This amendment was made following consultations with relevant bodies, including the Commonwealth Superannuation Corporation and NHFIC, and was assessed by the Office of Best Practice Regulation to not require a Regulations Impact Statement as it pertains to machinery of government changes rather than substantive alterations to existing arrangements.

Scope and Application

The Superannuation Act 1990 provides for the Public Sector Superannuation Scheme (PSS) for Australian Government employees and certain other persons. The Act includes provisions for eligibility to contribute to the scheme, which encompasses certain individuals employed by an "approved authority," subject to certain conditions. An approved authority is defined under the Act as an authority or other body declared by the Minister to be an approved authority, including entities of a kind described by the definition. The Superannuation (PSS) Approved Authority Inclusion Amendment Declaration (No.1) 2019 amends the Superannuation (PSS) Approved Authority Inclusion Declaration 1995 by adding the National Housing Finance and Investment Corporation (NHFIC) to the list of bodies declared to be approved authorities under the 1990 Act. This amendment ensures that NHFIC employees are eligible to contribute to the PSS, aligning with the eligibility criteria set out in the Act. The Amending Declaration is a legislative instrument subject to disallowance and is effective from the day after registration on the Federal Register of Legislation. The changes do not require a Regulations Impact Statement as they pertain to machinery of government and do not substantially alter existing arrangements.

Key Provisions

The Superannuation (PSS) Approved Authority Inclusion Amendment Declaration (No.1) 2019 (sections 1-6) amends the Superannuation (PSS) Approved Authority Inclusion Declaration 1995 by including the National Housing Finance and Investment Corporation (NHFIC) in the list of bodies that are approved authorities for the purposes of the Superannuation Act 1990 (section 4). This amendment allows the NHFIC to engage employees who are eligible to contribute to the Public Sector Superannuation Scheme (PSS), provided they meet certain requirements. This change facilitates the inclusion of the NHFIC as an approved authority, thereby aligning its status with other authorities that are already recognized under the Act. The Act imposes specific obligations on the NHFIC and other approved authorities. These entities must adhere to the provisions outlined in the Superannuation Act 1990 and any subsequent amendments. For the NHFIC, this means ensuring that any employees it engages are eligible to contribute to the PSS, which includes meeting the criteria set forth in the Act. Additionally, these approved authorities are responsible for complying with any administrative requirements that may be imposed by the Commonwealth Superannuation Corporation, the trustee of the PSS. There are no explicit offences or penalties detailed in the explanatory statement for breaches of the Amending Declaration. However, any failure by an approved authority to comply with the provisions of the Superannuation Act 1990 could potentially lead to legal consequences under that Act. For instance, non-compliance might result in administrative penalties, enforcement actions, or other legal repercussions as outlined in the Superannuation Act 1990. The precise nature and extent of these consequences would depend on the specific circumstances of the breach and the applicable provisions of the primary Act.