explanatory statement
Issued by the Minister for Finance
Superannuation Act 1990
Declaration under paragraph 6(1)(j)
The Superannuation Act 1990 (the Act) makes provision for and in relation to the Public Sector Superannuation Scheme (PSS) for Australian Government employees and for certain other persons.
Section 6 of the Act specifies the various persons who may be a member of the PSS. Paragraph 6(1)(j) provides that the Minister may declare a person to be a PSS member.
The Superannuation (PSS) Membership Inclusion Declaration 2006 (the Principal Declaration) identifies the persons who are declared PSS members under paragraph 6(1)(j). Section 4 of the Principal Declaration also sets out circumstances where persons declared as PSS members cease to be contributory members, for example when the body they are employed with ceases to be a Commonwealth body.
The purpose of the Superannuation (PSS) Membership Inclusion Amendment Declaration 2014 (No. 1) (the Declaration) is to amend the Principal Declaration to make consequential changes brought about by the commencement of the substantive provisions of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the repeal of the Commonwealth Authorities and Companies Act 1997 (CAC Act).
The PGPA Act will replace the governance arrangements previously applying to Commonwealth entities under the CAC Act.
The Declaration updates relevant references and terminology in the Principal Declaration to bring it into line with the PGPA Act. Bodies which were previously referred to as ‘Commonwealth authorities’ under the CAC Act, will be known as ‘corporate Commonwealth entities’ under the PGPA Act.
In relation to section 17 and 18 of the Legislative Instruments Act 2003, no consultation was undertaken because the instrument is of a minor or machinery nature and does not substantially alter existing arrangements.
The Office of Best Practice Regulation (OBPR) assessed that the changes to be made by the Declaration will have nil or low impacts and no further analysis in the form of a Regulation Impact Statement was required (OBPR ID: 16978).
The Declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003. Although section 44 of the Legislative Instruments Act exempts superannuation instruments from disallowance, the Declaration is subject to disallowance in accordance with section 45 of the Act.
The Declaration commences upon the commencement of sections 6 to 112 of the PGPA Act.
The details of the Declaration are explained in Attachment A. A Statement of Compatibility with Human Rights is at Attachment B.
Attachment A
Superannuation (PSS) Membership inclusion Amendment Declaration 2014 (no. 1)
Section 1 – Name of Declaration
This section provides that the name of the Declaration is the Superannuation (PSS) Membership Inclusion Amendment Declaration 2014 (No. 1).
Section 2 – Commencement
This section provides for the Declaration to commence upon the commencement of sections 6 to112 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Section 3 – Amendment of Superannuation (PSS) Membership Inclusion Declaration 2006
This section provides that Schedule 1 of the Declaration amends the Superannuation (PSS) Membership Inclusion Declaration 2006 (the Principal Declaration).
Schedule 1 – Amendments
Item 1 deletes the reference to a Commonwealth authority within the meaning of the Commonwealth Authorities and Companies Act 1997 (CAC Act) and replaces it with reference to a corporate Commonwealth entity within the meaning of the PGPA Act. This is a consequential amendment following the commencement of the substantive provisions of the PGPA Act and repeal of the CAC Act. From this time, the Australian Government Solicitor is a corporate Commonwealth entity under the PGPA Act.
Item 2 deletes the reference to a Commonwealth authority within the meaning of the CAC Act and replaces it with reference to a corporate Commonwealth entity within the meaning of the PGPA Act. This is a consequential amendment following the commencement of the substantive provisions of the PGPA Act and repeal of the CAC Act. From this time, the Sydney Harbour Federation Trust is a corporate Commonwealth entity under the PGPA Act.
Item 3 deletes the reference to a Commonwealth company within the meaning of the CAC Act and replaces it with a reference to a Commonwealth company within the meaning of the PGPA Act. This is a consequential amendment following the commencement of the substantive provisions of the PGPA Act and repeal of the CAC Act. From this time, the Australian Strategic Policy Institute Limited is a Commonwealth company under the PGPA Act.
Item 4 deletes the references to a Commonwealth authority within the meaning of the CAC Act and replaces it with references to a corporate Commonwealth entity within the meaning of the PGPA Act. This is a consequential amendment following the commencement of provisions of the PGPA Act and repeal of the CAC Act. From this time, the ARPC is a corporate Commonwealth entity under the PGPA Act.
ATTACHMENT B
Overview
The Superannuation (PSS) Membership Inclusion Amendment Declaration 2014 (No. 1) was introduced to address the need for updating references and terminology in the existing Superannuation (PSS) Membership Inclusion Declaration 2006, following the enactment and commencement of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the repeal of the Commonwealth Authorities and Companies Act 1997 (CAC Act). The Superannuation Act 1990 established the Public Sector Superannuation Scheme (PSS) for Australian Government employees and certain other persons, with section 6 of the Act allowing the Minister to declare a person as a PSS member. The Declaration updates the Principal Declaration to align with the new governance arrangements under the PGPA Act, replacing references to 'Commonwealth authorities' with 'corporate Commonwealth entities'. The changes are consequential and minor, with no substantial impact on existing arrangements, and thus no consultation or further analysis was required. The Declaration is a legislative instrument under the Legislative Instruments Act 2003 and is subject to disallowance.
Scope and Application
The Superannuation (PSS) Membership Inclusion Amendment Declaration 2014 (No. 1) applies to the Public Sector Superannuation Scheme (PSS) for Australian Government employees and certain other individuals. The Declaration amends the Superannuation (PSS) Membership Inclusion Declaration 2006 to update references and terminology, particularly in light of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the repeal of the Commonwealth Authorities and Companies Act 1997 (CAC Act). It ensures that terms such as 'Commonwealth authority' are replaced with 'corporate Commonwealth entity' in the Principal Declaration, reflecting the new governance arrangements under the PGPA Act. This amendment applies to specific entities such as the Australian Government Solicitor, Sydney Harbour Federation Trust, Australian Strategic Policy Institute Limited, and ARPC, which are now classified as corporate Commonwealth entities under the PGPA Act. The Declaration is subject to disallowance and comes into effect upon the commencement of sections 6 to 112 of the PGPA Act.
Key Provisions
The Superannuation Act 1990 (the Act) governs the Public Sector Superannuation Scheme (PSS) for Australian Government employees and other specified individuals. Section 6 of the Act identifies the categories of people eligible for PSS membership, with paragraph 6(1)(j) granting the Minister the authority to declare certain individuals as PSS members. The Superannuation (PSS) Membership Inclusion Declaration 2006 (Principal Declaration) provides a list of individuals declared as PSS members under this authority, and Section 4 outlines the circumstances under which these individuals may cease to be contributory members, such as when the employing body is no longer a Commonwealth entity. The Superannuation (PSS) Membership Inclusion Amendment Declaration 2014 (No. 1) (the Declaration) amends the Principal Declaration to reflect the changes brought about by the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the repeal of the Commonwealth Authorities and Companies Act 1997 (CAC Act).
The Declaration primarily serves to update the references and terminology in the Principal Declaration to align with the PGPA Act. Bodies previously referred to as "Commonwealth authorities" under the CAC Act are now designated as "corporate Commonwealth entities" under the PGPA Act. This amendment ensures consistency and clarity in the application of the PSS to these entities following the legislative changes. The Declaration is a legislative instrument under the Legislative Instruments Act 2003 and is subject to disallowance in accordance with section 45 of that Act. It commences upon the commencement of sections 6 to 112 of the PGPA Act.
The Declaration imposes certain obligations on the parties it governs, primarily involving the updating of references to reflect the new legislative framework established by the PGPA Act. For instance, entities that were previously classified as "Commonwealth authorities" must now be recognised as "corporate Commonwealth entities" in the context of the PSS. This ensures that the scheme continues to operate smoothly despite the structural changes in governance. Additionally, the Declaration stipulates the circumstances under which individuals declared as PSS members may cease to be contributory members, ensuring that the scheme's provisions are accurately applied in line with the new legal environment.
The Declaration does not specify any offences or penalties for its breach. Instead, it serves a corrective function by updating the legal framework to ensure that the PSS continues to operate effectively within the new governance landscape. However, any failure to comply with the updated provisions could potentially lead to disputes or legal challenges, particularly if individuals or entities feel that their rights under the PSS have been adversely affected by the amendments. It is important for all relevant parties to ensure that they are aware of and adhere to the updated provisions to avoid any such issues.