EXPLANATORY STATEMENT
Issued by the authority of the Minister for Finance and Deregulation
Superannuation Act 1990
Declaration under section 3
The Superannuation Act 1990 (the 1990 Act) makes provision for and in relation to the Public Sector Superannuation Scheme (PSS) for Australian Government employees and certain other persons.
Section 6 of the 1990 Act specifies the various persons who may become members of the PSS. Accordingly, persons who come within the definition of “temporary employee” may become members of the PSS.
The term “temporary employee” is defined in section 3 of the 1990 Act as a person employed otherwise than in a permanent capacity by the Commonwealth or by an approved authority, but does not include a person who is engaged or appointed for employment outside Australia only (other than such a person who is declared, in writing, by the Minister to be a person to whom the definition of “temporary employee” applies).
The purpose of the Superannuation (PSS) Temporary Employee Declaration 2011 (No.1) (the Declaration) is to declare persons who are engaged as Australian Civilian Corps (ACC) employees for employment outside Australia only, and who were members of the PSS immediately before becoming so engaged, to be temporary employees for the purposes of the 1990 Act. The Declaration enables PSS members to continue their PSS membership while engaged as ACC employees for employment outside Australia only.
AusAID was consulted on the amendments contained in the Declaration.
The Declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003, and is subject to disallowance in accordance with subsection 45(2) of the 1990 Act.
The Declaration commences immediately after the commencement of Part 3 of the Australian Civilian Corps Act 2011.
The details of the Declaration are explained in the Attachment.
ATTACHMENT
SUPERANNUATION (PSS) TEMPORARY EMPLOYEE DECLARATION 2011 (No.1)
Section 1 – Name of Declaration
This section provides that the name of the Declaration is the Superannuation (PSS) Temporary Employee Declaration 2010 (No.1).
Section 2 – Commencement
This section provides for the Declaration to commence immediately after the commencement of Part 3 of the Australian Civilian Corps Act 2011.
Section 3 – Temporary Employees
This section provides that persons who were PSS members engaged for employment outside Australia as Australian Civilian Corps employees are “temporary employees” for the purposes of the 1990 Act. This enables such persons to continue their membership of the PSS during engagement as Australian Civilian Corps employees in employment outside Australia only.
Overview
The Superannuation (PSS) Temporary Employee Declaration 2011 (No. 1) was enacted to address a specific gap within the Superannuation Act 1990 concerning the eligibility of certain temporary employees for continued membership in the Public Sector Superannuation Scheme (PSS). This legislative instrument was introduced by the authority of the Minister for Finance and Deregulation, with the primary policy objective of ensuring that Australian Civilian Corps (ACC) employees engaged for employment outside Australia only, who were already PSS members, could retain their PSS membership. The Declaration was made in response to the need for clarity regarding the classification of such employees as "temporary employees" under the 1990 Act, thereby allowing them to continue their superannuation contributions without interruption. The Declaration is subject to disallowance and is effective immediately after the commencement of Part 3 of the Australian Civilian Corps Act 2011.
Scope and Application
The Superannuation (PSS) Temporary Employee Declaration 2011 (No.1) is a legislative instrument that serves to extend the application of the Superannuation Act 1990 to specific individuals who are engaged as Australian Civilian Corps employees for employment outside Australia. This declaration is designed to ensure that certain employees who were previously members of the Public Sector Superannuation Scheme (PSS) can maintain their membership status despite being employed overseas. Specifically, it applies to individuals who were members of the PSS immediately before becoming Australian Civilian Corps employees and who are now engaged outside Australia. The declaration is effective immediately following the commencement of Part 3 of the Australian Civilian Corps Act 2011, and it is subject to disallowance as per the provisions of the 1990 Act. This legislative measure ensures continuity of superannuation benefits for eligible employees in a temporary overseas employment context.
Key Provisions
The Superannuation (PSS) Temporary Employee Declaration 2011 (No.1) provides a specific mechanism under the Superannuation Act 1990 (1990 Act) for certain employees to maintain their membership in the Public Sector Superannuation Scheme (PSS). Section 1 of the Declaration specifies that it is named the Superannuation (PSS) Temporary Employee Declaration 2011 (No.1), and Section 2 indicates that it commences immediately after the commencement of Part 3 of the Australian Civilian Corps Act 2011. The key provision, found in Section 3, declares that individuals who were members of the PSS and are engaged as Australian Civilian Corps (ACC) employees for employment outside Australia are considered “temporary employees” under the 1990 Act. This designation allows these individuals to continue their PSS membership despite their overseas employment.
The Declaration imposes specific obligations on certain employees who were members of the PSS and who are engaged for employment outside Australia as ACC employees. By declaring these individuals as “temporary employees” under Section 3 of the Declaration, it ensures that they can maintain their PSS membership during their overseas engagement. This provision is crucial for preserving their superannuation benefits and ensuring continuity in their retirement savings plans.
Under the Superannuation Act 1990, there are no specific offences or penalties outlined for breaches of the Declaration itself. However, the 1990 Act does provide for potential penalties for breaches of other related provisions. For example, Section 57 of the 1990 Act outlines penalties for fraudulent or improper conduct in relation to superannuation, which can include fines and imprisonment. Similarly, Section 58 of the 1990 Act addresses offences concerning the misuse of superannuation funds, with penalties that can include substantial fines and imprisonment. These provisions underscore the importance of compliance with superannuation laws and the serious consequences that can arise from non-compliance.