Overview

The Superannuation (PSSAP) Approved Authority Exclusion Amendment Declaration 2006 was enacted to address the gap in the Superannuation Act 2005 concerning the eligibility of new entrants to the Australian Capital Territory (ACT) public service for employer superannuation contributions. This legislative instrument was introduced by the Minister for Finance and Administration to facilitate the ACT Government's decision to provide a lower employer superannuation contribution rate of 9 percent for new employees, which would increase to 10 percent if the employee contributes at least 3 percent. The primary policy objective is to ensure that the superannuation arrangements for new ACT Government employees align with the ACT Government’s new contribution rates, while preserving the existing superannuation arrangements for current ACT Government employees. The Declaration amends the Superannuation (PSSAP) Approved Authority Exclusion Declaration 2005 by excluding the Australian Capital Territory from the list of approved authorities under the 2005 Act, thus affecting its status and the eligibility criteria for new employees. The ACT Government was consulted on the changes, and the Declaration is subject to disallowance under the Legislative Instruments Act 2003.

Scope and Application

The Superannuation (PSSAP) Approved Authority Exclusion Amendment Declaration 2006 applies to the Australian Capital Territory (ACT) by amending the status of the ACT as an approved authority under the Superannuation Act 2005. This Act governs the Public Sector Superannuation Accumulation Plan (PSSAP) for public sector employees and other eligible persons. The amendment, which excludes the ACT from being an approved authority, affects the eligibility criteria for PSSAP membership. The Declaration operates by amending Schedule 1 of the Superannuation (PSSAP) Approved Authority Exclusion Declaration 2005, removing the ACT from the list of approved authorities and thereby altering the scope of the PSSAP to align with the ACT Government's superannuation arrangements for new employees. The changes made by this Amendment Declaration are effective from the day after it is registered on the Federal Register of Legislative Instruments. It is important to note that this amendment does not affect existing ACT Government employees who were employed immediately before the Declaration commenced and continued in that employment from that date, as their PSSAP membership is governed by a separate inclusion amendment. The Declaration is subject to disallowance but not sunsetting, meaning it can be annulled by a resolution of either house of the Parliament, although it does not automatically expire after a set period.

Key Provisions

The Superannuation (PSSAP) Approved Authority Exclusion Amendment Declaration 2006, under the Superannuation Act 2005, primarily focuses on amending the status of the Australian Capital Territory (ACT) as an approved authority for the Public Sector Superannuation Accumulation Plan (PSSAP). Section 8(2) of the Act specifies that an authority or body is considered an approved authority if it was an approved authority for the Superannuation Act 1990 as of 30 June 2005 and is not specified in a written declaration made by the Minister for Finance and Administration. The Declaration amends the original Superannuation (PSSAP) Approved Authority Exclusion Declaration 2005 by omitting the ACT from the list of approved authorities and substituting it with a new Schedule that explicitly excludes the ACT from being an approved authority for the purposes of the 2005 Act. This amendment ensures that the ACT is no longer eligible for the PSSAP scheme, which mandates a minimum employer superannuation contribution rate of 15.4 percent. The obligations imposed by this Amendment Declaration primarily involve the administrative update of the status of the ACT as an approved authority. It mandates that the ACT is no longer recognised as an approved authority under the 2005 Act, which means that new entrants to the ACT public service are not eligible for PSSAP membership and must instead be covered under the new arrangements announced by the ACT Government, which include a lower employer superannuation contribution rate of 9 percent (increasing to 10 percent if the employee contributes at least 3 percent). This change ensures that the legislative framework aligns with the ACT Government’s superannuation policy for new employees. The Declaration also ensures that existing ACT Government employees who were employed before the amendment comes into effect will continue to be covered under the PSSAP, as their eligibility is maintained by the Superannuation (PSSAP) Membership Eligibility (Inclusion) Amendment Declaration 2006. Any breach of the provisions set out in the Superannuation (PSSAP) Approved Authority Exclusion Amendment Declaration 2006 could result in various consequences depending on the nature of the breach. The Act provides for both civil and criminal penalties for non-compliance. Civil penalties can include fines and other monetary penalties as specified under the Act. Criminal penalties may include imprisonment, particularly if the breach involves fraudulent activities or significant non-compliance. The exact penalties would be determined by the courts based on the specific circumstances of the breach and the relevant sections of the Superannuation Act 2005. Additionally, non-compliance could lead to the invalidation of superannuation arrangements for affected employees, resulting in significant administrative and financial repercussions for the ACT Government.