explanatory statement
Issued by the authority of the Minister for Superannuation and Corporate Law acting for and on behalf of the Minister for Finance and Deregulation
Superannuation Act 2005
Declaration under paragraph 8(2)(b)
Superannuation (PSSAP) Approved Authority Exclusion Amendment Declaration 2008
The Superannuation Act 2005 (the 2005 Act) makes provision for, and in relation to, a superannuation scheme to be known as the Public Sector Superannuation Accumulation Plan (PSSAP) for public sector employees and certain other persons. Under the 2005 Act, an employer of an ordinary employer-sponsored member of the PSSAP must pay employer superannuation contributions to the PSSAP Fund for that member in accordance with the Rules of the PSSAP.
Section 5 of the 2005 Act provides that a public sector employee for the purpose of the 2005 Act includes a person who is employed by an approved authority.
Section 8 of the 2005 Act sets out the situations in which an authority or body is an approved authority for the purposes of the 2005 Act. Subsection 8(2) provides that an authority or body is an approved authority if it was, at the end of 30 June 2005, an approved authority for the purposes of the Superannuation Act 1990 (1990 Act) and is not specified in a written declaration made by the Minister for Finance and Deregulation (the Minister) under paragraph 8(2)(b).
Calvary Health Care ACT Limited (Calvary) was an approved authority for the purpose of the 2005 Act because it was an approved authority for the 1990 Act and was not specified in any written declaration made by the Minister.
Section 13 of the 2005 Act specifies the various persons who are eligible to become members of the PSSAP. Paragraph 13(1)(b) provides that the Minister may declare a person to be eligible to become a PSSAP member.
The Superannuation (PSSAP) Approved Authority Exclusion Declaration 2005 (the Principal Declaration) excludes bodies as approved authorities under paragraph 8(2)(b) of the 2005 Act.
The purpose of this Declaration cited as the Superannuation (PSSAP) Approved Authority Exclusion Amendment Declaration 2008 (Amending Declaration) is to amend Schedule 1 of the Principal Declaration, to provide that Calvary is no longer an approved authority for the purpose of the 2005 Act.
The superannuation arrangements for existing Calvary employees would not be affected by the changes made by the Amending Declaration. Ongoing PSSAP membership for existing Calvary employees employed immediately before the Amending Declaration commences, and who continue in that employment from that date, is provided for by the Superannuation (PSSAP) Membership Eligibility (Inclusion) Amendment Declaration 2008 made under paragraph 13(1)(b) of the 2005 Act.
The Amending Declaration commences on the day after it is registered on the Federal Register of Legislative Instruments.
Calvary was consulted in this matter.
The details of the Amending Declaration are explained in the Attachment.
The Amending Declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003 and is subject to disallowance, but not sunsetting.
ATTACHMENT
SUPERANNUATION (pssap) approved authority exclusion Amendment declaration 2008
Clause 1 - Name of Declaration
This clause provides that the name of the Declaration is the Superannuation (PSSAP) Approved Authority Exclusion Amendment Declaration 2008.
Clause 2 - Commencement
This clause provides for the Declaration to commence on the day after it is registered.
Clause 3 – Amendments to the Superannuation (PSSAP) Approved Authority Exclusion Declaration 2005
This clause omits Schedule 1 of the Superannuation (PSSAP) Approved Authority Exclusion Declaration 2005 which specifies those authorities or bodies declared in accordance with paragraph 8(2)(b) and substitutes a new Schedule 1. The effect of the new Schedule 1 is to provide that Calvary Health Care ACT Limited is not an approved authority for the purposes of the 2005 Act.
Overview
The Superannuation (PSSAP) Approved Authority Exclusion Amendment Declaration 2008 was enacted to amend the existing framework under the Superannuation Act 2005, specifically addressing the eligibility of certain authorities as approved authorities for the Public Sector Superannuation Accumulation Plan (PSSAP). This legislative instrument was introduced to rectify a gap identified in the superannuation arrangements for public sector employees, particularly concerning the eligibility of Calvary Health Care ACT Limited as an approved authority. The Declaration was made under the authority of the Minister for Finance and Deregulation, aiming to ensure that the superannuation scheme adheres to the intended legislative parameters by excluding certain entities from the approved authorities list. The policy objective is to maintain the integrity and compliance of the PSSAP by precisely defining the entities eligible to participate in the scheme, thereby ensuring the scheme's objectives are met effectively.
Scope and Application
The Superannuation (PSSAP) Approved Authority Exclusion Amendment Declaration 2008 applies to the Public Sector Superannuation Accumulation Plan (PSSAP) and modifies the list of approved authorities eligible for participation in the plan. This legislative instrument is a part of the Superannuation Act 2005, which governs superannuation schemes for public sector employees and others. Specifically, the declaration affects entities that were previously recognised as approved authorities under the Superannuation Act 1990 and amends the eligibility criteria for the PSSAP. Calvary Health Care ACT Limited, previously an approved authority, is explicitly excluded from this designation by this amendment. The changes do not impact existing superannuation arrangements for current employees of Calvary who were employed before the declaration took effect. The declaration, which comes into force on the day following its registration on the Federal Register of Legislative Instruments, is subject to disallowance but not to sunsetting. It is a legislative instrument under the Legislative Instruments Act 2003.
Key Provisions
The Superannuation (PSSAP) Approved Authority Exclusion Amendment Declaration 2008 amends the Superannuation (PSSAP) Approved Authority Exclusion Declaration 2005 by removing Calvary Health Care ACT Limited as an approved authority under the Superannuation Act 2005 (2005 Act). The original Declaration had listed approved authorities, and this Amendment Declaration modifies that list by excluding Calvary from the list of approved authorities, thus altering the eligibility criteria for being considered an approved authority for superannuation purposes under the 2005 Act (Section 8). This change means that, as of the Amendment Declaration's commencement, Calvary Health Care ACT Limited is no longer recognised as an approved authority for the Public Sector Superannuation Accumulation Plan (PSSAP).
The Amendment Declaration imposes specific obligations on entities governed by the Act. It requires that the new Schedule 1 of the Principal Declaration be adhered to, which now excludes Calvary Health Care ACT Limited from the list of approved authorities. This amendment means that any new employment under Calvary Health Care ACT Limited would not qualify for PSSAP membership, aligning with the new regulatory framework established by the 2005 Act. Furthermore, this change necessitates that employers, including Calvary, ensure compliance with the updated list of approved authorities when calculating and contributing to superannuation for their employees.
Failure to comply with the provisions of the Amendment Declaration could result in significant consequences. Employers who continue to treat Calvary Health Care ACT Limited as an approved authority post the Amendment Declaration's commencement may face regulatory scrutiny and potential penalties. The exact nature of these penalties is not explicitly detailed in the provided text, but under Australian legislative frameworks, non-compliance with superannuation laws can lead to financial penalties, enforcement actions, and legal repercussions. Employers must ensure they update their practices in line with the new declarations to avoid any adverse outcomes.