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

Overview

The Superannuation Act 2005 was enacted to provide for the Public Sector Superannuation Accumulation Plan (PSSAP), offering superannuation benefits to Australian Government employees and other eligible individuals. This Act addresses the need for a structured and consistent superannuation framework for public sector employees, ensuring their long-term financial security post-retirement. The Superannuation (PSSAP) Approved Authority Inclusion Amendment Declaration (No. 1) 2019, issued under the authority of the Minister for Finance, amends the Superannuation (PSSAP) Approved Authority Inclusion Declaration 2008 by including the National Housing Finance and Investment Corporation (NHFIC) as an approved authority for the purposes of the 2005 Act. The policy objective behind this amendment is to extend superannuation benefits to employees of the NHFIC, thereby aligning their superannuation arrangements with those of other Australian Government employees. This legislative instrument was subject to consultation with relevant parties, including the Commonwealth Superannuation Corporation and the NHFIC, and it commenced the day after its registration on the Federal Register of Legislative Instruments.

Scope and Application

The Superannuation Act 2005 provides the legislative framework for the Public Sector Superannuation Accumulation Plan (PSSAP) and governs the eligibility of Australian Government employees and certain other persons to contribute to the PSSAP. Specifically, the Act defines "approved authority" to include any authority or body declared by the Minister to be such for the purposes of the Act, provided they meet certain criteria. The Superannuation (PSSAP) Approved Authority Inclusion Declaration 2008 lists bodies recognised as approved authorities, and the Superannuation (PSSAP) Approved Authority Inclusion Amendment Declaration (No.1) 2019 amends this list by adding the National Housing Finance and Investment Corporation (NHFIC). The NHFIC, established by the National Housing Finance and Investment Corporation Act 2018, was included because it meets the definition of an approved authority under the 2005 Act. This amendment is subject to disallowance under the Legislation Act 2003 and follows consultation with relevant parties, including the Commonwealth Superannuation Corporation and NHFIC. The changes do not require a Regulations Impact Statement as they are administrative and do not significantly alter existing arrangements. The amendment will take effect the day after its registration on the Federal Register of Legislative Instruments.

Key Provisions

The main operative sections of the Superannuation (PSSAP) Approved Authority Inclusion Amendment Declaration (No.1) 2019 (the Amending Declaration) are contained in Sections 1 to 4 of the instrument. Section 1 identifies the name of the instrument, Section 2 specifies its commencement date, Section 3 cites the authority under which the instrument is made, and Section 4 outlines how the instrument interacts with other instruments, particularly those listed in its Schedules. The key provision is in Schedule 1, Item 1, which amends the Superannuation (PSSAP) Approved Authority Inclusion Declaration 2008 to include the National Housing Finance and Investment Corporation (NHFIC) in the list of bodies approved as authorities for the purposes of the Superannuation Act 2005 (the 2005 Act). The Amending Declaration imposes specific obligations and requirements on the entities it governs. Firstly, it mandates that the NHFIC be recognised as an approved authority under the 2005 Act, thereby allowing employees of the NHFIC to be eligible for the Public Sector Superannuation Accumulation Plan (PSSAP). This inclusion aligns the NHFIC with other approved authorities by ensuring that its employees can contribute to the PSSAP under the same terms and conditions. Additionally, the amendment requires that the NHFIC adhere to the regulatory and administrative framework established by the 2005 Act, including any reporting, compliance, and contribution requirements. Under the Amending Declaration, any failure to comply with the provisions of the 2005 Act or the terms set out in the Amending Declaration could result in various civil or criminal consequences. While the specific offences and penalties are not detailed in the Amending Declaration itself, the overarching Superannuation Act 2005 provides a framework for enforcement. For instance, Section 45 of the 2005 Act outlines potential penalties for non-compliance, which could include fines and other administrative sanctions. The maximum penalties would depend on the nature and severity of the breach, as well as any relevant state or territory legislation that may apply. The Commonwealth Superannuation Corporation, as the trustee of the PSSAP, has the authority to take action against entities that fail to comply with the Act’s requirements.