EXPLANATORY STATEMENT
Issued by the authority of Minister for Finance and Deregulation
Superannuation Act 2005
Declaration under paragraph 5(2)(b)
The Superannuation Act 2005 (the Act) provides for the Public Sector Superannuation Accumulation Plan (PSSAP) to be established by Trust Deed to commence on 1 July 2005. The PSSAP generally applies in respect of Australian Government employees who commence employment on or after 1 July 2005 and certain other persons.
Section 5 of the Act describes a person who is a public sector employee for the purposes of the Act. In accordance with subsection 13(1) of the Act a public sector employee is eligible to become a member of the PSSAP unless excluded by subsection 13(2) of the Act.
Subsection 5(1) of the Act describes a public sector employee to be a person who is either
employed by the Commonwealth, or employed by an approved authority (described in
section 8 of the Act) or is the holder of a statutory office but does not include a person
who is an exempt overseas employee as described in subsection 5(2) of the Act.
Subsection 5(2) of the Act describes an exempt overseas employee as a person who is engaged or appointed for employment outside Australia only who is not specified in a written declaration made by the Minister under paragraph 5(2)(b) of the Act. A person who is described in such a declaration (and who is either employed by the Commonwealth or an approved authority or is a statutory office holder) is a public sector employee within the meaning of subsection 5(1) of the Act.
The Superannuation (PSSAP) Public Sector Employees Declaration 2005 (the Principal
Declaration) identifies those persons who are not exempt overseas employees and therefore may meet the definition of public sector employee.
The purpose of the Superannuation (PSSAP) Public Sector Employees (Amendment) Declaration 2011 (No.1) (the Declaration) is to amend the Principal Declaration to ensure that persons engaged as Australian Civilian Corps employees for employment outside Australia only are not exempt overseas employees, and therefore able to be PSSAP members.
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.
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 (PSSAP) PUBLIC SECTOR EMPLOYEES (AMENDMENT) DECLARATION 2011 (No.1)
Section 1 – Name of Declaration
This section provides that the name of the Declaration is the Superannuation (PSSAP) Public Sector Employees (Amendment) Declaration 2011 (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 – Amendment of the Superannuation (PSSAP) Public Sector Employees Declaration 2005
This section provides that the Schedule to the Principal Declaration is amended in accordance with Schedule 1 of the Declaration.
SCHEDULE 1
Schedule 1 inserts item 4 in Schedule 1 of the Principal Declaration, which lists persons who are not exempt overseas employees. The effect of item 4 is to provide that a person who is engaged as an Australian Civilian Corps employee for employment outside Australia only may be a PSSAP member.
Overview
The Superannuation (PSSAP) Public Sector Employees (Amendment) Declaration 2011 (No.1) amends the Superannuation (PSSAP) Public Sector Employees Declaration 2005 to ensure that persons engaged as Australian Civilian Corps employees for employment outside Australia are not exempt overseas employees and are therefore eligible to become members of the Public Sector Superannuation Accumulation Plan (PSSAP). This legislative instrument was introduced to address a gap in the eligibility criteria for PSSAP membership for Australian Civilian Corps employees working overseas. The Declaration was issued under the authority of the Minister for Finance and Deregulation, and its primary policy objective is to align the superannuation arrangements for Australian Civilian Corps employees with those of other public sector employees. The Declaration is subject to disallowance and commenced immediately after the commencement of Part 3 of the Australian Civilian Corps Act 2011.
Scope and Application
The Superannuation (PSSAP) Public Sector Employees (Amendment) Declaration 2011 (No. 1) amends the Superannuation (PSSAP) Public Sector Employees Declaration 2005 to adjust the scope of public sector employees eligible for membership in the Public Sector Superannuation Accumulation Plan (PSSAP). This legislation applies to Australian Government employees who commence employment on or after 1 July 2005, as well as other specified individuals, under the Superannuation Act 2005. It specifically targets those who are employed by the Commonwealth or an approved authority, or are holders of statutory offices, excluding those who are exempt overseas employees, unless they are specified in a written declaration by the Minister. The Declaration ensures that Australian Civilian Corps employees engaged for work outside Australia are not deemed exempt overseas employees, thus qualifying them for PSSAP membership. This legislative instrument, governed by the Legislative Instruments Act 2003, commences immediately after the commencement of Part 3 of the Australian Civilian Corps Act 2011 and is subject to disallowance.
Key Provisions
The Superannuation (PSSAP) Public Sector Employees (Amendment) Declaration 2011 (No.1) amends the definition of public sector employees for the purposes of the Public Sector Superannuation Accumulation Plan (PSSAP) established under the Superannuation Act 2005. Specifically, it removes the exemption for Australian Civilian Corps employees engaged outside Australia, allowing them to become PSSAP members. This amendment aligns with the commencement of Part 3 of the Australian Civilian Corps Act 2011. The Declaration, which is a legislative instrument, is subject to disallowance under the Legislative Instruments Act 2003.
Entities governed by the Act, including Australian Government employees who commence employment on or after 1 July 2005, and Australian Civilian Corps employees engaged outside Australia, now have the eligibility to become PSSAP members, provided they meet the criteria outlined in section 5 of the Act. These entities must ensure that their employees who are not exempt overseas employees, as defined in the Declaration, are eligible for PSSAP membership. The obligation lies with employers to identify and facilitate the enrolment of eligible employees into the PSSAP.
Breach of the provisions outlined in the Declaration, which is designed to clarify the eligibility of public sector employees for the PSSAP, may result in administrative consequences. While the Act does not explicitly state penalties for non-compliance, failure to adhere to the updated definitions and amendments may lead to legal disputes or administrative actions against the non-compliant entities. The specific civil or criminal consequences depend on the nature and extent of the breach, as well as the relevant jurisdiction's legal framework.