Superannuation (Salary) Regulations (Amendment)

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Statutory Rules 1981 No. 51

_______________

Superannuation (Salary) Regulations2
(Amendment)

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Superannuation Act 1976.

 Dated 21 January 1981.

 ZELMAN COWEN

 Governor-General

 By His Excellency’s Command,

 

MARGARET GUILFOYLE

Minister of State for Finance

_______________

 Certain allowances to be treated as salary

 1. Regulation 5 of the Superannuation (Salary) Regulations is amended by omitting paragraph (j) and substituting the following paragraph:

 “(j) an allowance that is payable to an eligible employee (being an eligible employee referred to in paragraph (ea) of the definition of ‘eligible employee’ in subsection 3 (1) of the Act) in pursuance of—

 (i) where the eligible employee is employed as a member of the staff of the Legal Aid Commission of Western Australia established under the Legal Aid Commission Act, 1976 of the State of Western Australia—the provisions of paragraph 4 in the Schedule to the agreement made on 12 January 1978 between the Commonwealth and that State in relation to the provision in that State of legal aid to which that agreement relates;

 (ii) where the eligible employee is employed as a member of the staff of the Legal Services Commission established under the Legal Services Commission Act, 1977 of the State of South Australia—the provisions of paragraph 4 in the Schedule to the agreement made on 4 December 1978 between the Commonwealth and that State in relation to the provision in that State of legal assistance to which that agreement relates;

 (iii) where the eligible employee is employed as a member of the staff of the Legal Aid Commission of Queensland established under the Legal Aid Act 1978 of the State of Queensland—the provisions of paragraph 4 in the Schedule to the agreement made on 26 June 1979 between the Commonwealth and that State in relation to the provision in that State of legal assistance to which that agreement relates; or

 (iv) where the eligible employee is employed as a member of the staff of the Legal Aid Commission established under the Legal Aid Commission Act 1978 of the State of Victoria—the provisions of paragraph 4 in the Schedule to the agreement made on 20 December 1979 between the Commonwealth and that State in relation to the provision in that State of legal aid to which the agreement relates;”.

 Part of salary or wages not to be treated as salary in certain circumstances

 2. Regulation 7 of the Superannuation (Salary) Regulations is amended by omitting from paragraph (b) of sub-regulation (1) “regulation 4” and substituting “regulation 5”.

 Annual rate of salary of certain employees where anniversary of birth occurs during period of leave of absence, &c.

 3. Regulation 17 of the Superannuation (Salary) Regulations is amended by omitting from sub-regulation (3) “perform” and substituting “undertake”.

 4. Regulation 19 of the Superannuation (Salary) Regulations is repealed and the following regulation substituted:

 Variation of salary with retrospective effect

“19. (1) Where—

 (a) after an anniversary of the birth of a person who is, or has ceased to be, an eligible employee, the annual rate of salary of the person on that anniversary is varied; and

 (b) section 47 of the Act does not apply in relation to the annual rate of salary of the person on that anniversary,

then, for the purposes of section 46 of the Act, the annual rate of salary of the person on that anniversary shall be an amount equal to the amount that, but for that variation, would have been his annual rate of salary on that anniversary.

 “(2) Where—

 (a) after an anniversary of the birth of a person who is, or has ceased to be, an eligible employee, the annual rate of salary of the person on that anniversary is varied;

 (b) section 47 of the Act applied in relation to the annual rate of salary of the person on that anniversary; and

 (c) the annual rate of salary as varied of the person on that anniversary is higher than the annual rate of salary that, but for that variation, would, in accordance with section 47 of the Act, be deemed to be his annual rate of salary on that anniversary,

then, for the purposes of section 46 of the Act, the annual rate of salary of the person on that anniversary shall be an amount equal to the amount per annum of the salary that, but for that variation, would, in accordance with section 47 of the Act, be deemed to have been payable to the person on that anniversary.

 “(3) Where—

 (a) sub-section 47 (1) of the Act applies in relation to the annual rate of salary of a person (being a person who is, or has ceased to be, an eligible employee) on an anniversary of his birth (in this sub-regulation referred to as the ‘relevant anniversary’); and

 (b) after the relevant anniversary, the highest annual rate of salary that was payable to the person on any day during the period commencing on the anniversary of his birth last preceding the relevant anniversary and ending on the day immediately preceding the relevant anniversary is varied,

then, for the purposes of section 46 of the Act, the annual rate of salary of the person on any day during that period on which salary was payable to him at that highest rate shall be an amount equal to the amount that, but for that variation, would have been his annual rate of salary on that day.

 “(4) Where—

 (a) a person who is, or has ceased to be, an eligible employee has made an election under sub-section 47 (2) of the Act by virtue of a decrease in his annual rate of salary;

 (b) sub-section 47 (3) of the Act applies in relation to the annual rate of the salary of the person on the anniversary of his birth next following the date of the decrease; and

 (c) after that anniversary, the highest annual rate of salary that was payable to the person on any day during the period commencing on the date of the decrease and ending on the day immediately preceding that anniversary is varied,

then, for the purposes of section 46 of the Act, the annual rate of salary of the person on any day during that period on which salary was payable to him at that highest rate shall be an amount equal to the amount that, but for that variation, would have been his annual rate of salary on that day.

 “(5) Where—

 (a) a person who is, or has ceased to be, an eligible employee has made an election under sub-section 47 (2) of the Act by virtue of a decrease in his annual rate of salary;

 (b) sub-section 47 (4) of the Act applies in relation to the annual rate of the salary of the person on the anniversary of his birth last preceding the date of the decrease; and

 (c) after the date of the election, the annual rate of the salary that was payable to the person on the date of the decrease is varied,

then, for the purposes of sub-section 47 (4) of the Act, the annual rate of salary of the person on the date of the decrease shall be an amount equal to the amount that, but for that variation, would have been his annual rate of salary on that date.”.

 

NOTES

1. Notified in the Commonwealth of Australia Gazette on 29 January 1981.

2. Statutory Rules 1978 No. 282.

Overview

The Superannuation (Salary) Regulations 1981 (Amendment) are legislative instruments enacted to amend the existing Superannuation (Salary) Regulations 1978. These amendments were made under the authority of the Superannuation Act 1976, which was enacted to establish a national superannuation scheme to provide retirement income for eligible employees. The Superannuation (Salary) Regulations 1981 (Amendment) aim to address specific issues and clarify the treatment of certain allowances as part of an eligible employee's salary for superannuation purposes. This amendment was made by the Governor-General of the Commonwealth of Australia, acting on the advice of the Federal Executive Council, and the Minister of State for Finance, ensuring that the changes align with the broader policy objectives of the Superannuation Act 1976.

Scope and Application

The Superannuation (Salary) Regulations 1981 (Amendment) are regulations made under the Superannuation Act 1976 and apply to eligible employees in specific roles within state-based legal aid and legal assistance commissions in Australia. The Act and its regulations govern the treatment of various allowances as salary for superannuation purposes, ensuring compliance with national superannuation standards across the different states. These regulations are applicable to employees of the Legal Aid Commission of Western Australia, the Legal Services Commission of South Australia, the Legal Aid Commission of Queensland, and the Legal Aid Commission of Victoria. The regulations primarily address the treatment of certain allowances as part of an employee’s salary for superannuation calculations, ensuring consistency in how these allowances are treated across different jurisdictions. The amendments refine the definition of eligible employees and clarify certain circumstances where specific allowances should be included as part of the salary for superannuation purposes. Additionally, the regulations cover scenarios where an employee’s salary is varied after their birthday anniversary, providing detailed rules on how such variations should be treated for superannuation calculations.

Key Provisions

The Superannuation (Salary) Regulations 1981 (Amendment) detail several modifications to the original regulations concerning the treatment of allowances and salary variations for eligible employees. Firstly, Regulation 5 now specifies that certain allowances payable to eligible employees in certain jurisdictions—Western Australia, South Australia, Queensland, and Victoria—are to be treated as salary for superannuation purposes (Reg. 5). Secondly, Regulation 7 now excludes certain allowances from being treated as salary in specific circumstances (Reg. 7). Furthermore, Regulation 17 corrects a minor wording issue by replacing "perform" with "undertake" (Reg. 17). The amendment also includes a new Regulation 19, which provides for the variation of salary with retrospective effect, detailing how salary variations affect the calculation of annual rates of salary for superannuation purposes (Reg. 19). These regulations impose specific obligations on employers and employees. Employers must ensure that any salary variations or changes in allowances are accurately reported and accounted for in accordance with these regulations, particularly concerning the calculation of superannuation contributions. Eligible employees must be aware of how salary variations impact their superannuation entitlements and must understand the provisions related to the treatment of certain allowances as salary. Breaching these regulations can result in significant consequences. Employers who fail to comply with the stipulated requirements for calculating and reporting salary variations and allowances may face penalties. The exact nature and extent of these penalties are not explicitly detailed in the provided text, but they may include fines or other administrative penalties. Similarly, employees who do not adhere to the provisions regarding the treatment of allowances and salary variations may face civil or administrative consequences, although the specific penalties are not outlined in the text. Non-compliance with superannuation regulations can also result in legal actions, including the recovery of unpaid superannuation contributions and associated interest.

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