Superannuation (Salary) Regulations (Amendment) 1992 No. 266
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 266
Issued by the authority of the Minister for Finance
Superannuation Act 1976
Superannuation (Salary) Regulations (Amendment)
The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme for Commonwealth employees and for certain other persons.
Section 168 of the Act provides that the Governor-General may make regulations for the purposes of the Act.
Section 5 of the Act provides that the regulations may make provision in relation to amounts to be treated as salary for the purposes of the Act. Regulations for the purposes of section 5 are contained in the Superannuation (Salary) Regulations (the Principal Regulations).
Section 51 of the Act relates to members of the scheme who are on leave without pay. Prior to its amendment by the Superannuation Legislation Amendment Act 1991 (the Amending Act), subsection 51(1) of the Act provided that unless the Minister directs otherwise, a member granted leave of absence without pay for a period exceeding 12 weeks is not permitted to contribute during the period of leave.
The Amending Act amended the Act by omitting the reference to "Minister" in subsection 51(1) and substituting "Board", being a reference to the Commonwealth Superannuation Board of Trustees No 2 established under section 27A of the Act.
Part IV of the Principal Regulations (regulations 12 to 17) contains provisions in relation to the salary, for the purposes of the Act, of members of the scheme who are on leave without pay.
Following the substitution of the Board as the direction-making authority for the purposes of subsection 51(1) of the Act, the regulations amend regulations 12 and 13 by omitting the term "Minister" and substituting the term "Board".
The Regulations operate from the date of gazettal.
Overview
The Superannuation (Salary) Regulations (Amendment) 1992 No. 266, issued under the authority of the Minister for Finance, amends the Superannuation (Salary) Regulations to align with the changes introduced by the Superannuation Legislation Amendment Act 1991. The Superannuation Act 1976, which establishes an occupational superannuation scheme for Commonwealth employees and certain other individuals, allows for the creation of regulations through section 168. Specifically, these regulations pertain to the treatment of amounts as salary for the purposes of the Act, as outlined in section 5. Before the 1991 amendment, the Minister for Finance had the authority to direct whether members on leave without pay could contribute to the superannuation scheme. However, the Superannuation Legislation Amendment Act 1991 altered this by transferring the decision-making power from the Minister to the Commonwealth Superannuation Board of Trustees No 2. Consequently, the Superannuation (Salary) Regulations (Amendment) 1992 updates the Principal Regulations to reflect this shift in authority, thereby ensuring compliance with the legislative changes.
Scope and Application
The Superannuation (Salary) Regulations (Amendment) 1992 No. 266 applies to the amendments made to the Superannuation Act 1976, specifically focusing on the salary treatment of members on leave without pay. This regulation pertains to Commonwealth employees who are members of an occupational superannuation scheme, and certain other persons as outlined in the Act. The amendment transfers the authority to direct contributions from the Minister to the Commonwealth Superannuation Board of Trustees No 2, established under section 27A of the Act. The changes are reflected in the Principal Regulations, particularly in regulations 12 and 13, where the term "Minister" has been replaced with "Board". This amendment ensures that the Board, rather than the Minister, is the appropriate authority to make directions regarding contributions during periods of leave without pay for members of the scheme. The regulations are applicable nationally as they pertain to Commonwealth legislation and are effective from the date of their gazettal.
Key Provisions
The Superannuation (Salary) Regulations (Amendment) 1992 No. 266 amends the Superannuation (Salary) Regulations under the Superannuation Act 1976 (the Act) by updating the authority responsible for certain directives. Specifically, section 51 of the Act, which deals with members on leave without pay, has been modified by the Superannuation Legislation Amendment Act 1991 (the Amending Act). The amendment replaces the term "Minister" with "Board" in subsection 51(1) of the Act, referring to the Commonwealth Superannuation Board of Trustees No 2 established under section 27A. This change aligns the regulatory framework with the new governance structure, ensuring that the Board now has the authority to direct matters related to leave without pay.
The regulations now impose obligations on the Commonwealth Superannuation Board of Trustees No 2, rather than the Minister, to make decisions regarding members who are on leave without pay for periods exceeding 12 weeks. This shift necessitates that the Board now oversees and directs contributions for these members, ensuring compliance with the Act's provisions. Furthermore, the Board must ensure that all decisions and directives made under section 51 are in accordance with the Act and its regulations, maintaining the integrity and effectiveness of the occupational superannuation scheme.
Breaches of the Act or its regulations can lead to significant consequences. Although the specific penalties are not detailed in the explanatory statement, the Act generally provides for both civil and criminal penalties for non-compliance. Civil penalties may include fines and other monetary penalties, while criminal penalties may involve imprisonment. The precise nature and extent of these penalties would be determined by the courts in the context of each specific case, taking into account the severity and intent of the breach. The Board, as the governing entity under these regulations, must therefore ensure strict adherence to the Act to avoid any legal repercussions.