Superannuation (Salary) Regulations (Amendment) 1992 No. 427
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 427
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. Members of the scheme are referred to in the Act as eligible employees.
Section 168 of the Act provides that the Governor-General may make regulations for the purposes of the Act.
Subsection 5(2) of the Act provides that, subject to subsection 5(3), the annual rate of salary of an eligible employee on a particular day is an amount equal to the amount per annum of the salary payable to him on that day.
Subsection 5(3) of the Act provides that the regulations may provide that an eligible employee's annual rate of salary shall be such amount per annum as is ascertained under the regulations.
Regulations for the purposes of section 5 of the Act are contained in the Superannuation (Salary) Regulations (the Principal Regulations).
The rate of contribution payable under the Act by an eligible employee is expressed in the Act as a percentage of his or her fortnightly rate of salary. The rate of pension payable is expressed as a percentage of his or her final annual rate of salary. The terms 'fortnightly rate of salary' and 'final annual rate of salary are both defined in subsection 3(1) of the Act by reference to the eligible employee's annual rate of salary.
Part 2E of the Principal Regulations provides for the annual rate of salary for certain eligible employees who are employed on flexible remuneration packages. Flexible remuneration packages allow recipients to choose to receive some of their remuneration in a non-monetary form instead of as salary; the components of such a package can be varied from time to time.
The annual rate of salary of a person referred to in Part 2E of the Principal Regulations is the percentage, set down in Schedule 1 to the Principal Regulations, of the total value of the person's package.
It is proposed that the annual rate of salary for the purposes of the Act of certain persons who are working for the Australian Federal Police, the Dairy Research and Development Corporation or Commonwealth Serum Laboratories Limited, and who are in receipt of flexible remuneration packages, be specified in Schedule 1.
To this end, the Regulations amend the Principal Regulations.
Regulation 1 provides that the Principal Regulations are amended as set out in the Regulations.
Paragraph 8Q(1)(a) of the Principal Regulations provided that Regulation 8Q applies to an eligible employee who is appointed or employed by a relevant authority. The term 'relevant authority' is defined in Regulation 8P. Regulation 2 amends paragraph 8Q(1)(a) to provide that Regulation 8Q applies to an eligible employee who is appointed or employed by or under a law stated in column 2 of Part 2 of Schedule 1, as well as by a relevant authority. This amendment is necessary to accommodate the employment relationship between the Commonwealth and staff of the Australian Federal Police.
Subregulation 3.1 amends Schedule 1 of the Principal Regulations to specify the following authorities and percentages in Part 1:
• Commonwealth Serum Laboratories Limited - 80 per cent; and
• the Dairy Research and Development Corporation - 70 per cent.
Subregulation 3.2 amends Schedule 1 of the Principal Regulations to specify the following laws and percentages in Part 2:
• Division 1 or 2 of Part IV of the Australian Federal Police Act 1979 - 70 per cent; and
• the Primary Industries and Energy Research and Development Act 1989 in its application to an office of the Dairy Research and Development Corporation - 70 per cent.
The Regulations come into operation from the date of gazettal.
Overview
The Superannuation (Salary) Regulations (Amendment) 1992 No. 427, issued under the authority of the Minister for Finance, amends the existing Superannuation (Salary) Regulations 1990 to address the specific needs of employees receiving flexible remuneration packages within certain Commonwealth entities. This amendment responds to the problem of accurately defining the annual rate of salary for employees whose remuneration is not solely in monetary form, a concern particularly pertinent for entities like the Australian Federal Police, the Dairy Research and Development Corporation, and Commonwealth Serum Laboratories Limited. The policy objective behind these regulations is to ensure clarity and consistency in the calculation of superannuation contributions and pensions for eligible employees in these roles. The amendment is intended to be operational from the date of its gazettal, ensuring that the changes are promptly applied to the affected employees' remuneration calculations.
Scope and Application
The Superannuation (Salary) Regulations (Amendment) 1992 No. 427 applies to eligible employees who are employed by the Australian Federal Police, the Dairy Research and Development Corporation, or Commonwealth Serum Laboratories Limited, and who receive flexible remuneration packages. This amendment to the Superannuation (Salary) Regulations under the Superannuation Act 1976 aims to specify the annual rate of salary for the purposes of the Act for these particular employees. The Act, which pertains to an occupational superannuation scheme for Commonwealth employees and certain other persons, defines the annual rate of salary for eligible employees as the amount per annum of the salary payable to them. The amendment outlines the percentage of the total value of the remuneration package that constitutes the annual rate of salary for these specific authorities, with percentages set at 80% for Commonwealth Serum Laboratories Limited, 70% for the Dairy Research and Development Corporation, and also 70% for the Australian Federal Police under specified divisions of the Australian Federal Police Act 1979. The Regulations, which come into operation from the date of gazettal, are issued under the authority of the Minister for Finance and are designed to clarify and adjust the application of the Principal Regulations to these entities.
Key Provisions
The Superannuation (Salary) Regulations (Amendment) 1992 No. 427 amends the Superannuation (Salary) Regulations, which are made under the Superannuation Act 1976 (the Act). These regulations primarily focus on adjusting the definition and calculation of the annual rate of salary for certain eligible employees who are employed under flexible remuneration packages. Eligible employees are those who are part of the occupational superannuation scheme for Commonwealth employees and certain other persons.
The primary changes introduced by these regulations are found in Regulation 1, which amends the Principal Regulations. Regulation 2 adjusts the application of Regulation 8Q to include eligible employees appointed or employed by specified authorities and under certain laws. This amendment is necessary to accurately reflect the employment status of staff from the Australian Federal Police. Regulation 3.1 modifies Schedule 1 to specify that for employees of the Commonwealth Serum Laboratories Limited and the Dairy Research and Development Corporation, the annual rate of salary is 80% and 70% of their total remuneration package, respectively. Regulation 3.2 further specifies that for employees under Division 1 or 2 of Part IV of the Australian Federal Police Act 1979 and the Primary Industries and Energy Research and Development Act 1989 as it applies to an office of the Dairy Research and Development Corporation, the annual rate of salary is 70%.
These regulations impose obligations on the relevant authorities, including the Australian Federal Police, Commonwealth Serum Laboratories Limited, and the Dairy Research and Development Corporation, to ensure that the annual rate of salary is correctly calculated as specified in the amended regulations. The authorities must accurately determine the annual rate of salary for eligible employees based on the percentages outlined in Schedule 1, which is crucial for the calculation of superannuation contributions and pensions.
Failure to comply with these regulations can result in inaccuracies in the calculation of superannuation benefits, potentially leading to legal and financial consequences for both the employees and the employing authorities. While the explanatory statement does not explicitly outline specific offences, penalties, or consequences for non-compliance, it is implicit that any miscalculations could lead to disputes, audits, and the need for corrective actions to ensure compliance with superannuation laws. Non-compliance might also lead to reputational damage and loss of trust among employees regarding the accuracy and fairness of their superannuation benefits.