Commonwealth Numbered Regulations

1993 No. 353 SUPERANNUATION (FORMER PROVIDENT ACCOUNT CONTRIBUTORS) REGULATIONS (AMENDMENT) - REG 3

3.1 Omit the modifications of section 62, substitute:

"62 Omit subsection (2), substitute:
'(2) Subject to section 62B, where a person makes an election under subsection
(1), being a person who ceases to be an eligible employee before 1 July 2000,
the person is entitled, instead of his or her entitlement to a pension and
lump sum benefit under section 55 or 59, to the sum of the amount of the
person's accumulated supplementary contributions (if any) and:

   (a)  except where paragraph (b) applies to payment of a lump sum benefit of
        the sum of an amount equal to 3.5 times the amount of the person's
        accumulated basic contributions; or

   (b)  if, in the circumstances in which the person ceased to be an eligible
        employee, the person would, for the purposes of section 82 of the
        superseded Act, have been regarded as having had his or her services
        terminated owing to retrenchment if that section had continued to
        apply to the person and he or she had not previously been paid a sum
        under subsection 82 (2) of the superseded Act to payment of a lump sum
        benefit of an amount equal to whichever is the greater of:

        (i)    an amount calculated in accordance with paragraph (a); or

        (ii)   an amount calculated in accordance with subsection (3).'.

"Omit from paragraph (2A) (a) all the words from and including 'the sum of:'
to the end of the paragraph, substitute:
'the sum of the amount of the person's accumulated supplementary contributions
(if any) and:

        (i)    except where subparagraph (ii) applies a lump sum benefit of
               the sum of an amount equal to 3 1/2 times the amount of the
               person's accumulated basic contributions; or

        (ii)   if, in the circumstances in which the person ceased to be an
               eligible employee, the person would, for the purposes of
               section 82 of the superseded Act, have been regarded as having
               had his or her services terminated owing to retrenchment if
               that section had continued to apply to the person and he or she
               had not previously been paid a sum under subsection 82 (2) of
               the superseded Act a lump sum benefit of an amount equal to
               whichever is the greater of:

                (A)  an amount calculated in accordance with subparagraph (i);
                     or

                (B)  an amount calculated in accordance with subsection (3);
                     or'.

"After subsection (2A), insert:
'(3) The amount referred to in subparagraph 62 (2) (b) (ii) and
sub-subparagraph 62 (2A) (a) (ii) (B) is:

   (a)  in the case of a person who is, or has been, an approved part-time
        employee either:

        (i)    the amount calculated in accordance with the following formula:
AB; or:
2C

        (ii)   the amount calculated in accordance with the following formula:
AD;
2E whichever is the greater amount, where:
A is an amount equal to the person's final annual rate of salary;
B is the number of complete years included in the person's period of
contributory service, within the meaning of the Superannuation (Approved
Part-time Employees) Regulations;
C is the number of complete years included in the person's period of
employment within that meaning;
D is the number of days in the person's period of contributory service within
that meaning;
E is the number of days in the person's period of employment within that
meaning; or

   (b)  in any other case one half of the amount per annum of the person's
        final annual rate of salary.'.".
3.2 Inserted section 80A: Renumber as section 80AB.
3.3 Inserted section 130A:
Omit all words from and including "there is payable", substitute:

"there is payable to or in respect of the person", unless he or she becomes
entitled to benefit under section 197, an additional lump sum benefit of an
amount equal to the total of:

   (c)  an amount equal to the portion of the amount referred to in paragraph
        (a) that was payable to the person, whether or not he or she engaged
        in further employment, on the termination of his or her previous
        employment under a superannuation scheme applicable to that
        employment; and

   (d)  the amount that would have accrued by way of interest on the amount
        first referred to in paragraph (c) if it had been paid into the Fund
        on the later of:

        (i)    1 July 1976; or

        (ii)   the day on which the amount referred to in paragraph (a) was
               paid to the Commonwealth.".
3.4 Modifications of section 136 (first modification): Omit the inserted
subsection (2AA), substitute:

"(2AA) If a deferred benefit by way of lump sum benefit is payable in
accordance with section 197, 200 or 201 to a person other than a former
eligible employee with benefits from previous employment, the amount of the
benefit is an amount equal to the sum of:

   (a)  3 times the person's accumulated basic contributions; and

   (b)  the person's accumulated supplementary contributions (if any); and

   (c)  if:

        (i)    an event mentioned in subsection 139AA (2) has happened in
               relation to the person before the day on which the deferred
               benefit becomes payable, or happens on that day; or

        (ii)   the amount of the person's accumulated employer contributions
               is less than $500; the person's accumulated employer
               contributions (if any).".
3.5 Modifications of section 136 (fourth modification): Renumber the inserted
subsection 136 (2BA) as subsection 136 (2BAA).
3.6 Modification of Part XII: Omit "the following Division: ", substitute "the
following Divisions:".
3.7 Modification of Part XII: Added subsection 197 (2):
Omit "Where", substitute "Subject to section 223, where".
3.8 Modification of Part XII: Added subsection 201 (1): Omit "Subject to
section 212,", substitute 'Subject to sections 212 and 223,".
3.9 Modification of Part XII: Added subparagraph 201 (1) (a) (ii): Omit the
subparagraph, substitute:

"(ii) on or after attaining the age of 60 years but before attaining the age
of 65 years, otherwise than by reason of death or retirement on the ground of
invalidity before attaining his or her maximum retiring age; or"
3.10 Modification of Part XII: Added subsection 201 (2):
Omit "A person", substitute "Subject to section 223, a person".
3.11 Modification of Part XII: Added subsection 201 (3):
Omit "Where", substitute "Subject to section 223, if".
3.12 Modification of Part XII: After added section 212, add: Division 9
Preservation of benefit payable under section 197 or 201 Interpretation

"222. (l) In this Division:
'accumulated government body contributions', in relation to a person's
relevant period of employment, means the total of:

   (a)  the total amount of the productivity contributions applicable to the
        person in respect of the period; and

   (b)  notional interest on the amount worked out under paragraph (a);
'government body scheme' means a superannuation scheme:

   (a)  established by, or operating for the benefit of employees of:

        (i)    an authority of the Commonwealth; or

        (ii)   a State or an authority of a State; or

        (iii)  a Territory or an authority of a Territory; or

        (iv)   a body corporate in which the Commonwealth, or a person of the
               kind referred to in subparagraph (i), (ii) or (iii), either
               individually or in combination with one or more other persons
               of that kind, has a controlling interest; and

   (b)  that has eligible employees as members; and

   (c)  under which productivity contributions accrue in respect of those
        eligible employees;
'notional accumulated SG contributions', in relation to a person's relevant
period of employment, means an amount equal to the sum of:

   (a)  the person's SG minimum contributions in relation to that period as
        reduced by an amount specified in, or worked out in accordance with, a
        determination made by the Australian Government Actuary under
        subsection 62A (5); and

   (b)  notional interest on the amount worked out under paragraph (a);
'period of actual contributory service', in relation to a person, means the
person's period of contributory service other than any part of that period
added by the operation of subsection 128 (5) that is not attributable to a
transfer value previously paid under Division 3 of Part IX;
'productivity contribution' means:

   (a)  in relation to a person who is a productivity employee within the
        meaning of Part VIA a productivity contribution within the meaning of
        that Part (other than an amount taken to be a productivity
        contribution by virtue of the operation of paragraph 128 (2) (c)); or

   (b)  in relation to any other person an amount similar in kind to a
        productivity contribution referred to in paragraph (a), whether worked
        out under an industrial award or otherwise;
'rate of fund contribution tax' means 15% or, if the Minister has determined
another rate under section 110sd, that other rate;
'relevant period of employment', in relation to a person, means:

   (a)  if the whole of the person's period of actual contributory service
        occurred after 30 June 1993 that period; or

   (b)  if part only of the person's period of actual contributory service
        occurred after that date that part of the person's period of actual
        contributory service; but does not include any period for which the
        person is engaged or appointed exclusively for employment outside
        Australia unless that period:

   (c)  is a period during which the person is on leave of absence without
        pay; and

   (d)  is a period in respect of which the person is entitled to make
        contributions in accordance with a direction under subsection 51 (1);
'SG minimum contribution' has the same meaning as in Part VIAA;
'top-up benefit' means superannuation guarantee top-up benefit payable under
section 110SE.

"(2) For the purposes of paragraph (a) of the definition of 'accumulated
government body contributions' in subsection (1), the amount of a productivity
contribution applicable to a person in relation to a particular period ('the
accrual period') is:

   (a)  if the relevant government body scheme provides for productivity
        contributions (applicable to all eligible employees who are members of
        the scheme) that may be expressed as a percentage of the earnings (as
        described for the purposes of the scheme) of each employee that
        percentage of the earnings of the person for the accrual period based
        on the person's fortnightly rate of salary that, for the purposes of
        section 46, was payable on the most recent anniversary of birth of the
        person; or

   (b)  if the relevant government body scheme provides for productivity
        contributions (applicable to a class of eligible employees identified
        by the scheme) that may be expressed as a percentage of the earnings
        (as described for the purposes of the scheme) of each employee in the
        class, and the percentage is lower than the corresponding percentage
        for any other class of eligible employees that percentage of the
        earnings of the person for the accrual period based on the person's
        fortnightly rate of salary that, for the purposes of section 46, was
        payable on the most recent anniversary of birth of the person; or

   (c)  if the relevant government body scheme is a defined benefit
        superannuation scheme within the meaning of the
        Superannuation Guarantee  (Administration) Act 1992 that provides for
        a productivity related benefit applicable to all eligible employees
        who are members of the scheme the contribution percentage, in relation
        to that benefit, of the earnings of the person for the accrual period
        based on the person's fortnightly rate of salary that, for the
        purposes of section 46, was payable on the most recent anniversary of
        birth of the person.

"(3) For the purposes of paragraph (2) (c), 'contribution percentage' means
the rate of contribution, expressed as a percentage of the eligible employees'
earnings and certified by an actuary, required to provide the productivity
related benefit.

"(4) The percentage referred to in paragraph (2) (a) or (b) must be certified
by the person's employer. Preservation of portion of benefit

"223. (1) Subject to subsection (2), if a benefit is payable:

   (a)  under subsection 197 (2) to a person; or

   (b)  under subsection 201 (1) to a person who ceases to be a prescribed
        eligible employee in circumstances referred to in subparagraph 201 (1)
        (a) (ii) or (iii); the portion of that benefit worked out under
        whichever of subsections (3) and (4) is applicable must be:

   (c)  paid, for the benefit of the person, to a preservation fund nominated
        by the person; or

   (d)  applied, on behalf of the person, for the purchase of a deferred
        annuity nominated by the person; or

   (e)  if the person does not make a nomination within 2 months after the
        benefit becomes payable paid, for the benefit of the person, to a
        preservation fund nominated by the Commissioner.

"(2) Subsection (1) does not apply to a benefit payable to a person if:

   (a)  the person is 65 or over; or

   (b)  the person is 55 or over and has given the Commissioner a written
        statement to the effect that he or she has retired from the workforce;
        or

   (c)  the total of the following amounts is less than $500:

        (i)    the amount of the accumulated employer contributions in respect
               of the person;

        (ii)   the amount that would be preserved or applied under subsection
               (1) in relation to the person but for the operation of this
               subsection; or

   (d)  the Commissioner is satisfied that the person has departed, or is
        departing, permanently from Australia.

"(3) If a person's employer was liable to pay productivity contributions under
section 110h in respect of the person for the person's relevant period of
employment, the portion of the benefit referred to in subsection (1) is the
amount worked out using the formula:
                NASGC     AEC  x  l00

                          (100     TR)
where:
'NASGC' is the notional accumulated SG contributions in respect of the person
for the person's relevant period of employment;
'AEC' is that part of the accumulated employer contributions in respect of the
person that is based on the operation of paragraphs 110Q (l) (a) and (b) in
relation to productivity contributions paid or payable after 30 June 1993;
'TR' is the percentage figure representing the rate of fund contribution tax
applicable to the relevant period of employment.

"(4) If a person's employer was liable to pay productivity contributions to a
government body scheme in respect of the person for the person's relevant
period of employment, the portion of the benefit referred to in subsection (1)
is whichever of the following amounts is determined by the Commissioner after
having regard to the views of the government body:

   (a)  an amount worked out using the formula:
NASGC - AGBC;

   (b)  an amount worked out using the formula:
GBB x 100
NASGC - ;
(100 - TR)

   (c)  an amount worked out using the formula:
GBPROD x 100
NASGC - ;
(100 - TR) where:
'NASGC' is the notional accumulated SG contributions in respect of the person
for the person's relevant period of employment;
'AGBC' is the accumulated government body contributions in respect of the
person for the person's relevant period of employment;
'GBB' is:

   (a)  the benefit paid or payable from the government body scheme in respect
        of the person for the person's relevant period of employment; and

   (b)  except where the person ceases to be both a member of the government
        body scheme and a prescribed eligible employee notional interest on
        that benefit;
'TR' is the percentage figure representing the rate of fund contribution tax
applicable to the relevant period of employment;
'GBPROD' is the total of:

   (a)  that part of the amount that has been paid to the Commissioner under
        section 110MA in respect of the person for the person's relevant
        period of employment less the amount in the nature of income tax (if
        any) that is relevant to that amount; and

   (b)  interest on the paid amount referred to in paragraph (a).

"(5) In determining the benefit paid or payable from a government body scheme
in respect of a person, the Commissioner may accept a statement from the
trustees, the administrator on behalf of the trustees or, if there are no
trustees, the administrator of the government body scheme as to:

   (a)  the amount of benefit paid or payable; or

   (b)  the date on which it was paid or is payable; or

   (c)  the period in respect of which the benefit was paid or is payable; or

   (d)  rates of interest applicable to amounts of money paid to the scheme;
        or

   (e)  any other matter in connection with the payment of the benefit.
        Application of formulae

"224. If a single application of a formula set out in section 214 cannot
properly be made for the whole of a person's relevant period of employment
because of a change in the person's employment, the rate of fund contribution
tax or any other thing:

   (a)  that period is to be broken up into separate periods that are
        appropriate for the proper application of a formula in respect of each
        period; and

   (b)  the resulting amounts (including negative amounts) are to be
        aggregated in respect of the whole of the person's period of actual
        contributory service.".