Commonwealth Numbered Regulations - Explanatory Statements

[Index] [Search] [Download] [Related Items] [Help]

SUPERANNUATION (PRODUCTIVITY BENEFIT) 1996-97 CONTINUING CONTRIBUTIONSDECLARATION 1996 NO. 116

STATUTORY RULES 1996 No. 116

SUPERANNUATION (PRODUCTIVITY BENEFIT) ACT 1998

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

DECLARATION UNDER SECTION 3D

VARIATION OF TABLE

The Superannuation (Productivity Benefit) Act 1988 (the PB Act) provides the mechanism by which the Superannuation Guarantee (SG) is made available to Australian Government employees who have no other employer sponsored superannuation coverage. Prior to 1 July 1992, the PB Act provided productivity superannuation to these employees.

The designated employers of such employees are required to pay to the superannuation fund nominated by the Minister for Finance, or another superannuation fund approved by the Minister or to a regulated fund under the Superannuation Industry Supervision legislation (where the employee is eligible), periodic contributions based on the salary of the employee. The amount to be contributed is calculated using a table set out in the Schedule to the Act. The Table is structured so the, a proportionately greater benefit is provided to lower paid wage earners. The amount to be contributed is adjusted where the employee is not employed full-time. The rates in this table apply for the 1996-97 financial year.

The benefits provided under the Act comply with the minimum requirements of the SG legislation. The only employees receiving superannuation under the Act who do not receive a flat rate superannuation contribution equivalent to 6 per cent of their salaries are those for whom that amount would represent a reduction (ie below the minimum weekly benefit for lower paid wage earners of $13.53) and those on salaries in excess of $90,360 per annum who receive a flat contribution equivalent to 6 per cent of $90,360 (ie $104.26 per week), as required by the SG legislation.

The Declaration commences on 1 July 1996.