Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (CSS) CONTINUING CONTRIBUTIONS FOR BENEFITS REGULATIONS(AMENDMENT) 1997 NO. 47

STATUTORY RULES 1997 No. 47

Issued by the authority of the Minister for Finance

Superannuation. Act 1976

Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment)

The Superannuation Act 1976 (the 1976 Act) makes provision for and in relation to an occupational superannuation scheme for Commonwealth employees and for certain other persons including approved authorities. That scheme is known as the Commonwealth Superannuation Scheme (the CSS).

Section 168 of the 1976 Act provides that the Governor-General may make regulations for the purposes of that Act.

Persons eligible to contribute to the CSS are referred to in the 1976 Act as eligible employees. In accordance with paragraph (ea) of the definition of "eligible employee" in subsection 3(1), the term includes a person to whom section 14A applies.

Section 14A applies to certain persons described in that section, including persons specified in regulations pursuant to section 14A made under paragraph 14A(1)(e). Subsection 14A(3) provides that the 1976 Act may be modified by regulation in respect of persons to whom section 14A applies. Regulations for the purposes of section 14A are contained in the Superannuation (CSS) Continuing Contributions for Benefits Regulations.

Paragraph 3A(1)(f) of the Principal Regulations provides for continuing membership of the CS S to employees of ASP Ship Management (ASP) who were transferred from ANL Limited. ANL Limited is an approved authority for the purposes of the CS S but would cease to be so should Commonwealth control cease. In that case, employees who were CSS members would automatically cease CSS membership.

ASP is an un-incorporated partnership agreement between Marine Management Services Pty Ltd and Associated Steamships Pty Ltd. ANL has 60 per cent representation through its wholly owned subsidiary company Marine Management Services Pty Ltd. If the Commonwealth or ANL lose control of ASP it would be inappropriate that any of its employees continue as members of the CSS.

The Regulations amend the Principal Regulations to provide that section 14A ceases to apply to a person described in paragraph 3A(1)(f) if Commonwealth control of ASP ceases. The proposed Regulations would place CSS members who are AS P employees in the same situation as CSS members who are ANL employees in relation to cessation of membership upon the loss of Commonwealth control.

The Regulations commence on the day of gazettal. However, ASP employees will not cease to be members of the CSS until the Commonwealth loses control of ASP. Should the Commonwealth lose control of ASP before gazettal of the Regulations, membership will not cease until the commencement of the Regulations. This prevents the Regulations becoming effective retrospectively.