Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION ACT 1976 SUPERANNUATION (CONTINUING CONTRIBUTIONS FORBENEFITS) REGULATIONS (AMENDMENT) 1992 NO. 27

STATUTORY RULES 1992 No. 27

ISSUED BY AUTHORITY OF THE MINISTER FOR FINANCE

SUPERANNUATION ACT 1976 SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS (AMENDMENT)

The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme for certain Commonwealth employees and other persons.

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

A person eligible to contribute under the Act is referred to as an "eligible employee". The term "eligible employee" is defined in subsection 3(1) of the Act. In accordance with paragraph (ea) of the definition, the term includes a person to whom section 14A of the Act applies. Regulations under section 14A may specify persons to whom the section applies and may modify the Act in respect of such persons. These provisions are contained in the superannuation (Continuing Contributions for Benefits) Regulations (the Regulations).

ANL Limited employs a number of persons who are eligible employees. ANL Limited has established a subsidiary company, Marine Management Services Pty Ltd, which has entered into a partnership agreement with Associated Steamships Pty Ltd to form ASP Ship Management.

Part of the staff of the partnership will be drawn from the existing staff of ANL Limited, including persons who are eligible employees. Persons who transfer from ANL Limited to ASP Ship Management will not automatically be able to continue to be eligible employees because ASP ship management is not staffed under the Public service Act 1922 and is not an approved authority for the purposes of the Act.

It is intended that persons who are eligible employees and employees of ANL Limited immediately prior to becoming employees of ASP Ship Management should be permitted to remain eligible employees. To achieve this, it is intended that those persons who are to remain eligible employees be specified as a class of persons to which section 14A of the Act applies.

Amending subregulation 2.1 provides for the definitions of "ASP Ship Management" and "employee of ASP Ship Management".

Amending subregulation 3.1 provides that an employee of ASP Ship Management shall be an eligible employee for the purposes of the Act if, immediately prior to becoming an employee of ASP Ship Management, he or she was an eligible employee and an employee of ANL Limited. In accordance with the provisions of the Act, the amendment excludes a person who becomes a casual or temporary part-time employee or a member of another superannuation scheme applying to his or her employment from remaining an eligible employee.

Amending subregulation 4.1 provides that such a person will cease to be an eligible employee if he or she ceases to be an employee of ASP Ship Management. In accordance with the provisions of the Act, the amending subregulation excludes a person who becomes a casual or temporary part-time employee or who becomes a member of another superannuation scheme applying to his or her employment from remaining an eligible employee.

Subregulation 5.1 provides, by insertion of a new version of section 159(1A) into the Act and by amendment of existing subparagraph 159(2)(a)(ii), that ASP Ship Management shall make payments to the Commonwealth in respect of eligible employees who are employees of the partnership. Section 159(1A) was previously inserted by the Regulations to provide that specified bodies shall make payments to the Commonwealth in respect of eligible employees who are employed by those bodies at such rates as the Minister for Finance determines, having regard to the amounts that have become, or are likely to become, payable out of the Consolidated Revenue Fund to or in respect of those persons.

The amendments come into operation on the date of gazettal.