Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS (AMENDMENT) 1993 NO. 50

EXPLANATORY STATEMENT

STATUTORY RULES 1993 No. 50

Issued by the 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 (the CSS) for certain Commonwealth employees and other persons. Persons eligible to contribute to the CSS 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.

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 applies. Regulations under section 14A may specify classes of persons to which the section applies and may modify the Act in respect of such persons.

Regulations for the purposes of section 14A are contained in the Superannuation (Continuing Contributions for Benefits) Regulations (the Regulations).

Australian Airlines Limited is an approved authority for the purposes of the Act. As a consequence, employees of Australian Airlines Limited have been, in general, permitted to remain or become eligible employees.

Australian Airlines has been sold to Qantas Airways Limited and, as a result, has become a wholly owned subsidiary of Qantas. Qantas intends to renegotiate the terms and conditions of employment for employees of Australian Airlines and to progressively transfer them to employment with Qantas.

The Qantas Sale Act 1992 provides the framework for the privatisation of Qantas and its subsidiaries. Section 3 of the Qantas Sale Act 1992 defines the terms "Qantas", "Qantas subsidiary" and "the 50% sale day". Section 5 of the Qantas Sale Act 1992 provides for the determination and declaration of the 50% sale day.

The Regulations contained in these Statutory Rules amend the Regulations to allow employees of Qantas who were formerly eligible employees and employed by Australian Airlines to continue membership of the CSS. They also provide that this class of persons would cease to be eligible employees at the end of the day preceding the 50% sale day if, as individuals, they have not already ceased to be eligible employees.

The amendments contained in the Regulations are explained in the Attachment.

These Regulations operate from the date of gazettal.

ATTACHMENT

SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS (AMENDMENT)

The details of the Regulations are as follows -

Regulation 1

This provides that the Superannuation (Continuing Contributions for Benefits) Regulations (the Principal Regulations) are amended as set out in the Regulations.

The Regulations are taken to have commenced on the date of gazettal.

Regulation 2

This modifies Regulation 2 of the Regulations and provides for the following definitions to be inserted:

"Qantas employee": this class of employees includes employees of Qantas or a Qantas subsidiary (including Australian Airlines Limited) as defined in the Qantas Sale Act 1992 and is relevant, for the purposes of the Regulations, for defining a prescribed class of employees to which section 14A of the Act has application. In keeping with the membership arrangements under the CSS, the definition of a Qantas employee does not include a casual employee or a temporary part-time employee.

"the 50% sale day": this day refers to the 50% sale day defined in the Qantas Sale Act 1992 whereby the Commonwealth will cease to have the majority shareholding in Qantas.

Regulation 3

Regulation 3A of the Regulations is modified by inserting a new class of persons to which section 14A of the Act applies. The new class includes Qantas employees who immediately before becoming such employees were eligible employees employed by Australian Airlines Limited. Persons who become Qantas employees on or after the 50% sale day or who join another superannuation scheme applying to Qantas employment will not be included in the new class of persons.

Regulation 4

This modifies Regulation 4 of the Regulations to provide that section 14A will no longer apply to the new class of persons at the end of the day preceding the 50% sale day if, as individuals, the employees have not ceased to be eligible employees before that day.

Regulation 5

Section 159 of the Act provides for payments to be made to the Commonwealth by certain employers in respect of their employees where those persons are eligible employees. These payments are made 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.

Regulation 5 modifies Schedule 1 of the Regulations to amend inserted subsection 159(1 A) of the Act to require Qantas or a subsidiary of Qantas to make payments in respect of eligible employees where they are employed by one of those bodies.


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