Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS (AMENDMENT) 1994 NO. 335

STATUTORY RULES 1994 No. 335

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 (known as the CSS) 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.

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

Section 14A of the Act provides that the regulations made under that section may specify a class of persons to which the section applies and may modify the Act in respect of persons to whom the section applies. Regulations for the purposes of section 14A are contained in the Superannuation (Continuing Contributions for Benefits) Regulations (the Principal Regulations).

The membership arrangements provided for in the Principal Regulations generally exclude a person from membership of the CSS if the person is a member of another superannuation scheme to which the person's employer has agreed to make employer contributions.

However, this exclusion does not apply to certain eligible employees employed on flexible remuneration arrangements which allow them to salary sacrifice a portion of their cash salary in favour of employer superannuation contributions to an alternative superannuation scheme, in addition to contributions made to the CSS. A person who has such an arrangement is referred to in the Principal Regulations as being a member of a superannuation scheme for "top-up purposes".

The amending Regulations correct a drafting error in the Principal Regulations to ensure that certain classes of persons to whom section 14A applies and who are therefore eligible employees continue to be eligible employees if they are members of a superannuation scheme for top-up purposes.

The amending Regulations amend subparagraphs 3A(1)(a)(v), 3A(1)(c)(iii), 3A(1)(ca)(iii) and 3A(1)(d)(iii). The amendments ensure that certain persons referred to in those provisions do not cease to be persons to whom section 14A applies, or are not prohibited from having section 14A apply to them, because they are, or become, members of a superannuation scheme for top-up purposes.

The proposed Superannuation (Continuing Contributions for Benefits) Regulations (Amendment) commenced retrospectively from 26 July 1994. Subsection 168 (15) of the Act provides that regulations made for the purpose of section 14A may commence up to 12 months earlier that the making of the regulations.