Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS(AMENDMENT) 1992 NO. 460

STATUTORY RULES 1992 No. 460

ISSUED BY THE AUTHORITY OF THE MINSTER FOR FINANCE

SUPERANNUATION ACT 1965

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 Commonwealth employees and certain 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 of the Act 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. These provisions are contained in the Superannuation (Continuing Contributions for Benefits) Regulations (the Regulations).

The Regulations provide, with certain exceptions, that persons who become members of another superannuation scheme cease to be persons to whom section 14A applies; as a consequence, such persons are excluded from remaining contributors to the CSS.

Under the industrial agreement of 4 December 1992 between the Commonwealth and public sector unions, Senior Officers employed by the Commonwealth may be eligible to receive performance pay.

It is possible that superannuation could be provided on performance based pay at some time in the future with contributions being paid to a scheme other than the CSS. In such circumstances, it would be intended that persons who make superannuation contributions on the basis of performance pay to a separate scheme not be excluded from remaining members of the CSS. Accordingly, the Regulations are amended to ensure that the existing exclusions would not affect such persons.

Details of the proposed Regulations are as follows.

Regulation 1 provides that the Regulations are amended as set out in the Amending Regulations.

Regulation 2 inserts a definition of "performance pay" in the Interpretation provisions of the Regulations.

Regulation 3 amends subparagraph 3(1)(d)(iii) of the Regulations to provide that persons will not be included in the class of persons described in paragraph 3(1)(d) as a class of persons to which section 14A does not apply if they become contributors solely in relation to performance pay to a superannuation scheme other than the CSS.

Subregulations 4.1, 4.2, 4.3 and 4.4 amend the provisions of regulation 3A to provide that persons will continue to be included in the classes of persons described in paragraphs (a), (d), (e) and respectively as classes of persons to which section 14A applies if they become contributors solely in relation to performance pay to a superannuation scheme other than the CSS.

Subregulations 5.1, 5.2 and 5.3 amend the provisions of subregulations 4(1), (5) and (6) respectively to provide that section 14A will not cease to apply to a person solely by reason that the person becomes a contributor in relation to performance pay to a superannuation scheme other than the CSS.

The Regulations commence on gazettal.