Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (SALARY) REGULATIONS (AMENDMENT) 1991 NO. 167

STATUTORY RULES 1991 No. 167

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

SUPERANNUATION ACT 1976

SUPERANNUATION (SALARY) REGULATIONS (AMENDMENT)

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

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

The rates of contribution payable under the Act by members of the scheme are expressed in the Act as a percentage of the member's fortnightly rate of salary. The rates of pension payable are expressed as a percentage of the member's final annual rate of salary. The terms "fortnightly rate of salary" and "final annual rate of salary" are both defined in subsection 3(1) of the Act by reference to the member's annual rate of salary.

Subsection 5(1) of the Act provides that "salary" includes any allowance that, in accordance with the regulations, is to be treated as salary for the purposes of the Act and excludes any part of salary or wages that, in accordance with the regulations, is not to be treated as salary for the purposes of the Act. In accordance with subsection 5(2), a member's annual rate of salary for the purposes of the Act on a particular day is the amount per annum of his or her salary payable on that day. However, subsection 5(3) provides that, in a case specified in the regulations, a member's annual rate of salary is to be as specified in the regulations.

Section 168(9) of the Act provides that regulations made within a period of 12 months after 1 July 1990 by virtue of section 5 may be expressed to have taken effect from and including a day not earlier than 1 July 1990.

Regulations for the purposes of section 5 are contained in the Superannuation (Salary) Regulations (the Principal Regulations).

Part IV of the Principal Regulations (regulations 12 to 17) contains provisions in relation to the salary for the purposes of the Act of members who are on leave without pay. Regulation 13 provides that, where a member is on leave without pay in relation to which section 51 of the Act does not apply, and prescribed circumstances as described in subregulation 13(2) do not apply, the member's annual rate of salary during the period of the leave is to be the annual rate of the member's notional salary as defined in paragraph 12 (b) of the Principal Regulations. Generally, this is the salary that would have been applicable if the member had not been on leave without pay.

Section 51A of the Act as amended by section 40 of the Superannuation Legislation Amendment Act 1990 provides that a member is neither required nor permitted to pay contributions during a period of unpaid maternity or parental leave but may elect to contribute during the whole, or a part, of the leave. The Regulations amend regulation 13 of the Principal Regulations in relation to a member who is on unpaid maternity or parental leave. As a result of the amendment, regulation 13 will provide that such a member's annual rate of salary for the purposes of the Act during any part of the period of unpaid leave during which the member has elected to contribute will also be the annual rate of the member's notional salary as defined in paragraph 12 (b) of the Principal Regulations.

In accordance with subsection 168(9) of the Act, the Regulations will operate with effect from and including 1 July 1990, the date of commencement of the amendments to section 51A of the Act.