Commonwealth Numbered Regulations - Explanatory Statements

[Index] [Search] [Download] [Related Items] [Help]


SUPERANNUATION (PRODUCTIVITY BENEFIT) (2003-2004 CONTINUING CONTRIBUTIONS) DECLARATION 2003 2003 NO. 174

EXPLANATORY STATEMENT

STATUTORY RULES 2003 No. 174

SUPERANNUATION (PRODUCTIVITY BENEFIT) ACT 1988

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE AND ADMINISTRATION

DECLARATION UNDER SECTION 3D

VARIATION OF TABLE

Superannuation (Productivity Benefit) (2003-2004 Continuing Contributions) Declaration 2003

The Superannuation (Productivity Benefit) Act 1988 (the PB Act) provides the mechanism by which the Superannuation Guarantee (SG) minimum employer superannuation contribution is made for Commonwealth employees (and certain other employees) who have no other employer-sponsored superannuation cover. Prior to 1 July 1992, the PB Act provided productivity superannuation to these employees.

Since 1 July 1990, the designated employers of employees covered by the PB Act arrangements have been required to pay periodic contributions in respect of those employees to a superannuation fund nominated or approved by the Minister for Finance and Administration. More recently, where the employee is eligible, employers have been able to pay contributions to another regulated superannuation fund as defined by the Superannuation Industry (Supervision) Act 1993.

The amount to be contributed by an employer is determined from the table in the Schedule to the PB Act. The table is structured so that a proportionately greater benefit is provided to lower paid wage earners. The amount to be contributed is adjusted where the employee is not employed full-time.

The benefits provided under the PB Act comply with the minimum level of employer superannuation support envisaged in the SG legislation.

This Declaration, made under section 3D of the PB Act and cited as the Superannuation (Productivity Benefit) (2003-2004 Continuing Contributions) Declaration 2003 substitutes a new table in the Schedule to the PB Act in relation to the financial year commencing on 1 July 2003.

The major effect of the substituted table is to increase the salary threshold from $2,247.69 to $2,350.77 per week above which the superannuation contribution payable is a flat dollar amount, equal to 9 per cent of the threshold amount. The substituted table will mean that employees on salaries in excess of $2,350.77 per week ($122,240 per annum) will receive a flat contribution equivalent to 9 per cent or $211.57 per week.

The substituted table also sets superannuation contributions for employees on salaries between $150.33 per week and $2,350.77 per week as being 9 per cent of the employee's salary.

The substituted table continues to provide for a flat rate superannuation contribution of $13.53 per week for lower paid wage earners whose weekly rate of salary is less than $150.33, and for whom 9 per cent of weekly salary would be less than this amount.

The substituted table continues the historical arrangements whereby contribution rates under the PB Act have been skewed so that low income earners receive more than the SG minimum rate and higher income earners receive less.

The Declaration commences on gazettal.


[Index] [Related Items] [Search] [Download] [Help]