Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (PRODUCTIVITY BENEFIT) ALTERNATE ARRANGEMENTS (CONTRACTS FOR LABOUR) DECLARATION 1993 NO. 204

EXPLANATORY STATEMENT

Statutory Rules 1993 No. 204

SUPERANNUATION (PRODUCTIVITY BENEFIT) ACT 1988

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

DECLARATION UNDER SUBSECTIONS 4A(1) AND (2)

The Superannuation (Productivity Benefit) Act 1988 (the Act) provides the mechanism for the payment of superannuation guarantee minimum benefits to Commonwealth sector employees who have no other employer sponsored superannuation coverage.

The designated employers of qualified employees are required to pay to either the superannuation fund nominated by the Minister for Finance or a fund approved by the Minister periodic contributions based on the salary of the employee.

Subsection 4A(1) of the Act allows the Minister for Finance to declare that a specified class of employees are not covered for benefits provided for under the Act unless the conditions specified in the declaration declare otherwise.

Subsection 4A(2) of the Act allows the Minister for Finance to specify particular replacement superannuation arrangements to apply to a declared class of employees.

This declaration provides that contractors who are not common law employees, who are entitled to superannuation guarantee payments, and who would have been qualified employees under the Act if they had been common law employees, to be a specified class of employees.

The declaration then specifies the arrangements to apply to the class. Persons in this class have two possible options. Firstly, they may elect to join the nominated fund (AGEST) or another fund approved under the Act. Secondly, those employees in this class who on commencement of employment are members of a fund which is a complying superannuation fund for the purposes of Part IX of the Income Tax Assessment-Act 1936 may elect to have their superannuation contributions provided under the Act paid to that fund.

The declaration takes effect from 1 July 1992.


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