Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS (AMENDMENT) 1994 NO. 115

STATUTORY RULES 1994 No. 115

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. 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 applies. Subsection 14A(1) lists the categories of persons to whom the section applies including persons specified in regulations made under the section. Regulations under section 14A may also 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 Commonwealth Scientific and Industrial Research Organisation (CSIRO) is an approved authority for the purposes of the Act. As a consequence, employees of CSIRO have been, in general, permitted to remain or become eligible employees.

A number of employees of CSIRO (who are eligible employees) were transferred to Australian Meat Technology Pty Limited (AMT) on 3 December 1993. AMT is a recently formed subsidiary of the Meat Research Corporation (MRC) and is currently 100 per cent owned by it. The MRC is also an approved authority and certain members of its staff are eligible employees.

The Regulations contained in these Statutory Rules amend the Principal Regulations to enable those persons who were employees of CSIRO and eligible employees immediately before becoming employed by AMT to continue membership of the CSS.

The details of the Regulations are explained in the Attachment.

The Regulations operate with retrospective effect from 3 December 1993, the day the transfers took place. They ensure that the AMT employees referred to have maintained the continuity of their CSS membership and that their superannuation entitlements have been unaffected by the employment transfer. The employees have indicated in writing their desire to remain members of the CSS after the transfer and before the gazettal of the amending Regulations have paid all contributions for the retrospective period from 3 December 1993.

The Regulations give effect to these modifications.

ATTACHMENT

SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS (AMENDMENT)

The details of the Regulations are as follow:

Regulation 1

The Regulations would commence retrospectively on 3 December 1993.

Regulation 2

This provides that the Superannuation (Continuing Contributions for Benefits) Regulations (the Principal Regulations) are amended as set out in the Regulations.

Regulation 3

This modifies Regulation 2 of the Principal Regulations by inserting a definition of "Commonwealth control" of a company. The term is defined because the amendment to Regulation 4 provides that one of the circumstances in which section 14A will no longer apply to the transferees is when AMT ceases to be controlled by the Commonwealth.

Regulation 4

Regulation 3A of the Principal Regulations lists certain classes of persons to which section 14A of the Superannuation Act 1976 (the Act) applies. Such persons are eligible employees by virtue of paragraph (ea) of the definition of "eligible employee" in subsection 3(1) of the Act.

Regulation 4 of the amending Regulations inserts a new paragraph 3A(1)(l) which provides for a new class of persons to which section 14A of the Act applies. The new class includes an AMT employee (other than a casual or temporary part-time AMT employee) who immediately before becoming or last becoming an employee of AMT was employed by CSIRO and was an eligible employee.

If the person was employed by AMT before the making of these amendments is notified in the Gazette, the person will be included in the class if before the date of gazettal he or she elected to continue to be treated as an eligible employee and made payment of all contributions due before that date.

Regulation 4 of the amending regulations also inserts a new subregulation 3A(2) which explains the reference to "the relevant amendment" in new paragraph 3A(1).

Regulation 5

Items 5.1 - 5.7

These items modify regulation 4 by providing a series of substitutions for references made to the paragraphs of regulation 3A in the Principal Regulations. This is necessary because of the creation of new subregulation 3A(2) by the amending regulations. Hence, for example, the reference to paragraph 3A(f) becomes a reference to paragraph 3A(1)(f).

Item 5.8

This amends regulation 4 of the Principal Regulations by inserting a new subregulation 4(10) which defines the time when section 14A ceases to apply to a person included in the new class referred to in paragraph 3A(1)(l). The time fixed is at the end of the first occurring of the following days:

(a) the day on which the person:

(i)       ceases to be an employee of AMT; or

(ii)       becomes a casual or temporary part-time employee of AMT; or

(iii)       becomes a member of a superannuation scheme applying to that person's employment by AMT (other than the scheme provided for under the Act or a scheme to which contributions are made only in relation to performance pay); or

(b) if Commonwealth control of AMT ceases - the last day on which Commonwealth control was effective.

Regulation 6

This replaces the reference to paragraph 3A(h) in the Principal Regulations with a reference to paragraph 3A(1)(h). This is necessary because of the insertion of subregulation 3A(2) by the amending regulations.

Regulation 7

Section 159 of the Act provides for payments to be made to the Commonwealth by certain employers in respect of their employees where those persons are eligible employees. These payments are made at such rates as the Minister for Finance determines, having regard to the amounts that have become, or are likely to become, payable out of the Consolidated Revenue Fund to or in respect of those persons under the Act. Schedule 1 to the Principal Regulations modifies section 159 by the insertion of subsection (1A). That modification has the effect of applying section 159 to certain persons to whom section 14A applies.

Regulation 7 modifies Schedule 1 of the Principal Regulations to amend inserted subsection 159(1A) of the Act to apply section 159 to AMT in respect of its employees who are eligible employees as a consequence of the amending regulations.

Regulation 8

This substitutes a reference to paragraph 3A(h) in Schedule 2 of the Principal Regulations for paragraph 3A(1)(h). This is necessary because of the insertion of subregulation 3A(2) by the amending regulations.