Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (CSS) (SG MINIMUM CONTRIBUTION) DETERMINATION NO. 1 1992 NO.461

STATUTORY RULES 1992 No. 461

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

SUPERANNUATION ACT 1976

DETERMINATION UNDER SECTION 110SC

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. Members of the scheme are referred to in the Act as eligible employees.

Part VIAA (comprising sections 110SA to 110SJ) provides for the calculation and payment of a Superannuation Guarantee Top-up Benefit for members of the scheme in circumstances where other superannuation benefits to be paid to the member, either under the Act or by their employer, are not sufficient to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992 (the SG Act).

Section 110SC of the Act provides for an SG minimum contribution rate for all eligible employees. That rate is used to calculate a minimum benefit that is sufficient to satisfy the minimum required at any time under the SG Act.

Subsection 110SC(1) provides that the SG minimum contribution rate on a contribution day is 4% of the fortnightly rate of salary applicable to an eligible employee under the Act. Subsection 110SC(2) provides that the Minister may vary, the percentage mentioned in subsection (1) by determination. Subsection 110SC(3) provides that the Minister, in making a determination, is to have regard to the charge percentages set out in sections 20 and 21 of the SG Act. The percentage provided for by those sections has been increased to 5% with effect from 1 January 1993, by regulation under the SG Act.

The Determination contained in the Statutory Rule, and cited as "Superannuation (CSS) (SG Minimum Contribution) Determination No. 1" provides that the SG minimum contribution as described in section 110SC of the Act will be increased to 5% from 1 January 1993.

Subsection 110SC(4) and (5) provide that a determination under the section is to be a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903, and a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

The Determination will operate on and from 1 January 1993.