Commonwealth Numbered Regulations - Explanatory Statements
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SUPERANNUATION (COST OF ADMINISTRATION) REGULATIONS 2017 (F2017L01675)
EXPLANATORY STATEMENT
Issued by authority of the Minister for Finance
Superannuation Act 1976
Superannuation (Cost of Administration) Regulations 2017 made pursuant to subsection 168(1) of the Superannuation Act 1976.
The Superannuation Act 1976 (the Act) established the Commonwealth Superannuation Scheme (CSS) to provide retirement benefits for Commonwealth employees and office holders. The CSS is managed by the Commonwealth Superannuation Corporation, the corporate trustee and administrator of the scheme.
Subsection 168(1) of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters that are required or permitted by the Act to be prescribed, or that are necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Subsection 160(1) of the Act requires the costs of and incidental to CSC's management of the CSS Fund to be paid out of moneys appropriated by the Parliament from time to time, other than costs that the regulations require to be paid from the CSS Fund.
The Superannuation (Cost of Administration) Regulations 1980, made pursuant to subsection 168(1) of the Act, require all costs of and incidental to CSC's management of the CSS Fund to be paid from the CSS Fund. The Superannuation (Cost of Administration) Regulations 1980 will be automatically repealed on 1 April 2018 in accordance with the Legislation Act 2003, which provides for the "sunsetting" of all non-exempt legislative instruments.
Superannuation (Cost of Administration) Regulations 2017
The purpose of the Superannuation (Cost of Administration) Regulations 2017 (the Regulations) is to remake the Superannuation (Cost of Administration) Regulations 1980, with some minor simplification of provisions, prior to them "sunsetting" on 1 April 2018.
The Regulations provide continuity of the arrangements currently in place under the Superannuation (Cost of Administration) Regulations 1980 by requiring all costs of and incidental to CSC's management of the CSS Fund to be paid from the CSS Fund.
The simplification of the Regulations does not affect their meaning or operation.
The Regulations repeal the Superannuation (Cost of Administration) Regulations 1980, which they are intended to replace, from commencement of the instrument.
Further details on the Regulations are set out in Attachment A.
CSC Approval
Subsection 168(13) of the Superannuation Act 1976 requires that, in most circumstances, CSC consent to the making of Regulations made under that Act. CSC has consented to the making of the Regulations.
Legislation Act 2003
The Regulations are a legislative instrument and are subject to disallowance in accordance with section 42 of the Legislation Act 2003.
Consultation
Section 17 of the Legislation Act 2003 specifies that rule-makers should consult before making legislative instruments.
CSC has been consulted on, and consented to, the Regulations.
The Office of Best Practice Regulation was consulted on the arrangements in the Regulations. A Regulation Impact Statement was not prepared, as the Regulations will not have a regulatory impact on business, individuals or community organisations (OBPR ID 23047).
Commencement
The Regulations commence on the day after registration of the instrument on the Federal Register of Legislation.
Statement of Compatibility with Human Rights
A Statement of Compatibility with Human Rights is at Attachment B.
ATTACHMENT A
DETAILS OF THE SUPERANNUATION (COST OF ADMINISTRATION) REGULATIONS 2017
Name
1. Section 1 provides that the name of the instrument is the Superannuation (Cost of Administration) Regulations 2017.
Commencement
2. Section 2 provides for commencement of the Regulations on the day after the instrument is registered on the Federal Register of Legislation.
Authority
3. Section 3 provides that the Regulations are made under the Superannuation Act 1976 (the Act).
Schedule
4. Section 4 provides that each instrument specified in the Schedule to the instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in the Schedule to the instrument has effect according to its terms.
Definitions
5. Section 5 defines the term "Act", used in the Regulations, to mean the Superannuation Act 1976. It also includes a note to make it clear that the terms "CSC" and "Fund", used in the Regulations, are defined in the Superannuation Act 1976.
Costs of administration of Fund
6. Section 160 of the Act prescribes arrangements for the payment of costs of administration of the Act and the superseded Superannuation Act 1922. Under subsection 160(1) of the Act, the costs of and incidental to the management of the CSS Fund by CSC are to be paid from moneys appropriated from time to time by the Parliament for the purpose unless regulations made under subsection 168(1) of the Act require them to be paid from the CSS Fund.
7. Section 6 of the Regulations specifies that, for the purposes of subsection 160(1) of the Act, all costs of and incidental to CSC's management of the CSS Fund are to be paid from the CSS Fund.
Schedule 1--Repeals
8. Item 1 of Schedule 1 provides for repeal of the Superannuation (Cost of Administration) Regulations 1980, as the instrument will "sunset" on 1 April 2018 and is being remade by the Regulations. Under section 7 of the Acts Interpretation Act 1901, as applied to legislative instruments by subsection 13(1) of the Legislation Act 2003, the repeal does not affect the previous operation of the Superannuation (Cost of Administration) Regulations 1980.
ATTACHMENT B
