Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (SALARY) REGULATIONS (AMENDMENT) 1992 NO. 427

EXPLANATORY STATEMENT

STATUTORY RULES 1992 No. 427

Issued by the authority of the Minister for Finance

Superannuation Act 1976

Superannuation (Salary) Regulations (Amendment)

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.

Section 168 of the Act provides that the Governor-General may make regulations for the purposes of the Act.

Subsection 5(2) of the Act provides that, subject to subsection 5(3), the annual rate of salary of an eligible employee on a particular day is an amount equal to the amount per annum of the salary payable to him on that day.

Subsection 5(3) of the Act provides that the regulations may provide that an eligible employee's annual rate of salary shall be such amount per annum as is ascertained under the regulations.

Regulations for the purposes of section 5 of the Act are contained in the Superannuation (Salary) Regulations (the Principal Regulations).

The rate of contribution payable under the Act by an eligible employee is expressed in the Act as a percentage of his or her fortnightly rate of salary. The rate of pension payable is expressed as a percentage of his or her final annual rate of salary. The terms 'fortnightly rate of salary' and 'final annual rate of salary are both defined in subsection 3(1) of the Act by reference to the eligible employee's annual rate of salary.

Part 2E of the Principal Regulations provides for the annual rate of salary for certain eligible employees who are employed on flexible remuneration packages. Flexible remuneration packages allow recipients to choose to receive some of their remuneration in a non-monetary form instead of as salary; the components of such a package can be varied from time to time.

The annual rate of salary of a person referred to in Part 2E of the Principal Regulations is the percentage, set down in Schedule 1 to the Principal Regulations, of the total value of the person's package.

It is proposed that the annual rate of salary for the purposes of the Act of certain persons who are working for the Australian Federal Police, the Dairy Research and Development Corporation or Commonwealth Serum Laboratories Limited, and who are in receipt of flexible remuneration packages, be specified in Schedule 1.

To this end, the Regulations amend the Principal Regulations.

Regulation 1 provides that the Principal Regulations are amended as set out in the Regulations.

Paragraph 8Q(1)(a) of the Principal Regulations provided that Regulation 8Q applies to an eligible employee who is appointed or employed by a relevant authority. The term 'relevant authority' is defined in Regulation 8P. Regulation 2 amends paragraph 8Q(1)(a) to provide that Regulation 8Q applies to an eligible employee who is appointed or employed by or under a law stated in column 2 of Part 2 of Schedule 1, as well as by a relevant authority. This amendment is necessary to accommodate the employment relationship between the Commonwealth and staff of the Australian Federal Police.

Subregulation 3.1 amends Schedule 1 of the Principal Regulations to specify the following authorities and percentages in Part 1:

•       Commonwealth Serum Laboratories Limited - 80 per cent; and

•       the Dairy Research and Development Corporation - 70 per cent.

Subregulation 3.2 amends Schedule 1 of the Principal Regulations to specify the following laws and percentages in Part 2:

•       Division 1 or 2 of Part IV of the Australian Federal Police Act 1979 - 70 per cent; and

•       the Primary Industries and Energy Research and Development Act 1989 in its application to an office of the Dairy Research and Development Corporation - 70 per cent.

The Regulations come into operation from the date of gazettal.


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