EXPLANATORY STATEMENT

STATUTORY RULES 1984 NO. 136

ISSUED BY AUTHORITY OF THE MINISTER FOR FINANCE

SUPERANNUATION ACT 1976 - SUPERANNUATION (COST OF ADMINISTRATION) REGULATIONS (AMENDMENT)

Section 168 of the Superannuation Act 1976 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters which the Act requires or permits to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The Act makes provision for and in relation to an occupational superannuation scheme for persons employed by the Commonwealth, and for certain other persons. In accordance with section 45 of the Act, each member of the scheme is required to pay fortnightly basic contributions and, in accordance with section 48 of the Act, a member may elect to pay fortnightly supplementary contributions. In accordance with section 53 of the Act, contributions are paid into the Superannuation Fund. The Fund comprises accumulated contributions by scheme members and earnings thereon.

Pursuant to sections 41 and 42 of the Act, the Superannuation Fund Investment Trust is responsible for the management of the Fund and investment of moneys of the Fund not required for the time being for the payment of benefits under the Act. Such moneys must be invested by the Trust in accordance with section 42 of the Act.

Section 160 of the Act provides that the costs of the administration of the Act, including the costs of and incidental to the management of the Fund by the Trust (other than costs which the regulations provide shall be paid out of the Fund), shall be paid out of moneys appropriated from time to time by the Parliament for this purpose.

The Superannuation (Cost of Administration) Regulations provide that all of the costs of and incidental to the management of the Fund by the Trust shall be paid out of the Fund other than those relating to salaries, office accommodation and furniture.

The Regulations amend the Superannuation (Cost of Administration) Regulations to provide that, with effect from 1 July 1984, all of the costs of and incidental to the management of the Fund by the Trust shall be paid out of the Fund. The Regulations do not extend to those costs incurred by the Commissioner for Superannuation who, under section 17 of the Act, is responsible for the general administration of the Act excluding the management and investment of the Fund.