Superannuation (CSS) Salary Regulations (Amendment) 1995 No. 348

EXPLANATORY STATEMENT

STATUTORY RULES 1995 No. 348

Issued by the Authority of the Minister for Finance

Superannuation Act 1976

Superannuation (CSS) Salary Regulations (Amendment)

The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme, the Commonwealth Superannuation Scheme (the CSS), for certain Commonwealth employees and other persons.

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

The purpose of the Superannuation (CSS) Salary Regulations (Amendment) (the amending Regulations) is to amend the Superannuation (CSS) Salary Regulations (the Principal Regulations) to reflect the arrangements brought about by the restructuring of the Civil Aviation Authority (CAA) and to update the flexible remuneration arrangement provisions applicable to certain employees of the Civil Aviation Safety Authority (CASA) and Airservices Australia (AA).

Section 5 of the Act provides, among other things., that the regulations may, prescribe an annual rate of salary for certain eligible employees. Regulations for the purposes of section 5 are contained in the Principal Regulations.

Some CSS members are employed under employment agreements known as flexible remuneration arrangements which enable them to receive part of their remuneration as non-cash benefits and to van, the components of the package from time to time.

Division 1 of Part 2E of the Principal Regulations (regulations 8P to 8QA inclusive) provides for the annual rate of salary of certain eligible employees who are employed on flexible remuneration packages. The annual rate of salary is described in Schedule 1 of the Principal Regulations as a prescribed percentage of the total value of the respective packages for those employees. Schedule 1 provides, among other things, for the annual rate of salary of persons who are employees of the CAA, or are appointed or employed under the Civil Aviation Act 1988 (the CAA Act), to be 70 per cent of the total value of their remuneration package.

The recent review of air regulation and air safety resulted in the enactment of the Civil Aviation Legislation Amendment Act 1995 (the CALA Act) (which amended the CAA Act) and the Air Services Act 1995 (the AA Act). The CALA Act abolished the CAA and provided for the establishment of CASA. The AA Act provided for the establishment of AA. CAA staff were transferred to either CASA or AA on 6 July 1995.

The amendments to the Principal Regulations reflect the change in employment arrangements for former staff of CAA. The annual rate of salary of the employees of AA employed on flexible remuneration packages is 70% of the total value of their remuneration package and in respect of such staff of CASA is now 77% of the total value of their remuneration package.

The Regulations commenced on gazettal.