EXPLANATORY STATEMENT

STATUTORY RULES 1984 No. 113

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

SUPERANNUATION ACT 1976 - SUPERANNUATION (ELIGIBLE EMPLOYEES) 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 that the Act requires or permits to be prescribed, or that 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.

Persons eligible to contribute under the Act are referred to in the Act as eligible employees.

In accordance with the definition of “eligible employee” in sub-section 3(1) of the Act, the term includes officers and employees for the purposes of the Public Service Act 1922 and any other person employed in a permanent or temporary capacity by the Commonwealth or an approved authority. In accordance with paragraph (j) of the definition, the term does not include a person included in a prescribed class of persons. The classes of persons so excluded are prescribed in the Superannuation (Eligible Employees) Regulations (the Regulations).

Paragraph 4(a) of the Regulations provides that persons who are employees of an approved authority and who are members of a superannuation scheme applying to persons employed by that approved authority (not being the scheme constituted by the provisions of the Act) or who are required by the terms and conditions of their employment to become such members are included in a prescribed class of persons for the purposes of the definition of “eligible employee”. Paragraph 4(aa) makes similar provision in respect of persons who are holders of statutory offices. A “superannuation scheme” for the purposes of the Regulations is defined in regulation 3 as “a scheme, fund or arrangement, however established, under which superannuation or retirement benefits are payable”.

Members of the Police Force of the Northern Territory are eligible employees for the purposes of the Act by virtue of their employment by the Northern Territory of Australia which is an approved authority for the purposes of the Act. Certain statutory office holders under the Northern Territory Police Administration Act may also be eligible to contribute under the Act.

Members of the Northern Territory Police Force are required to retire at age 60. As reduced age retirement benefits are payable under the Act on retirement at an age lower than 65 years, the Northern Territory Government intends providing members of the Northern Territory Police Force with benefits to supplement the age retirement benefits payable under the Act. These arrangements are to be provided under a scheme to be known as the “Northern Territory Police Supplementary Benefit Scheme” that will be established pursuant to the provisions of sections 9 and 51 of the Northern Territory Police Administration Act and that will be entirely separate from those under the Act. The scheme is to operate from 1 July 1984.

The Northern Territory Police Supplementary Benefit Scheme would constitute a “superannuation scheme” for the purposes of the Regulations and members of the Police Force and persons holding statutory offices under the Northern Territory Police Administration Act who become members of the Supplementary Benefit Scheme therefore would be excluded from being eligible employees for the purposes of the Act. As the Supplementary Benefit Scheme is intended to supplement the benefits provided under the Act, members of the Supplementary Benefit Scheme should remain eligible employees for the purposes of the Act.

The Regulations therefore amend the definition of “superannuation scheme” in regulation 3 of the Superannuation (Eligible Employees) Regulations to exclude from its scope the Northern Territory Police Supplementary Benefit Scheme. They also make minor drafting amendments to the Regulations to consolidate in the definition of “superannuation scheme” references elsewhere in the Regulations excluding from the operation of the Regulations the scheme established under the Act.

The amending Regulations are expressed to come into effect on 1 July 1984.