EXPLANATORY STATEMENT

STATUTORY RULES 1986 NO 373

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

SUBJECT:       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 as “eligible employees”.

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

Sub-section 3(1) of the Act defines “approved authority” as:

(a)        an authority or other body specified in the regulations as an approved authority for the purposes of the Act, being an authority or body of a kind described in the definition; or

(b)        an authority or body that was an approved authority for the purposes of the Superannuation Act 1922 immediately before 1 July 1976, the date of commencement of the Act.

Authorities or bodies that have become approved authorities since 1 July 1976 are specified in the Superannuation (Approved Authorities) Regulations.

It is intended that persons who have become employed by the University College of the University of New South Wales at the Australian Defence Force Academy since 1 January 1986, and who become employees of the College in the future, and who were, or are, eligible employees before becoming so employed be able to remain eligible employees while employed by the College. Related amendments to the Superannuation (Approved Authorities) Regulations therefore specify the College as an approved authority with effect from 1 January 1986.

It is also intended that those who were, or are, not eligible employees immediately before becoming employed by the College be excluded from being eligible employees while employed by the College and that, instead, they have offered to them membership of the New South Wales State Superannuation Scheme. However, as a consequence of the specification of the College as an approved authority with effect from 1 January 1986, such persons would become eligible employees from the date they commenced employment with the College. Amendments to the Superannuation (Eligible Employees) Regulations are therefore necessary to exclude those persons from remaining or becoming eligible employees while employed by the College.

The Statutory Rule amends the Superannuation (Eligible Employees) Regulations accordingly and the amending regulations came into operation on the date of gazettal.