EXPLANATORY STATEMENT

STATUTORY RULES 1990 NO 379

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

SUPERANNUATION ACT 1976

SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS (AMENDMENT)

The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme 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.

Persons eligible to contribute under the Act are referred to in the Act as “eligible employees”. The term “eligible employee” is defined in subsection 3(1) of the Act. In accordance with paragraph (ea) of the definition, the term includes a person to whom section 14A of the Act applies. Regulations under section 14A may specify persons to whom the section applies and may modify the Act in respect of such persons. These provisions are contained in the Superannuation (Continuing Contributions for Benefits) Regulations (the Regulations).

The Regulations have modified the Act by inserting a new section 159A which imposes a liability on a prescribed authority to meet the cost of the employer share of any superannuation benefits that become payable to or in respect of relevant persons employed by the authority.

The term “relevant person”, as defined in subsection 159A(1), includes an eligible employee who is a person to whom Division 2 or 3 of Part IV of the Public Service Act 1922 applies and who is the holder of a Commonwealth office that is declared by the Minister to be an office the holding of which is to be treated, for the purposes of section 159A, as if it were employment by a prescribed authority.

It is intended that a declaration by the Minister under the definition of the term “relevant person” in section 159A of the Act be a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901. This will mean that such declarations will be disallowable by the Parliament in the same way as regulations.

The Regulations give effect to the above intention.