Commonwealth Numbered Acts Commonwealth Numbered Acts
1 Subsection 3(1) (paragraph (b) of the definition of final annual rate of salary )
After "final basic contribution", insert "(including a final basic contribution of nil)".
2 Subsection 45(1)
Omit ", 51B".
3 At the end of subsection 45(1)
Add:
Note: The amount of fortnightly basic contributions payable might be nil (see subsection 46(2)).
4 Section 46
Before "The", insert "(1)".
5 At the end of section 46
Add:
(2) However, an eligible employee may elect that the amount of the fortnightly basic contribution payable by the employee is an amount equal to 0% of the fortnightly rate of salary referred to in subsection (1).
Note: The election is suspended during some periods of leave of absence without pay of more than 12 weeks (see sections 51A and 51AA).
(3) To avoid doubt, while an election made by an eligible employee under subsection (2) is in force:
(a) basic contributions continue to be payable by the employee; and
(b) the amount of basic contribution that is payable by the employee is nil.
(4) An eligible employee may revoke an election at any time.
(5) An eligible employee who makes an election under subsection (2), or revokes an election under subsection (4), must give written notice of the election or revocation to the Board.
(6) An election under subsection (2), or a revocation under subsection (4), takes effect from the first contribution day following the day on which notice of the election or revocation is given to the Board.
6 At the end of subsection 51(1)
Add:
Note: Subsection (3) prohibits a person to whom this section applies from making contributions during the period of leave of absence without pay.
Note 1: The following heading to subsection 51(1) is inserted " Scope of section ".
Note 2: The following heading to subsection 51(2) is inserted " Excluded periods (during which person is permitted to make contributions) ".
Note 3: The following heading to subsection 51(2A) is inserted " Certain transfers of employment (during which person is permitted to make contributions) ".
Note 4: The following heading to subsection 51(2BC) is inserted " Minister and Board agreements that period is an excluded period ".
Note 5: The following heading to subsection 51(3) is inserted " Prohibition on making contributions during period of unpaid leave ".
Note 6: The following heading to subsection 51(5) is inserted " Anticipating that a person will be on unpaid leave for more than 12 weeks ".
Note 7: The following heading to subsection 51(6) is inserted " Section does not apply to maternity and parental leave etc. ".
7 After section 51
Insert:
51AA Leave of absence without pay where basic contributions are of 0%
(1) This section applies to a person if:
(a) the person is, or at any time has been, an eligible employee; and
(b) the person, while an eligible employee, has been on leave of absence without pay for a period of more than 12 weeks; and
(c) paragraph 51(2)(b), (d), (da), (f) or (g) applies in respect of the period; and
(d) the person has (whether before or after the period of leave began) made an election under subsection 46(2) (contributions of 0%) that is in force.
(2) Despite the election made under subsection 46(2), the person is required to make contributions, on each contribution day occurring during the period of leave, of the amount that is payable under subsection 46(1).
Note: Subsection 46(1) requires a person to pay 5% of his or her fortnightly rate of salary. However, the person would be permitted to make contributions of 0% after the period of leave ends (without making a further election).
(3) For the purposes of this section, an eligible employee is taken to have been on leave of absence without pay for a period of more than 12 weeks if:
(a) the employee has been on leave of absence without pay for a period of less than 12 weeks; but
(b) the employee is expected to be on leave of absence without pay for a period of more than 12 weeks.
(4) The regulations may modify the operation of this section in relation to:
(a) a person to whom this section applies; or
(b) a prescribed class of such persons.
8 Subsection 51A(4)
After "would be payable", insert "under subsection 46(1) ( despite any election in force under subsection 46(2)) ".
9 At the end of subsection 51A(4)
Add:
Note: Subsection (4) requires a person to pay 5% of his or her fortnightly rate of salary even if an election by the person to pay 0% of that salary is in force under subsection 46(2). However, the person would be permitted to make contributions of 0% after the period covered by the election under subsection (3) ends (without making a further election under subsection 46(2)).
10 Section 51B
Repeal the section.
11 Subsection 62(2D) (definition of Notional contributions )
After "would have been paid", insert "(including, if the person has made an election that is in force under subsection 46(2), at the rate of nil)".
12 Transitional provision
A person who has made an election, under section 51B of the Superannuation Act 1976 , that is in force immediately before this item commences is taken to have made an election under subsection 46(2) of that Act (as inserted by item 5 of this Schedule).