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SUPERANNUATION (CSS) CONTINUING CONTRIBUTIONS FOR BENEFITS REGULATIONS (AMENDMENT) 1995 NO. 349

SUPERANNUATION (CSS) CONTINUING CONTRIBUTIONS FOR BENEFITS REGULATIONS (AMENDMENT) 1995 NO. 349

EXPLANATORY STATEMENT

STATUTORY RULES 1995 No. 349

Issued by the Authority of the Minister for Finance

Superannuation Act 1976

Superannuation (CSS) Continuing Contributions for Benefits 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, including employees of approved authorities.

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

The purpose of the Superannuation (CSS) Continuing Contributions for Benefits Regulations (Amendment) (the amending Regulations) is to amend the Superannuation (CSS) Continuing Contributions for Benefits Regulations (the Principal Regulations) to ensure that CSS membership continues for certain persons formerly employed by Aerospace Technologies of Australia Limited (ASTA).

Persons eligible to contribute to the CSS (ie, CSS members) are referred to in the Act as eligible employees. In accordance with paragraph (ea) of the definition of "eligible employee" in subsection 3(1), the term includes a person to whom section 14A applies, Section 14A of the Act provides that regulations made under that section may specify a class of persons to whom the section applies and may fix a time at which the section ceases to apply to a person. Regulations for the purposes of section 14A are contained in the Principal Regulations.

Aerospace Technologies of Australia Limited (ASTA) ceased to be under Commonwealth control on 27 June 1995 when the Commonwealth shares in ASTA were sold. As a result of the sale, ASTA ceased to meet the definition of an approved authority in subsection 3(1) of the Act and, because it was no longer an approved authority, CSS membership ceased to be available to employees of ASTA.

As part of the transitional arrangements preceding the sale of ASTA, certain CSS members moved from ASTA employment to employment with either ASTAAS Pty Ltd (ASTAAS), then known as ASTA Aircraft Services Pty Ltd, or Avalon Airport Geelong Pty Ltd (AAG) during the period 21 June to 27 June 1995. This formalised long standing arrangements in respect of those staff who had either been on secondment to work for ASTAkS or had been employed in ASTA's business unit, ASTA Airport, which was incorporated as AAG on 1 June 1995. Both ASTAAS and AAG are bodies in respect of which the Commonwealth has a controlling interest.

In accordance with the arrangements related to the sale of ASTA it is appropriate that those CSS members employed by ASTA prior to its sale should retain CSS membership once they become formally employed by ASTAAS or AAG, CSS membership should also continue for these persons if they move from employment with ASTAAS to AAG or vice versa. CSS membership is not permitted if persons move from employment with ASTAAS or AAG to ASTA.

The amending Regulations provide for continued CSS membership for those persons described above while the body by which they are employed, ie ASTAAS or AAG, continues to be under Commonwealth control.

The amendments contained in the amending Regulations are explained in the Attachment.

The amending Regulations commenced with effect from 21 June 1995. Subsection 168(15) of the Act provides that regulations made for the purpose of section 14A may commence up to 12 months before the making of the regulations.

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