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PARLIAMENT OF VICTORIA
Treasury and Finance Legislation (Amendment)
Act 2004
Act No.
Victorian Legislation Parliamentary Documents
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1. Purpose 1
2. Commencement 3
PART 2--ACCIDENT COMPENSATION ACT 1985 4
3. Independent contractors 4
PART 3--ACCIDENT COMPENSATION (WORKCOVER
INSURANCE) ACT 1993 5
4. Application by employer to review premium 5
5. New section 22A inserted 6
22A. Application for refund of premium 6
6. Review of premium 7
7. Adjustment to premium after review 8
8. New sections 28A and 28B inserted 9
28A. Review of premium in certain circumstances 9
28B. Adjustment of premium after section 28A review 10
9. Notice of adjustment 11
10. New section 31A inserted 11
31A. Refunds 11
11. Authority may recover amount in relation to claim 12
12. New section 66 substituted 12
66. Groups 12
13. New section 66A inserted 19
66A. Joint and several liability of group members 19
14. Section 67 repealed 20
15. Supreme Court--limitation of jurisdiction 20
PART 4--EMERGENCY SERVICES SUPERANNUATION
ACT 1986 21
16. Amendment of section 20E 21
17. New section 22EA inserted 21
22EA. Accrued benefit multiple 21
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Clause Page
PART 5--GOVERNMENT SUPERANNUATION ACT 1999 22
18. Member contributions--MTA Superannuation Fund 22
PART 6--PROFESSIONAL STANDARDS ACT 2003 25
Victorian Legislation Parliamentary Documents
19. Amendment of section 5 25
PART 7--STATE EMPLOYEES RETIREMENT BENEFITS
ACT 1979 26
20. Amendments relating to retirement savings accounts 26
21. Definition of "eligible salary sacrifice contributor" inserted in
section 2(1) 27
22. New section 2A inserted 27
2A. Declaration of eligible salary sacrifice contributors 27
23. Member contribution rates 28
24. Amendment of section 36 29
25. Consequential amendment of section 37 29
26. Section 65 amended 30
27. New section 70B inserted 33
70B. Payment of benefits if person incapable 33
PART 8--STATE SUPERANNUATION ACT 1988 35
28. Amendments relating to retirement savings accounts 35
29. Definition of "eligible salary sacrifice contributor" inserted in
section 3(1) 37
30. New section 3A inserted 37
3A. Declaration of eligible salary sacrifice contributors 37
31. Contribution rates--original scheme members 38
32. Contribution rates--revised scheme members 40
33. Contribution rates--new scheme members 42
34. Sections 61B and 61C repealed 43
35. Section 71 substituted 43
71. Minimum benefit 43
36. Amendment of section 76 48
37. New section 81 inserted 48
81. Power to recover 48
38. Contribution rates--transferred members 49
PART 9--SUPERANNUATION (PORTABILITY) ACT 1989 52
39. Amendments relating to retirement savings accounts 52
40. Amendment of section 7 52
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Clause Page
PART 10--TRANSPORT SUPERANNUATION ACT 1988 53
41. Amendments relating to retirement savings accounts 53
42. Definition of "eligible salary sacrifice contributor" inserted in
section 3(1) 54
Victorian Legislation Parliamentary Documents
43. New section 3A inserted 54
3A. Declaration of eligible salary sacrifice contributors 54
44. Contributions by members 54
45. Section 35A substituted 56
35A. Minimum benefit 56
46. New section 49A inserted 59
49A. Power to recover 59
PART 11--VICTORIAN MANAGED INSURANCE AUTHORITY
ACT 1996 60
47. Amendment of section 3 60
48. Amendment of section 7 60
49. New section 20A inserted 61
20A. Repayment or raising of capital 61
50. Amendment of section 24 61
51. New section 25B inserted 62
25B. Authority may determine conditions 62
52. Repeal of spent provisions 63
ENDNOTES 64
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PARLIAMENT OF VICTORIA
Initiated in Assembly 4 May 2004
As amended by Assembly 27 May 2004
Victorian Legislation Parliamentary Documents
A BILL
to amend the Accident Compensation Act 1985, the Accident
Compensation (WorkCover Insurance) Act 1993, the Emergency
Services Superannuation Act 1986, the Government
Superannuation Act 1999, the Professional Standards Act 2003,
the State Employees Retirement Benefits Act 1979, the State
Superannuation Act 1988, the Superannuation (Portability) Act
1989, the Transport Superannuation Act 1988 and the Victorian
Managed Insurance Authority Act 1996 and for other purposes.
Treasury and Finance Legislation
(Amendment) Act 2004
The Parliament of Victoria enacts as follows:
PART 1--PRELIMINARY
1. Purpose
The purpose of this Act is to--
1
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 1--Preliminary
s. 1
(a) make a consequential amendment to the
Accident Compensation Act 1985;
(b) amend the Accident Compensation
(WorkCover Insurance) Act 1993--
Victorian Legislation Parliamentary Documents
(i) to place a time limit on the ability of an
5
employer to recover amounts
purportedly paid as premium for past
policy years; and
(ii) to replace the grouping provisions with
provisions equivalent to the Victorian
10
pay-roll grouping provisions contained
in the Pay-roll Tax Act 1971; and
(iii) to reintroduce a joint and several
liability provision for employers who
are members of a group as a means of
15
strengthening the enforcement
provisions of the Act; and
(iv) to enable the Victorian WorkCover
Authority to exercise a discretion to
partially waive an employer's liability
20
for reimbursement of uninsured claims
costs;
(c) make miscellaneous amendments to
specified Superannuation Acts to facilitate
the administration of superannuation funds;
25
(d) amend section 5 of the Professional
Standards Act 2003 so that the Act will
apply to liability for damages arising from a
breach of fiduciary duty;
(e) amend the Victorian Managed Insurance
30
Authority Act 1996 to enhance the prudent
management of risk across the public sector.
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 1--Preliminary
s. 2
2. Commencement
(1) Subject to sub-section (2), this Act comes into
operation on the day after the day on which it
receives the Royal Assent.
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(2) Sections 4 to 10 and section 15 are deemed to
5
have come into operation on 6 May 2004.
__________________
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 2--Accident Compensation Act 1985
s. 3
PART 2--ACCIDENT COMPENSATION ACT 1985
3. Independent contractors
Victorian Legislation Parliamentary Documents
In section 9(1)(c) of the Accident Compensation
Act 1985, for "section 196 of this Act or
section 67" substitute "section 66".
5
__________________
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 3--Accident Compensation (WorkCover Insurance) Act 1993
s. 4
See:
PART 3--ACCIDENT COMPENSATION (WORKCOVER
Act No.
INSURANCE) ACT 1993 50/1993.
Reprint No. 5
as at
Victorian Legislation Parliamentary Documents
4. Application by employer to review premium 30 June 1999
and
(1) After section 22(1) of the Accident amending
Compensation (WorkCover Insurance) Act
5 Act Nos
26/2000,
1993 insert-- 54/2000,
44/2001,
"(1A) An application under sub-section (1) may 82/2001 and
only be made in relation to premium for-- 95/2003.
LawToday:
www.dms.
(a) the policy period current at the date on dpc.vic.
which the application is made;
10 gov.au
(b) any of the 4 completed policy periods
before that period.".
(2) After section 22(2) of the Accident
Compensation (WorkCover Insurance) Act
1993 insert--
15
'(3) In this section "premium" includes
amounts--
(a) paid or payable as premium;
(b) purportedly paid or payable as
premium;
20
(c) paid or payable as a default penalty,
late payment penalty, interest or
otherwise in respect of an amount paid
or payable or purportedly paid or
payable as premium;
25
(d) purportedly paid or payable as a default
penalty, late payment penalty, interest
or otherwise in respect of an amount
paid or payable or purportedly paid or
payable as premium.
30
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(4) If, in the course of a review under this
section, the Authority determines that, in
respect of any of the policy periods to which
the application relates, there has been an
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adjustment to the premium which the
5
Authority was not authorised to make, the
Authority must discontinue that review and
review the application under section 28A as
if the application had been an application
under section 22A.'.
10
5. New section 22A inserted
After section 22 of the Accident Compensation
(WorkCover Insurance) Act 1993 insert--
'22A. Application for refund of premium
(1) Proceedings for the refund or recovery of
15
premium, whether paid before or after 6 May
2004, must not be brought, whether against
the Authority or otherwise, except as
provided in this section.
(2) If an employer claims to be entitled to
20
receive a refund of or to recover premium,
the employer must lodge with the Authority
an application, in a form approved by the
Authority, for the refund of the payment.
(3) An application under sub-section (2) may
25
only be made in relation to premium for--
(a) the policy period current at the date on
which the application is made;
(b) any of the 4 completed policy periods
before that period.
30
(4) This section does not apply to a written
request for a refund of premium received by
the Authority before 6 May 2004.
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s. 6
(5) For the purposes of sub-section (4), a written
request received by an authorised agent of
the Authority is not to be taken to be
received by the Authority unless the
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authorised agent has forwarded the request to
5
the Authority, and the Authority has received
that request, before 6 May 2004.
(6) In this section--
"premium" has the same meaning as in
section 22(3);
10
"proceedings" includes--
(a) seeking the grant of any relief or
remedy in the nature of certiorari,
prohibition, mandamus or quo
warranto, or the grant of a
15
declaration of right or an
injunction; or
(b) seeking any order under the
Administrative Law Act 1978.'.
6. Review of premium
20
After section 27(2) of the Accident
Compensation (WorkCover Insurance) Act
1993 insert--
"(3) If, in the course of a review under this
section, the Authority determines that, in
25
respect of any of the policy periods to which
the review relates, there has been an
adjustment to the premium which the
Authority was not authorised to make, the
Authority must discontinue that review and
30
conduct a review under section 28A as if an
application under section 22A had been
made.
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s. 7
(4) If the Authority makes a determination under
sub-section (3) it must, by notice in writing,
advise the employer of that determination.".
7. Adjustment to premium after review
Victorian Legislation Parliamentary Documents
After section 28(2) of the Accident
5
Compensation (WorkCover Insurance) Act
1993 insert--
"(3) In the case of a review under section 28A, an
adjustment under this section may only relate
to--
10
(a) in the case of an application under
section 22 or 22A--
(i) the policy period current at the
date on which the application is
made;
15
(ii) any of the 4 completed policy
periods before that period;
(iii) any other completed policy period
if there is, or was, fraud on the
part of the employer or of any
20
person acting, or apparently
acting, on the employer's behalf;
(b) in the case of a review in which the
Authority has made a determination
under section 27(3)--
25
(i) the policy period current at the
date of the notice under
section 27(4);
(ii) any of the 4 completed policy
periods before that date;
30
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s. 8
(iii) any other completed policy period
if there is, or was, fraud on the
part of the employer or of any
person acting, or apparently
Victorian Legislation Parliamentary Documents
acting, on the employer's behalf.".
5
8. New sections 28A and 28B inserted
After section 28 of the Accident Compensation
(WorkCover Insurance) Act 1993 insert--
'28A. Review of premium in certain
circumstances
10
(1) This section applies if--
(a) an employer makes an application
under section 22A and the Authority
was not authorised to adjust the
premium in respect of which the
15
application relates, at the time the
Authority made the adjustment; or
(b) the Authority has made a determination
under section 22(4) or 27(3).
(2) The Authority may review the amount
20
calculated as a premium in respect of
premium for--
(a) in the case of a determination under
section 22(4) or an application under
section 22A--
25
(i) the policy period current at the
date on which the application is
made;
(ii) any of the 4 completed policy
periods before that period;
30
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(b) in the case of a determination under
section 27(3)--
(i) the policy period current at the
date of the notice under
Victorian Legislation Parliamentary Documents
section 27(4);
5
(ii) any of the 4 completed policy
periods before that date.
(3) In conducting the review, the Authority may
have regard to any matter relevant to the
determination or calculation of the premium.
10
(4) In this section "premium" has the same
meaning as in section 22(3).
28B. Adjustment of premium after section 28A
review
(1) After conducting a review under section
15
28A, the Authority must determine--
(a) the reviewed assessment amount for the
relevant period; and
(b) the total premium payment; and
(c) any deficit amount or excess amount.
20
(2) The Authority must, by notice in writing to
the employer--
(a) specify--
(i) the amount determined to be the
reviewed assessment amount and
25
the total premium payment; and
(ii) whether there is a deficit amount
or an excess amount; and
(b) adjust the amount of the premium so
that the amount is the reviewed
30
assessment amount.
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s. 9
(3) In this section--
"deficit amount" means the amount by
which the reviewed assessment amount
exceeds the total premium payment;
Victorian Legislation Parliamentary Documents
"excess amount" means the amount by
5
which the total premium payment
exceeds the reviewed assessment
amount;
"premium" has the same meaning as in
section 22(3);
10
"relevant period" means the total period
specified in section 28A(2)(a) or
28A(2)(b);
"reviewed assessment amount" means the
sum of the amounts which should have
15
been calculated for each applicable
premium order for the relevant period;
"total premium payment" means the total
amount paid as premium during the
relevant period.'.
20
9. Notice of adjustment
In section 29(1) of the Accident Compensation
(WorkCover Insurance) Act 1993, for "26(4)
or 28(2)" substitute "26(4), 28(2) or 28B(2)".
10. New section 31A inserted
25
After section 31 of the Accident Compensation
(WorkCover Insurance) Act 1993 insert--
"31A. Refunds
If, as a result of a review under section 28A
the Authority determines there is an excess
30
amount within the meaning of section 28B,
the Authority--
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s. 11
(a) must refund that excess amount to the
employer; or
(b) must--
Victorian Legislation Parliamentary Documents
(i) apply that excess amount against
any liability of the employer to the
5
Authority under this Act; and
(ii) refund to the employer any part of
that excess amount that is not so
applied.".
11. Authority may recover amount in relation to claim
10
In section 61(2) of the Accident Compensation
(WorkCover Insurance) Act 1993, after "waive"
insert "all or part of".
12. New section 66 substituted
For section 66 of the Accident Compensation
15
(WorkCover Insurance) Act 1993 substitute--
'66. Groups
(1) For the purposes of this Act, if--
(a) an employer that is a body corporate
and another body corporate ("related
20
person") are, by reason of section 50
of the Corporations Act related to each
other; or
(b) one or more workers of an employer
perform duties for or in connection with
25
one or more businesses carried on by
the employer and one or more other
persons ("associates"); or
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(c) one or more workers of an employer
are employed solely or mainly to
perform duties for or in connection with
one or more businesses carried on by
Victorian Legislation Parliamentary Documents
one or more other persons
5
("associates"); or
(d) one or more workers of an employer
perform duties for or in connection with
one or more businesses carried on by
one or more other persons
10
("associates"), being duties performed
in connection with, or in fulfilment of
the employer's obligation under, an
agreement, arrangement or undertaking
for the provision of services to any one
15
or more of the associates in connection
with that business or those
businesses--
(i) whether the agreement,
arrangement or undertaking is
20
formal or informal, express or
implied; and
(ii) whether or not the agreement,
arrangement or undertaking
provides for duties to be
25
performed by the workers or
specifies the duties to be
performed by them--
the employer and all persons who are related
persons or associates in relation to that
30
employer together constitute a group and
each is a member of that group.
Note: Sub-section (8) allows the Authority to
exclude members from a group constituted
35 under this sub-section in certain circumstances.
13
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(2) If the same person has, or the same persons
have together, a controlling interest under
sub-section (3) in each of two businesses, the
persons who carry on those businesses
Victorian Legislation Parliamentary Documents
constitute a group and each is a member of
5
the group.
Note: Sub-section (8) allows the Authority to
exclude members from a group constituted
under this sub-section in certain circumstances.
(3) For the purposes of sub-section (2), the same
10
person has, or the same persons have
together, a controlling interest in each of two
businesses if that person has, or those
persons have together, a controlling interest
under any of the following paragraphs in one
15
of the businesses and a controlling interest
under the same or another of the following
paragraphs in the other business--
(a) a person has, or persons have together,
a controlling interest in a business,
20
being a business carried on by a
corporation, if the directors, or a
majority of the directors, or one or
more of the directors, being a director
or directors who is or are entitled to
25
exercise a majority in voting power at
meetings of the directors, of the
corporation are or is accustomed or
under an obligation, whether formal or
informal, to act in accordance with the
30
directions, instructions or wishes of that
person or of those persons acting
together;
(b) a person has, or persons have together,
a controlling interest in a business,
35
being a business carried on by a
corporation that has a share capital, if
that person or those persons acting
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together may (whether directly or
indirectly) exercise, control the exercise
of, or substantially influence the
exercise of, 50 per cent or more of the
Victorian Legislation Parliamentary Documents
voting power attached to voting shares,
5
or any class of voting shares, issued by
the corporation;
(c) a person has, or persons have together,
a controlling interest in a business if
that person, or those persons together--
10
(i) constitute more than 50 per cent of
the board of management (by
whatever name called) of the body
corporate or unincorporate
carrying on the business; or
15
(ii) control the composition of that
board;
(d) a person has, or persons have together,
a controlling interest in a business,
being a business carried on by a
20
partnership, if that person or those
persons--
(i) owns, or own together, (whether
or not beneficially) 50 per cent or
more of the capital of the
25
partnership; or
(ii) is, or are together, entitled
(whether or not beneficially) to
50 per cent or more of any profits
of the partnership;
30
(e) a person has, or persons have together,
a controlling interest in a business,
being a business carried on under a
trust, if that person (whether or not as
the trustee of, or beneficiary under,
35
another trust) is the beneficiary, or
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those persons (whether or not as the
trustees of, or beneficiaries under,
another trust) are together the
beneficiaries, in respect of 50 per cent
Victorian Legislation Parliamentary Documents
or more of the value of the interests in
5
the trust first-mentioned in this
paragraph;
(f) a person has a controlling interest in a
business if, whether or not the person is
a trustee of a trust, the person is the sole
10
owner of the business or persons, being
two or more trustees of a trust, have a
controlling interest in a business if they
are the owners of the business.
(4) A person who, as the result of the exercise of
15
a power or discretion by the trustee of a
discretionary trust or by any other person or
by that trustee and other person, may benefit
under that trust is deemed, for the purposes
of this Act, to be a beneficiary in respect of
20
50 per cent or more of the value of the
interests in that trust.
(5) If a body corporate has a controlling interest
under sub-section (3) in a business, it is
deemed, for the purposes of sub-section (3),
25
to have a controlling interest in any other
business in which another body corporate
that is, by reason of section 50 of the
Corporations Act, related to it, has a
controlling interest.
30
(6) If--
(a) a person has, or persons have together,
a controlling interest under sub-
section (3) in a business; and
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(b) the person or persons who carries or
carry on that business has or have such
a controlling interest in another
business--
Victorian Legislation Parliamentary Documents
the person or persons referred to in
5
paragraph (a) are deemed, for the purposes
of sub-section (3), to have a controlling
interest in the business referred to in
paragraph (b).
(7) If--
10
(a) a person is a beneficiary under a trust;
or
(b) two or more persons together are
beneficiaries under a trust--
in respect of 50 per cent or more of the value
15
of the interests in that trust and the trustee
or trustees of that trust has or have under
sub-section (3) a controlling interest in a
business, that beneficiary or those
beneficiaries are deemed, for the purposes of
20
sub-section (3) to have a controlling interest
in that business.
(8) If the Authority is satisfied, having regard to
the nature and degree of ownership and
control of the businesses, the nature of the
25
businesses and any other matters the
Authority considers relevant, that a business
carried on by a member of a group, other
than a group constituted by reason of sub-
section (10), is carried on independently of,
30
and is not connected with the carrying on of,
a business carried on by any other member
of that group, the Authority may exclude the
member from that group.
17
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(9) The Authority must not, under sub-
section (8), exclude a person from a group if
the person is a body corporate that, by reason
of section 50 of the Corporations Act, is
Victorian Legislation Parliamentary Documents
related to another body corporate that is a
5
member of that group.
(10) Subject to sub-section (11), for the purposes
of this section, if an employer is a member of
a group and that person or another member
of that group is a member of another group, a
10
person who is a member of that other group
is--
(a) deemed to be a member of the first-
mentioned group; and
(b) called an "associate".
15
(11) Sub-section (10) does not apply if a person
satisfies the Authority that--
(a) the trade, business or profession carried
on by that person is carried on
independently of, and is not connected
20
with the carrying on of a trade, business
or profession carried on by a member
of the first-mentioned group; and
(b) that trade, business or profession is not
carried on with an intention, either
25
directly or indirectly, of reducing the
amount of premium payable by that
person or another member of the group.
(12) In this section--
"business" includes--
30
(a) a trade or profession; and
(b) any other activity carried on for
fee, gain or reward; and
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(c) the activity--
(i) of employing one or more
persons if that person
performs, or those persons
Victorian Legislation Parliamentary Documents
perform, duties for or in
5
connection with another
business; or
(ii) of holding any money,
property or shares used for or
in connection with another
10
business.;
"person" includes a body or association
(corporate or unincorporate) and a
partnership.
(13) This section applies whether or not an
15
employer became a member of the group
before, on or after the commencement of
section 12 of the Treasury and Finance
Legislation (Amendment) Act 2004.
(14) This section does not affect the calculation of
20
premium for any period before 1 July 2004.'.
13. New section 66A inserted
After section 66 of the Accident Compensation
(WorkCover Insurance) Act 1993 insert--
'66A. Joint and several liability of group
25
members
(1) A person who, during a period, is or was a
member of a group within the meaning of
section 66 is jointly and severally liable with
the other persons who are or were members
30
of the group during that period to pay
premium and penalties payable by members
of that group in respect of that period.
19
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 3--Accident Compensation (WorkCover Insurance) Act 1993
s. 14
(2) For the avoidance of doubt, sub-section (1)
applies whether or not--
(a) the person was an employer during the
relevant period;
Victorian Legislation Parliamentary Documents
(b) an employer became a member of the
5
group before, on or after the
commencement of section 13 of the
Treasury and Finance Legislation
(Amendment) Act 2004.
(3) Sub-section (1) does not apply to a premium
10
or penalty payable by the group before the
commencement of section 13 of the
Treasury and Finance Legislation
(Amendment) Act 2004.
(4) In this section "person" includes a body or
15
association (corporate or unincorporate) and
a partnership.'.
14. Section 67 repealed
Section 67 of the Accident Compensation
(WorkCover Insurance) Act 1993 is repealed.
20
15. Supreme Court--limitation of jurisdiction
At the end of section 77 of the Accident
Compensation (WorkCover Insurance) Act
1993 insert--
"(2) It is the intention of section 22A as inserted
25
by section 5 of the Treasury and Finance
Legislation (Amendment) Act 2004 to alter
or vary section 85 of the Constitution Act
1975.".
__________________
20
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 4--Emergency Services Superannuation Act 1986
s. 16
See:
PART 4--EMERGENCY SERVICES SUPERANNUATION
Act No.
ACT 1986 94/1986.
Reprint No. 5
as at
Victorian Legislation Parliamentary Documents
16. Amendment of section 20E 15 October
2003.
In section 20E(2) of the Emergency Services LawToday:
Superannuation Act 1986, after "death of a
5 www.dms.
dpc.vic.
contributor" insert "who is an operational staff gov.au
member at or after the age of 55, or if not an
operational staff member".
17. New section 22EA inserted
After section 22E of the Emergency Services
10
Superannuation Act 1986 insert--
"22EA. Accrued benefit multiple
For the purpose of regulation 65 of the
Commonwealth Family Law
(Superannuation) Regulations 2001, the
15
Board on the advice of an actuary appointed
by the Board may from time to time
determine the accrued benefit multiple.".
__________________
21
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 5--Government Superannuation Act 1999
s. 18
See: PART 5--GOVERNMENT SUPERANNUATION ACT 1999
Act No.
8/1999.
18. Member contributions--MTA Superannuation
Reprint No. 1
as at
Victorian Legislation Parliamentary Documents
Fund
10 May 2001
and
After section 42(8) of the Government
amending
Superannuation Act 1999 insert--
5 Act No.
70/2003.
'(9) In this section, "eligible salary sacrifice
LawToday:
www.dms.
contributor" means an employee in respect
dpc.vic.
of whom a declaration is in force under sub-
gov.au
section (10).
(10) The Minister may by notice published in the
10
Government Gazette declare--
(a) an employee to be an eligible salary
sacrifice contributor from the date
specified in the notice; or
(b) a class of employees to be eligible
15
salary sacrifice contributors from the
date specified in the notice.
(11) An eligible salary sacrifice contributor may
by notice in writing to his or her employer
elect to make his or her member
20
contributions by way of salary sacrifice at
the rate calculated to the nearest highest
01% in accordance with the following
formula--
M
25
1-R
where--
"M" is the applicable member contribution
rate in accordance with the provisions
of the governing instrument of the
MTA Superannuation Fund without
30
salary sacrifice;
22
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 5--Government Superannuation Act 1999
s. 18
"R" is the tax rate for the financial year on
taxable contributions to the MTA
Superannuation Fund under the
Commonwealth Income Tax
Victorian Legislation Parliamentary Documents
Assessment Act 1936.
5
(12) An election under sub-section (11)--
(a) can only be made if there is in force an
agreement between the employer and
the employee under which the
employer can make the member
10
contributions required by the provisions
of the governing instrument of the
MTA Superannuation Fund by way of
salary sacrifice;
(b) is subject to the terms and conditions
15
specified in the agreement referred to in
paragraph (a);
(c) can only be made in respect of the
whole of the member contributions;
(d) can not be made in respect of any
20
contributions made by an employee in
addition to the applicable member
contributions under the provisions of
the governing instrument of the MTA
Superannuation Fund.
25
(13) Member contributions made in accordance
with the rate determined under sub-section
(11) are for the purposes of the provisions of
the governing instrument of the MTA
Superannuation Fund (other than the
30
provisions relating to surchargeable
contributions) to be taken to be--
(a) the applicable member contributions to
be paid under the provisions of the
governing instrument of the MTA
35
Superannuation Fund; and
23
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 5--Government Superannuation Act 1999
s. 18
(b) the member contributions that would
have been payable if an election had
not been made under sub-section (11).
(14) An election under sub-section (11) does not
Victorian Legislation Parliamentary Documents
affect the amount that would otherwise
5
constitute the salary of the employee for the
purposes of the provisions of the governing
instrument of the MTA Superannuation
Fund.
(15) The minimum benefit required to be paid to
10
ensure compliance with the Superannuation
Guarantee (Administration) Act 1992 of the
Commonwealth is to be determined as if no
election had been made under sub-
section (11).'.
15
__________________
24
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 6--Professional Standards Act 2003
s. 19
See:
PART 6--PROFESSIONAL STANDARDS ACT 2003
Act No.
100/2003.
19. Amendment of section 5 Statute Book:
www.dms.
Victorian Legislation Parliamentary Documents
In section 5(1)(c) of the Professional Standards dpc.vic.
gov.au
Act 2003 omit "or of fiduciary duty".
__________________
25
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 7--State Employees Retirement Benefits Act 1979
s. 20
See: PART 7--STATE EMPLOYEES RETIREMENT BENEFITS
Act No.
ACT 1979
9363.
Reprint No. 5
as at
Victorian Legislation Parliamentary Documents
20. Amendments relating to retirement savings
15 October
accounts
2003.
LawToday:
(1) In section 2(1) of the State Employees
5 www.dms.
dpc.vic.
Retirement Benefits Act 1979, after the
gov.au
definition of "resign" insert--
' "RSA" means a retirement savings account
within the meaning of the Commonwealth
Retirement Savings Accounts Act 1997;'.
10
(2) For section 34AB(3)(b) of the State Employees
Retirement Benefits Act 1979 substitute--
"(b) have the lump sum transferred to--
(i) a complying superannuation fund; or
(ii) an RSA--
15
nominated by the member.".
(3) For section 37(1B)(b) of the State Employees
Retirement Benefits Act 1979 substitute--
"(b) have the lump sum transferred to--
(i) a complying superannuation fund; or
20
(ii) an RSA--
nominated by the member.".
(4) For section 38(2A)(b) of the State Employees
Retirement Benefits Act 1979 substitute--
"(b) have the lump sum transferred to--
25
(i) a complying superannuation fund; or
(ii) an RSA--
nominated by the member.".
26
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 7--State Employees Retirement Benefits Act 1979
s. 21
(5) In section 66AA(1) of the State Employees
Retirement Benefits Act 1979, the definition of
"RSA" is repealed.
21. Definition of "eligible salary sacrifice contributor"
Victorian Legislation Parliamentary Documents
inserted in section 2(1)
5
In section 2(1) of the State Employees
Retirement Benefits Act 1979, after the
definition of "domestic partner" insert--
' "eligible salary sacrifice contributor" means a
member in respect of whom a declaration is
10
in force under section 2A;'.
22. New section 2A inserted
After section 2 of the State Employees
Retirement Benefits Act 1979 insert--
"2A. Declaration of eligible salary sacrifice
15
contributors
The Minister may by notice published in the
Government Gazette declare--
(a) a member to be an eligible salary
sacrifice contributor from the date
20
specified in the notice; or
(b) a class of members to be eligible salary
sacrifice contributors from the date
specified in the notice.".
27
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 7--State Employees Retirement Benefits Act 1979
s. 23
23. Member contribution rates
After section 23(2) of the State Employees
Retirement Benefits Act 1979 insert--
Victorian Legislation Parliamentary Documents
'(2A) An eligible salary sacrifice contributor may
by notice in writing to his or her employer
5
elect to make his or her member
contributions by way of salary sacrifice at
the rate calculated to the nearest highest
01% in accordance with the following
formula--
10
M
1-R
where--
"M" is the applicable member contribution
rate in accordance with sub-section (1)
without salary sacrifice;
15
"R" is the tax rate for the financial year on
taxable contributions to the Fund under
the Commonwealth Income Tax
Assessment Act 1936.
(2B) An election under sub-section (2A)--
20
(a) can only be made if there is in force an
agreement between the employer and
the member under which the employer
can make the member contributions
required by this Act by way of salary
25
sacrifice;
(b) is subject to the terms and conditions
specified in the agreement referred to in
paragraph (a);
(c) can only be made in respect of the
30
whole of the member contributions;
28
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 7--State Employees Retirement Benefits Act 1979
s. 24
(d) can not be made in respect of any
contributions made by a member in
addition to the member contributions
required under sub-section (1).
Victorian Legislation Parliamentary Documents
(2C) Member contributions made in accordance
5
with the rate determined under sub-section
(2A) are for the purposes of this Act (other
than sections 74CA to 74CC) to be taken to
be--
(a) the member contributions required to
10
be paid under this Act; and
(b) the member contributions that would
have been payable if an election had
not been made under sub-section (2A).
(2D) An election under sub-section (2A) does not
15
affect the amount that would otherwise
constitute the salary of the member for the
purposes of this Act.'.
24. Amendment of section 36
In section 36 of the State Employees Retirement
20
Benefits Act 1979, for "prescribed form"
substitute "form approved by the Board".
25. Consequential amendment of section 37
Sections 37(3), 37(4) and 37(5) of the State
Employees Retirement Benefits Act 1979 are
25
repealed.
29
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 7--State Employees Retirement Benefits Act 1979
s. 26
26. Section 65 amended
For section 65(2) of the State Employees
Retirement Benefits Act 1979 substitute--
Victorian Legislation Parliamentary Documents
'(2) Subject to this section, if the total amount of
all the benefits paid or payable under this
5
Act in respect of a member or former
member is less than the sum of the
superannuation guarantee amount and the
amount contributed by the member or former
member to the Fund and interest as
10
appropriate on the amount contributed at the
rate which is the specified rate under section
37(1) up to the date that the member or
former member first became entitled to a
benefit under this Act other than a temporary
15
benefit, there is to be paid out of the Fund to
the member or former member an amount
determined by the Board in accordance with
the formula--
P=A+I
20
where--
"P" means the amount to be paid;
"I" means interest as appropriate on "A" at
the rate which is the specified rate
under section 37(1) from the date "A" is
25
calculated until the date that "A" is paid
out of the Fund--
and where "A" is an amount determined by
the Board in accordance with the formula--
SGC + MCI B
30
where--
"SGC" means the superannuation
guarantee amount;
30
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 7--State Employees Retirement Benefits Act 1979
s. 26
"MCI" means the sum of the amount
contributed by the member or
former member to the Fund and
interest as appropriate on the
Victorian Legislation Parliamentary Documents
amount contributed at the rate
5
which is the specified rate under
section 37(1) up to the date that the
member or former member first
became entitled to a benefit under
this Act other than a temporary
10
benefit less the cost of death and
disability benefits as determined by
the Board and Commonwealth
charges;
"B" means the total amount of all the
15
benefits paid or payable in respect
of the member or former member.
(3) Unless sub-section (4) or (5) applies, for the
purposes of this section, the total amount of
all the benefits paid or payable in respect of a
20
member or former member is to be
determined by the Board as at the date on
which the member or former member first
became entitled to a benefit under this Act,
other than a temporary benefit under
25
section 54, irrespective of when the benefit is
payable.
(4) If a member or former member becomes
entitled to another benefit under this Act
other than a temporary benefit under
30
section 54 after having returned to work
following a period as a disability pensioner
under this Act, the total amount of all the
benefits paid or payable in respect of the
member or former member is to be
35
determined by the Board as at the date on
which the member or former member first
31
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 7--State Employees Retirement Benefits Act 1979
s. 26
became entitled to that other benefit under
this Act.
(5) If a member or former member who had
elected to receive all or a part of his or her
Victorian Legislation Parliamentary Documents
entitlements under this Act as a deferred
5
benefit--
(a) dies before the deferred benefit
becomes payable; and
(b) does not leave a partner entitled to a
pension under this Act--
10
the Board must pay out of the Fund to the
legal personal representative of the member
or former member, in addition to any amount
payable under section 38(3)(b) or 38(3)(c),
an amount equal to the superannuation
15
guarantee amount determined by the Board.
(6) If the amount of the benefit paid or payable
under this Act consists of, or includes, a
pension or deferred benefit, the amount of
the benefit paid or payable under this Act for
20
the purposes of this section is to be
determined by the Board in accordance with
a method determined by an actuary
appointed by the Board.
(7) The Board may determine that an amount
25
determined as payable under this section is to
be applied to increase a pension payable to
or in respect of a member or former member
in a manner determined by the Board after
obtaining the advice of an actuary appointed
30
by the Board.
(8) Any part of the superannuation guarantee
amount which is required to be preserved in
accordance with the specified standards must
be preserved.
35
32
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 7--State Employees Retirement Benefits Act 1979
s. 27
(9) For the purposes of this section, if a payment
or transfer to a non-member spouse is made
for the purposes of Part VIIIB of the
Commonwealth Family Law Act 1975
Victorian Legislation Parliamentary Documents
whether under Part IVA or otherwise, the
5
minimum benefit of the member spouse must
be adjusted by the Board in accordance with
a methodology approved by the Minister, on
the advice of an actuary appointed by the
Board.
10
(10) In this section, "superannuation guarantee
amount" means the amount determined by
the Board after obtaining the advice of an
actuary appointed by the Board to be the
minimum amount necessary in respect of a
15
member or former member to avoid a
superannuation guarantee shortfall within the
meaning of the Superannuation Guarantee
(Administration) Act 1992 of the
Commonwealth.
20
(11) The amount determined by the Board for the
purpose of sub-section (10) is to be
determined as if no election had been made
under section 23(2A).'.
27. New section 70B inserted
25
After section 70A of the State Employees
Retirement Benefits Act 1979 insert--
"70B. Payment of benefits if person incapable
If a person who would ordinarily be entitled
to receive benefits is--
30
(a) a person who is in the opinion of the
Board incapable of managing his or her
affairs or of unsound mind; or
(b) a patient within the meaning of the
Mental Health Act 1986; or
35
33
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 7--State Employees Retirement Benefits Act 1979
s. 27
(c) a represented person under the
Guardianship and Administration
Act 1986--
the Board may cause his or her benefits or
Victorian Legislation Parliamentary Documents
any part of the benefits to be paid to his or
5
her guardian or administrator or, if there is
no guardian or administrator, to a person
nominated by the Board for the benefit of
that person and his or her dependants or any
of them until he or she ceases to be incapable
10
or of unsound mind, a patient or a
represented person.".
__________________
34
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 8--State Superannuation Act 1988
s. 28
See:
PART 8--STATE SUPERANNUATION ACT 1988
Act No.
50/1988.
28. Amendments relating to retirement savings Reprint No. 5
as at
Victorian Legislation Parliamentary Documents
accounts 15 October
2003.
(1) In section 3(1) of the State Superannuation Act LawToday:
1988, after the definition of "revised scheme
5 www.dms.
dpc.vic.
member's pension" insert-- gov.au
' "RSA" means a retirement savings account
within the meaning of the Commonwealth
Retirement Savings Accounts Act 1997;'.
(2) For section 47(10)(b) of the State
10
Superannuation Act 1988 substitute--
"(b) have the lump sum transferred to--
(i) a complying superannuation fund; or
(ii) an RSA--
nominated by the revised scheme member.".
15
(3) For section 47(10A)(b) of the State
Superannuation Act 1988 substitute--
"(b) have the lump sum transferred to--
(i) a complying superannuation fund; or
(ii) an RSA--
20
nominated by the person.".
(4) For section 58(4)(b) of the State Superannuation
Act 1988 substitute--
"(b) have the lump sum transferred to--
(i) a complying superannuation fund; or
25
(ii) an RSA--
nominated by the new scheme member.".
(5) In section 59AA(1) of the State Superannuation
Act 1988, the definition of "RSA" is repealed.
35
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 8--State Superannuation Act 1988
s. 28
(6) For section 61(8)(b) of the State Superannuation
Act 1988 substitute--
"(b) have the lump sum transferred to--
Victorian Legislation Parliamentary Documents
(i) a complying superannuation fund; or
(ii) an RSA--
5
nominated by the former revised scheme
member.".
(7) For section 61A(4)(b) of the State
Superannuation Act 1988 substitute--
"(b) have the lump sum transferred to--
10
(i) a complying superannuation fund; or
(ii) an RSA--
nominated by the revised scheme member.".
(8) For section 61A(5)(b) of the State
Superannuation Act 1988 substitute--
15
"(b) have the lump sum transferred to--
(i) a complying superannuation fund; or
(ii) an RSA--
nominated by the new scheme member.".
(9) For section 69(4A)(b) of the State
20
Superannuation Act 1988 substitute--
"(b) have the lump sum transferred to--
(i) a complying superannuation fund; or
(ii) an RSA--
nominated by the contributor.".
25
36
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 8--State Superannuation Act 1988
s. 29
(10) For section 94(1E)(b) of the State
Superannuation Act 1988 substitute--
"(b) have the lump sum transferred to--
Victorian Legislation Parliamentary Documents
(i) a complying superannuation fund; or
(ii) an RSA--
5
nominated by the member.".
(11) For section 101(5)(b) of the State
Superannuation Act 1988 substitute--
"(b) have the lump sum transferred to--
(i) a complying superannuation fund; or
10
(ii) an RSA--
nominated by the beneficiary.".
29. Definition of "eligible salary sacrifice contributor"
inserted in section 3(1)
In section 3(1) of the State Superannuation Act
15
1988, after the definition of "domestic partner"
insert--
' "eligible salary sacrifice contributor" means
an officer in respect of whom a declaration is
in force under section 3A;'.
20
30. New section 3A inserted
After section 3 of the State Superannuation Act
1988 insert--
"3A. Declaration of eligible salary sacrifice
contributors
25
The Minister may by notice published in the
Government Gazette declare--
(a) an officer who is--
(i) an original scheme member; or
(ii) a revised scheme member; or
30
37
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 8--State Superannuation Act 1988
s. 31
(iii) a new scheme member; or
(iv) a member of the Fund as a result
of a transfer to the Fund under
section 94--
Victorian Legislation Parliamentary Documents
to be an eligible salary sacrifice
5
contributor from the date specified in
the notice; or
(b) a class of officers who are--
(i) original scheme members; or
(ii) revised scheme members; or
10
(iii) new scheme members; or
(iv) members of the Fund as a result of
a transfer to the Fund under
section 94--
to be eligible salary sacrifice
15
contributors from the date specified in
the notice.".
31. Contribution rates--original scheme members
After section 27(2) of the State Superannuation
Act 1988 insert--
20
'(3) An eligible salary sacrifice contributor may
by notice in writing to the employing
authority elect to make his or her member
contributions by way of salary sacrifice at
the rate calculated to the nearest highest
25
01% in accordance with the following
formula--
M
1-R
where--
38
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 8--State Superannuation Act 1988
s. 31
"M" is the applicable member contribution
rate in accordance with the
Superannuation Act 1958 without
salary sacrifice;
Victorian Legislation Parliamentary Documents
"R" is the tax rate for the financial year on
5
taxable contributions to the Fund under
the Commonwealth Income Tax
Assessment Act 1936.
(4) An election under sub-section (3)--
(a) can only be made if there is in force an
10
agreement between the employing
authority and the member under which
the employing authority can make the
member contributions required by the
Superannuation Act 1958 by way of
15
salary sacrifice;
(b) is subject to the terms and conditions
specified in the agreement referred to in
paragraph (a);
(c) can only be made in respect of the
20
whole of the member contributions;
(d) can not be made in respect of any
contributions made by a member in
addition to the member contributions
required under the Superannuation
25
Act 1958.
(5) Member contributions made in accordance
with the rate determined under sub-
section (3) are for the purposes of the
Superannuation Act 1958 (other than the
30
provisions relating to surchargeable
contributions) to be taken to be--
(a) the member contributions required to
be paid under the Superannuation Act
1958; and
35
39
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 8--State Superannuation Act 1988
s. 32
(b) the member contributions that would
have been payable if an election had
not been made under sub-section (3).
(6) An election under sub-section (3) does not
Victorian Legislation Parliamentary Documents
affect the amount that would otherwise
5
constitute the salary of the original scheme
member for the purposes of the
Superannuation Act 1958.'.
32. Contribution rates--revised scheme members
For section 28(1) of the State Superannuation
10
Act 1988 substitute--
'(1) A revised scheme member must make
contributions to the Fund determined in
accordance with the following Table:
TABLE OF CONTRIBUTIONS
Contributions as a
Age last birthday percentage of salary
15 years to 29 years 80%
30 years to 39 years 85%
40 years to 49 years 90%
50 years or older 95%
(1A) An eligible salary sacrifice contributor may
15
by notice in writing to the employing
authority elect to make his or her member
contributions by way of salary sacrifice at
the rate calculated to the nearest highest
01% in accordance with the following
20
formula--
M
1-R
where--
"M" is the applicable member contribution
rate in accordance with sub-section (1)
25
without salary sacrifice;
40
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Act No.
Part 8--State Superannuation Act 1988
s. 32
"R" is the tax rate for the financial year on
taxable contributions to the Fund under
the Commonwealth Income Tax
Assessment Act 1936.
Victorian Legislation Parliamentary Documents
(1B) An election under sub-section (1A)--
5
(a) can only be made if there is in force an
agreement between the employing
authority and the member under which
the employing authority can make the
member contributions required by this
10
Act by way of salary sacrifice;
(b) is subject to the terms and conditions
specified in the agreement referred to in
paragraph (a);
(c) can only be made in respect of the
15
whole of the member contributions;
(d) can not be made in respect of any
contributions made by a member in
addition to the member contributions
required under sub-section (1).
20
(1C) Member contributions made in accordance
with the rate determined under sub-section
(1A) are for the purposes of this Act (other
than sections 71C to 71E) to be taken to be--
(a) the member contributions required to
25
be paid under this Act; and
(b) the member contributions that would
have been payable if an election had
not been made under sub-section (1A).
(1D) An election under sub-section (1A) does not
30
affect the amount that would otherwise
constitute the salary of the revised scheme
member for the purposes of this Act.'.
41
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 8--State Superannuation Act 1988
s. 33
33. Contribution rates--new scheme members
After section 50(4) of the State Superannuation
Act 1988 insert--
Victorian Legislation Parliamentary Documents
'(4A) An eligible salary sacrifice contributor may
by notice in writing to the employing
5
authority elect to make his or her member
contributions by way of salary sacrifice at
the rate calculated to the nearest highest
01% in accordance with the following
formula--
10
M
1-R
where--
"M" is the elected member contribution rate
in accordance with sub-section (1)
without salary sacrifice;
15
"R" is the tax rate for the financial year on
taxable contributions to the Fund under
the Commonwealth Income Tax
Assessment Act 1936.
(4B) An election under sub-section (4A)--
20
(a) can only be made if there is in force an
agreement between the employing
authority and the member under which
the employing authority can make the
member contributions required by this
25
Act by way of salary sacrifice;
(b) is subject to the terms and conditions
specified in the agreement referred to in
paragraph (a);
(c) can only be made in respect of the
30
whole of the member contributions;
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Act No.
Part 8--State Superannuation Act 1988
s. 34
(d) can not be made in respect of any
contributions made by a member in
addition to the elected member
contributions under sub-section (1).
Victorian Legislation Parliamentary Documents
(4C) Member contributions made in accordance
5
with the rate determined under sub-section
(4A) are for the purposes of this Act (other
than sections 71C to 71E) to be taken to be--
(a) the member contributions elected to be
paid under this Act; and
10
(b) the member contributions that would
have been payable if an election had
not been made under sub-section (4A).
(4D) An election under sub-section (4A) does not
affect the amount that would otherwise
15
constitute the salary of the new scheme
member for the purposes of this Act.'.
34. Sections 61B and 61C repealed
Sections 61B and 61C of the State
Superannuation Act 1988 are repealed.
20
35. Section 71 substituted
For section 71 of the State Superannuation Act
1988 substitute--
'71. Minimum benefit
(1) Subject to this section, if after all benefits
25
payable under this Act in respect of a
contributor or former contributor have been
paid, the total amount of the benefits paid is
less than the sum of the amount contributed
by the contributor or former contributor to
30
the Fund and interest as appropriate on the
amount contributed at the rate which is the
prescribed rate under section 46(1) or 58(1)
up to the date that the contributor or former
contributor first became entitled to a benefit
35
43
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Act No.
Part 8--State Superannuation Act 1988
s. 35
under this Act other than a temporary
pension under section 83A, there is to be
paid out of the Fund to the contributor or
former contributor an amount determined by
Victorian Legislation Parliamentary Documents
the Board in accordance with the formula--
5
A = MCI BP
where--
"A" means the amount to be paid;
"MCI" means the sum of the amount
contributed by the contributor or
10
former contributor to the Fund and
interest as appropriate on the
amount contributed at the rate
which is the prescribed rate under
section 46(1) or 58(1) up to the date
15
that the contributor or former
contributor first became entitled to
a benefit under this Act other than a
temporary pension under
section 83A;
20
"BP" means the total amount of all the
benefits paid under this Act in
respect of the contributor or former
contributor.
(2) Subject to this section, if the total amount of
25
all the benefits paid or payable under this
Act in respect of a contributor or former
contributor is less than the sum of the
superannuation guarantee amount and the
amount contributed by the contributor or
30
former contributor to the Fund and interest as
appropriate on the amount contributed at the
rate which is the prescribed rate under
section 46(1) or 58(1) up to the date that the
contributor or former contributor first
35
became entitled to a benefit under this Act
44
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 8--State Superannuation Act 1988
s. 35
other than a temporary pension under
section 83A, there is to be paid out of the
Fund to the contributor or former contributor
an amount determined by the Board in
Victorian Legislation Parliamentary Documents
accordance with the formula--
5
P=A+I
where--
"P" means the amount to be paid;
"I" means interest as appropriate on "A" at
the rate which is the prescribed rate
10
under section 46(1) or 58(1) from the
date "A" is calculated until the date that
"A" is paid out of the Fund--
and where "A" is an amount determined by
the Board in accordance with the formula--
15
SGC + MCI B
where--
"SGC" means the superannuation
guarantee amount;
"MCI" has the same meaning as in sub-
20
section (1);
"B" means the total amount of all the
benefits paid or payable in respect
of the contributor or former
contributor.
25
(3) Unless sub-section (4), (5) or (6) applies, for
the purposes of this section, the total amount
of all the benefits paid or payable in respect
of a contributor or former contributor is to be
determined by the Board as at the date on
30
which the contributor or former contributor
first became entitled to a benefit under this
Act, other than a temporary pension under
45
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 8--State Superannuation Act 1988
s. 35
section 83A, irrespective of when the benefit
is payable.
(4) If a contributor or former contributor
becomes entitled to another benefit under
Victorian Legislation Parliamentary Documents
this Act other than a temporary pension
5
under section 83A after having returned to
work following a period as a pensioner under
this Act, the total amount of all the benefits
paid or payable in respect of the contributor
or former contributor is to be determined by
10
the Board as at the date on which the
contributor or former contributor first
became entitled to that other benefit under
this Act.
(5) If a contributor or former contributor who
15
had elected to receive all or a part of his or
her entitlements under this Act as a deferred
benefit--
(a) dies before the deferred benefit
becomes payable; and
20
(b) does not leave a partner entitled to a
pension under this Act or dependants or
other persons entitled to a benefit under
this Act--
the Board must pay out of the Fund to the
25
legal personal representative of the
contributor or former contributor an amount
equal to the superannuation guarantee
amount determined by the Board.
(6) If a contributor or former contributor who
30
had elected to receive a pension under this
Act other than a pension under section 83A
dies without leaving any dependants, the
Board must pay out of the Fund to the legal
personal representative of the contributor or
35
former contributor an amount calculated in
46
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 8--State Superannuation Act 1988
s. 35
accordance with sub-section (1) determined
by the Board as at the date of death.
(7) If the amount of the benefit paid or payable
under this Act consists of, or includes, a
Victorian Legislation Parliamentary Documents
pension or deferred benefit, the amount of
5
the benefit paid or payable under this Act for
the purposes of this section is to be
determined by the Board in accordance with
a method determined by an actuary
appointed by the Board.
10
(8) The Board may determine that an amount
determined as payable under this section is to
be applied to increase a pension payable to
or in respect of a contributor or former
contributor in a manner determined by the
15
Board after obtaining the advice of an
actuary appointed by the Board.
(9) Any part of the superannuation guarantee
amount which is required to be preserved in
accordance with the specified standards must
20
be preserved.
(10) For the purposes of this section, if a payment
or transfer to a non-member spouse is made
for the purposes of Part VIIIB of the
Commonwealth Family Law Act 1975
25
whether under Part 7A or otherwise, the
minimum benefit of the member spouse must
be adjusted by the Board in accordance with
a methodology approved by the Minister, on
the advice of an actuary appointed by the
30
Board.
(11) In this section, "superannuation guarantee
amount" means the amount determined by
the Board after obtaining the advice of an
actuary appointed by the Board to be the
35
minimum amount necessary in respect of a
contributor or former contributor to avoid a
47
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Act No.
Part 8--State Superannuation Act 1988
s. 36
superannuation guarantee shortfall within the
meaning of the Superannuation Guarantee
(Administration) Act 1992 of the
Commonwealth.
Victorian Legislation Parliamentary Documents
(12) The amount determined by the Board for the
5
purpose of sub-section (11) is to be
determined as if no election had been made
under section 27(3), 28(1A) or 50(4A).'.
36. Amendment of section 76
In section 76(2) of the State Superannuation Act
10
1988 for "appointed to the first vacancy."
substitute--
"offered employment--
(a) with tenure comparable with the tenure of
the position held by the pensioner prior to
15
the disability; and
(b) having duties for which the pensioner is
suited by education, training or experience or
would be suited as a result of retraining.".
37. New section 81 inserted
20
After section 80 of the State Superannuation Act
1988 insert--
"81. Power to recover
The Board may recover contributions or any
other amount payable to the Board under this
25
Act, including where there is paid from the
Fund to any person an amount, the whole or
part of which the person is not entitled to
receive under this Act, the amount to which
the person is not entitled, as a civil debt due
30
to the Board in any court of competent
jurisdiction.".
48
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 8--State Superannuation Act 1988
s. 38
38. Contribution rates--transferred members
After section 94(5) of the State Superannuation
Act 1988 insert--
Victorian Legislation Parliamentary Documents
'(6) An eligible salary sacrifice contributor may
by notice in writing to the employing
5
authority elect to make his or her member
contributions by way of salary sacrifice at
the rate calculated to the nearest highest
01% in accordance with the following
formula--
10
M
1-R
where--
"M" is the applicable member contribution
rate in accordance with the provisions
of the governing instrument of the
15
Melbourne Water Corporation
Employees' Superannuation Fund
without salary sacrifice;
"R" is the tax rate for the financial year on
taxable contributions to the Melbourne
20
Water Corporation Employees'
Superannuation Fund under the
Commonwealth Income Tax
Assessment Act 1936.
(7) An election under sub-section (6)--
25
(a) can only be made if there is in force an
agreement between the employing
authority and the member under which
the employing authority can make the
member contributions required by the
30
provisions of the governing instrument
of the Melbourne Water Corporation
Employees' Superannuation Fund by
way of salary sacrifice;
49
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Act No.
Part 8--State Superannuation Act 1988
s. 38
(b) is subject to the terms and conditions
specified in the agreement referred to in
paragraph (a);
(c) can only be made in respect of the
Victorian Legislation Parliamentary Documents
whole of the member contributions;
5
(d) can not be made in respect of any
contributions made by a member in
addition to the applicable member
contributions under the provisions of
the governing instrument of the
10
Melbourne Water Corporation
Employees' Superannuation Fund.
(8) Member contributions made in accordance
with the rate determined under sub-
section (6) are for the purposes of the
15
provisions of the governing instrument of the
Melbourne Water Corporation Employees'
Superannuation Fund (other than the
provisions relating to surchargeable
contributions) to be taken to be--
20
(a) the applicable member contributions to
be paid under the provisions of the
governing instrument of the Melbourne
Water Corporation Employees'
Superannuation Fund; and
25
(b) the member contributions that would
have been payable if an election had
not been made under sub-section (6).
(9) An election under sub-section (6) does not
affect the amount that would otherwise
30
constitute the salary of the member for the
purposes of the provisions of the governing
instrument of the Melbourne Water
Corporation Employees' Superannuation
Fund.
35
50
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Act No.
Part 8--State Superannuation Act 1988
s. 38
(10) The minimum benefit required to be paid to
ensure compliance with the Superannuation
Guarantee (Administration) Act 1992 of the
Commonwealth is to be determined as if no
Victorian Legislation Parliamentary Documents
election had been made under sub-
5
section (6).'.
__________________
51
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 9--Superannuation (Portability) Act 1989
s. 39
See: PART 9--SUPERANNUATION (PORTABILITY) ACT 1989
Act No.
14/1989.
39. Amendments relating to retirement savings
Reprint No. 4
as at
Victorian Legislation Parliamentary Documents
accounts
15 October
2003.
(1) For section 5(2A)(b) of the Superannuation
LawToday:
(Portability) Act 1989 substitute--
5 www.dms.
dpc.vic.
"(b) have the lump sum transferred to--
gov.au
(i) a complying superannuation fund; or
(ii) an RSA--
nominated by the member.".
(2) For section 7(7A)(b) of the Superannuation
10
(Portability) Act 1989 substitute--
"(b) have the lump sum transferred to--
(i) a complying superannuation fund; or
(ii) an RSA--
nominated by the person.".
15
40. Amendment of section 7
(1) In section 7(6) of the Superannuation
(Portability) Act 1989 for "retires at any age
other than 60 years" substitute "reaches the
minimum retirement age fixed in the governing
20
instrument of the member's statutory
superannuation scheme at any age other than
60 years,".
(2) In section 7(7) of the Superannuation
(Portability) Act 1989 for "minimum age for
25
retirement" substitute "minimum retirement age
fixed in the governing instrument of the member's
statutory superannuation scheme".
__________________
52
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 10--Transport Superannuation Act 1988
s. 41
See:
PART 10--TRANSPORT SUPERANNUATION ACT 1988
Act No.
33/1988.
41. Amendments relating to retirement savings Reprint No. 4
as at
Victorian Legislation Parliamentary Documents
accounts 15 October
2003.
(1) In section 3(1) of the Transport Superannuation LawToday:
Act 1988, after the definition of "retrenchment"
5 www.dms.
dpc.vic.
insert-- gov.au
' "RSA" means a retirement savings account
within the meaning of the Commonwealth
Retirement Savings Accounts Act 1997;'.
(2) For section 34A(3)(b) of the Transport
10
Superannuation Act 1988 substitute--
"(b) have the lump sum transferred to--
(i) a complying superannuation fund; or
(ii) an RSA--
nominated by the member.".
15
(3) For section 35(4A)(b) of the Transport
Superannuation Act 1988 substitute--
"(b) have the lump sum transferred to--
(i) a complying superannuation fund; or
(ii) an RSA--
20
nominated by the member.".
(4) In section 36AA(1) of the Transport
Superannuation Act 1988, the definition of
"RSA" is repealed.
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Act No.
Part 10--Transport Superannuation Act 1988
s. 42
42. Definition of "eligible salary sacrifice contributor"
inserted in section 3(1)
In section 3(1) of the Transport Superannuation
Act 1988, after the definition of "domestic
Victorian Legislation Parliamentary Documents
partner" insert--
5
' "eligible salary sacrifice contributor" means a
member in respect of whom a declaration is
in force under section 3A;'.
43. New section 3A inserted
After section 3 of the Transport Superannuation
10
Act 1988 insert--
"3A. Declaration of eligible salary sacrifice
contributors
The Minister may by notice published in the
Government Gazette declare--
15
(a) a member to be an eligible salary
sacrifice contributor from the date
specified in the notice; or
(b) a class of members to be eligible salary
sacrifice contributors from the date
20
specified in the notice.".
44. Contributions by members
After section 28(3) of the Transport
Superannuation Act 1988 insert--
'(3A) An eligible salary sacrifice contributor may
25
by notice in writing to the employing
transport authority elect to make his or her
member contributions by way of salary
sacrifice at the rate calculated to the nearest
highest 01% in accordance with the
30
following formula--
54
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 10--Transport Superannuation Act 1988
s. 44
M
1-R
where--
Victorian Legislation Parliamentary Documents
"M" is the elected member contribution rate
in accordance with sub-section (1)
without salary sacrifice;
5
"R" is the tax rate for the financial year on
taxable contributions to the Fund under
the Commonwealth Income Tax
Assessment Act 1936.
(3B) An election under sub-section (3A)--
10
(a) can only be made if there is in force an
agreement between the employing
transport authority and the member
under which the employing transport
authority can make the member
15
contributions required by this Act by
way of salary sacrifice;
(b) is subject to the terms and conditions
specified in the agreement referred to in
paragraph (a);
20
(c) can only be made in respect of the
whole of the member contributions;
(d) can not be made in respect of any
contributions made by a member in
addition to the elected member
25
contributions under sub-section (1).
(3C) Member contributions made in accordance
with the rate determined under sub-section
(3A) are for the purposes of this Act (other
than sections 44CA to 44CC) to be taken to
30
be--
(a) the member contributions elected to be
paid under this Act; and
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Act No.
Part 10--Transport Superannuation Act 1988
s. 45
(b) the member contributions that would
have been payable if an election had
not been made under sub-section (3A).
(3D) An election under sub-section (3A) does not
Victorian Legislation Parliamentary Documents
affect the amount that would otherwise
5
constitute the salary of the member for the
purposes of this Act.'.
45. Section 35A substituted
For section 35A of the Transport
Superannuation Act 1988 substitute--
10
'35A. Minimum benefit
(1) Despite anything to the contrary in this Act
or the regulations, the amount of the benefit
paid or payable under this Act in respect of
any member or former member must not in
15
respect of the period during which the
Superannuation Guarantee (Administration)
Act 1992 of the Commonwealth applies, be
less than the sum of the superannuation
guarantee amount and the amount
20
contributed by the member or former
member to the Fund and interest as
appropriate on the amount contributed at the
rate which is the prescribed rate under
section 35(1).
25
(2) Subject to this section, if the total amount of
all the benefits paid or payable under this
Act in respect of a member or former
member is less than the sum of the
superannuation guarantee amount and the
30
amount contributed by the member or former
member to the Fund and interest as
appropriate on the amount contributed at the
rate which is the prescribed rate under
section 35(1) up to the date that the member
35
or former member first became entitled to a
56
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 10--Transport Superannuation Act 1988
s. 45
benefit under this Act other than a temporary
pension under section 32, there is to be paid
out of the Fund to the member or former
member an amount determined by the Board
Victorian Legislation Parliamentary Documents
in accordance with the formula--
5
P=A+I
where--
"P" means the amount to be paid;
"I" means interest as appropriate on "A" at
the rate which is the prescribed rate
10
under section 35(1) from the date "A" is
calculated until the date that "A" is paid
out of the Fund--
and where "A" is an amount determined by
the Board in accordance with the formula--
15
SGC + MCI B
where--
"SGC" means the superannuation
guarantee amount;
"MCI" means the sum of the amount
20
contributed by the member or
former member to the Fund and
interest as appropriate on the
amount contributed at the rate
which is the prescribed rate under
25
section 35(1) up to the date that the
contributor or former contributor
first became entitled to a benefit
under this Act other than a
temporary pension under
30
section 32;
"B" means the total amount of all the
benefits paid or payable in respect
of the member or former member.
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Part 10--Transport Superannuation Act 1988
s. 45
(3) Unless sub-section (4) applies, for the
purposes of this section, the total amount of
all the benefits paid or payable in respect of a
member or former member is to be
Victorian Legislation Parliamentary Documents
determined by the Board as at the date on
5
which the member or former member first
became entitled to a benefit under this Act,
other than a temporary pension under
section 32, irrespective of when the benefit is
payable.
10
(4) If a member or former member becomes
entitled to another benefit under this Act
other than a temporary pension under
section 32 after having returned to work
following a period as a pensioner under this
15
Act, the total amount of all the benefits paid
or payable in respect of the member or
former member is to be determined by the
Board as at the date on which the member or
former member first became entitled to that
20
other benefit under this Act.
(5) If the amount of the benefit paid or payable
under this Act consists of, or includes, a
pension or deferred benefit, the amount of
the benefit paid or payable under this Act for
25
the purposes of this section is to be
determined by the Board in accordance with
a method determined by an actuary
appointed by the Board.
(6) Any part of the superannuation guarantee
30
amount which is required to be preserved in
accordance with the specified standards must
be preserved.
(7) For the purposes of this section, if a payment
or transfer to a non-member spouse is made
35
for the purposes of Part VIIIB of the
Commonwealth Family Law Act 1975
58
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Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 10--Transport Superannuation Act 1988
s. 46
whether under Part 7A or otherwise, the
minimum benefit of the member spouse must
be adjusted by the Board in accordance with
a methodology approved by the Minister, on
Victorian Legislation Parliamentary Documents
the advice of an actuary appointed by the
5
Board.
(8) In this section, "superannuation guarantee
amount" means the amount determined by
the Board after obtaining the advice of an
actuary appointed by the Board to be the
10
minimum amount necessary in respect of a
member or former member to avoid a
superannuation guarantee shortfall within the
meaning of the Superannuation Guarantee
(Administration) Act 1992 of the
15
Commonwealth.
(9) The amount determined by the Board for the
purpose of sub-section (8) is to be
determined as if no election had been made
under section 28(3A).'.
20
46. New section 49A inserted
After section 49 of the Transport
Superannuation Act 1988 insert--
"49A. Power to recover
The Board may recover contributions or any
25
other amount payable to the Board under this
Act, including where there is paid from the
Fund to any person an amount, the whole or
part of which the person is not entitled to
receive under this Act, the amount to which
30
the person is not entitled, as a civil debt due
to the Board in any court of competent
jurisdiction.".
__________________
59
551160B.A1-28/5/2004 BILL LA AS SENT 28/5/2004
Treasury and Finance Legislation (Amendment) Act 2004
Act No.
Part 11--Victorian Managed Insurance Authority Act 1996
s. 47
See: PART 11--VICTORIAN MANAGED INSURANCE
Act No.
AUTHORITY ACT 1996
11/1996
Reprint No. 2
as at
Victorian Legislation Parliamentary Documents
47. Amendment of section 3
20 September
2001 and
In section 3 of the Victorian Managed Insurance
amending
Authority Act 1996, after the definition of
5 Act No.
102/2003.
"guarantee" insert--
LawToday:
www.dms.
' "insurance business" means the business of
dpc.vic.
undertaking liability, by way of insurance
gov.au
(including reinsurance), in respect of any
loss or damage, including liability to pay
10
damages or compensation, contingent upon
the happening of a specified event;
"insurance services" means any services which
are ancillary to or arise out of the provision
of insurance;'.
15
48. Amendment of section 7
At the end of section 7 of the Victorian Managed
Insurance Authority Act 1996 insert--
"(2) Without limiting or derogating from the
generality of sub-section (1), the Authority
20
may undertake and carry on in Victoria or
elsewhere insurance business for the purpose
of providing insurance or insurance services
under and for the purposes of this Act.
(3) Sub-section (2) is not limited by reference to
25
the practices, usages, form and procedure for
the time being followed by other persons
engaged in the general insurance business.".
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s. 49
49. New section 20A inserted
After section 20 of the Victorian Managed
Insurance Authority Act 1996 insert--
Victorian Legislation Parliamentary Documents
"20A. Repayment or raising of capital
(1) The capital of the Authority is repayable as a
5
rebate on premiums to departments and
participating bodies and other persons or
bodies to which insurance or an indemnity is
to be provided by the Authority at the time
and in the amounts determined by the
10
Minister with the agreement of the Treasurer
after consultation with the Authority.
(2) If the Authority requires additional capital,
the additional capital is to be raised by a
surcharge on premiums to be paid by
15
departments and participating bodies and
other persons or bodies to which insurance or
an indemnity is to be provided by the
Authority at the time and in the amounts
determined by the Minister with the
20
agreement of the Treasurer after consultation
with the Authority.
(3) The Minister must in determining the rebate
or surcharge policy that applies to the
Authority have regard to the capital
25
requirements of the Authority and the need
to provide an appropriate prudential margin
for the operations of the Authority.".
50. Amendment of section 24
After section 24(4) of the Victorian Managed
30
Insurance Authority Act 1996 insert--
"(4A) Subject to sub-section (4B), the Authority
may decline to provide insurance cover in
respect of a specific risk identified by a
department or participating body.
35
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Part 11--Victorian Managed Insurance Authority Act 1996
s. 51
(4B) Despite sub-section (4A), the Minister may
direct the Authority in writing to provide
insurance cover in respect of a specific risk
for which the Authority has declined to
Victorian Legislation Parliamentary Documents
provide insurance cover.
5
(4C) Sub-section (1) does not apply if--
(a) the Authority declines to provide
insurance cover under sub-section (4A);
and
(b) the Minister does not direct the
10
Authority under sub-section (4B) to
provide the insurance cover.".
51. New section 25B inserted
After section 25A of the Victorian Managed
Insurance Authority Act 1996 insert--
15
"25B. Authority may determine conditions
(1) Subject to sub-section (3), the Authority
may, by agreement with departments and
participating bodies and other persons or
bodies to which insurance or an indemnity is
20
to be provided by the Authority, determine
deductible and maximum loss conditions to
be included in insurance contracts or
indemnities under this Act.
(2) The amounts specified in deductible and
25
maximum loss conditions may vary for
different risks or different categories of risks.
(3) The Minister may direct the Authority in
writing in respect of levels of deductibles
and maximum losses to apply to--
30
(a) insurance contracts or indemnities
generally; or
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Part 11--Victorian Managed Insurance Authority Act 1996
s. 52
(b) a specified risk or category of risk in an
insurance contract entered into with, or
an indemnity provided to, a specified
department or participating body or
Victorian Legislation Parliamentary Documents
other person or body.".
5
52. Repeal of spent provisions
Sections 31, 32, 33 and 35 and Part 6 of the
Victorian Managed Insurance Authority Act
1996 are repealed.
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Act No.
Endnotes
ENDNOTES
Victorian Legislation Parliamentary Documents
By Authority. Government Printer for the State of Victoria.
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