Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (PRODUCTIVITY BENEFIT) (QUALIFIED EMPLOYEES) DECLARATION NO. 3 1993 NO. 203

Statutory Rules 1993 No. 203

SUPERANNUATION (PRODUCTIVITY BENEFIT) ACT 1988

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

DECLARATION UNDER SUBSECTION 3F(1)

The Superannuation (Productivity Benefit) Act 1988 provides the mechanism for the payment of superannuation guarantee minimum benefits to Commonwealth sector employees who have no other employer sponsored superannuation coverage.

The designated employers of qualified employees are required to pay to either the superannuation fund nominated by the Minister for Finance (AGEST) or a fund approved by the Minister periodic contributions based on the salary of the employee.

Subsection 3F(1) of the Act enables the Minister for Finance to declare a specified class of persons to be qualified employees. This declaration specifies two new classes of persons to be qualified employees so that their employers can provide them with the superannuation guarantee minimum benefits provided for under the Act.

The first new class of qualified employee are Australian residents for taxation purposes, who are employed overseas, and who would have been qualified employees except for the exclusion contained in paragraph (m) of the definition of qualified employee in subsection 3(1) of the Act. That paragraph states that persons engaged or appointed for employment outside Australia only are not qualified employees.

The second new class of qualified employees are contractors who are not common law employees but who are employees for superannuation guarantee purposes under the Superannuation Guarantee (Administration) Act 1992. Those contractors who are employees at common law are already qualified employees.

The declaration takes effect from 1 July 1992.