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This is a Bill, not an Act. For current law, see the Acts databases.
2002-2003-2004
The Parliament
of the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Parliamentary
Superannuation and Other Entitlements Legislation Amendment Bill
2004
No. ,
2004
(Finance and
Administration)
A Bill for an Act to amend
the law relating to the superannuation and other entitlements of members of
Parliament, and for related purposes
Contents
Parliamentary Contributory Superannuation Act
1948 3
Parliamentary Contributory Superannuation Act
1948 13
Remuneration and Allowances Act
1990 13
A Bill for an Act to amend the law relating to the
superannuation and other entitlements of members of Parliament, and for related
purposes
The Parliament of Australia enacts:
This Act may be cited as the Parliamentary Superannuation and Other
Entitlements Legislation Amendment Act 2004.
This Act commences on the day after it receives the Royal
Assent.
Each Act that is specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any
other item in a Schedule to this Act has effect according to its
terms.
Parliamentary Contributory
Superannuation Act 1948
1 Subsection 4(1) (at the end of the definition of
surcharge debt account)
Add “and that related to the person’s surchargeable
contributions”.
2 Paragraph 4E(1)(a)
After “benefits”, insert “under this
Act”.
3 Paragraph 4E(2)(c)
After “likely to be payable to the person”, insert “under
this Act”.
4 At the end of the Act
Add:
The preceding provisions of this Act have effect subject to
Schedule 1. That Schedule provides for closing off the scheme constituted
by this Act, and related matters.
Note: See section 29.
(1) In this Schedule:
new scheme contribution period, in relation to a person, has
the same meaning as in the Parliamentary Superannuation Act
2004.
new scheme entry time, in relation to a person, has the same
meaning as in the Parliamentary Superannuation Act 2004.
(2) In this Schedule, unless the contrary intention appears:
(a) a reference to a clause or subclause is a reference to a clause or
subclause of this Schedule; and
(b) a reference to a section or subsection is a reference to a section or
subsection of this Act.
A person is not required or entitled to make contributions under
section 13 in respect of any new scheme contribution period of the
person.
(1) A person is not entitled to any benefits under section 18 on
ceasing to be entitled to a parliamentary allowance at the end of the first, or
any later, new scheme contribution period of the person.
Note: A person may, however, be entitled to an allowance
under clause 4 or 5 at a preserved percentage.
(2) Any retiring allowance, or additional retiring allowance, to which the
person was entitled under section 18 immediately before the start of the
first new scheme contribution period of the person is cancelled by force of this
clause (rather than subsection 20(3)) as from the start of that
period.
(1) This clause applies to a person if, immediately before the start of
the first new scheme contribution period of the person, a retiring allowance
(other than additional retiring allowance) was payable to the person under
section 18.
Note: The reference in this subclause to a retiring
allowance being payable to the person is affected by
subclause (6).
(2) The person is entitled, after the end of the first new scheme
contribution period, to a retiring allowance (the preserved basic
allowance) under this clause during his or her lifetime at the preserved
basic percentage (see subclause (5)) of the rate of parliamentary allowance
for the time being payable to a member.
Note 1: The reference in this subclause to the rate of
parliamentary allowance for the time being payable to a member is affected by
section 22T.
Note 2: Because of Division 3 of this Part, other
provisions (for example, Part VA, subsection 20(3A) and sections 21
and 21B) may apply so that the preserved basic allowance is not payable to the
person, or is payable at a reduced rate.
(3) For the purpose of the reference in subclause (2) to the rate of
parliamentary allowance for the time being payable to a member, any reductions
of a particular member’s entitlement to parliamentary allowance under
Division 2 of Part 1 of Schedule 3 to the Remuneration and
Allowances Act 1990 (salary sacrifice) are to be disregarded.
(4) The person’s entitlement to the preserved basic allowance is
suspended for the duration of any later new scheme contribution period of the
person.
(5) The preserved basic percentage is, from the end of a new
scheme contribution period of the person to the start of the next (if any) new
scheme contribution period of the person, the percentage that was applied to the
rate of parliamentary allowance in order to calculate the rate of retiring
allowance (other than additional retiring allowance) payable to the person under
section 18, or under this clause, immediately before the start of the
first-mentioned new scheme contribution period.
Note: The reference in this subclause to the rate of
retiring allowance payable to the person is affected by
subclause (6).
(6) If, immediately before the start of a new scheme contribution period
of the person, the person was not being paid a retiring allowance, or was being
paid a reduced rate of retiring allowance, because of all or any of the
following provisions:
(a) Part VA;
(b) subsection 20(3A);
(c) section 21;
(d) section 21B;
this clause applies to the person as if the person were, at that time,
being paid the retiring allowance he or she would have been paid if those
provisions had not applied.
(1) This clause applies to a person if, immediately before the start of
the first new scheme contribution period of the person, additional retiring
allowance was payable to the person under subsection 18(9) in respect of either
or both of the following:
(a) his or her service in an office or offices he or she held as a
Minister of State;
(b) his or her service in an office or offices by virtue of which he or
she was an office holder.
In this clause, each office in respect of which the additional retiring
allowance was payable is a relevant office.
Note: The reference in this subclause to a retiring
allowance being payable to the person is affected by
subclause (5).
(2) The person is entitled, after the end of the first new scheme
contribution period and in respect of each relevant office, to additional
retiring allowance (the preserved additional allowance) under this
clause during his or her lifetime at the preserved additional percentage for the
office (see subclause (4)) of the rate, for the time being, of:
(a) for an office referred to in paragraph (1)(a)—the salary
payable to a Minister of State; or
(b) for an office referred to in paragraph (1)(b)—the allowance
by way of salary payable to an office holder in respect of that
office.
Note 1: The reference in this subclause to the rate of
salary, or allowance by way of salary, for the time being payable in respect of
an office is affected by sections 22T and 23.
Note 2: Subclause (6) imposes a cap on the rate of the
preserved additional allowance.
Note 3: Because of Division 3 of this Part, other
provisions (for example, Part VA, subsection 20(3A) and sections 21
and 21B) may apply so that the preserved additional allowance is not payable to
the person, or is payable at a reduced rate.
(3) The person’s entitlement to the preserved additional allowance
is suspended for the duration of any later new scheme contribution period of the
person.
(4) The preserved additional percentage for a relevant
office is, from the end of a new scheme contribution period of the person to the
start of the next (if any) new scheme contribution period of the person, the
percentage that was applied to:
(a) for an office referred to in paragraph (1)(a)—the salary
payable to a Minister of State; or
(b) for an office referred to in paragraph (1)(b)—the allowance
by way of salary payable to an office holder in respect of that
office;
in order to calculate the rate of additional retiring allowance payable to
the person in respect of the office under subsection 18(9), or under this
clause, immediately before the start of the first-mentioned new scheme
contribution period.
Note: The reference in this subclause to the rate of
additional allowance payable to the person is affected by
subclause (5).
(5) If, immediately before the start of a new scheme contribution period
of the person, the person was not being paid additional retiring allowance, or
was being paid a reduced rate of additional retiring allowance, because of all
or any of the following provisions:
(a) Part VA;
(b) subsection 18(10B) or subclause (6) of this clause;
(c) subsection 20(3A);
(d) section 21;
(e) section 21B;
this clause applies to the person as if the person were, at that time,
being paid the additional retiring allowance he or she would have been paid if
those provisions had not applied.
(6) Nothing in this clause entitles the person to additional retiring
allowance at a rate that exceeds:
(a) if the person is entitled to additional retiring allowance in respect
of one relevant office only—75% of the rate, for the time being, at which
salary or allowance by way of salary, as the case may be, is payable in respect
of that office; or
(b) if a person is entitled to additional retiring allowance in respect of
2 or more relevant offices—75% of the rate that is the highest rate, for
the time being, at which salary or allowance by way of salary, as the case may
be, is payable in respect of either or any of those offices.
(1) This Act applies in relation to a person after the new scheme entry
time for the person subject to Division 1 and this Division, and to
Part 2.
(2) Subject to Division 1 and this Division, this Act applies in
relation to a retiring allowance (the preserved basic
allowance) to which the person is entitled under
clause 4 in the same way as it applies in relation to a retiring allowance
under section 18.
(3) Subject to Division 1 and this Division, this Act applies in
relation to additional retiring allowance (the preserved additional
allowance) to which the person is entitled under clause 5 in the
same way as it applies in relation to an additional retiring allowance under
subsection 18(9).
(1) Sections 15A and 15B do not apply in relation to the person
ceasing to be a member as mentioned in section 15A, if the cessation occurs
after the new scheme entry time for the person.
(2) The Trust cannot, under section 15C, review a person’s
classification as a class 1 invalid or a class 2 invalid after the new scheme
entry time for the person.
Section 16A applies after the new scheme entry time for a person as
if the reference in subparagraph (1)(c)(i) to the person’s capacity
as a member were a reference to the person’s capacity as a member before
the new scheme entry time.
(1) Subsection 18(8A) does not apply in relation to the preserved basic
allowance. Instead, subclauses (2) and (3) of this clause apply.
(2) If the person’s surcharge debt account is in debit at the end of
a new scheme contribution period (the most recent contribution
period) of the person, then, until whichever (if any) of the following
happens first:
(a) another new scheme contribution period of the persons
starts;
(b) the person makes an election under subsection 18A(1);
clause 4 applies as if the reference in subclause 4(2) to the
preserved basic percentage were instead a reference to the percentage worked out
under subclause (3) of this clause.
(3) The percentage is worked out using the formula:
where:
basic rate means the rate at which, after the end of
the most recent contribution period, the preserved basic allowance would have
been payable to the person if subclause (2) did not apply to the
person.
percentage means the preserved basic percentage determined in
accordance with subclause 4(5).
surcharge adjustment means the person’s notional
adjustment debit arising under subclause 10(2) at the end of the most recent
contribution period.
(1) Subsection 18(8AA) does not apply in relation to the preserved basic
allowance. Instead, subclause (2) of this clause applies.
(2) If the person’s surcharge debt account is in debit at the end of
a new scheme contribution period of the person, there is taken to have arisen,
at the end of that period, a notional adjustment debit of the person equal to
the amount worked out using the formula:
where:
conversion factor means the factor applicable to the person
under the determination made by the Trust under section 22A.
surcharge deduction amount means the person’s surcharge
deduction amount.
(1) Subsection 18(8AC) does not apply in relation to the preserved basic
allowance. Instead, subclauses (2) and (3) of this clause apply.
(2) If the person makes an election under subsection 18A(1) on a
particular day (the election day) after the end of a new scheme
contribution period of the person (the most recent contribution
period) then, from the election day until another (if any) new scheme
contribution period of the person starts, clause 4 applies as if the
reference in subclause 4(2) to the preserved basic percentage were instead a
reference to the percentage worked out under subclause (3) of this
clause.
(3) The percentage is worked out using the formula:
where:
basic rate means the rate at which, after the end of
the most recent contribution period, the preserved basic allowance would have
been payable to the person if subclause (2) of this clause and subclause
9(2) did not apply to the person.
percentage means the preserved basic percentage determined in
accordance with subclause 4(5).
surcharge adjustment means the sum of the
following:
(a) the person’s notional adjustment debit (if any) arising under
subclause 10(2) at the end of the most recent contribution period;
(b) the person’s notional adjustment debit arising under subsection
18A(6) because of the making of the election.
Section 18A applies in relation to the preserved basic allowance as
if:
(a) paragraph 18A(1)(a) included a reference to the preserved basic
allowance; and
(b) the note under subsection 18A(4) included a reference to subclause
11(2).
Section 18B does not apply in relation to the preserved basic
allowance or the preserved additional allowance.
Section 19 applies in relation to the preserved basic allowance and
the preserved additional allowance as if paragraph 19(3)(b) were
omitted.
(1) After the new scheme entry time for the person, the person
cannot:
(a) enter into a contract as mentioned in subsection 20(1AA); or
(b) make an election as mentioned in subsection 20(2A) or (2B).
(2) Subsection 20(3) does not apply in relation to the preserved basic
allowance or the preserved additional allowance.
Section 21AA applies in relation to the preserved basic allowance
and the preserved additional allowance as if paragraph 21AA(5)(c) were
omitted.
Section 21B applies in relation to the preserved basic allowance and
the preserved additional allowance as if paragraph 21B(4)(a) were
omitted.
After the new scheme entry time for a person, the person cannot make an
election under any of the provisions of Part VB.
Parliamentary Contributory
Superannuation Act 1948
1 At the end of section 18
Add:
(12) For the purpose of references in this section to the rate of
parliamentary allowance for the time being payable to a member, any reductions
of a particular member’s entitlement to parliamentary allowance under
Division 2 of Part 1 of Schedule 3 to the Remuneration and
Allowances Act 1990 (salary sacrifice) are to be disregarded.
2 After subsection 21B(3A)
Insert:
(3B) For the purpose of the reference in the formula in
subsection (3A) to the annual rate of parliamentary allowance, any
reductions of a particular member’s entitlement to parliamentary allowance
under Division 2 of Part 1 of Schedule 3 to the Remuneration
and Allowances Act 1990 (salary sacrifice) are to be disregarded.
3 After subsection 22T(1)
Insert:
(1A) For the purpose of paragraph (1)(a), any reductions of a
particular member’s entitlement to parliamentary allowance under
Division 2 of Part 1 of Schedule 3 to the Remuneration and
Allowances Act 1990 (salary sacrifice) are to be disregarded.
Remuneration and Allowances
Act 1990
4 Section 8
Omit “and allowances”, substitute “, allowances and
contributions”.
5 Before clause 1 of
Schedule 3
Insert:
6 After clause 1 of
Schedule 3
Insert:
In this Division:
administering authority means:
(a) in relation to a person who is or will be a senator—the Clerk of
the Senate; and
(b) in relation to a person who is a member of the House of
Representatives—the Clerk of the House of Representatives.
allowance by way of salary has the same meaning as in the
Parliamentary Superannuation Act 2004.
chosen basic contributions fund, in relation to a person,
means the fund, scheme or account (if any) specified in a notice given by the
person that is in force under Division 2 of Part 2 of the
Parliamentary Superannuation Act 2004.
complying superannuation fund has the meaning given by
clause 1B.
default basic contributions fund means the fund or scheme
that is the default fund under Division 3 of Part 2 of the
Parliamentary Superannuation Act 2004.
month means one of the 12 months of the year.
new scheme contribution period, in relation to a person, has
the same meaning as in the Parliamentary Superannuation Act
2004.
office holder has the same meaning as in the Parliamentary
Superannuation Act 2004.
parliamentary allowance means allowance payable under
clause 1.
RSA has the same meaning as in the Retirement Savings
Accounts Act 1997.
salary, in relation to a Minister of State, does not include
any allowance.
self managed superannuation fund has the same meaning as in
the Superannuation Industry (Supervision) Act 1993.
(1) For the purposes of this Division, a fund or scheme is a
complying superannuation fund at a particular time if, and only
if:
(a) the fund or scheme is a complying superannuation fund for the purposes
of Part IX of the Income Tax Assessment Act 1936 in relation to the
year of income in which the time occurs; and
(b) the fund or scheme is a superannuation fund as defined by subsection
6(1) of the Income Tax Assessment Act 1936.
(2) In applying paragraph (1)(a) in relation to a fund or scheme and
a particular time, the following are to be disregarded:
(a) any notice that is given after that time under section 40 of the
Superannuation Industry (Supervision) Act 1993 and that relates to the
fund or scheme and the year of income in which the time occurs;
(b) any revocation or setting aside, after that time, of a notice given
before that time under section 40 of the Superannuation Industry
(Supervision) Act 1993 and that relates to the fund or scheme and the year
of income in which the time occurs or an earlier year of income.
A person (the member) may make an election as described in
clause 1D if, and only if:
(a) the election is made during a new scheme contribution period of the
person; or
(b) the election is made before the start of a new scheme contribution
period of the person and at a time when:
(i) the person has been elected to the Senate, but his or her entitlement
to parliamentary allowance as a senator has not yet commenced; or
(ii) the person has been chosen or appointed to hold the place of a
senator in accordance with section 15 of the Constitution, but his or her
entitlement to parliamentary allowance as a senator has not yet
commenced.
(1) The member may elect to forgo a percentage or amount of the
parliamentary allowance that he or she would otherwise expect to receive and
instead have contributions (the additional contributions) made to
a specified fund, scheme or account (the additional contributions
fund).
Note: An election can be varied or revoked (see
clauses 1H and 1I).
(2) The specified fund, scheme or account must, at the time the election
is made, be either:
(a) a complying superannuation fund that is not a self managed
superannuation fund; or
(b) an RSA.
(3) There can only be one additional contributions fund at any particular
time in relation to the member.
(1) An election must be in writing and be signed by the member.
(2) The election must:
(a) specify the percentage or amount (the specified salary
sacrifice) of parliamentary allowance that is forgone; and
(b) specify the name of, and contact details for, the additional
contributions fund; and
(c) specify the date (the start date) from which the
election is to have effect, being a date:
(i) that is the first day of the next month following the month in which
the election is made, or the first day of a later month; and
(ii) if the election is made before the start of a new scheme contribution
period of the person as permitted by paragraph 1C(b)—that is not before
the start of the new scheme contribution period; and
(d) contain such other information (if any) as is required by the
regulations.
(3) The specified salary sacrifice must be either:
(a) a specified percentage of the monthly amount of parliamentary
allowance; or
(b) a specified amount per month.
Note: In deciding what amount or percentage to specify,
consideration should be given to the effect of subclause 1G(3).
(4) The election must be accompanied by evidence that the additional
contributions fund will accept the additional contributions. However such
evidence is not required if:
(a) the additional contributions fund is the default basic contributions
fund; or
(b) the additional contributions fund is the chosen basic contributions
fund of the member, and the evidence that accompanied the notice choosing that
fund indicates that the fund will accept the additional contributions.
(5) The election must be given to the administering authority.
(6) For the purpose of subparagraph (2)(c)(i), the election is
made when it is given to the administering authority.
An election comes into force on the start date for the election and
remains in force until whichever of the following occurs first:
(a) the contribution payable under this Division in respect of the month
in which the member next ceases to be entitled to parliamentary allowance
has been paid; or
(b) a revocation of the election takes effect (see
clause 1I).
(1) If the member makes an election in accordance with clauses 1C, 1D
and 1E, then this clause has effect in relation to each month during the
period when the election is in force.
(2) Subject to subclauses (3) and (5), the amount (the basic
amount) of parliamentary allowance to which the member would otherwise
be entitled in respect of a month is reduced (but not below zero) by whichever
of the following amounts (the reduction amount) is
applicable:
(a) if the specified salary sacrifice is a percentage—the amount
that is that percentage of the basic amount;
(b) if the specified salary sacrifice is an amount—that
amount.
(3) If the reduction amount for a month is greater than the amount (the
maximum reduction) that is 50% of the sum of:
(a) the basic amount; and
(b) the amount (if any) of salary to which the member is entitled because
he or she was a Minister of State for some or all of the month; and
(c) the amount (if any) of allowance by way of salary to which the member
is entitled because he or she was an office holder for some or all of the
month;
the basic amount for the month is instead reduced by the maximum
reduction.
(4) Subject to subclause (5), the Commonwealth must, in respect of
each month, make a contribution to the additional contributions fund, in respect
of the member, of an amount equal to the amount by which the basic amount for
the month is reduced under subclause (2) or (3).
(5) If either:
(a) the additional contributions fund:
(i) ceases to exist; or
(ii) ceases to accept the additional contributions; or
(iii) ceases to be a complying superannuation fund or an RSA; or
(iv) becomes a self managed superannuation fund; or
(b) the member dies;
before the Commonwealth makes a contribution as required by
subclause (4) in respect of a month, then:
(c) no reduction under subclause (2) or (3) is to be made in respect
of that month; and
(d) no contribution under subclause (4) is to be made in respect of
that month.
(1) The member may vary an election he or she has made by notice in
writing signed by the member and given to the administering
authority.
(2) The only variations that are permitted are:
(a) to change the additional contributions fund to another fund or scheme
that is, at the time notice is given:
(i) a complying superannuation fund that is not a self managed
superannuation fund; or
(ii) an RSA; or
(b) to change the specified salary sacrifice to another specified
percentage or amount that complies with subclause 1E(3); or
(c) to change the start date to a later date (but only if the start date
has not already occurred).
(3) The notice of variation must specify a date (the variation
date) from which the variation is to take effect, being a date that is
the first day of the next month following the giving of the notice, or the first
day of a later month.
(4) A notice of variation to change the additional contributions fund to
another complying superannuation fund or RSA (the new fund)
must:
(a) specify the name of, and contact details for, the new fund;
and
(b) be accompanied by evidence that the new fund will accept the
additional contributions.
(5) However, evidence referred to in paragraph (4)(b) is not required
if:
(a) the new fund is the default basic contributions fund; or
(b) the new fund is the chosen basic contributions fund of the member, and
the evidence that accompanied the notice choosing that fund indicates that the
fund will accept the additional contributions.
(6) If the notice of variation complies with this clause, it varies the
election accordingly (subject to any later variations) in relation to months
starting on or after the variation date.
(1) The member may revoke an election he or she has made by notice in
writing signed by the member and given to the administering authority.
(2) The notice of revocation must specify a date from which the revocation
is to take effect, being a date that is the first day of the next month
following the giving of the notice, or the first day of a later month.
(3) If the notice of revocation complies with this clause, the revocation
takes effect on the specified date.