{"id":"F1996B00034","name":"Superannuation (Leave of Absence Without Pay) Regulations","slug":"superannuation-leave-of-absence-without-pay-regulations","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"246 of 1988","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":28467,"registerId":"commonwealth-F1996B00034-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"‘Division 2A Persons to whom section 51 ","sectionType":"schedule","heading":"‘Division 2A Persons to whom section 51 applies with Preserved Rights from Employment during Period of Leave","content":"## ‘Division 2A Persons to whom section 51 applies with Preserved Rights from Employment during Period of Leave\n\n130AA In this Division, unless the contrary intention appears, leave means leave of absence without pay in respect of which section 51 applies to a person means leave of absence without pay in respect of which section 51 applies to a person.\n\n130AC (1) Where:\n\n(a) a person to whom section 51 applies, and who is a person referred to in regulation 5, 9 or 11 of the Superannuation (Transfer Arrangements) Regulations, has, at any time during a period of leave, been in employment, within or outside Australia, on the termination of which a transfer value or transfer values (within the meaning of section 127) became payable to or in respect of the person under a superannuation scheme applicable in relation to that employment;\n\n(b) upon the termination of the period of leave, the person again becomes required to make contributions on contribution days;\n\n(c) before, or not later than 3 months after, the day on which the person again becomes required to make contributions on contribution days, or within such further period as the Commissioner in special circumstances allows, the person elects, by notice in writing to the Commissioner, to pay to the Commissioner an amount equal to the amount of that transfer value or, if 2 or more transfer values became payable, the sum of the amounts of those transfer values; and\n\n(d) that amount is, before the expiration of that period of 3 months or that further period, as the case may be, paid to the Commissioner;\n\nthen, subject to this section, the provisions of section 128 (other than subsection 128 (1)) apply, for the purposes of this Division, to and in relation to that person as if the amount referred to in paragraph (d) had been paid to the Commissioner under subsection 128 (1).\n\n(2) If:\n\n(a) a person to whom section 51 applies engages in employment during a period of leave; and\n\n(b) a transfer value becomes payable to or in respect of that person in relation to that employment;\n\nsubsection 128 (5) applies to that employee as if “(not being a period greater than the period of leave)” were inserted in that subsection after “such period”.\n\n130AD (1) Where:\n\n(a) a person to whom section 51 applies has, at any time during a period of leave, been in employment, within or outside Australia;\n\n(b) upon the termination of that employment, a lump sum became payable to or in respect of that person under a superannuation scheme applicable in relation to that employment;\n\n(c) that lump sum, or a part of that lump sum, is an amount that is based on contributions by the member and, if subsection 130AC (1) applies to the person, does not form part of the transfer value referred to in that subsection; and\n\n(d) upon the termination of the period of leave, the person again becomes required to make contributions on contribution days;\n\nthen, subject to subsection (2), the provisions of section 129 apply, for the purposes of this Division, to and in relation to that person as if:\n\n(e) he or she were a person referred to in subsection 129 (1); and\n\n(f) the lump sum or the part of the lump sum referred to in paragraph (c) were a lump sum or the part of a lump sum referred to in paragraph 129 (1) (c).\n\n(2) For the purposes of the application of subsection (1), subsection 129 (1) has effect in relation to a person to whom section 51 applies as if the reference in that subsection to a period of 3 months after the date on which a person becomes an eligible employee were a reference to a period of 3 months after the date on which the person again becomes required to make contributions on contribution days.’.\n\nSection\n\n157 After ‘128,’ insert in paragraph (3) (a) ‘130AC,’.","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"This instrument broadens the practical scope of the preserved‑rights buy‑back regime by expressly covering amounts (transfer values and member-funded lump sums) that arise from employment undertaken during a period of unpaid leave. Previously the buy‑back rules applied in ordinary return-to-work contexts; these regulations extend the same buy‑back pathway (via sections 128 and 129) to cases where the benefit originated from separate employment while on leave, subject to a short election and payment window (3 months, with limited Commissioner discretion) (130AC–130AD). Mechanically, it levers existing buy‑back provisions rather than creating a new entitlement, but it meaningfully expands the set of circumstances and persons who may restore preserved rights after unpaid leave by paying equivalent transfer values or lump sums to the Commissioner."},"complexity_factors":["Multiple internal cross-references: relies on sections 51, 127, 128 and 129 of the principal Act (four different Act cross‑references).","External cross-references to the Superannuation (Transfer Arrangements) Regulations (regulations 5, 9 and 11) to identify eligible persons (adds dependency on another instrument).","Conditional logic with several conjunctive conditions to trigger rights (130AC(1)(a)–(d); 130AD(1)(a)–(d)).","Timing rules and a commissioner discretion exception: strict 3‑month deadlines with an extension permitted only in \"special circumstances\" (130AC(1)(c–d); 130AD(2)).","Selective application of existing provisions: applies section 128 \"other than subsection 128(1)\" and modifies subsection 128(5) wording — requires careful read-through of original provisions to know effect (130AC(1)–(2)).","Separate but overlapping treatment of transfer values versus member-funded lump sums (two parallel but distinct rules in 130AC and 130AD).","A tautological definition of \"leave\" in 130AA which adds little clarity and requires reader to map to section 51.","Insertion into section 157 modifies cross-reference lists — a small but consequential drafting change that requires updating consolidated texts."],"plain_english_summary":"**What this change does (mechanically)\n\n- Adds a new Division 2A (rules 130AA, 130AC and 130AD) to the Superannuation (Leave of Absence Without Pay) Regulations that governs what happens when a person on unpaid leave (a person to whom section 51 applies) obtains superannuation benefits from employment they did while on that leave.\n\n- Defines the relevant meaning of “leave” for the Division (130AA).\n\n- Allows a person who, during unpaid leave, received a transfer value from another superannuation scheme on termination of that employment, to elect to pay an amount equal to that transfer value to the Commissioner after they return to making compulsory contributions. If they pay within 3 months (or longer if the Commissioner allows), certain existing rules about purchasing preserved rights apply to them as if the payment had been made under section 128 of the Act (130AC(1)).\n\n- Limits the operation of one part of section 128 so that when a transfer value arises from employment during leave, the relevant period referred to in subsection 128(5) is read with the additional phrase “not being a period greater than the period of leave” (130AC(2)).\n\n- Deals separately with lump sums that are partly or wholly based on the member’s own contributions (and which are not already captured as transfer values under 130AC). If such a lump sum arose from employment during leave, section 129 is treated as applicable so the person can use that lump-sum amount to preserve rights on returning to contributions (130AD(1)). The usual 3-month timing rule in section 129(1) is adapted to run from the day the person again becomes required to make contributions (130AD(2)).\n\n- Adds 130AC to the cross-references in section 157(3)(a) (so 130AC is included in that list) (insertion after section 128).\n\nWho is affected\n\n- Employees who are on leave of absence without pay covered by section 51, including those with preserved rights from employment before or during the leave (see 130AA).\n\n- Those same employees who take employment while on that unpaid leave (inside or outside Australia) and, on leaving that employment, receive either: a transfer value under another superannuation scheme (130AC) or a lump sum that is partly based on the member’s own contributions (130AD).\n\n- The Commissioner of Taxation (because the Commissioner administers acceptance of the payment and has discretion to extend time limits in special circumstances) (130AC(1)(c)).\n\nWhy it matters (purpose-claims and practical effects)\n\n- Purpose-claim: the instrument enables people who took paid employment while on unpaid leave to preserve or reinstate preserved superannuation rights in their original scheme by paying amounts equivalent to transfer values or member-based lump sums to the Commissioner after they resume contributing (130AC and 130AD).\n\n- How the mechanism works: if the returning contributor elects and pays within the stated period, existing statutory mechanisms for buying preserved entitlements (sections 128 and 129) are applied to that payment so the person’s preserved benefits are adjusted as if the payment had been made under the ordinary buy-back provisions (130AC(1), 130AD(1)).\n\n- Who pays: the individual (or the individual’s transferred benefit) — the regulation requires the person to pay an amount equal to the transfer value or lump sum to the Commissioner within a tight window (3 months, unless extended by the Commissioner) (130AC(1)(c–d); 130AD(2)).\n\n- Who decides: the person must elect in writing to the Commissioner and make the payment; the Commissioner has discretion to allow an extension in special circumstances (130AC(1)(c)).\n\nCosts, incentives and trade-offs\n\n- Direct costs fall on the individual member who must pay the transfer value or member-based lump sum to preserve rights (130AC(1)(d); 130AD(1)(c)).\n\n- Administrative cost and information needs arise for the Commissioner and the schemes involved: the Commissioner must accept and account for payments, and schemes must provide transfer value figures and lump-sum details for people who left employment during leave (130AC(1)(a); 130AD(1)(b)).\n\n- Timing and compliance risk: the 3-month deadline (subject to limited Commissioner discretion) concentrates risk on members who may not have immediate notice of entitlements or may have trouble gathering documentation (130AC(1)(c–d); 130AD(2)).\n\n- Behavioral effects / substitution: having the option to preserve rights may make it more attractive for some employees to take paid work during unpaid leave, knowing they can later pay to restore preserved benefits; conversely, the up-front payment requirement may deter some from preserving rights.\n\n- Concentrated benefits, diffuse costs: benefits are concentrated on individuals who can pay the transfer value or lump-sum amount; compliance and administrative costs are borne by the Commissioner and, indirectly, broader administration of the superannuation system.\n\nImplementation and legal interactions\n\n- The provisions rely heavily on cross-references to existing statutory provisions (sections 127, 128 and 129) and to the Superannuation (Transfer Arrangements) Regulations (regulations 5, 9 or 11) for identifying which persons qualify (130AC(1)(a)). This increases dependence on correct information flow between schemes and the Commissioner.\n\n- The instrument modifies how existing buy-back rules operate (applying most of section 128 but excluding subsection 128(1); and adapting timing in section 129) rather than creating a wholly new entitlement, so it leverages the existing statutory framework (130AC(1); 130AD(1)–(2)).\n\nKey citations: 130AA, 130AC(1)–(2), 130AD(1)–(2), and the insertion to section 157(3)(a).\n\nSummary sentence: The regulations let people who undertook paid work while on unpaid leave preserve their preserved superannuation rights by paying equivalent transfer values or member-funded lump sums to the Commissioner within a short, specified period after they resume compulsory contributions; existing buy-back rules are applied to treat those payments as purchases of preserved entitlements (130AC–130AD)."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"This appears to be a technical amendment adding Division 2A to existing regulations. The scope remains focused on the specific narrow issue of preserving superannuation rights during unpaid leave — it has not expanded beyond this original purpose."},"complexity_factors":["Heavy cross-referencing to other sections (section 51, section 127, section 128, section 129, subsection 128(1), subsection 128(5), subsection 129(1)) without reproducing their content","Nested conditional logic with multiple 'where' clauses and sub-paragraphs (e.g., 130AC(1) has four separate conditions that must all be met)","References to other regulations (Superannuation (Transfer Arrangements) Regulations, regulations 5, 9, and 11) creating a web of interdependent rules","Complex defined terms requiring external knowledge ('transfer value', 'contribution days', 'eligible employee', 'Commissioner')","Hypothetical modifications to other sections (e.g., 'as if \"(not being a period greater than the period of leave)\" were inserted')","Multiple time limits and extension provisions ('3 months', 'further period as the Commissioner in special circumstances allows')","Fragmentary presentation suggesting this is an amendment to existing legislation rather than a standalone text"],"plain_english_summary":"This legislation deals with **superannuation (retirement savings) rules for Australian government employees who take unpaid leave**.\n\n**What it does:**\nWhen a government employee takes leave without pay and works somewhere else during that time, they might build up retirement savings in that other job. This law lets them **transfer those savings back into their government superannuation fund** when they return to work, so they don't lose the benefits.\n\n**Key rules:**\n- If you get a **\"transfer value\"** (a lump sum payment representing your retirement savings from another job) while on unpaid leave, you can pay that amount into your government super fund within 3 months of returning to work (or longer if the Commissioner allows)\n- Once you do this, special rules apply that **treat that money as if it had always been part of your government super** — protecting your retirement benefits\n- If you receive other lump sum payments from that other job (based on your own contributions), you can also transfer those under similar rules\n- There's a **time limit**: you must act within 3 months of returning to work, though extensions are possible in special circumstances\n\n**Who it affects:**\nGovernment employees (specifically those covered by section 51 of the Superannuation Act) who take unpaid leave and work elsewhere during that time.\n\n**Why it matters:**\nWithout these rules, employees who worked during unpaid leave could lose the retirement savings they built up in that other job, or face gaps in their government super benefits. This ensures **continuity of retirement benefits** even when people temporarily leave and return to government employment."}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-leave-of-absence-without-pay-regulations","history":"/api/acts/superannuation-leave-of-absence-without-pay-regulations/history","analysis":"/api/acts/superannuation-leave-of-absence-without-pay-regulations/analysis","conflicts":"/api/acts/superannuation-leave-of-absence-without-pay-regulations/conflicts","importantCases":"/api/acts/superannuation-leave-of-absence-without-pay-regulations/important-cases","documents":"/api/acts/superannuation-leave-of-absence-without-pay-regulations/documents"}}