{"id":"F2005L01865","name":"Superannuation (Productivity Benefit) (2005-2006 First Interest Factor) Declaration 2005","slug":"superannuation-productivity-benefit-2005-2006-first-interest-factor-declaration-2005","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":36058,"registerId":"commonwealth-F2005L01865-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Superannuation (Productivity Benefit) (2005-2006 First Interest Factor) Declaration 2005","content":"![](image.001.png)\n\nSuperannuation (Productivity Benefit) (2005–2006 First Interest Factor) Declaration 20051\n\nI, NICHOLAS HUGH MINCHIN, Minister for Finance and Administration, make the following Declaration under paragraph 3E (1) (a) of the Superannuation (Productivity Benefit) Act 1988.\n\nDated 23 June 2005\n\nNICK MINCHIN\n\nMinister for Finance and Administration\n\n1 Name of Declaration\n\nThis Declaration is the Superannuation (Productivity Benefit) (2005–2006 First Interest Factor) Declaration 2005.\n\n2 Commencement\n\nThis Declaration commences on the day after it is registered.\n\n3 Definition\n\nIn this Declaration:\n\n> Act means the Superannuation (Productivity Benefit) Act 1988.\n\n4 Declared first interest factor\n\nFor section 8A of the Act, the declared first interest factor for the financial year commencing on 1 July 2005 is:\n\n| 0.0535 x Number of days |\n| ----------------------- |\n| 730                     |\n\nwhere:\n\n> Number of days is:\n\n(a) in the case of an employee who becomes a fund employee during the financial year commencing on 1 July 2005 — the number of days in the period:\n\n(i) starting on the last day of the first pay period for the employee ending after 1 July 2005; and\n\n(ii) ending at the end of the day on which an amount first becomes payable under section 4F of the Act; or\n\n(b) in the case of an employee in respect of whom an interim benefit becomes payable under section 6 of the Act during the financial year commencing on 1 July 2005 — the number of days between:\n\n(i) the last day of the first pay period for the employee ending after 1 July 2005; and\n\n(ii) the day on which the interim benefit becomes payable; or\n\n(c) in the case of an employee who does not become a fund employee during the financial year commencing on 1 July 2005, and in respect of whom an interim benefit does not become payable during that year — the number of days between:\n\n(i) the last day of the first pay period for the employee ending after 1 July 2005; and\n\n(ii) 30 June 2006.\n\n> Note\n\n> Note: 1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See www.frli.gov.au.","sortOrder":0}],"analysis":{"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":2,"scope_assessment":{"changed":false,"description":"This declaration performs exactly its intended function: setting a specific interest rate for a specific financial year under the parent Act. It has not expanded beyond its original narrow technical purpose."},"complexity_factors":["Only 4 sections total, with just 1 defined term","Single mathematical formula with clear variables","Three straightforward conditional scenarios (new employees, interim benefit recipients, all others)","No cross-references to other legislation beyond the parent Act citation","No nested exceptions or complex procedural requirements"],"plain_english_summary":"This declaration sets the first interest factor at 5.35% (0.0535) for 2005–06 to calculate interest on productivity benefits under the Superannuation (Productivity Benefit) Act 1988. It affects current and former Commonwealth public servants covered by that scheme when benefits become payable during 2005–06.\n\nInterest is computed as (0.0535 × number of days) ÷ 730, converting the annual rate to a daily amount so employees receive appropriate interest on accrued benefits."},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"This Declaration performs the routine, original function the Act envisages: annually specifying the first interest factor for the financial year. It does not expand the Act’s subject matter or introduce new categories of persons or powers; it simply fixes the numeric and day-count details for 2005–2006 under the existing statutory framework (clauses 3–4, and preamble reference to paragraph 3E(1)(a))."},"complexity_factors":["Short instrument (4 clauses plus preamble).","Single numeric formula: 0.0535 × Number of days ÷ 730 (simple arithmetic).","Three alternative, explicitly defined day-count rules (clauses 4(a)–(c)).","Cross-references to multiple sections of the Act (s 8A, s 4F, s 6, paragraph 3E(1)(a)).","Potential ambiguity in identifying the \"last day of the first pay period for the employee ending after 1 July 2005\" which requires payroll interpretation.","No nested exceptions or long definitions; limited conditional logic (only three cases)."],"plain_english_summary":"**What this instrument does (mechanical effect)**\n\n- This Declaration sets a numeric formula — the “declared first interest factor” — to be used under section 8A of the Superannuation (Productivity Benefit) Act 1988 for the 2005–2006 financial year (clauses 3 and 4).\n- The factor is expressed as: (0.0535 × Number of days) ÷ 730. In other words, a daily-pro-rated amount based on a 5.35% base figure, scaled by the number of days relevant to the employee and divided by 730 (clause 4).\n- “Number of days” is defined in three alternative ways depending on the employee’s circumstances during 2005–2006:\n  - (a) For an employee who becomes a “fund employee” during the year: from the last day of the employee’s first pay period that ends after 1 July 2005 up to the day an amount first becomes payable under section 4F of the Act.\n  - (b) For an employee for whom an interim benefit becomes payable during the year: from the last day of that first pay period to the day the interim benefit becomes payable under section 6 of the Act.\n  - (c) For employees who do not become fund employees and do not receive an interim benefit during the year: from the last day of that first pay period to 30 June 2006 (clause 4).\n- The Declaration comes into force the day after it is registered (clause 2). It is made by the Minister under paragraph 3E(1)(a) of the Act (preamble and signature block).\n\n**Who is affected**\n\n- Administrators of productivity-benefit arrangements under the Superannuation (Productivity Benefit) Act 1988 who must apply section 8A (see clause 4).\n- Employees whose entitlements or interim benefits are calculated under the Act, because the declared first interest factor will alter the interest component applied when determining amounts payable (clauses 3–4, and cross-references to ss 4F and 6).\n\n**Why it matters (practical implications)**\n\n- The Declaration fixes the numerical rate used to prorate interest for productivity benefit calculations for the 2005–2006 year. That changes the precise dollar amounts payable under the Act for affected employees.\n- Administrators must compute the relevant Number of days for each affected employee (three alternative rules) and apply the formula to derive the factor used in section 8A calculations (clause 4).\n\n**Official purpose-claim and how to test it against implementation factors**\n\n- The instrument’s implied purpose is to provide a clear, uniform interest factor for the year so that benefits can be calculated consistently under s 8A. That is achieved mechanically by specifying a numeric base (0.0535) and a clear day-count convention (clause 4).\n\n- Costs and who pays: the Declaration itself does not specify who funds the resulting payments. Practically, any increase or decrease in amounts due will affect whichever party is responsible under the Act for meeting productivity-benefit payments (administrators, funds, or ultimately the employing agency), as determined by the Act’s substantive provisions (see ss 4F, 6, 8A referenced in clause 4).\n\n- Administrative and compliance burden: administrators must (i) identify the correct category for each employee (a, b or c), (ii) determine the precise last day of the employee’s first pay period ending after 1 July 2005, and (iii) count days to the relevant trigger date. Those day-count determinations are operationally simple but require accurate payroll records and consistent application (clause 4).\n\n- Incentives and behaviour: the instrument does not create new behavioural incentives beyond changing the arithmetic of benefit calculations. Any behavioural response would be indirect (for example, small timing differences in when amounts become payable could alter the number of days used and therefore the interest component).\n\n- Discretion and implementation risk: discretion is minimal — the Minister has declared a single formula and the Act prescribes where it must be applied. Implementation risk is mainly clerical (correctly applying the three alternative day-count rules and rounding conventions that payroll systems adopt).\n\n**Concrete trade-offs and likely effects**\n\n- Precision vs simplicity: the instrument uses a simple linear formula (0.0535 × days ÷ 730) that produces a prorated result; this is administratively straightforward but requires attention to precise start/end days.\n- Distribution: effects will be spread across affected employees; for many employees the change is a small arithmetic adjustment, but for those with partial-year service or interim benefits the percentage difference can be relatively larger.\n\n**Key statutory hooks**\n\n- Made under paragraph 3E(1)(a) of the Superannuation (Productivity Benefit) Act 1988 (preamble).\n- Applies specifically to section 8A of the Act and references sections 4F and 6 for timing triggers (clause 4).\n\nOverall, this Declaration does one narrow, arithmetic tasks: it prescribes the numeric formula and day-count rules for calculating the first interest factor used in productivity-benefit calculations for 2005–2006. It imposes a small operational task on administrators and affects the amount of benefits payable under the referenced sections of the Act."}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-productivity-benefit-2005-2006-first-interest-factor-declaration-2005","history":"/api/acts/superannuation-productivity-benefit-2005-2006-first-interest-factor-declaration-2005/history","analysis":"/api/acts/superannuation-productivity-benefit-2005-2006-first-interest-factor-declaration-2005/analysis","conflicts":"/api/acts/superannuation-productivity-benefit-2005-2006-first-interest-factor-declaration-2005/conflicts","importantCases":"/api/acts/superannuation-productivity-benefit-2005-2006-first-interest-factor-declaration-2005/important-cases","documents":"/api/acts/superannuation-productivity-benefit-2005-2006-first-interest-factor-declaration-2005/documents"}}