{"id":"F2008B00161","name":"Superannuation (Productivity Benefit) Alternative Arrangements Declaration No. 6","slug":"superannuation-productivity-benefit-alternative-arrangements-declaration-no-6","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"34 of 1993","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":72714,"registerId":"commonwealth-F2008B00161-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Superannuation (Productivity Benefit) Alternative Arrangements Declaration No. 6","content":"![](image.001.png)\n\nStatutory Rules 1993 No. 341\n\n\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\n\nSuperannuation (Productivity Benefit) Alternative Arrangements Declaration No. 6\n\nI, RALPH WILLIS, Minister of State for Finance, make the following Declaration under subsections 4a (1) and (2) of the Superannuation (Productivity Benefit) Act 1988.\n\nDated 15 February 1993.\n\nRALPH WILLIS\n\nMinister of State for Finance\n\n\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\n\nCitation\n\n1. This Declaration may be cited as Superannuation (Productivity Benefit) Alternative Arrangements Declaration No. 6.\n\nCommencement\n\n2. This Declaration is taken to have commenced on 17 December 1992.\n\nInterpretation\n\n3. In this Declaration, unless the contrary intention appears:\n\n“member” means a member of the class of qualified employees specified in clause 4;\n\n“performance pay” means a payment of that name payable on or after 17 December 1992:\n\n(a) under an industrial agreement under Division 3 of Part VI of the Industrial Relations Act 1988; and\n\n(b) in accordance with a determination of a kind referred to in Schedule 4 or 5 in Attachment C to the Agreement between the Commonwealth and employee organisations, dated 4 December 1992 and called “Improving Productivity, Jobs and Pay in the Australian Public Service 1992-1994”;\n\n“the Act” means the Superannuation (Productivity Benefit) Act 1988.\n\nClass of qualified employees\n\n4. For the purposes of subsection 4a (1) of the Act, the class of qualified employees who are entitled to receive performance pay are a class of employees who are neither fund employees nor interim arrangement employees.\n\nArrangements that apply to the class\n\n5. For the purposes of subsection 4a (2) of the Act, the arrangements stated in the following clauses apply to members.\n\nElection to have performance pay taken into account in superannuation arrangements\n\n6. (1) A member may give a notice of election to have performance pay taken into account in his or her superannuation arrangements under the Act.\n\n(2) A notice must be given in accordance with subclauses 9 (2), (3) and (4).\n\nSelection by members of funds\n\n7. (1) This clause applies only to a member who makes an election under clause 6.\n\n(2) A member may give a notice of election to have payments under subclause 11 (1) in relation to the member paid by the designated employer to an approved fund specified in the notice.\n\n(3) A member :\n\n(a) who has been appointed to the Senior Executive Service for a fixed term; and\n\n(b) to whom superannuation benefits are provided in accordance with a determination made for that purpose under section 45 of the Public Service Act 1922;\n\nmay give a notice of election to have payments under subclause 11 (1) in relation to the member’s performance pay paid in accordance with the notice.\n\n(4) A notice under subclause (3) must state that the payments to which the notice relates are to be paid:\n\n(a) in accordance with the determination under the Public Service Act 1922 for payment of other superannuation benefits payable to the person; or\n\n(b) to an approved fund specified in the notice.\n\n(5) A notice must be given in accordance with subclauses 9 (2), (3) and (4).\n\nElections apply only to particular payments\n\n8. (1) An election by a member under clause 6 or 7 applies:\n\n(a) if the notice of election is expressed to apply to a payment of performance pay that the member received before 25 February 1993—to that payment; or\n\n(b) in any other case—to the first payment of performance pay that the member receives after the notice of election takes effect.\n\n(2) An election referred to in subclause (1) does not apply to a payment of performance pay except as stated in that subclause.\n\nNotices: procedure and date of effect\n\n9. (1) In this clause, “notice” means a notice under clause 6 or 7.\n\n(2) A notice must be in writing and signed by the member giving it.\n\n(3) A member who gives a notice must give it to the employer that, in relation to the member, is the designated employer.\n\n(4) The member must give the notice:\n\n(a) if the notice relates to a payment of performance pay that the member received before 25 February 1993—not later than 3 months after the date on which the member receives the payment; or\n\n(b) in any other case—before the member receives the payment of performance pay to which the notice relates.\n\n(5) A notice takes effect when it is given to the designated employer in accordance with the applicable provisions of this clause.\n\nWhat happens if a member does not make an election?\n\n10. If a member does not make an election under clause 6, the member’s performance pay is not to be taken into account for the purposes of the Act.\n\nPayments to be made by a member’s designated employer\n\n11. (1) If a member makes an election under clause 6, the member’s designated employer must:\n\n(a) pay 5 percent of the total amount of the member’s performance pay to:\n\n(i) if the member has specified, under clause 7, a fund or arrangement—to that fund or in accordance with that arrangement, as the case requires; or\n\n(ii) in any other case—to the fund that is the nominated fund in relation to the member; and\n\n(b) pay an amount equal to 15 percent of the total amount of the performance pay to the same fund.\n\n(2) The designated employer must deduct the amount referred to in paragraph (1) (a):\n\n(a) in the case of performance pay paid to the member before 25 February 1993—by a lump sum deduction from the member’s ordinary salary payment;\n\n(b) in any other case—by a lump sum deduction from the member’s payment of performance pay.\n\nMembers receiving continuing contributions\n\n12. (1) In this clause, “relevant member” means a member who, but for this Declaration, would be entitled to have continuing contributions paid in relation to the member’s salary (other than performance pay).\n\n(2) A relevant member is entitled, in spite of any other provisions of this Declaration, to have those contributions paid in relation to the member’s salary (other than performance pay).\n\n\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\n\nNOTE\n\n> Note: 1. Notified in the Commonwealth of Australia Gazette on 24 February 1993.","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"This Declaration implements a narrowly targeted option provided by the Superannuation (Productivity Benefit) Act 1988 by specifying the class of employees eligible and the detailed mechanics (notice form, timing, deduction and employer payment rates). It does not broaden the Act’s subject‑matter beyond its original purpose of permitting productivity‑related payments to be treated for superannuation; rather it prescribes operational rules (who may elect, how, and the precise financial treatment). The retroactive commencement and date‑specific rules alter timing and administration but do not change the substantive scope of the Act’s authorised purpose."},"complexity_factors":["Short instrument: 12 clauses plus short preamble and note","3 defined terms in the interpretation clause (\"member\", \"performance pay\", \"the Act\")","Cross‑references to multiple other instruments and laws (Superannuation (Productivity Benefit) Act 1988; Industrial Relations Act 1988; Agreement dated 4 December 1992; Public Service Act 1922)","Date‑specific conditional logic (different rules for payments before and after 25 February 1993)","Retroactive commencement (takes effect from 17 December 1992) increases recordkeeping complexity","Separate special‑case rules for Senior Executive Service fixed‑term appointees (clause 7)","Notice mechanics and timing windows (clauses 9 and 8) create conditional branches"],"plain_english_summary":"**What this Declaration does, in plain language**\n\n- It gives a specific group of Commonwealth employees a formal option to have their “performance pay” (a bonus-type payment defined in the instrument) counted into their superannuation (retirement) arrangements rather than treated only as ordinary pay for take‑home purposes. (See clauses 3, 4 and 6.)\n\n- The Declaration is treated as having started on 17 December 1992 (clause 2). It applies only to employees who are neither “fund employees” nor “interim arrangement employees” (clause 4).\n\n**Who is affected and how it works, step‑by‑step**\n\n- Who may use it: a member of the class described in clause 4 (called “member” in clause 3). That class excludes certain groups (fund employees and interim arrangement employees) and therefore limits who can make the election (clause 4).\n\n- What counts as performance pay: payments made on or after 17 December 1992 that are made under an industrial agreement and in accordance with specified determinations in an Agreement dated 4 December 1992 (clause 3).\n\n- Member choice: a member may elect in writing to have their performance pay taken into account for superannuation under the Superannuation (Productivity Benefit) Act 1988 (clause 6). The election must follow the notice rules in clause 9 (clauses 6 and 9).\n\n- Timing and scope of an election: an election applies only to a particular performance pay payment:\n  - if the election is expressed to apply to a payment received before 25 February 1993, it applies to that payment; otherwise it applies to the first payment received after the notice takes effect (clause 8). \n  - Notices must be signed, given to the designated employer, and filed either within 3 months of receiving a pre‑25 February 1993 payment or before receiving later payments (clause 9).\n\n- Employer and employee financial mechanics:\n  - If a member elects, the member’s designated employer must pay to the nominated (or specified) approved fund an amount equal to 15% of the total performance pay (employer contribution) (clause 11(1)(b)).\n  - The employer must also pay 5% of the total performance pay to the same fund or, where the member has specified, to that specified fund/arrangement (clause 11(1)(a)).\n  - The 5% amount is to be deducted (by the employer) from the member’s pay as a lump sum: for pre‑25 February 1993 payments the deduction is from ordinary salary; for later payments it is a lump deduction from the performance pay itself (clause 11(2)).\n  - In effect, a successful election results in up to 20% of the performance pay being sent to superannuation: 5% deducted from the employee’s pay and 15% contributed by the employer (clause 11).\n\n- Special rule for some senior executives: members who are fixed‑term Senior Executive Service appointees and whose superannuation is governed by a Public Service Act 1922 determination may direct those payments either under that determination or to an approved fund named in the member’s notice (clause 7(3)–(4)).\n\n- Existing continuing contributions on ordinary salary are preserved: this Declaration does not remove other continuing superannuation contributions the member would otherwise receive on salary (clause 12).\n\n**Why the Declaration matters (official purpose and practical effects)**\n\n- The instrument implements a mechanism by which specified performance pay can be converted into superannuation contributions for eligible employees (see clause 3’s definition tying performance pay to the December 1992 Agreement). The apparent official purpose is to allow those payments to contribute to retirement savings rather than only to cash pay.\n\n- Costs and incentives created by the mechanism:\n  - Who pays: the member bears a 5% deduction from the relevant payment (clause 11(2)); the designated employer pays 15% (clause 11(1)(b)). This reduces the member’s immediate take‑home pay but increases their superannuation balance. The employer has an additional wage‑bill or accounting obligation equal to 15% of the performance pay for members who elect (clause 11).\n  - Who decides: the member decides whether to elect (clause 6); the employer must administer deductions and make payments if an election is made (clauses 9 and 11).\n\n- Administrative and implementation considerations:\n  - Employers must handle written, signed notices, meet tight timing rules for retroactive payments, make lump‑sum deductions, and remit funds to approved or nominated funds (clauses 9 and 11). Retroactive operation to 17 December 1992 (clause 2) and the distinct deadline rules for payments before 25 February 1993 increase record‑keeping and potential disputes.\n  - Members need to be informed about the effect of electing (which payment the election covers) and the required process to ensure the deduction and employer contribution occur (clauses 6–9).\n\n**Trade‑offs, risks and likely behaviours**\n\n- Substitution: a member who elects trades immediate cash (5% deduction) for retirement savings. Some members will prefer the immediate cash; others will prefer increased superannuation.\n\n- Concentrated benefits and diffuse costs: benefits concentrate on members who elect (larger superannuation contributions); costs fall on those members (reduced cash pay) and on employers who must process deductions and pay the 15% contribution.\n\n- Compliance and dispute risk: the retroactive commencement date and the date‑specific rules (pre‑ and post‑25 February 1993) create potential for disputes about whether a particular payment was properly captured and whether the required notice was given on time (clauses 2, 8 and 9).\n\n**Key sections to check for practitioners or administrators**\n- Definitions and who qualifies: clauses 3 and 4.\n- How to elect and timing: clauses 6–9.\n- Financial mechanics and deductions: clause 11.\n- Protection of existing continuing contributions: clause 12.\n\n(References in parentheses are to the clause numbers in the Declaration.)"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This is a specific, time-limited declaration under the Superannuation (Productivity Benefit) Act 1988. It implements a discrete policy decision regarding performance pay and superannuation for a specific cohort of public servants under a particular industrial agreement. The scope remains tightly focused on its original purpose."},"complexity_factors":["Multiple nested conditions for different employee categories (SES fixed-term appointees vs regular members vs relevant members)","Time-bound procedural requirements with two different deadline schemes (pre-25 February 1993 vs post)","Cross-references to external documents: the 1992 APS Agreement (Attachment C, Schedules 4 and 5), the Industrial Relations Act 1988, and the Public Service Act 1922","Defined terms with conditional scope ('member' depends on clause 4, 'relevant member' depends on clause 12)","Cascading election mechanics: clause 6 election triggers clause 7 options, which then affects clause 11 payment obligations"],"plain_english_summary":"This law lets certain Australian Public Service employees covered by the 1992 \"Improving Productivity, Jobs and Pay\" agreement choose to have their performance pay counted into superannuation. If they opt in, 20% of the performance pay is contributed to super (5% from the employee, 15% from the employer), with payments directed to an approved fund or existing executive arrangement.\n\nIt excludes employees already in specified funds or interim arrangements and requires elections within set deadlines."},"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"}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-productivity-benefit-alternative-arrangements-declaration-no-6","history":"/api/acts/superannuation-productivity-benefit-alternative-arrangements-declaration-no-6/history","analysis":"/api/acts/superannuation-productivity-benefit-alternative-arrangements-declaration-no-6/analysis","conflicts":"/api/acts/superannuation-productivity-benefit-alternative-arrangements-declaration-no-6/conflicts","importantCases":"/api/acts/superannuation-productivity-benefit-alternative-arrangements-declaration-no-6/important-cases","documents":"/api/acts/superannuation-productivity-benefit-alternative-arrangements-declaration-no-6/documents"}}