{"id":"F2005B01293","name":"Superannuation (Productivity Benefit) Declaration No. 12","slug":"superannuation-productivity-benefit-declaration-no-12","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"181 of 1992","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":32368,"registerId":"commonwealth-F2005B01293-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Superannuation (Productivity Benefit) Declaration No. 12","content":"![](image.001.png)\n\nStatutory Rules 1992 No. 1811\n\n\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\n\nSuperannuation (Productivity Benefit)\n\nDeclaration No. 12\n\nI, RALPH WILLIS, Minister for Finance, make the following Declaration under paragraph 3e (1) (b) of the Superannuation (Productivity Benefit) Act 1988.\n\nDated 17th June 1992.\n\nRALPH WILLIS\n\nMinister for Finance\n\n\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\n\nCitation\n\n1. This Declaration may be cited as Superannuation (Productivity Benefit) Declaration No. 12.\n\n\\[NOTE: This Declaration commences on gazettal: see Acts Interpretation Act 1901, ss. 46a and 48.\\]\n\n  \nDeclared second interest factor\n\n2. For the purposes of section 8a of the Superannuation (Productivity Benefit) Act 1988, the factor ascertained using the following formula is declared to be the declared second interest factor for the financial year commencing on 1 July 1992:\n\nwhere:\n\n“Interest rate” means 0.0945;\n\n“Days” means:\n\n(a) in the case of an employee who becomes a fund employee—the number of days in the period:\n\n(i) commencing on the day following the last day of the last pay period of the employee ending before 1 July 1992; and\n\n(ii) ending at the end of the day on which an amount first becomes payable under section 4f of that Act; or\n\n(b) in the case of an employee who becomes entitled to receive an interim benefit under section 6 of that Act—the number of days between:\n\n(i) the day following the last day of the last pay period of the employee ending before 1 July 1992; and\n\n(ii) the day on which the employee became entitled to receive the benefit; or\n\n(c) in the case of an employee who neither becomes a fund employee nor becomes entitled to receive an interim benefit—the number of days between:\n\n(i) the day following the last day of the last pay period of the employee ending before 1 July 1992; and\n\n(ii) 30 June 1993.\n\n\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\\_\n\nNOTE\n\n1. Notified in the Commonwealth of Australia Gazette on 25 June 1992.","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"This Declaration performs the annual, narrowly‑limited function envisaged by the Superannuation (Productivity Benefit) Act 1988: it sets the declared second interest factor for a specific financial year. It does not broaden the Act’s substantive coverage, create new obligations, or alter policy scope — it simply supplies the numeric parameter and day-count rules required by the Act for 1992–93 (cl. 2)."},"complexity_factors":["Very short instrument (two operative clauses: citation and declared factor)","Single numeric parameter declared (interest rate 0.0945) plus a day-count rule","Three alternative day-count scenarios (fund employee; interim-benefit entitlement; neither)","Depends on cross-references to the parent Act: s 8a (uses the factor), s 4f and s 6 (triggering events)","Formula present but simple; no nested exceptions or multiple defined terms within the instrument"],"plain_english_summary":"**What this instrument does (mechanically)\n\n- This Declaration, made by the Minister for Finance, sets the numerical \"declared second interest factor\" that must be used under section 8a of the Superannuation (Productivity Benefit) Act 1988 for the financial year starting 1 July 1992 (see clause 2).  Clause 1 simply gives the Declaration its formal title.\n\n- The Declaration fixes an interest rate of 0.0945 (that is, 9.45% per annum) and specifies how to count the number of days to be used in the formula for the declared second interest factor. The formula itself (set out in the instrument) combines that interest rate with the applicable number of days to produce the factor to be applied in benefit calculations.\n\n- The \"Days\" input to the formula is defined differently depending on the individual's situation:\n  - If an employee becomes a \"fund employee\" (a term from the Act), count days from the day after the last day of their last pay period ending before 1 July 1992 up to the day an amount first becomes payable under section 4f of the Act.\n  - If an employee becomes entitled to an interim benefit under section 6, count days from the day after the last day of their last pay period ending before 1 July 1992 up to the day they became entitled to that interim benefit.\n  - If the employee neither becomes a fund employee nor becomes entitled to an interim benefit, count days from the day after the last day of their last pay period ending before 1 July 1992 up to 30 June 1993.\n\nWho is affected\n\n- Primary: employees covered by the Superannuation (Productivity Benefit) Act 1988 whose entitlements are calculated under section 8a, and the administrators who compute and pay those benefits.\n- Secondary: the Commonwealth’s superannuation/finance administrators and, ultimately, budgetary officers who bear the cost of payments determined using the factor.\n\nWhy it matters (purpose claim and mechanical test)\n\n- The instrument’s stated purpose is to provide the specific interest factor used in the statutory formula that determines a component of productivity-related superannuation benefits for the 1992–93 year (cl. 2 and cross‑ref. s 8a of the Act).\n\n- Mechanically, fixing an interest rate and the day-count conventions determines the present‑value/interest component of benefit calculations for different categories of recipients. That affects the dollar amount payable under the Act and therefore the Commonwealth’s payment obligations for those benefits.\n\nCosts, incentives, trade-offs and implementation considerations\n\n- Direct cost impact: the declared rate (9.45%) and the day-count rules change benefit amounts only to the extent those figures differ from what would have applied under a different declaration. The immediate fiscal effect is on the Commonwealth’s benefit outlays for affected employees.\n\n- Distributional/incentive effects: the instrument produces different cut‑off dates depending on whether someone becomes a fund employee, becomes entitled to an interim benefit, or neither. Those date rules create timing-based differences in computed amounts; people who become entitled earlier (or later) may have slightly larger or smaller interest adjustments. The categories are narrowly defined by reference to the Act (s 4f and s 6), so any distributional effect depends on those statutory definitions.\n\n- Compliance and administrative burden: administrators must apply the declared numeric rate and use the correct date ranges for each person. That requires accurate payroll period records and correct identification of the triggering events (first payment under s 4f; entitlement under s 6). The burden is operational rather than interpretive.\n\n- Bureaucratic discretion and risk: the instrument exercises a power conferred on the Minister by the Act to set an annual factor. The Declaration itself is formulaic and leaves little room for discretionary adjustment once made, but correct application depends on interpreting cross-referenced provisions (s 4f, s 6, s 8a).\n\n- Opportunity costs and alternatives: the instrument chooses a fixed annual rate plus day-count rules rather than, say, an indexed or continuously updated market rate. That simplifies administration but may diverge from market interest movements during the year.\n\nKey legal hooks and references\n\n- Made under paragraph 3e(1)(b) of the Superannuation (Productivity Benefit) Act 1988 (as stated at the front of the instrument).\n- Operative effect is to set the declared second interest factor for the year starting 1 July 1992 (cl. 2), to be applied under s 8a of the Act. The instrument also uses terms defined or referenced in the Act (notably sections 4f and 6).\n\nPractical bottom line\n\n- For administrators and affected employees: apply a 9.45% interest rate in the formula provided and count days according to the employee’s statutory category. This changes the numeric adjustment used in calculating the productivity-related superannuation amounts for the 1992–93 financial year (cl. 2). The administrative task is straightforward record‑checking and formula application; the fiscal effect depends on how the declared rate compares with alternative rates that could otherwise have been declared."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This declaration performs exactly the function intended by section 8a of the parent Act — annually declaring the interest factor for productivity benefit calculations. It has not expanded beyond this narrow technical purpose."},"complexity_factors":["Single operative provision with a mathematical formula requiring three distinct case scenarios","Cross-reference to section 8a and section 4f of the parent Act (Superannuation (Productivity Benefit) Act 1988)","Date calculation logic involving 'day following the last day of the last pay period' — requires tracking pay period end dates relative to 1 July 1992","Three mutually exclusive categories of employees with different end dates for the interest calculation period","Term 'fund employee' is not defined in this instrument (assumes knowledge from parent Act)"],"plain_english_summary":"This is a short technical declaration made by the Finance Minister in 1992 that sets a specific interest rate calculation for certain public servants' superannuation (retirement savings).\n\n**What it does:**\n- Sets the \"declared second interest factor\" at **9.45%** (0.0945) for the 1992-93 financial year\n- This factor is used to calculate interest on productivity benefit payments owed to eligible Commonwealth employees\n\n**Who it affects:**\n- Commonwealth public servants covered by the *Superannuation (Productivity Benefit) Act 1988*\n- Specifically applies to three groups:\n  1. **Employees who join a superannuation fund** — interest calculated from the day after their last pay period before 1 July 1992 until their benefit becomes payable\n  2. **Employees who receive an interim benefit** — interest calculated from the day after their last pay period before 1 July 1992 until they become entitled to that benefit\n  3. **Employees who do neither** — interest calculated from the day after their last pay period before 1 July 1992 until 30 June 1993\n\n**Why it matters:**\nThe \"productivity benefit\" was a government payment designed to offset the cost of superannuation contributions for public servants. This declaration ensures that if there was a delay in paying this benefit, the amount would earn interest at 9.45% per annum during the waiting period. This protects employees from losing value due to inflation or delayed payments.\n\n**Context:**\nThis is one in a series of annual declarations (hence \"No. 12\") that update the interest rate each financial year. The rate of 9.45% reflects the relatively high interest rate environment of the early 1990s in Australia."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-productivity-benefit-declaration-no-12","history":"/api/acts/superannuation-productivity-benefit-declaration-no-12/history","analysis":"/api/acts/superannuation-productivity-benefit-declaration-no-12/analysis","conflicts":"/api/acts/superannuation-productivity-benefit-declaration-no-12/conflicts","importantCases":"/api/acts/superannuation-productivity-benefit-declaration-no-12/important-cases","documents":"/api/acts/superannuation-productivity-benefit-declaration-no-12/documents"}}