{"id":"F2013L00808","name":"Superannuation (Productivity Benefit) (First Interest Factor) Declaration 2013","slug":"superannuation-productivity-benefit-first-interest-factor-declaration-2013","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":90494,"registerId":"commonwealth-F2013L00808-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Superannuation (Productivity Benefit) (First Interest Factor) Declaration 2013","content":"![](image.001.png)\n\nSuperannuation (Productivity Benefit) (First Interest Factor) Declaration 20131\n\nI, PENELOPE YING YEN WONG, Minister for Finance and Deregulation, make the following Declaration under paragraph 3E (1) (a) of the Superannuation (Productivity Benefit) Act 1988.\n\nDated 7th May 2013\n\nPENELOPE YING YEN WONG\n\nMinister for Finance and Deregulation\n\n1 Name of Declaration\n\nThis Declaration is the Superannuation (Productivity Benefit) (First Interest Factor) Declaration 2013.\n\n2 Commencement\n\nThis Declaration commences on 1 July 2013.\n\n3 Definitions\n\nIn this Declaration:\n\n> Act means the Superannuation (Productivity Benefit) Act 1988.\n\n> Interest rate means a rate equal to the estimated closing yield last published by the Reserve Bank of Australia before 1 June in the financial year immediately preceding the relevant financial year in respect of 10-year non-rebate Treasury Bonds.\n\n> Number of days means:\n\n(a) in the case of an employee who becomes a fund employee during the relevant financial year — 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 of the relevant financial year; 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 relevant financial year — the number of days between:\n\n(i) the last day of the first pay period for the employee ending after 1 July of the relevant financial year; 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 relevant financial year, 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 of the relevant financial year; and\n\n(ii) 30 June of the relevant financial year.\n\n> Relevant financial year means a period commencing on 1 July and ending on 30 June the following calendar year, which:\n\n> (a) commences on or after 1 July 2013; and\n\n> (b) is the financial year to which the first interest factor is to be applied in relation to an employee under section 8A of the Act.\n\n4 Application\n\nThis Declaration declares the first interest factor, for the purposes of section 8A of the Act, to be applied for the 2013‑2014 financial year and each subsequent financial year.\n\nExample\n\nA person first becomes an employee on 1 May 2006, and becomes a fund member on 1 August 2014.\n\nThe first interest factors to be applied for each financial year in the period between 1 May 2006 and 30 June 2013 are found in previous annual Declarations.\n\nTo determine the first interest factor for the 2013\\-2014 financial year, apply the formula in section 5 of this Declaration, using 2013-2014 as the relevant financial year.\n\nTo determine the first interest factor for the 2014-2015 financial year, apply the formula in section 5 of this Declaration, using 2014-2015 as the relevant financial year.\n\n5 Declared first interest factor\n\nFor section 8A of the Act, the declared first interest factor for the relevant financial year is:\n\n| Interest rate x Number of days |\n| ------------------------------ |\n| 730                            |\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":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"This Declaration does not expand or restrict who is covered by the underlying Act. It supplies an annual, continuing numerical method for calculating the first interest factor (from 2013–14 onward) rather than changing substantive eligibility or benefit rules under the Superannuation (Productivity Benefit) Act 1988."},"complexity_factors":["Dependence on external data: the 'Interest rate' is defined by reference to the Reserve Bank of Australia’s last published estimated closing yield for 10‑year Treasury Bonds before 1 June (s3) — requires timely, specific historical data.","Piecewise 'Number of days' definition with three cases (employee becomes a fund employee during year; interim benefit payable; neither event) that requires per‑employee timing determinations (s3).","Timing mechanics: uses 'last day of the first pay period for the employee ending after 1 July' and events measured to exact days — administrative burden for payroll/super funds to identify correct start/end dates (s3).","Statutory linkage: the Declaration operates solely to supply the 'first interest factor' for application under section 8A of the Act — implementers must map this figure into the Act’s broader benefit calculation (ss4–5).","Fixed denominator (730) in the formula (s5) is unexplained within the instrument, raising implementation questions about units/annualisation and possible need for rounding rules.","Ministerial declaration mechanism: the instrument is made under paragraph 3E(1)(a) of the Act (instrument header) — discretion to declare and update carries legal force but requires periodic reissuance or continuation."],"plain_english_summary":"This Declaration fixes the formula for the “first interest factor” used to calculate a productivity‑benefit interest adjustment under the Superannuation (Productivity Benefit) Act 1988 for 2013–14 and each later financial year. It defines the interest rate (tied to the RBA’s published 10‑year Treasury bond yield) and how to count days for the calculation (interest rate × number of days ÷ 730). It affects employees who become fund members and the employers/superannuation funds that must apply the calculation."},"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":4,"scope_assessment":{"changed":false,"description":"This Declaration maintains its original narrow technical purpose: setting the annual interest factor calculation for productivity benefits. It does not expand beyond the machinery provisions of the parent Act. The 2013 version simply updates the mechanism for 2013-14 onwards using the same structural approach as previous annual declarations."},"complexity_factors":["Nested conditional definitions for 'Number of days' with three distinct scenarios (paragraphs (a), (b), and (c))","Cross-reference dependency on the Superannuation (Productivity Benefit) Act 1988 (specifically sections 4F, 6, and 8A)","External data dependency requiring lookup of Reserve Bank of Australia published yields for 10-year non-rebate Treasury Bonds","Mathematical formula with implicit financial concepts (bond yields, day-count conventions)","Temporal complexity involving multiple financial years, pay periods, and trigger events (becoming a 'fund employee' or interim benefit becoming payable)"],"plain_english_summary":"This Declaration sets the formula for calculating interest on unpaid superannuation payments to Commonwealth employees and PSSAP fund joiners (including interim benefits), using a \"first interest factor\" multiplier. It matters because it determines how much interest accrues to protect members from lost returns when contributions are delayed. \n\nThe formula uses the prior‑year 10‑year Treasury bond yield (published before 1 June) and a defined number-of-days period, and applies from 1 July 2013 onward."}},"importantCases":[],"_links":{"self":"/api/acts/superannuation-productivity-benefit-first-interest-factor-declaration-2013","history":"/api/acts/superannuation-productivity-benefit-first-interest-factor-declaration-2013/history","analysis":"/api/acts/superannuation-productivity-benefit-first-interest-factor-declaration-2013/analysis","conflicts":"/api/acts/superannuation-productivity-benefit-first-interest-factor-declaration-2013/conflicts","importantCases":"/api/acts/superannuation-productivity-benefit-first-interest-factor-declaration-2013/important-cases","documents":"/api/acts/superannuation-productivity-benefit-first-interest-factor-declaration-2013/documents"}}