Coal and Oil Shale Mine Workers (Superannuation) Act 1941
In ForceNSW
Jurisdiction
New South Wales
Act Number
45 of 1941
Collection
act
Plain English Summary
7/10 complexity
Summary
This Act sets out a framework for occupational superannuation and related compensation subsidies for people employed in or about coal and oil shale mines in New South Wales. It operates mainly by vesting assets and decision-making authority in a Corporate Trustee and by establishing one principal fund (the AUSCOAL Superannuation Fund, also called the Amalgamated Fund) and a separate Subsidy Fund for compensation‑related payments.
What the law does (mechanics)
Creates and governs the Amalgamated (AUSCOAL) Fund and requires money to be paid into it: employer contributions required by the Act, contributions required by the AUSCOAL Trust Deed, investment income, borrowings and other receipts (ss 18, 18A).
Requires owners (employers/operating proprietors) to pay a special rate contribution for each mine worker into Part 3 of the Amalgamated Fund; the special rate is set by the Corporate Trustee after considering an actuary's report (s 19).
Establishes reporting and recordkeeping obligations for owners: keep approved records of each mine worker, notify the Corporate Trustee when a mine worker ceases employment, provide annual returns and monthly/annual information and auditor certificates (ss 19AA, 19AB, 19AC). Failure to comply attracts penalty units (ss 19AA–19AC).
Creates a Coal and Oil Shale Mine Workers Compensation Subsidy Fund to pay subsidies to mine workers with incapacity from inhalation of dust, sets eligibility and how subsidy amounts are calculated, and allows lump-sum conversion options (ss 19A, 19B, 19BA, 19C).
The Coal and Oil Shale Mine Workers (Superannuation) Act 1941 (NSW) establishes and governs the industry superannuation arrangements for workers in the New South Wales coal and oil shale mining industry. It is one of the oldest surviving occupational superannuation statutes in Australia, predating the Commonwealth compulsory superannuation framework by decades and establishing an industry-specific scheme for NSW coal mine workers.
The Act establishes the AUSCOAL Superannuation Fund (the Amalgamated Fund) under Part 4, section 18, as the primary superannuation vehicle for coal mine workers. It governs:
employer contribution obligations;
the role of the Corporate Trustee;
the AUSCOAL and COALSUPER trust deeds and rules;
compensation subsidies for particular coal mine worker injuries; and
the transition from earlier fund structures following major amendments in 1992 and 1994.
The Act has been substantially amended multiple times since 1941. The Schedules to the Act contain extensive transitional provisions arising from the 1992 and 1994 Amendment Acts.
Main concepts
Accumulation Fund (s. 2(1)): the New South Wales Coal and Oil Shale Mining Industry (Superannuation) Accumulation Fund, one of the predecessor fund structures.
Current sections
Direct links to the current provisions in Coal and Oil Shale Mine Workers (Superannuation) Act 1941.
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Official source available
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Gives the Corporate Trustee broad operational powers: to maintain and ensure the AUSCOAL Trust Deed complies with Commonwealth superannuation regulation, to determine fund rules and eligibility, to make determinations about who is a mine worker or what is “mine work”, to set the Reference Rate where relevant, to delegate functions, to invest the Subsidy Fund and to recover unpaid contributions (ss 15, 15B, 15C, 16A, 19CA, 24).
Protects pension payments from assignment (pensions are inalienable) while allowing the Trustee to pay a pension to someone for the pensioner’s benefit (s 20).
Creates enforcement tools: interest on overdue contributions at a specified commercial overdraft reference rate, recovery of unpaid contributions as a debt, criminal penalties for fraudulent claims for benefits and other small regulatory penalties (ss 19(3)–(4), 19D(7)–(9), 24, 29).
Specifies that, from 3 January 1993, mine workers are no longer obliged to contribute to the Old Fund/Amalgamated Fund, though voluntary contributions to the Amalgamated Fund remain possible under the AUSCOAL Trust Deed (s 1A).
Who it affects and who pays
Mine workers: persons employed in or about coal or oil shale mines who meet the statutory definition (including some classes added by Trustee determination) (s 2; s 15B).
Owners (employing entities or immediate proprietors/lessees/contractors): required to pay contributions to the Amalgamated Fund (special rate contributions to Part 3) and, where assessed, contributions for the Subsidy Fund; owners must also keep records and provide returns and certificates (ss 2, 19, 19D, 19AA–19AC).
Corporate Trustee: decides rates and assessments, administers funds, sets rules (via the AUSCOAL Trust Deed) and enforces compliance (ss 15, 15C, 19, 19D).
Official purpose-claims in the law and a practical test of their mechanics
The Act frames duties for the Corporate Trustee and requires the Trust Deed to ensure the Fund is a regulated complying superannuation fund under Commonwealth law (s 15C(2)). The practical consequence is that the Trustee must align fund governance to external regulatory standards and therefore bears compliance costs and implementation responsibility (s 15C(2)–(3)).
The Act purports to secure retirement and compensatory benefits for mine workers (s 18–s 19B). Mechanically, this is achieved by mandating employer contributions and by establishing a specific Subsidy Fund for dust‑related incapacity (ss 18A, 19, 19C). The direct cost is placed on owners (employers), who must fund specified contributions and may be assessed for Subsidy Fund levies (s 19; s 19D(4)–(5)).
Costs, incentives and trade-offs (concrete mechanisms)
Direct employer cost: owners must pay statutory special rate contributions and may be assessed for Subsidy Fund contributions (s 19; s 19D). That raises labour-related costs for operating or contracting businesses.
Administrative burden on employers: they must maintain approved records, provide monthly information on request, annual returns and independent auditor certificates (ss 19AA–19AC). Non‑compliance carries monetary penalties (ss 19AA–19AC).
Trustee discretion and implementation risk: the Corporate Trustee sets the special rate (after actuary advice) and may determine the basis for distributing Subsidy Fund assessments among owners (s 19(2); s 19D(4)). That discretion creates variability in future employer liabilities and necessitates Trustee capacity (actuarial and administrative) to justify rate changes.
Cash‑flow and enforcement: overdue contributions attract commercial interest and are recoverable as debts; the Trustee may sue to recover unpaid amounts (s 19(3)–(4); s 24). This creates a clear enforcement channel but shifts collection and litigation costs into the Trustee/owners dynamic.
Benefit offsets and substitution effects: subsidies for dust‑related incapacity are structured to be reduced by workers’ existing compensation payments or pension entitlements (s 19B(2)), which mechanically prevents duplication of payments but requires cross‑checking of awards and may complicate administration.
Limits on employee choice: the Trustee may determine who qualifies as a mine worker or what is mine work (ss 2J, 15B). That determination power affects which workers and activities attract contributions and benefits, giving the Trustee substantive influence over coverage boundaries.
Concentrated benefits, diffuse costs and regulatory capture risks (mechanisms, not labels)
Concentrated beneficiaries: pensions and subsidies benefit a defined group—mine workers, dormant members and dependants (ss 15C(1)(b), 19A). The financial obligation to meet those benefits is concentrated on owners and the Trustee’s funding choices.
Risk of interest misalignment: because the Corporate Trustee both sets contribution policy and administers benefits (s 15; s 15C), owners and members rely on Trustee governance and actuarial advice; ineffective governance would manifest as higher contributions or underfunded benefits. The Act requires actuarial reports to determine rates (s 19(2)), which creates an evidentiary constraint but does not eliminate discretionary judgment.
Compliance discretion and accountability
The Trustee may refer questions to the Industrial Relations Commission in Court for determination (s 23).
The Trustee has power to delegate many functions (s 16A) but not its power to delegate itself, and it must ensure the Trust Deed does not reduce members’ existing rights when amended (s 15C(7)).
Other operational details of note
Pensions are inalienable (cannot be assigned), except the Trustee can pay someone else for a pensioner’s benefit (s 20).
Fraudulent claims for benefits carry significant criminal and pecuniary penalties; a court may order repayment of wrongly paid amounts (s 29).
The Act contains many transitional provisions and repeals in later Parts and Schedules that shift administration from a Tribunal to the Corporate Trustee and validate historical arrangements (see Schedules and ss 12–27 of Schedule 2).
Why it matters
The Act turns statutory and industrial arrangements into an institutional framework that defines who pays for retirement and dust‑related compensation in the coal industry, concentrates decision‑making in a Corporate Trustee with actuarial inputs, and sets reporting, enforcement and cross‑offset rules that determine the effective cost and coverage of benefits (ss 15C, 19, 19B, 19D, 19AA–19AC).
AUSCOAL Trust Deed (s. 2(1)): the trust deed (as amended or substituted from time to time) for the reconstitution of the occupational superannuation schemes referred to in s. 15C(1). The AUSCOAL Rules are the governing rules included in that trust deed.
COALSUPER Trust Deed (s. 2(1)): a second trust deed for the reconstitution of related occupational superannuation schemes. The COALSUPER Rules govern the schemes under this deed.
Column 5 pension (s. 2(1)): a pension payable under the AUSCOAL Rules at the rate specified (as at 31 December 1999) in Column 5 of Appendix 3A to those Rules. This historical reference fixes the benefit for certain categories of pensioners.
Corporate Trustee (Part 3): the trustee corporation responsible for administering the superannuation funds under the Act. The Corporate Trustee has powers to determine contribution intervals, conduct actuarial reviews, charge interest on overdue contributions, and manage the funds.
Owner: an employer in the coal and oil shale mining industry who is required to make contributions in respect of mine workers they employ.
Mine worker: a worker employed in the coal and oil shale mining industry and covered by the Act's contribution requirements.
Special rate contributions (s. 19(1)): contributions payable by an owner at a special rate determined by the Corporate Trustee (after considering actuarial advice) in respect of each mine worker employed by the owner. Contributions are credited to Part 3 of the Fund.
Approved Company (s. 17B): the company approved by the Minister administering the Coal Industry Act 2001 for the purpose of exercising functions specified in that Act, relevant to Part 4 of the Superannuation Act.
Who it affects
Coal and oil shale mine owners and operators (employers): required to make contributions to the AUSCOAL Superannuation Fund for each mine worker employed.
Coal and oil shale mine workers: entitled to superannuation benefits under the Act's scheme and the AUSCOAL Rules.
The Corporate Trustee: responsible for administering the fund and exercising the powers conferred by the Act.
Dependants and beneficiaries of mine workers: entitled to death and survivor benefits under the applicable trust deed rules.
Unions (historically): the Construction, Forestry, Mining and Energy Union (CFMEU) has been involved in litigation about the Act's application in the coal mining industry.
Key obligations
Employer contributions (s. 19(1)):
An owner must make contributions at the special rate determined by the Corporate Trustee at the intervals determined by the Corporate Trustee, in respect of each mine worker employed by the owner. These contributions are credited to Part 3 of the Amalgamated Fund.
Interest on overdue contributions (s. 19(3)):
If a contribution required under s. 19 is overdue for more than 21 days, the Corporate Trustee may charge interest on the overdue amount at the rate of interest applicable at the time the interest is charged.
Actuarial reviews:
The Corporate Trustee must consider a relevant report of the actuary in determining the amount of the special rate of contributions (s. 19(2)). This ensures the contribution rate is set at a level sufficient to fund the scheme's obligations.
Compensation subsidies (Part 4A):
The Act includes a Part 4A regime for coal and oil shale mine workers compensation subsidies, providing additional financial support in certain circumstances.
Powers and discretions
Corporate Trustee:
s. 19(1): Power to determine the intervals at which employer contributions are to be paid.
s. 19(2): Power to determine the special rate of contribution, having considered the actuary's report.
s. 19(3): Power to charge interest on overdue contributions more than 21 days late.
Part 3: General trust administration powers.
Minister:
s. 17B: Power to approve a company for the purposes of the Coal Industry Act 2001 functions that interact with Part 4 of this Act.
Penalties and enforcement
Overdue contributions:
s. 19(3): Interest on overdue contributions at the rate applicable at the time, after 21 days of being overdue.
The Corporate Trustee can take enforcement action for unpaid contributions as a civil debt.
The Act does not specify criminal penalties for non-payment but the employer's obligation to contribute is a statutory requirement enforceable through civil proceedings.
Process and timelines
Contribution cycle:
The Corporate Trustee determines the special rate of contribution (after considering actuarial advice) and the intervals for payment.
Owners pay contributions at the determined rate and intervals for each mine worker employed.
Contributions are credited to Part 3 of the Amalgamated Fund.
If contributions are more than 21 days overdue, the Corporate Trustee may charge interest.
Actuarial review:
The Corporate Trustee must consider actuarial reports when setting contribution rates. This provides a mechanism for periodic adjustment of contribution rates to maintain the fund's solvency.
Benefits:
Benefits (including pensions, lump sums, and death benefits) are determined by the applicable trust deed rules (AUSCOAL Rules or COALSUPER Rules). Pension amounts for certain categories are fixed by reference to Column 5 of Appendix 3A to the AUSCOAL Rules as at 31 December 1999.
Interactions with other law
Coal Industry Act 2001 (NSW): s. 17B of the Superannuation Act references the Approved Company concept from the Coal Industry Act 2001. The two Acts interact in the administration of Part 4 functions.
Superannuation Industry (Supervision) Act 1993 (Cth): the complying fund status of the AUSCOAL Superannuation Fund and related schemes is governed by the SIS Act. The definition of "complying fund" in s. 2(1) references s. 45 of the SIS Act.
Modern superannuation framework: the Act operates alongside the Commonwealth compulsory superannuation system (Superannuation Guarantee (Administration) Act 1992 (Cth)), but the industry-specific rates under this Act may exceed or supplement the general guarantee.
Coal and Oil Shale Mine Workers (Superannuation) Amendment Act 1992 (NSW) and 1994 (NSW): these amending Acts made substantial changes to the scheme, the transitional provisions for which are set out in Parts 2–5 of the Schedule to the Superannuation Act.
Gotchas
The Act relies heavily on external trust deeds:
The AUSCOAL Trust Deed and the COALSUPER Trust Deed govern the actual benefit entitlements, contribution structures, and fund rules. Reading the Act's operative provisions alone gives an incomplete picture of the scheme. Users must refer to the applicable trust deed to understand benefit calculations, eligibility conditions, and fund rules.
Historical defined benefit and pension obligations are complex:
The Act contains provisions for pensions defined by reference to historical rates (Column 5 pension as at 31 December 1999). These frozen benefit references create obligations that are determined by actuarial calculations based on historical benchmarks, not current benefit scales.
The special rate must be set after actuarial consideration:
Section 19(2) requires the Corporate Trustee to consider a relevant actuarial report before determining the special rate of contributions. A contribution rate set without proper actuarial consideration may be challengeable.
Part 4A compensation subsidies are separate from superannuation:
Part 4A provides for coal and oil shale mine workers compensation subsidies, which are distinct from the superannuation benefits under the main fund. Users should not confuse compensation subsidies with retirement or disability superannuation benefits.
Practical examples
Example 1: Employer contribution obligation
A coal mine operator employs 150 underground workers covered by the Act. Under s. 19(1), the operator must make contributions to the AUSCOAL Superannuation Fund at the special rate determined by the Corporate Trustee, at the intervals determined by the Corporate Trustee, for each of those workers. The rate is set by the Corporate Trustee after the actuary's report confirms the rate needed to fund the scheme's benefit obligations.
Example 2: Interest on overdue contributions
A coal mine operator fails to pay its monthly contributions by the due date. After 21 days of being overdue, the Corporate Trustee exercises its power under s. 19(3) to charge interest on the overdue amount at the applicable rate. The operator must pay both the principal contribution and the accrued interest.
Example 3: Column 5 pension
A retired coal mine worker who became entitled to a Column 5 pension before 31 December 1999 continues to receive a pension at the rate specified in Column 5 of Appendix 3A to the AUSCOAL Rules as it stood at that date. This frozen rate structure means the pension amount is determined by historical rules, not current benefit scales, and is payable under the AUSCOAL Trust Deed.