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Commonwealth legislation
What these Regulations do (mechanically)
These regulations tell you which parts of a Commonwealth employee’s pay count as “salary” for the Commonwealth Superannuation Scheme (CSS) and which parts do not. (The CSS rules in the Superannuation Act 1976 rely on the definition of salary to calculate contributions and retirement benefits.) See generally regs 3 and 5.
They list categories of allowances that are to be treated as salary (so they increase the contribution and pension base) and many categories that are explicitly excluded from salary for superannuation purposes. Examples:
The Regulations create detailed rules for particular categories of pay that often require counting, averaging or excluding amounts over pay periods and over 12‑month reference periods. Notable examples:
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Direct links to the current provisions in Superannuation (CSS) Salary Regulations 1978.
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View on official registerSourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
The Regulations give the Commissioner a role to make binding certificates about whether an allowance will count as being paid “on a regular basis” (reg 6). They also permit certain employees to elect that a Parliamentary employment allowance not be treated as salary (reg 8N).
Who is affected
Why it matters (practical effect)
The classification of a payment as salary or non‑salary directly changes the base on which CSS employer and employee contributions are calculated and the base used to determine pension/benefit entitlements (see reg 5 and the final rate rules such as regs 8, 8H, 8K). Small drafting or classification differences can change lifetime pension outcomes and immediate contribution costs.
The Regulations therefore alter incentives for how remuneration is packaged. Employers and employees can change the mix of cash vs non‑monetary benefits, elections available to employees (for example reg 8N), or use flexible packages (Part 2E) to influence what counts as the superannuation base.
Who pays and who decides
The employer (Commonwealth department or specified authority) pays statutory contributions under the Act; the Regulations determine the amount of salary on which those contributions are calculated (see regs 8P–8Q for package mechanics and reg 8D for shift averaging). Some parts also bring in third‑party payers in “top‑up arrangements” (reg 8P(2)–(4)).
Key decision points: the employing body (to the extent it designs agreements), the employee (where the Regulations allow elections — e.g. reg 8N), and the Commissioner of the scheme (who issues certificates under reg 6 and other provisions that affect whether allowances are treated as regularly payable).
Official rationale (as stated) and how it stands up as a mechanics test
The declared purpose of these regulations is to define which payments count as salary for the CSS (reg 3 and cross‑refs to subsection 5(1) of the Act). Mechanically, they implement that purpose by:
Trade‑offs and implementation costs you should note:
Key cross‑references and legal intersections
Practical signals for employers, employees and administrators
Employers and payroll teams must map each allowance to its treatment under these regs and ensure software can calculate look‑back averages, part‑time adjustments and apply the Commissioner’s certificate where needed (see regs 6, 8C–8D, 8E).
Employees who can elect (reg 8N for Parliamentary employment allowances; or who negotiate total employment cost packages under reg 8Q) should understand that the election or package design alters their superannuation base and therefore future pension entitlements.
Administrators (CSC/Commissioner) must manage certificate decisions, keep records to support those decisions, and police the interpretation of “regular basis”, part‑time pro‑rations and what counts as an allowance of the kinds listed in reg 4 and reg 5.
(Referenced provisions are examples only; the Regulations are extensive and contain many specific rules and formulas — see Parts 2 through 5 and Schedule 1.)