Commonwealth legislation

Superannuation (Productivity Benefit) Declaration No. 3

In ForceCTH

Jurisdiction

Commonwealth

Act Number

174 of 1990

Collection

legislative instrument

Plain English Summary

3/10 complexity

This Declaration (made by the Minister for Finance) fixes the numerical interest rate (0.1355 p.a.) and prescribes a formula to calculate the “second interest factor” used to compute productivity-related superannuation payments for the financial year starting 1 July 1990. It applies to employees whose status at that date falls into one of three defined categories. Administrators (funds or employers) must use the Reserve Bank–published yield and specific day-count rules to calculate payable amounts, creating a record-keeping and calculation obligation.

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Superannuation (Productivity Benefit) Declaration No. 3

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Statutory Rules 1990 No. 174 1

__________________

Declaration under the Superannuation (Productivity Benefit) Act 1988

I, RALPH WILLIS, Minister for Finance, hereby make the following Declaration under paragraph 3e (1) (b) of the Superannuation
(Productivity Benefit) Act 1988.

Dated 20 June 1990.

RALPH WILLIS

Minister for Finance

____________

DECLARATION UNDER PARAGRAPH 3E (1)(b) OF THE

SUPERANNUATION (PRODUCTIVITY BENEFIT) ACT 1988

Citation

This Declaration may be cited as “Superannuation (Productivity Benefit) Declaration No. 3”.

Commencement

This Declaration takes effect from 1 July 1990.

Rate to be used

For the purpose of paragraph 3E(2) (a) of the Superannuation (Productivity Benefit) Act 1988, the rate of 0.1355, being the rate expressed as a decimal per annum that is the assessed secondary market yield last published by the Reserve Bank before 1 June 1990 in respect of 10-year non-rebate Treasury Bonds, is specified.

Specified formula

For the purpose of paragraph 3E (1)(b) of the Superannuation (Productivity Benefit) Act 1988, the declared second interest factor for the financial year commencing on 1 July 1990 is to be ascertained using the following formula:

where:

“Interest” means the interest rate specified in clause 3;

“Days” means:

(a) in the case of an employee who becomes a fund employee—the number of days between the day following

the last day of the last pay period of the employee ending before 1 July 1990 and the day on which an amount first becomes payable under section 4f of that Act and

including both of those days;

(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 the day following the last day of the last pay period of the employee ending before 1 July 1990 and the day on which the employee became entitled to receive the benefit; or

(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 the date of the day following the last day of the last pay period of the employee ending before 1 July 1990 and 30 June 1991.

_________________________________________________________

NOTE

Notified in the Commonwealth of Australia Gazette on 29 June 1990.

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 Superannuation (Productivity Benefit) Declaration No. 3