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This is a Bill, not an Act. For current law, see the Acts databases.
GOVERNANCE OF AUSTRALIAN GOVERNMENT SUPERANNUATION SCHEMES BILL 2010
2008-2009-2010
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Governance of Australian Government
Superannuation Schemes Bill 2010
No. , 2010
(Finance and Deregulation)
A Bill for an Act to create a single body to
administer Australian Government superannuation
schemes, and for related purposes
i Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
Contents
Part 1--Preliminary
1
1 Short
title
...........................................................................................
1
2 Commencement
.................................................................................
2
3 Definitions
.........................................................................................
2
Part 2--Commonwealth Superannuation Corporation
6
Division 1--Establishment and constitution of CSC
6
4 Establishment
.....................................................................................
6
5
Modification of the Commonwealth Authorities and
Companies Act 1997 .......................................................................... 6
6 CSC's
constitution
.............................................................................
6
7 CSC's
functions
.................................................................................
7
Division 2--Board of CSC
8
Subdivision A--Establishment and function
8
8 Establishment
.....................................................................................
8
9 Function
.............................................................................................
8
10 Membership
.......................................................................................
8
Subdivision B--Appointment etc. of directors
9
11
Appointment of directors ................................................................... 9
12
Term of appointment ....................................................................... 10
13 Remuneration
and
allowances ......................................................... 10
14
Leave of absence .............................................................................. 10
15 Resignation
......................................................................................
10
16 Termination
of
appointment ............................................................ 11
17 Acting
appointments
........................................................................
12
Subdivision C--Meetings of the Board
13
18 Holding
of
meetings......................................................................... 13
19
Presiding at meetings ....................................................................... 13
20 Quorum
............................................................................................
14
21
Disclosure of interests to the Board ................................................. 14
22
Voting at meetings ........................................................................... 15
23 Decisions
without meetings ............................................................. 15
24
Minutes of meetings......................................................................... 16
Division 3--Staff of CSC
17
25 Staff
of
CSC
.....................................................................................
17
26 Consultants
......................................................................................
17
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010 ii
Part 3--Finance and reporting requirements
18
Division 1--Provisions relating to finance
18
27 Banking
............................................................................................
18
28 Accounting
records
..........................................................................
18
Division 2--Reporting requirements
19
29
Annual report and financial statements ............................................ 19
Part 4--Miscellaneous
22
Division 1--Application of other laws
22
30
Trustee Act of ACT to apply ........................................................... 22
31 Exemption
from
taxation--CSC ...................................................... 22
32
Exemption from taxation--superannuation schemes and
superannuation funds administered by CSC .................................... 22
Division 2--Provisions relating to the Board
24
33
Source of funds for paying remuneration and allowances ............... 24
34 Indemnification
of
directors etc. ...................................................... 24
Division 3--Miscellaneous
26
35 Delegation
by
CSC
..........................................................................
26
36 Regulations
......................................................................................
28
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010 1
A Bill for an Act to create a single body to
1
administer Australian Government superannuation
2
schemes, and for related purposes
3
The Parliament of Australia enacts:
4
Part 1--Preliminary
5
6
1 Short title
7
This Act may be cited as the Governance of Australian
8
Government Superannuation Schemes Act 2010.
9
Part 1 Preliminary
Section 2
2 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
2 Commencement
1
This Act commences on 1 July 2010.
2
3 Definitions
3
In this Act:
4
1922 scheme means the scheme established under the
5
Superannuation Act 1922.
6
Act administered by CSC means:
7
(a)
the
Defence Force Retirement and Death Benefits Act 1973;
8
or
9
(b)
the
Defence Forces Retirement Benefits Act 1948; or
10
(c)
the
Military Superannuation and Benefits Act 1991; or
11
(d)
the
Papua New Guinea (Staffing Assistance) Act 1973, to the
12
extent that the Act deals with superannuation; or
13
(e)
the
Superannuation Act 1922; or
14
(f)
the
Superannuation Act 1976; or
15
(g)
the
Superannuation Act 1990; or
16
(h)
the
Superannuation Act 2005.
17
bank has the same meaning as in the Commonwealth Authorities
18
and Companies Act 1997.
19
Board means the Board of CSC, established by section 8.
20
Chair means the Chair of the Board.
21
CSC (short for Commonwealth Superannuation Corporation)
22
means the body corporate continued in existence by section 4.
23
CSS (short for Commonwealth Superannuation Scheme) has the
24
same meaning as in the Superannuation Act 1976.
25
CSS Fund has the same meaning as Fund has in the
26
Superannuation Act 1976.
27
Preliminary Part 1
Section 3
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
3
DFRB (short for Defence Forces Retirement Benefits Scheme)
1
means the scheme provided for by the Defence Forces Retirement
2
Benefits Act 1948.
3
DFRDB (short for Defence Force Retirement and Death Benefits
4
Scheme) means the scheme provided for by the Defence Force
5
Retirement and Death Benefits Act 1973.
6
director means a director of the Board, and includes the Chair.
7
disqualified person has the same meaning as in Part 15 of the
8
Superannuation Industry (Supervision) Act 1993.
9
governing deed means:
10
(a) in relation to the MSB--the Trust Deed (within the meaning
11
of the Military Superannuation and Benefits Act 1991); or
12
(b) in relation to the PSS--the Trust Deed (within the meaning
13
of the Superannuation Act 1990); or
14
(c) in relation to the PSSAP--the Trust Deed (within the
15
meaning of the Superannuation Act 2005).
16
modifications includes additions, omissions and substitutions.
17
MSB (short for Military Superannuation and Benefits Scheme) has
18
the same meaning as Scheme has in the Military Superannuation
19
and Benefits Act 1991.
20
MSB Fund has the same meaning as Fund has in the Military
21
Superannuation and Benefits Act 1991.
22
PNG (short for Papua New Guinea Scheme) means the scheme
23
provided for by regulations made under the Papua New Guinea
24
(Staffing Assistance) Act 1973.
25
PSS (short for Public Sector Superannuation Scheme) has the same
26
meaning as Public Sector Superannuation Scheme has in the
27
Superannuation Act 1990.
28
PSSAP (short for Public Sector Superannuation Accumulation
29
Plan) has the same meaning as in the Superannuation Act 2005.
30
PSSAP Fund has the same meaning as in the Superannuation Act
31
2005.
32
Part 1 Preliminary
Section 3
4 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
PSS Fund has the same meaning as in the Superannuation Act
1
1990.
2
relevant organisation means:
3
(a)
an
organisation:
4
(i) a substantial number of whose members are members of
5
the PSS or PSSAP or are eligible employees within the
6
meaning of the Superannuation Act 1976; and
7
(ii) whose principal purpose is to protect and promote the
8
interests of its members in matters concerning their
9
employment; or
10
(b) an organisation that has as one of its principal purposes the
11
protection and promotion of beneficiaries under the CSS,
12
PSS or PSSAP in matters concerning their entitlements as
13
beneficiaries.
14
SIS fitness and propriety standard means a standard prescribed
15
under Part 3 of the Superannuation Industry (Supervision) Act
16
1993 relating to fitness and propriety for trustees of funds (within
17
the meaning of that Act) and RSE licensees (within the meaning of
18
that Act).
19
superannuation fund administered by CSC means:
20
(a) the CSS Fund; or
21
(b) the MSB Fund; or
22
(c) the PSS Fund; or
23
(d) the PSSAP Fund.
24
superannuation scheme administered by CSC means:
25
(a) the 1922 scheme; or
26
(b) the CSS; or
27
(c)
the
DFRB;
or
28
(d) the DFRDB; or
29
(e) the MSB; or
30
(f) the PNG; or
31
(g) the PSS; or
32
(h)
the
PSSAP.
33
Preliminary Part 1
Section 3
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
5
superannuation scheme and superannuation fund administered
1
by CSC means:
2
(a) each superannuation scheme administered by CSC; and
3
(b) each superannuation fund administered by CSC.
4
5
Part 2 Commonwealth Superannuation Corporation
Division 1 Establishment and constitution of CSC
Section 4
6 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
Part 2--Commonwealth Superannuation
1
Corporation
2
Division 1--Establishment and constitution of CSC
3
4 Establishment
4
The board established by section 20 of the Superannuation Act
5
1990 as the Australian Reward Investment Alliance continues in
6
existence by force of this section as a body corporate, under and
7
subject to the provisions of this Act, under the name
8
Commonwealth Superannuation Corporation (CSC).
9
Note 1:
See also section 25B of the Acts Interpretation Act 1901.
10
Note 2:
Subject to section 5 of this Act, the Commonwealth Authorities and
11
Companies Act 1997 applies to CSC. That Act deals with matters
12
relating to Commonwealth authorities, including reporting and
13
accountability, banking and investment, and the conduct of officers.
14
5 Modification of the Commonwealth Authorities and Companies Act
15
1997
16
(1) Despite section 4 of this Act:
17
(a) section 15 of the Commonwealth Authorities and Companies
18
Act 1997; and
19
(b) any other provision of that Act prescribed by the regulations;
20
do not apply in relation to CSC's management and investment of
21
money that forms part of a superannuation fund administered by
22
CSC.
23
(2) If, at any time, CSC does not hold money on its own account, then,
24
despite section 7 of the Commonwealth Authorities and Companies
25
Act 1997, CSC is treated as if it were a Commonwealth authority
26
for the purposes of that Act.
27
6 CSC's constitution
28
(1)
CSC:
29
(a) must have a seal; and
30
Commonwealth Superannuation Corporation Part 2
Establishment and constitution of CSC Division 1
Section 7
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
7
(b) may acquire, hold and dispose of real and personal property;
1
and
2
(c) may sue and be sued in its corporate name.
3
(2) The seal of CSC is to be kept in such custody as the Board directs
4
and must not be used except as authorised by the Board.
5
(3) All courts, judges and persons acting judicially must:
6
(a) take judicial notice of the imprint of the seal of CSC
7
appearing on a document; and
8
(b) presume that the document was duly sealed.
9
7 CSC's functions
10
(1) CSC has the following functions:
11
(a) such functions as are conferred on CSC by this Act and each
12
Act administered by CSC;
13
(b) to be responsible for the general administration of this Act
14
and each Act administered by CSC;
15
(c) to do anything incidental to, or conducive to, the performance
16
of the above functions.
17
(2) To avoid doubt, when performing a function under an Act
18
administered by CSC, CSC is performing the function under the
19
relevant Act and not this Act.
20
(3) CSC has power to do all things necessary or convenient to be done
21
for or in connection with the performance of its functions.
22
23
Part 2 Commonwealth Superannuation Corporation
Division 2 Board of CSC
Section 8
8 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
Division 2--Board of CSC
1
Subdivision A--Establishment and function
2
8 Establishment
3
There is to be a Board of CSC.
4
9 Function
5
(1) The function of the Board is to ensure that CSC performs its
6
functions in a proper, efficient and effective manner.
7
(2) The Board has the power to do all things necessary or convenient
8
to be done for or in connection with the performance of its
9
function.
10
(3) All acts and things done in the name of, or on behalf of, CSC by
11
the Board are taken to have been done by CSC.
12
10 Membership
13
(1) The Board consists of:
14
(a) a Chair; and
15
(b) 10 other directors.
16
Note:
See also subsection 36(2).
17
(2) Subject to subsection (4), of the 10 other directors:
18
(a) the President of the Australian Council of Trade Unions may
19
nominate, in writing, 3 persons; and
20
(b) the Chief of the Defence Force may nominate, in writing, 2
21
persons.
22
Note:
The Minister chooses the remaining 5 other directors.
23
(3) However, a person is not eligible for nomination if the person's
24
appointment would result in a contravention of a SIS fitness and
25
propriety standard.
26
(4) Before nominating a person, the President of the Australian
27
Council of Trade Unions must consult with relevant organisations.
28
Commonwealth Superannuation Corporation Part 2
Board of CSC Division 2
Section 11
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
9
(5) A nomination must specify the period for which the nominee is to
1
be appointed. The period may not be more than 3 years.
2
(6) Subsections (2) to (5) also apply to a nomination of an acting
3
director by the President of the Australian Council of Trade
4
Unions.
5
(7) Subsections (2), (3) and (5) also apply to a nomination of an acting
6
director by the Chief of the Defence Force.
7
(8) The performance of a function or the exercise of a power of the
8
Board is not affected by a vacancy in the membership of the Board.
9
Subdivision B--Appointment etc. of directors
10
11 Appointment of directors
11
(1) A director is to be appointed by the Minister by written instrument,
12
on a part-time basis.
13
Note:
A director is eligible for reappointment: see subsection 33(4A) of the
14
Acts Interpretation Act 1901.
15
(2) A person is not eligible for appointment as a director if the
16
person's appointment would result in a contravention of a SIS
17
fitness and propriety standard.
18
(3) In the case of a director who has been nominated by the President
19
of the Australian Council of Trade Unions or the Chief of the
20
Defence Force, the Minister must:
21
(a) appoint a person who has been nominated; and
22
(b) appoint the person for the period specified in the nomination.
23
(4) The Minister must obtain the Board's agreement to a person whom
24
the Minister proposes to appoint as the Chair (other than for the
25
appointment of a person as the first Chair).
26
Note:
For obtaining the Board's agreement, see section 22.
27
(5) A person's appointment as a director is not invalid because of a
28
defect or irregularity in connection with the person's appointment.
29
Part 2 Commonwealth Superannuation Corporation
Division 2 Board of CSC
Section 12
10 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
12 Term of appointment
1
(1) A director holds office for the period specified in the instrument of
2
appointment. The period must not exceed 3 years.
3
(2) A director must not hold office continuously for more than 9 years.
4
13 Remuneration and allowances
5
(1) A director is to be paid the remuneration that is determined by the
6
Remuneration Tribunal. If no determination of that remuneration
7
by the Tribunal is in operation, a director is to be paid the
8
remuneration that is prescribed by the regulations.
9
(2) A director is to be paid the allowances that are prescribed by the
10
regulations.
11
(3) This section has effect subject to the Remuneration Tribunal Act
12
1973.
13
14 Leave of absence
14
(1) The Minister may grant leave of absence to the Chair on the terms
15
and conditions that the Minister determines.
16
(2) The Chair may grant leave of absence to another director on the
17
terms and conditions that the Chair determines.
18
15 Resignation
19
(1) A director may resign his or her appointment by giving the
20
Minister a written resignation.
21
(2) The resignation takes effect on the day it is received by the
22
Minister or, if a later day is specified in the resignation, on that
23
later day.
24
(3) If a director nominated by the President of the Australian Council
25
of Trade Unions or the Chief of the Defence Force resigns, the
26
director must also give a copy of the resignation to the President or
27
Chief, as appropriate.
28
Commonwealth Superannuation Corporation Part 2
Board of CSC Division 2
Section 16
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
11
16 Termination of appointment
1
Grounds for termination
2
(1) Subject to subsections (5), (6) and (7), the Minister may terminate
3
the appointment of a director:
4
(a) for misbehaviour or physical or mental incapacity; or
5
(b) if the director:
6
(i) becomes bankrupt; or
7
(ii) applies to take the benefit of any law for the relief of
8
bankrupt or insolvent debtors; or
9
(iii) compounds with his or her creditors; or
10
(iv) makes an assignment of his or her remuneration for the
11
benefit of his or her creditors; or
12
(c) if the director is absent, except on leave of absence, from 3
13
consecutive meetings of the Board; or
14
(d) if the director fails, without reasonable excuse, to comply
15
with section 21.
16
(2) Subject to subsections (5), (6) and (7), if the Minister is of the
17
opinion that the directors have failed to comply with paragraph
18
16(1)(a) or (b) of the Commonwealth Authorities and Companies
19
Act 1997, the Minister may terminate the appointment of all
20
directors or particular directors.
21
(3) The Minister may terminate the appointment of a director if:
22
(a) the director's continuation in office would contravene a SIS
23
fitness and propriety standard; or
24
(b) the director fails, without reasonable excuse, to comply with
25
an obligation imposed on him or her by section 27F or 27J of
26
the Commonwealth Authorities and Companies Act 1997.
27
(4) The appointment of a director terminates if he or she becomes a
28
disqualified person.
29
Consent to termination
30
(5) The Minister must not terminate the appointment of a director
31
nominated by the President of the Australian Council of Trade
32
Part 2 Commonwealth Superannuation Corporation
Division 2 Board of CSC
Section 17
12 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
Unions on a ground mentioned in subsection (1) or (2) unless the
1
President consents to the termination.
2
(6) The Minister must not terminate the appointment of a director
3
nominated by the Chief of the Defence Force on a ground
4
mentioned in subsection (1) or (2) unless the Chief consents to the
5
termination.
6
(7) However, if the President of the Australian Council of Trade
7
Unions or the Chief of the Defence Force consents to the
8
termination of a director, the Minister must terminate the director's
9
appointment.
10
17 Acting appointments
11
(1) The Minister may, by written instrument, appoint a person to act as
12
a director:
13
(a) during a vacancy in the office of the director (whether or not
14
an appointment has previously been made to the office); or
15
(b) during any period, or during all periods, when the director:
16
(i) is absent from duty or from Australia; or
17
(ii) is, for any reason, unable to perform the duties of the
18
office.
19
(2) A person is not eligible for appointment to act as a director if the
20
person's appointment would result in a contravention of a SIS
21
fitness and propriety standard.
22
(3) The Minister must consult the Board about the person whom the
23
Minister proposes to appoint to act as the Chair.
24
(4)
If:
25
(a) a director is appointed following a nomination made by the
26
President of the Australian Council of Trade Unions; and
27
(b) a nomination is made by the President for a person to act in
28
place of that director;
29
the Minister must:
30
(c) appoint the person who has been nominated to act as a
31
director; and
32
(d) appoint the person for the period specified in the nomination.
33
Commonwealth Superannuation Corporation Part 2
Board of CSC Division 2
Section 18
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
13
(5)
If:
1
(a) a director is appointed following a nomination made by the
2
Chief of the Defence Force; and
3
(b) a nomination is made by the Chief for a person to act in place
4
of that director;
5
the Minister must:
6
(c) appoint the person who has been nominated to act as a
7
director; and
8
(d) appoint the person for the period specified in the nomination.
9
(6) Anything done by or in relation to a person purporting to act under
10
an appointment is not invalid merely because:
11
(a) the occasion for the appointment had not arisen; or
12
(b) there was a defect or irregularity in connection with the
13
appointment; or
14
(c) the appointment had ceased to have effect; or
15
(d) the occasion to act had not arisen or had ceased.
16
Note:
See sections 20 and 33A of the Acts Interpretation Act 1901.
17
Subdivision C--Meetings of the Board
18
18 Holding of meetings
19
(1) The Board is to hold such meetings as are necessary for the
20
performance of its function.
21
(2)
The
Chair:
22
(a) may convene a meeting at any time; and
23
(b) must convene a meeting within 30 days after receiving a
24
written request from another director.
25
Note:
Section 33B of the Acts Interpretation Act 1901 provides for
26
participation in meetings by telephone etc.
27
19 Presiding at meetings
28
(1) The Chair presides at all meetings of the Board at which he or she
29
is present.
30
(2) If the Chair is not present at a meeting:
31
Part 2 Commonwealth Superannuation Corporation
Division 2 Board of CSC
Section 20
14 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
(a) a director nominated by the Chair presides; or
1
(b) if a director is not nominated--the directors present must
2
elect one of themselves to preside.
3
20 Quorum
4
(1) At a meeting of the Board, 9 directors constitute a quorum.
5
(2) Despite subsection (1), if:
6
(a)
either:
7
(i) section 21 of this Act; or
8
(ii) section 27J of the Commonwealth Authorities and
9
Companies Act 1997;
10
prevents a director from being present during the
11
deliberations, or taking part in any decision, of the Board
12
with respect to a particular matter; and
13
(b) as a result, there is no longer a quorum present; and
14
(c) there are present at least 8 other directors who would be
15
counted in determining whether a quorum is present;
16
the remaining directors constitute a quorum for the purpose of any
17
deliberation or decision at the meeting with respect to that matter.
18
21 Disclosure of interests to the Board
19
(1) This section only applies to the extent that the Board does a thing
20
relating to CSC's management and investment of money that forms
21
part of a superannuation fund administered by CSC.
22
(2) A director who has any interest, pecuniary or otherwise, in a matter
23
being considered or about to be considered by the Board must
24
disclose the nature of the interest to a meeting of the Board.
25
(3) The disclosure must be made as soon as possible after the relevant
26
facts have come to the director's knowledge.
27
(4) The disclosure must be recorded in the minutes of the meeting.
28
(5) Unless the Minister or the Board otherwise determines, the
29
director:
30
Commonwealth Superannuation Corporation Part 2
Board of CSC Division 2
Section 22
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
15
(a) must not be present during any deliberation by the Board on
1
the matter; and
2
(b) must not take part in any decision of the Board with respect
3
to the matter.
4
(6) For the purposes of making a determination of the Board under
5
subsection (5), the director:
6
(a) must not be present during any deliberation of the Board for
7
the purpose of making the determination; and
8
(b) must not take part in making the determination.
9
(7) A determination under subsection (5) must be recorded in the
10
minutes of the meeting.
11
22 Voting at meetings
12
At a meeting of the Board:
13
(a) if subsection 20(2) applies--a question is decided by the
14
agreement of 8 directors; and
15
(b) in any other case--a question is decided by the agreement of
16
9 directors.
17
23 Decisions without meetings
18
(1) The Board is taken to have made a decision at a meeting if:
19
(a) without meeting, 9 directors indicate agreement with the
20
proposed decision in accordance with the method determined
21
by the Board under subsection (2); and
22
(b) all directors were informed of the proposed decision, or
23
reasonable efforts were made to inform all directors of the
24
proposed decision.
25
(2) Subsection (1) applies only if the Board has determined, in writing:
26
(a) that it may make decisions without meeting; and
27
(b) the method by which directors are to indicate agreement with
28
proposed decisions.
29
(3) Paragraph (1)(a) does not apply to:
30
(a) a director who is prevented by subsection 21(5) from
31
deliberating on the proposed decision; or
32
Part 2 Commonwealth Superannuation Corporation
Division 2 Board of CSC
Section 24
16 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
(b) to the extent that the Commonwealth Authorities and
1
Companies Act 1997 applies--a director who is prevented by
2
section 27J of that Act from deliberating on the proposed
3
decision.
4
24 Minutes of meetings
5
The Board must keep minutes of its meetings.
6
7
Commonwealth Superannuation Corporation Part 2
Staff of CSC Division 3
Section 25
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
17
Division 3--Staff of CSC
1
25 Staff of CSC
2
(1) CSC may employ such persons as it considers necessary for the
3
performance of its functions.
4
(2) An employee is to be employed on the terms and conditions that
5
the Board determines in writing.
6
26 Consultants
7
CSC may engage consultants to assist in the performance of its
8
functions.
9
10
Part 3 Finance and reporting requirements
Division 1 Provisions relating to finance
Section 27
18 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
Part 3--Finance and reporting requirements
1
Division 1--Provisions relating to finance
2
27 Banking
3
CSC must pay all money received by it in respect of each
4
superannuation fund administered by CSC into an account
5
maintained by it with a bank.
6
28 Accounting records
7
(1) CSC must keep proper accounts and records of the transactions and
8
affairs of each superannuation fund administered by CSC, in
9
accordance with the accounting principles generally applied in
10
commercial practice.
11
(2) CSC must take reasonable steps to ensure that:
12
(a) all payments out of each superannuation fund administered
13
by CSC are correctly made and properly authorised; and
14
(b) adequate control is maintained over:
15
(i) the assets of each superannuation fund administered by
16
CSC; and
17
(ii) the incurring of liabilities by CSC in respect of each
18
superannuation fund administered by CSC.
19
(3) A director commits an offence if:
20
(a) the director causes a requirement of this section to be
21
breached; or
22
(b) the director fails to take reasonable steps to comply with the
23
requirement, or secure compliance with the requirement.
24
Penalty: Imprisonment for 6 months or 30 penalty units, or both.
25
26
Finance and reporting requirements Part 3
Reporting requirements Division 2
Section 29
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
19
Division 2--Reporting requirements
1
29 Annual report and financial statements
2
(1) CSC must, by a date prescribed by the regulations, or, if no date is
3
prescribed, as soon as practicable after the end of:
4
(a) the financial year starting on 1 July 2010; and
5
(b) each later financial year;
6
prepare and give to the Minister:
7
(c) a report dealing with:
8
(i) the performance of its functions in relation to each
9
superannuation scheme and superannuation fund
10
administered by CSC (other than the 1922 scheme,
11
DFRB, DFRDB and PNG) during the year; and
12
(ii) the general administration of the Acts and provisions
13
mentioned in subsection (2) during the year; and
14
(d) financial statements in respect of the management of each
15
superannuation fund administered by CSC in a form agreed
16
between the Minister and the Board.
17
(2) For the purpose of subparagraph (1)(c)(ii), the Acts and provisions
18
are:
19
(a)
the
Defence Force Retirement and Death Benefits Act 1973;
20
and
21
(b)
the
Defence Forces Retirement Benefits Act 1948 (other than
22
Part III of that Act); and
23
(c) provisions of the Papua New Guinea (Staffing Assistance)
24
Act 1973 that deal with superannuation; and
25
(d)
the
Superannuation Act 1922.
26
(3) Before giving the financial statements to the Minister, CSC must
27
submit them to the Auditor-General, who must audit and report to
28
the Minister:
29
(a) whether the statements are based on proper accounts and
30
records; and
31
(b) whether the statements are in agreement with the accounts
32
and records and show fairly the financial transactions and the
33
state of each superannuation fund administered by CSC; and
34
Part 3 Finance and reporting requirements
Division 2 Reporting requirements
Section 29
20 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
(c) whether the receipt of money into, the payment of money out
1
of, and the investment of money standing to the credit of,
2
each superannuation fund administered by CSC during the
3
year have been in accordance with:
4
(i) this Act and the relevant Acts administered by CSC; and
5
(ii) the relevant governing deeds; and
6
(d) as to such other matters arising out of the statements as the
7
Auditor-General considers should be reported.
8
(4) The Minister must cause a copy of:
9
(a) the report prepared by CSC; and
10
(b) the financial statements prepared by CSC; and
11
(c) the report of the Auditor-General in respect of the financial
12
statements;
13
to be tabled in each House of the Parliament within 15 sitting days
14
of that House after the receipt of whichever of those documents
15
was last received by the Minister.
16
(5) If the Board has not complied with subsection (1) within a period
17
of 6 months after the end of a financial year, CSC must, within 14
18
days after the end of that period, give to the Minister:
19
(a) an interim report on the performance of its functions in
20
relation to each superannuation scheme and superannuation
21
fund administered by CSC during that year; and
22
(b) interim financial statements in respect of the management of
23
each superannuation fund administered by CSC during that
24
year.
25
Note:
See also subsection 36(4).
26
(6) The financial statements given to the Minister under subsection (5)
27
must be in the form agreed between the Minister and the Board for
28
the purposes of subsection (1), but need not be accompanied by a
29
report of the Auditor-General.
30
(7) If CSC gives a report and financial statements to the Minister
31
under subsection (5), the Minister must:
32
(a) cause a copy of the report and a copy of the financial
33
statements to be tabled in each House of the Parliament
34
Finance and reporting requirements Part 3
Reporting requirements Division 2
Section 29
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
21
within 15 sitting days of that House after their receipt by the
1
Minister; and
2
(b) make the report and financial statements available to the
3
public.
4
(8) A report given under paragraph (5)(a) is not a legislative
5
instrument.
6
7
Part 4 Miscellaneous
Division 1 Application of other laws
Section 30
22 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
Part 4--Miscellaneous
1
Division 1--Application of other laws
2
30 Trustee Act of ACT to apply
3
Except in so far as it is inconsistent with a law of the
4
Commonwealth, the Trustee Act 1925 of the Australian Capital
5
Territory applies to, and in relation to, the directors acting in the
6
performance of their functions, or the exercise of their powers,
7
under a governing deed.
8
31 Exemption from taxation--CSC
9
(1) CSC is not subject to:
10
(a) taxation under a law of the Commonwealth other than:
11
(i)
the
A New Tax System (Goods and Services Tax) Act
12
1999; or
13
(ii)
the
Fringe Benefits Tax Assessment Act 1986; or
14
(iii)
the
Income Tax Assessment Act 1936; or
15
(iv)
the
Income Tax Assessment Act 1997; or
16
(b) taxation under a law of a State or Territory.
17
(2) The regulations may provide that subsection (1) does not apply in
18
relation to taxation under a specified law.
19
32 Exemption from taxation--superannuation schemes and
20
superannuation funds administered by CSC
21
(1) Subject to this section:
22
(a) CSC, when performing functions, or exercising powers, in
23
relation to a superannuation scheme and superannuation fund
24
administered by CSC; and
25
(b) a superannuation fund administered by CSC;
26
are not subject to:
27
(c) taxation under a law of the Commonwealth other than:
28
(i)
the
A New Tax System (Goods and Services Tax) Act
29
1999; or
30
Miscellaneous Part 4
Application of other laws Division 1
Section 32
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
23
(ii)
the
Income Tax Assessment Act 1936; or
1
(iii)
the
Income Tax Assessment Act 1997; or
2
(iv)
the
Superannuation Contributions Tax (Assessment and
3
Collection) Act 1997; or
4
(d) taxation under a law of a State or Territory, if the
5
Commonwealth is not subject to the taxation.
6
(2) The regulations may provide that subsection (1) does not apply in
7
relation to taxation under a specified law.
8
(3) The regulations may specify different laws for different
9
superannuation funds administered by CSC.
10
(4) In relation to the PSSAP and the PSSAP Fund:
11
(a) this section has effect subject to such modifications (if any)
12
as are prescribed by the regulations; and
13
(b) the regulations may provide that this section ceases to have
14
effect at a specified time.
15
16
Part 4 Miscellaneous
Division 2 Provisions relating to the Board
Section 33
24 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
Division 2--Provisions relating to the Board
1
33 Source of funds for paying remuneration and allowances
2
(1) The Chair is to be paid remuneration and allowances as follows:
3
(a) when performing functions relating to a particular Fund--out
4
of that Fund;
5
(b) when performing functions relating to the 1922 scheme,
6
DFRB, DFRDB or PNG--out of the Consolidated Revenue
7
Fund, which is appropriated accordingly.
8
(2) A director (other than the Chair) is to be paid remuneration and
9
allowances as follows:
10
(a) when performing functions relating to a particular Fund--
11
from one of the following (according to the relevant Act
12
administered by CSC):
13
(i)
that
Fund;
14
(ii) the Consolidated Revenue Fund;
15
(iii) partly out of that Fund and partly out of the
16
Consolidated Revenue Fund;
17
(b) when performing functions relating to the 1922 scheme,
18
DFRB, DFRDB or PNG--out of the Consolidated Revenue
19
Fund, which is appropriated accordingly.
20
(3) In relation to the PSSAP and the PSSAP Fund:
21
(a) this section has effect subject to such modifications (if any)
22
as are prescribed by the regulations; and
23
(b) the regulations may provide that this section ceases to have
24
effect at a specified time.
25
34 Indemnification of directors etc.
26
(1) Anything done, or omitted to be done, in good faith by a director or
27
a delegate of the Board, in the performance of his or her functions
28
under this Act, an Act administered by CSC or a governing deed,
29
does not subject him or her personally to any action, liability, claim
30
or demand.
31
Miscellaneous Part 4
Provisions relating to the Board Division 2
Section 34
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
25
(2) Subsection (1) does not preclude CSC from being subject to any
1
action, liability, claim or demand.
2
(3) Except in cases where the Superannuation Industry (Supervision)
3
Act 1993 or regulations under that Act do not so permit, any money
4
becoming payable by CSC in respect of an action, liability, claim
5
or demand that relates to an Act administered by CSC, regulations
6
made under such an Act, or a governing deed, is to be paid out of:
7
(a) in the case of the 1922 scheme, DFRB, DFRDB or PNG--
8
the Consolidated Revenue Fund, which is appropriated
9
accordingly; and
10
(b) in any other case--the superannuation fund administered by
11
CSC to which the action, liability, claim or demand relates.
12
(4) If an amount is paid out of a superannuation fund administered by
13
CSC under paragraph (3)(b), an equivalent amount is to be paid to
14
the relevant superannuation fund administered by CSC out of the
15
Consolidated Revenue Fund, which is appropriated accordingly.
16
(5) In relation to the Superannuation Act 2005 and the Trust Deed
17
(within the meaning of that Act):
18
(a) this section has effect subject to such modifications (if any)
19
as are prescribed by the regulations; and
20
(b) the regulations may provide that this section ceases to have
21
effect at a specified time.
22
23
Part 4 Miscellaneous
Division 3 Miscellaneous
Section 35
26 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
Division 3--Miscellaneous
1
35 Delegation by CSC
2
Delegations by CSC
3
(1) CSC may, by writing, delegate to:
4
(a) a director; or
5
(b) a member of the staff of CSC; or
6
(c) the CEO of ComSuper; or
7
(d) a member of the staff of ComSuper; or
8
(e) an APS employee in the Department or in the Department
9
responsible for the administration of the Defence Act 1903; or
10
(f) a member of the Australian Defence Force; or
11
(g) an officer or employee of a person who is responsible for
12
investing money forming part of a superannuation fund
13
administered by CSC; or
14
(h) any other person who performs duties in connection with the
15
operation of a governing deed, an Act administered by CSC
16
or regulations made under such an Act; or
17
(i) a committee consisting of 2 or more persons each of whom is
18
a person referred to in any of the above paragraphs;
19
all or any of its powers under an Act administered by CSC or
20
regulations made under such an Act.
21
(2) Despite subsection (1), CSC may only delegate its power to
22
reconsider its own decisions or decisions made by its delegates
23
under an Act mentioned in column 1 of the following table to a
24
Committee mentioned in column 2 of the table in relation to the
25
item:
26
27
Delegation of power to reconsider decisions
Item
If the decision was made by
CSC or its delegate under ...
then, CSC may delegate its
power to reconsider the decision
to ...
1 the
Defence Force Retirement
and Death Benefits Act 1973, the
Defence Forces Retirement
the Defence Force Case
Assessment Committee established
under section 100 of that Act.
Miscellaneous Part 4
Miscellaneous Division 3
Section 35
Governance of Australian Government Superannuation Schemes Bill 2010 No. , 2010
27
Delegation of power to reconsider decisions
Item
If the decision was made by
CSC or its delegate under ...
then, CSC may delegate its
power to reconsider the decision
to ...
Benefits Act 1948 or regulations
made under either of those Acts
2 the
Papua New Guinea (Staffing
Assistance) Act 1973 or
regulations made under that Act
a Reconsideration Advisory
Committee established under
section 55 of that Act.
3 the
Superannuation Act 1922 or
regulations made under that Act
a Reconsideration Advisory
Committee established under
section 127 of that Act.
4 the
Superannuation Act 1976 or
regulations made under that Act
a Reconsideration Advisory
Committee established under
section 153AB of that Act.
Sub-delegations
1
(3) If CSC delegates a power under subsection (1) to a director, the
2
director may, by writing, sub-delegate the power to:
3
(a) another director; or
4
(b) a person referred to in paragraph (1)(b), (c), (d), (e), (f), (g)
5
or (h).
6
(4) If CSC delegates a power under subsection (1) to the CEO of
7
ComSuper, the CEO may, by writing, sub-delegate the power to a
8
person referred to in paragraph (1)(d), (e), (f), (g) or (h).
9
(5) If CSC delegates a power under subsection (1) to a person referred
10
to in paragraph (1)(b), (d), (e), (f), (g) or (h), the delegate may, by
11
writing, sub-delegate the power to:
12
(a) another person referred to in the same paragraph; or
13
(b) a person referred to in another of those paragraphs.
14
(6) Section 34AA and paragraphs 34AB(a), (b) and (d) of the Acts
15
Interpretation Act 1901 apply in relation to a sub-delegation in a
16
corresponding way to the way in which they apply to a delegation.
17
Part 4 Miscellaneous
Division 3 Miscellaneous
Section 36
28 Governance of Australian Government Superannuation Schemes Bill 2010 No. ,
2010
(7) Section 34A and paragraphs 34AB(c) and (d) of the Acts
1
Interpretation Act 1901 apply to a sub-delegation as if it were a
2
delegation.
3
36 Regulations
4
(1) The Governor-General may make regulations prescribing matters:
5
(a) required or permitted by this Act to be prescribed; or
6
(b) necessary or convenient to be prescribed for carrying out or
7
giving effect to this Act.
8
(2) Without limiting subsection (1), the regulations may prescribe a
9
different number of other directors for the purpose of paragraph
10
10(1)(b).
11
(3) If regulations allowed by subsection (2) are made, regulations must
12
also be made that prescribe different numbers, consistent with the
13
proportions set out in this Act, for the purposes of:
14
(a) how many persons may be nominated by the President of the
15
Australian Council of Trade Unions and the Chief of the
16
Defence Force; and
17
(b) quorum and voting requirements.
18
(4) Without limiting subsection (1), the regulations may prescribe
19
different time periods for the purpose of subsection 29(5).
20
However, the regulations may not extend the 6 month period
21
referred to in that subsection.
22