Superannuation Legislation Amendment Act (No. 2) 1986

Part II — AMENDMENTS OF THE SUPERANNUATION ACT 1976

3 Principal Act

3. The Superannuation Act 1976¹ is in this Part referred to as the Principal Act.

Interpretation

4. (1) Section 3 of the Principal Act is amended—

(a) by omitting from the definition of “eligible employee” in sub-section (1) “but does not include” and substituting “but, in relation to a person to whom any of the preceding paragraphs of this definition, other than paragraph (ea), applies, does not include”;

(b) by inserting in sub-section (6) “of the Commonwealth or” after “law”; and

“(8) A reference in this Act to a medical examination by a medical practitioner does not include a reference to a medical examination by a person other than a person registered or licensed as a medical practitioner under a law of a State or Territory that provides for the registration or licensing of medical practitioners unless—

(a) the medical examination is made in a place that is not in Australia or an external Territory; and

(b) the person is registered or licensed as a medical practitioner under a law of that place that provides for the registration or licensing of medical practitioners.”.

(2) Notwithstanding the amendment made by paragraph (1) (a), where, immediately before the commencement of this section, a person to whom paragraph (ea) of the definition of “eligible employee” in sub-section 3 (1) of the Principal Act applied was not an eligible employee within the meaning of the Principal Act because paragraph (h), (j), (k) or (l) of that definition

applied to the person, that person shall become an eligible employee within the meaning of the Principal Act as amended and in force after the commencement of this section if, and only if, he or she becomes a person to whom paragraph (b), (c), (d), (e), (ea), (f) or (g), but none of the other paragraphs, of the definition of “eligible employee” in sub-section 3 (1) of the Principal Act as so amended and in force applies.

Annual rate of salary

5. (1) Section 5 of the Principal Act is amended—

(a) by omitting sub-section (1) and substituting the following sub-section:

“(1) In this section, ‘salary’ means salary or wages and includes any allowance, or the value of any allowance, or any fee, that is an allowance or fee of a kind that, under the regulations, is to be treated as salary for the purposes of this Act, but does not include any part of any salary or wages that, under the regulations, is not to be treated as salary for the purposes of this Act.”;

(b) by omitting from sub-section (2) “sub-section (3)” and substituting “sub-sections (3), (3a), (3b) and (3c)”;

“(3a) Where, immediately before a person ceased or last ceased to be an eligible employee, the person was entitled to partial invalidity pension under section 77 or 78, the annual rate of salary payable to the person immediately before the person so ceased or last so ceased shall, for the purposes of this Act, other than sections 77 and 78—

(a) in a case where that entitlement was an entitlement under to be the amount per annum that would have been the person’s final annual rate of salary on the occasion on which the person ceased or last ceased to be an eligible employee that preceded the person’s becoming so entitled to that partial invalidity pension; orsection 77—be taken, subject to sub-section (3b),

(b) in a case where that entitlement was an entitlement under section 78—be taken, subject to sub-section (3c), to be the amount per annum that would, if the person had ceased to be an eligible employee on the day immediately preceding the day on which the person became so entitled to that partial invalidity pension, have been the person’s final annual rate of salary on the occasion of the person’s so ceasing.

“(3b) Where at any time the Commissioner, having regard to any changes in rates of remuneration which have occurred since the occasion on which a person referred to in paragraph (3a) (a) ceased to be an eligible employee that preceded the person’s becoming entitled to partial invalidity pension under section 77 and which the Commissioner considers to be relevant, is of the opinion that the

annual rate of salary of the person should, for the purposes of this Act, be a rate other than the rate referred to in sub-section (3a) or a rate specified by the Commissioner in a previous determination made under this sub-section, the Commissioner may determine that, for the purposes of this Act, other than sections 77 and 78, the annual rate of salary payable to the person shall, from the day of the determination or such other day as is specified in the determination, be deemed to be such rate as is specified in the determination.

“(3c) Where at any time the Commissioner, having regard to any changes in rates of remuneration which have occurred since a person referred to in paragraph (3a) (b) became entitled to partial invalidity pension and which the Commissioner considers to be relevant, is of the opinion that the annual rate of salary of the person should, for the purposes of this Act, be a rate other than the rate referred to in sub-section (3a) or a rate specified by the Commissioner in a previous determination made under this sub-section, the Commissioner may determine that, for the purposes of this Act, other than sections 77 and 78, the annual rate of salary payable to the person shall, from the day of the determination or such other day as is specified in the determination, be deemed to be such rate as is specified in the determination.”; and

(d) by omitting from sub-section (4) “sub-section (2)” and substituting “this section”.

(2) Regulations in force at the commencement of this section for the purposes of sub-section 5 (1) of the Principal Act continue in force as if made for the purposes of sub-section 5 (1) of the Principal Act as amended by this Act.

6 Contributory service—additional periods

6. Section 8 of the Principal Act is amended by adding at the end the following sub-section:

“(3) Where—

(a) a person ceases to be an eligible employee and, upon so ceasing, deferred benefits are applicable in relation to the person by virtue of Division 3 of Part IX;

(b) those deferred benefits ceased to be applicable in relation to the person upon a deferred benefit by way of invalidity pension becoming payable to the person; and

(c) the person again becomes an eligible employee and the person’s entitlement to deferred benefit is, upon the person’s so becoming an eligible employee, cancelled under sub-section 76 (1),

then, upon the person’s next ceasing to be an eligible employee, there shall be added to the period that, but for this sub-section, would be the person’s period of contributory service—

(d) the period that was the person’s period of contributory service upon the person’s previously ceasing to be an eligible employee and becoming a person in relation to whom deferred benefits are applicable; and

(e) if, during any period after the person’s previously so ceasing to be an eligible employee and before the person again becomes an eligible employee, the person was in receipt of deferred benefit by way of invalidity pension in accordance with section 67 or 68—any period in respect of which that pension was payable.”.

7 Temporary employees employed under contract

7. Section 13 of the Principal Act is amended—

(a) by omitting from sub-section (1) “, as from the date of the direction,”; and

(b) by adding at the end the following sub-section:

“(2) A direction under sub-section (1) in relation to a person who is employed under a contract has effect from—

(a) where the person has been employed under that contract for longer than one year—the day of the direction; or

(b) in any other case—the day specified in the direction, which may be a day earlier than the day on which the direction is given but not earlier than the day on which the person commenced to be employed under that contract.”.

8 Statutory office holders

8. Section 14 of the Principal Act is amended—

(a) by omitting from sub-section (1) “, as from the date of the direction,”; and

(b) by adding at the end the following sub-section:

“(4) A direction under sub-section (1) in relation to a person who is the holder of a statutory office has effect from—

(a) where the person has been holding that office for longer than one year—the day of the direction; or

Persons to whom Division 2 or 3 of Part IV of the Public Service Act applies, &c.

9. (1) Section 14a of the Principal Act is amended—

(a) by omitting from paragraph (1) (b) “or”;

(b) by adding at the end of sub-paragraph (1) (c) “or by virtue of having been deemed to have been so re-appointed in accordance with section 87q of that Act; or”; and

“(d) is a person (other than a person referred to in paragraph (c)) who is a permanent employee, or a temporary employee, by virtue of having been, or having been deemed to be, reappointed or re-employed in circumstances similar to the circumstances in which a person could have been reappointed to the Australian Public Service under section 63f, 63g or 66b of the Public Service Act or could have been deemed to have been re-appointed to the Australian Public Service in accordance with section 87q of that Act.”.

(2) Section 14a of the Principal Act is amended—

(a) by omitting from paragraph (1) (c) “or” (last occurring);

(b) by adding at the end of sub-section (1) the following word and paragraph:

“; or (e) is a person included in a class of persons specified in the regulations as a class of persons to which this section applies.”;

(d) by inserting in sub-section (4) “or has applied” after “applies”;

(e) by inserting in sub-section (5) “or has applied” after “applies”; and

(f) by adding at the end the following sub-section:

“(6) Where—

(a) a person who has ceased to be an eligible employee again becomes an eligible employee—

(i) by virtue of having been re-appointed to the Australian Public Service under of the Public Service Act or having been deemed to have been so re-appointed in accordance with section 87q of that Act;section 63f, 63g or 66b

(ii) by virtue of having been, or having been deemed to be, re-appointed (otherwise than to the Australian Public Service), or re-employed, in circumstances similar to the circumstances in which a person could have been re-appointed to the Australian Public Service under section 63f, 63g or 66b of that Act or could have been deemed to have been re-appointed to the Australian Public Service in accordance with section 87q of that Act; or

(iii) by virtue of being, under the provisions of that Act, declared to be, or reinstated as, a person to whom Division 3 of Part IV of that Act applies; and

(b) upon last ceasing to be an eligible employee before that reappointment, declaration or reinstatement, his or her accumulated contributions had been paid out of the Superannuation Fund into the Consolidated Revenue Fund,

an amount equal to those accumulated contributions shall, upon that re-appointment, declaration or reinstatement, be paid out of the Consolidated Revenue Fund (which is appropriated accordingly) into the Superannuation Fund.”.

Medical examinations and benefit classification certificates

10. (1) Section 16 of the Principal Act is amended—

(a) by omitting from sub-section (6) “revoke or vary the certificate” and substituting “revoke the certificate or to revoke the certificate and issue in substitution for the certificate a new benefit classification certificate”;

(b) by omitting from sub-paragraph (8) (b) (ii) “vary the certificate by deleting the reference in the certificate to any other condition or conditions so specified” and substituting “revoke the certificate and issue in substitution for the certificate a new benefit classification certificate specifying only the condition or conditions in respect of which the Commissioner is of the opinion referred to in this subparagraph”;

(c) by omitting from paragraph (8) (c) “revoke or vary the benefit classification certificate” and substituting “revoke the benefit classification certificate or to revoke the benefit classification certificate and to issue in substitution for the certificate a new benefit classification certificate”;

(d) by omitting sub-section (9) and substituting the following sub-section:

“(9) Where the Commissioner, in pursuance of sub-section (8) revokes a benefit classification certificate, that revocation, and the new benefit classification certificate (if any) issued in substitution for that certificate, has or have effect on and from the day on which the revocation is made.”;

(e) by omitting from paragraph (10) (a) “or ceases to be an eligible employee by reason of retirement on the ground of invalidity” and substituting “, ceases to be an eligible employee because of retirement on the ground of invalidity or becomes entitled to partial invalidity pension under the Commissioner is satisfied can properly be regarded as attributable to physical or mental incapacity”;section 78 because of a decrease in the annual rate of the person’s salary that

(f) by omitting from paragraph (10) (b) “or the incapacity which was the ground for his retirement” and substituting “, the incapacity which was the ground for the person’s retirement or the incapacity to which the Commissioner is satisfied that the decrease in the

person’s annual rate of salary could properly be regarded as attributable, as the case requires”;

(g) by adding at the end of sub-section (10) “or immediately before the person became entitled to partial invalidity pension under section 78, as the case requires”;

(h) by omitting sub-sections (11) and (11a) and substituting the following sub-sections:

“(11) Where the Commissioner is satisfied, in respect of a person who is a relevant person—

(a) that, at or in connection with a medical examination that the person was required to undergo for the purposes of this section, the person failed to give any information that the person was required to give or gave false or misleading information; and

(b) that, if the person had not failed to give the information that the person was required to give or had not given that false or misleading information—

(i) in a case where a benefit classification certificate is in force in respect of the person—a particular physical or mental condition or particular physical or mental conditions of the person not specified in the certificate would have been so specified; or

(ii) in a case where no benefit classification certificate is in force in respect of the person—a benefit classification certificate would have been issued in respect of the person in which a particular physical or mental condition or particular physical or mental conditions of the person would have been specified,

the Commissioner shall—

(c) if there is a benefit classification certificate in force in respect of the person—revoke that certificate and issue a new benefit classification certificate in respect of the person in which the particular condition or conditions referred to in sub-paragraph (b) (i) is or are specified either in addition to or in substitution for the physical or mental condition that is, or for any or all of the physical or mental conditions that are, specified in the first-mentioned certificate; or

(d) if there is no benefit classification certificate in force in respect of the person—issue a benefit classification certificate in respect of the person in which the particular condition or conditions referred to in sub-paragraph (b) (ii) is or are specified.

“(11a) In sub-section (11), a reference to a relevant person shall be read as a reference to a person—

(a) who is an eligible employee, has a period of contributory service of less than 20 years and has not attained his or her maximum retiring age;

(b) who is or was an eligible employee to whom partial invalidity pension is or was payable under section 78 and who, at the time when partial invalidity pension became so payable, had a period of contributory service of less than 20 years; or

(c) who has ceased to be an eligible employee, by reason of invalidity or death and who, at the time when he or she so ceased, had a period of contributory service of less than 20 years and had not attained his or her maximum retiring age.

“(11b) Where the Commissioner, in pursuance of paragraph (11) (c), revokes a benefit classification certificate and issues a new benefit classification certificate in substitution for that certificate, the first-mentioned certificate shall be deemed never to have been issued and the new certificate shall be deemed to have been issued under sub-section (4) on the day that was, but for the operation of this sub-section, the day on which the first-mentioned certificate was issued.

“(11c) Where the Commissioner, in pursuance of paragraph (11) (d), issues a benefit classification certificate, the certificate shall be deemed to have been issued under sub-section (4) on the day that the Commissioner determines to be the day on which a benefit classification certificate would have been issued if the person concerned had not, at or in connection with a medical examination, failed to give the information the person was required to give or had not given false or misleading information.”;

(j) by omitting from sub-section (12) “, and a copy of any revocation or variation of such a certificate, and notice of refusal by the Commissioner of a request to revoke or vary such a certificate,” and substituting “, notice of any revocation of such a certificate and notice of any refusal by the Commissioner of a request under sub-section (6) in relation to such a certificate,”; and

(k) by omitting from sub-section (13) “that deals with matters arising under this Act”.

(2) Where the Commissioner has not, before the commencement of this section, taken action under sub-section 16 (8) of the Principal Act in respect of a request made under sub-section 16 (6) of that Act for the revocation or variation of a benefit classification certificate, the Commissioner shall, for the purposes of the Principal Act as amended by this section, treat the request—

(a) if it is a request for the revocation of a benefit classification certificate—as if it were a request made under sub-section 16 (6) of the Principal Act as so amended for the revocation of that benefit classification certificate; or

(b) if it is a request for a variation of a benefit classification certificate—as if it were a request made under sub-section 16 (6) of the Principal Act as so amended for the revocation of that certificate and for the issue of a new benefit classification certificate in substitution for that certificate.

11. Section 22 of the Principal Act is repealed and the following section is substituted:

Resignation

“22. The Commissioner may resign office by writing signed by the Commissioner and delivered to the Governor-General.”.

12 Termination of appointment

12. Section 23 of the Principal Act is amended—

(a) by inserting after paragraph (2) (a) the following paragraph:

“(aa) fails, without reasonable excuse, to comply with the Commissioner’s obligations under sub-section (3);”; and

(b) by adding at the end the following sub-sections:

“(3) The Commissioner shall give written notice to the Minister of all direct or indirect pecuniary interests that he or she has or acquires in any business or in any body corporate carrying on any business.

“(4) The reference in sub-section (3) to the Commissioner shall be read as including a person acting as Commissioner by virtue of an appointment under section 24.”.

13. (1) Section 24 of the Principal Act is repealed and the following section is substituted:

Acting Commissioner

“24. (1) The Minister may appoint a person to act as Commissioner—

(a) during a vacancy in the office of Commissioner; or

(b) during any period, or during all periods, when the Commissioner is absent from duty or from Australia or is, for any other reason, unable to perform the functions of the office of Commissioner,

but a person appointed to act during a vacancy shall not continue so to act for more than 12 months.

“(2) An appointment of a person under sub-section (1) may be expressed to have effect only in such circumstances as are specified in the instrument of appointment.

“(3) The Minister may—

(a) determine the terms and conditions of appointment, including remuneration and allowances, of a person acting as Commissioner; and

(b) terminate such an appointment at any time.

“(4) Where a person is acting as Commissioner in accordance with paragraph (1) (b) and the office of Commissioner becomes vacant while that person is so acting, then, subject to sub-section (2), that person may continue so to act until the Minister otherwise directs, the vacancy is filled or a period of 12 months from the date on which the vacancy occurred expires, whichever first happens.

“(5) A person appointed to act as Commissioner may resign by writing signed by the person and delivered to the Minister.

“(6) While a person is acting as Commissioner, the person has and may exercise all the powers, and shall perform all the functions, of the Commissioner under this Act or any other law.

“(7) Anything done by or in relation to a person purporting to act under sub-section (1) is not invalid on the grounds that—

(a) the occasion for the person’s appointment had not arisen;

(b) there is a defect or irregularity in connection with the person’s appointment;

(d) the occasion for the person to act had not arisen or had ceased.”.

(2) Where, immediately before the day on which this Act receives the Royal Assent, a person was acting as Commissioner by virtue of an appointment under section 24 of the Principal Act, then, notwithstanding the repeal of that section by this Act, that section continues to apply to and in relation to that person as if that repeal had not been made.

14 Delegation by Commissioner

14. Section 25 of the Principal Act is amended—

(a) by omitting from sub-section (1) “any of his powers under this Act or the superseded Act,” and substituting “all or any of the Commissioner’s powers under this Act, the superseded Act, regulations under this Act or regulations under the superseded Act,”; and

(b) by omitting from sub-section (2) “or the superseded Act,” and substituting “, the superseded Act, regulations under this Act or regulations under the superseded Act”.

Delegation by Trust

15. (1) Section 38 of the Principal Act is amended by omitting from sub-section (1) “person (including a member of the Trust)” and substituting “member, officer or employee of the Trust all or”.

(2) A delegation under section 38 of the Principal Act that was in force immediately before the commencement of this section to a member, officer or employee of the Trust continues in force after the commencement of this section as if given under that section as amended by sub-section (1).

(3) Any delegation that the Trust purported to make before the commencement of this section of all of its powers under the Superannuation Act 1976 shall be deemed to have been as valid as it would have been if the reference in sub-section 38 (1) of the Superannuation Act 1976, as in force at the time when the purported delegation was made, to any of the Trust’s powers under the Superannuation Act 1976 had been a reference to all or any of the Trust’s powers under that Act.

Delegation by principal member

16. (1) Section 39 of the Principal Act is amended by omitting from sub-section (1) “person (including another member of the Trust)” and substituting “another member of the Trust or to an officer or employee of the Trust”.

(2) A delegation under section 39 of the Principal Act that was in force immediately before the commencement of this section to a member of the Trust or to an officer or employee of the Trust continues in force after the commencement of this section as if given under that section as amended by sub-section (1).

17 Trust to keep accounts and records in respect of Fund, &c.

17. Section 44 of the Principal Act is amended by inserting after sub-section (2) the following sub-sections:

“(2a) The Auditor-General shall inspect and audit the accounts and records of financial transactions of the Trust and records relating to assets of, or in the custody of, the Trust and shall forthwith draw the attention of the Minister to any irregularity disclosed by the inspection and audit that is, in the opinion of the Auditor-General, of sufficient importance to justify so doing.

“(2b) The Auditor-General may, at the discretion of the Auditor-General, dispense with all or any part of the detailed inspection and audit of any accounts or records referred to in sub-section (1).

“(2c) The Auditor-General shall, at least once in each year, report to the Minister the results of the inspection and audit carried out under sub-section (2a).”.

18 Leave of absence without pay

18. Section 51 of the Principal Act is amended by inserting in sub-section (3) “or permitted” after “required” (wherever occurring).

19 Absences under Maternity Leave (Commonwealth Employees) Act 1973

19. Section 51a of the Principal Act is amended by inserting in sub-section (2) “or permitted” after “required”.

20. After section 57 of the Principal Act the following section is inserted in Division 1 of Part V:

Age retirement pension on election under section 76 a

“57a. Where a person—

(a) makes an election under section 76a; and

(b) would, if he or she had retired otherwise than on the ground of invalidity, have been entitled to a standard age retirement pension under section 55,

then, on the day on which the person ceases to be entitled to an invalidity pension because of the election, the person becomes entitled to—

(c) standard age retirement pension at the rate that would have been the rate of that pension at the time of the election if he or she had retired otherwise than on the ground of invalidity; and

(d) if the person did not make an election under section 68 or 71 at the time of his or her retirement, additional age retirement pension in accordance with sub-section 57 (1) as if his or her accumulated contributions consisted only of his or her accumulated basic contributions.”.

21 Early retirement—voluntary or involuntary retirement before attaining 60 years of age

21. Section 58 of the Principal Act is amended by inserting after paragraph (3) (a) the following paragraph:

“(aa) in the case of a person holding a Senior Executive Service office within the meaning of the Public Service Act—the person retires pursuant to section 76r of that Act;”.

22. After section 61 of the Principal Act the following section is inserted:

Early retirement pension on election under section 76 a

“61a. Where a person—

(a) makes an election under section 76a; and

(b) would, if he or she had resigned or had retired otherwise than on the ground of invalidity, have been entitled to a standard early retirement pension under section 59,

then, on the day on which the person ceases to be entitled to an invalidity pension because of the election, the person becomes entitled to—

(c) standard early retirement pension at the rate that would have been the rate of that pension at the time of the election if he or she had resigned or had retired otherwise than on the ground of invalidity; and

(d) if the person did not make an election under section 68 or 71 at the time of his or her retirement, additional early retirement pension in accordance with sub-section 61 (1) as if his or her accumulated contributions consisted only of his or her accumulated basic contributions.”.

Election for lump sum benefit in case of involuntary retirement

23. (1) Section 62 of the Principal Act is amended—

(a) by omitting from sub-section (1) “under sub-section (2) of this section and, where he had paid supplementary contributions, an additional lump sum benefit in accordance with sub-section (3) of this section” and substituting “under this section”; and

(b) by omitting sub-sections (2) and (3) and substituting the following sub-section:

“(2) Where a person makes an election under sub-section (1), the person is entitled, in lieu of pension and lump sum benefit to which, but for the election, the person would be entitled under section 59, to payment of a lump sum benefit equal to the sum of—

(a) 3½ times the amount of the person’s accumulated basic contributions; and

(b) the amount of the person’s accumulated supplementary contributions (if any).”.

(2) Section 62 of the Principal Act is amended—

(a) by inserting in sub-section (1) “, or is about to cease,” after “ceases”;

(b) by inserting in sub-section (1) “or will, upon so ceasing, be deemed,” after “deemed,”; and

(c) by omitting from sub-section (1) “his last day of service” and substituting “, and not earlier than 3 months before, the day on which he or she so ceases to be an eligible employee”.

Entitlement to invalidity benefit

24. (1) Section 66 of the Principal Act is amended—

(a) by omitting from paragraph (1) (c) “sub-section 69 (2) and, where the person has paid supplementary contributions, an additional lump sum benefit in accordance with sub-section 69 (3)” and substituting “that section”;

(b) by omitting from sub-paragraph (2) (d) (iii) “sub-section 72 (2), and, where the person has paid supplementary contributions, an additional lump sum benefit in accordance with sub-section 72 (3)” and substituting “that section”; and

(c) by omitting from paragraph (2) (e) “sub-section 73 (2) and, where the person has paid supplementary contributions, an additional lump sum benefit in accordance with sub-section 73 (3)” and substituting “section 73”.

(2) Section 66 of the Principal Act is amended by inserting after sub-section (2) the following sub-sections:

“(2a) Where the Commissioner is of the opinion that—

(a) a person will, in the near future, cease to be an eligible employee by reason of retirement on the ground of invalidity before attaining the person’s maximum retiring age;

(b) there will be in force in respect of the person, immediately before the person’s retirement, a benefit classification certificate; and

(c) the incapacity which will be the ground for the person’s retirement was caused, or was substantially contributed to, by a physical or mental condition or conditions specified in the certificate or by a physical or mental condition or conditions connected with such a condition or such conditions;

then—

(d) the Commissioner shall inform the person in writing that the Commissioner has formed the opinions referred to in paragraphs (a), (b) and (c); and

(e) where the person becomes a person referred to in paragraph (2) (a) and to whom paragraph (2) (b) applies, the Commissioner shall be taken to have formed the opinion referred to in paragraph (2) (c) in relation to that person immediately on the person becoming a person referred to in paragraph (2) (a) unless, whether before or after the person became a person so referred to, the Commissioner informed the person in writing that this sub-section is not to apply to the person.

“(2b) Where the Commissioner forms the opinion referred to in paragraph (2) (c) in relation to a person on a date after the date on which the person retired, any payment to that person before the first-mentioned date of benefit or of pension purported to be made under sub-section (2) shall be deemed to have been as valid as it would have been if the Commissioner had formed that opinion immediately on the person’s retirement.”.

25 Invalidity benefit where pension not reduced on medical grounds and election not made under section 68 or 69

25. Section 67 of the Principal Act is amended by omitting from sub-section (5) “, payable out of the Fund,”.

Election where benefit not reduced on medical grounds

26. (1) Section 68 of the Principal Act is amended by omitting from sub-section (5) “, payable out of the Fund,”.

(2) Section 68 of the Principal Act is amended—

(a) by inserting in sub-section (1) “, or is about to become,” after “becomes”; and

(b) by inserting in sub-section (1) “, but not earlier than 3 months before he or she becomes,” after “becoming”.

Election where benefit not reduced on medical grounds and period of prospective service less than 8 years

27. (1) Section 69 of the Principal Act is amended by omitting sub-sections (2) and (3) and substituting the following sub-section:

“(2) Where a person makes an election under sub-section (1), the lump sum benefit to which the person is entitled is an amount equal to whichever is the greater of—

(a) the sum of—

(i) 3½ times the amount of the person’s accumulated basic contributions; and

(ii) the amount of the person’s accumulated supplementary contributions (if any); or

(b) the sum of—

(i) one-half of the amount that is the amount per annum of the person’s final annual rate of salary; and

(ii) the amount of the person’s accumulated supplementary contributions (if any).”.

(2) Section 69 of the Principal Act is amended—

(a) by inserting in paragraph (1) (a) “, or is about to become,” after “becomes”;

(b) by omitting from paragraph (1) (b) “is less than 8 years,” and substituting “, at the time of his or her so becoming entitled to invalidity benefit is, or will be, less than 8 years,”; and

28 Invalidity benefit where benefit reduced on medical grounds, period of contributory service not less than 8 years and election not made under section 71 or 72

28. Section 70 of the Principal Act is amended by omitting from sub-section (5) “, payable out of the Fund,”.

Election where benefit reduced on medical grounds and period of contributory service not less than 8 years

29. (1) Section 71 of the Principal Act is amended by omitting from sub-section (5) “, payable out of the Fund,”.

(2) Section 71 of the Principal Act is amended—

(a) by inserting in paragraph (1) (a) “, or is about to become,” after “becomes”;

(b) by omitting from paragraph (1) (b) “is not less than 8 years,” and substituting “, at the time of his or her so becoming entitled to invalidity benefit is not, or will not be, less than 8 years,”; and

Election where benefit reduced on medical grounds and period of cont ributory service less than 15, b ut not less than 8, years

30. (1) Section 72 of the Principal Act is amended by omitting sub-sections (2) and (3) and substituting the following sub-section:

“(2) Where a person makes an election under sub-section (1), the lump sum benefit to which the person is entitled is an amount equal to whichever is the greater of—

(a) the sum of—

(i) 3½ times the amount of the person’s accumulated basic contributions; and

(ii) the amount of the person’s accumulated supplementary contributions (if any); or

(b) the sum of—

(i) one-half of the amount that is the amount per annum of the person’s final annual rate of salary; and

(ii) the amount of the person’s accumulated supplementary contributions (if any).”.

(2) Section 72 of the Principal Act is amended—

(a) by inserting in paragraph (1) (a) “, or is about to become,” after “becomes”;

(b) by omitting from paragraph (1) (b) “is less than 15 years, but is not less than 8 years,” and substituting “,at the time of his or her so becoming entitled to invalidity benefit is, or will be, less than 15 years, but not less than 8 years,”; and

31 Invalidity benefit where benefit reduced on medical grounds and period of contributory service less than 8 years

31. Section 73 of the Principal Act is amended by omitting sub-sections (2) and (3) and substituting the following sub-section:

“(2) The lump sum benefit to which a person to whom this section applies is entitled is an amount equal to whichever is the greater of—

(a) the sum of—

(i) 3½ times the amount of the person’s accumulated basic contributions; and

(ii) the amount of the person’s accumulated supplementary contributions (if any); or

(b) the sum of—

(i) one-half of the amount that is the amount per annum of the person’s final annual rate of salary; and

(ii) the amount of the person’s accumulated supplementary contributions (if any).”.

32. After section 73 of the Principal Act the following section is inserted:

Reduction of invalidity pensions because of earnings

“73a. (1) In this section—

‘earnings rate’, in relation to an invalidity pensioner, means the amount per annum last estimated by the Commissioner under sub-section (3) as the annual rate of the personal earnings of the pensioner;

‘invalidity pensioner’ means a person to whom invalidity pension is payable and who has not attained the age of 65 years;

‘personal earnings’, in relation to an invalidity pensioner, means salary, wages, fees or other amounts received by the pensioner for services rendered, or work performed, by the pensioner, and includes—

(a) remuneration paid to the pensioner as the director of a company; and

(b) commission received by the pensioner for canvassing, collecting or similar activities;

‘prescribed maximum rate’ means—

(a) before the operation of sub-section (2)—$19,200 per annum increased by the relevant percentage of that rate; or

(b) after the operation of that sub-section—the rate that is the prescribed maximum rate by virtue of that sub-section;

‘prescribed percentage’, in relation to a prescribed year, means the prescribed percentage in relation to that year for the purposes of section 148;

‘prescribed year’ means a prescribed year within the meaning of 1 July 1988;Part X, other than a year commencing before

‘relevant maximum rate’, in relation to an invalidity pensioner, means—

(a) the prescribed maximum rate; or

(b) 75% of the amount per annum that the Commissioner, having regard to any changes in the rates of remuneration that have occurred since the pensioner ceased to be an eligible employee and any other matters that the Commissioner considers relevant, determines would have been the annual rate of salary of the pensioner if the pensioner had not ceased to be an eligible employee and had continued to occupy the position held immediately before so ceasing,

whichever is the greater;

‘relevant pension rate’, in relation to an invalidity pensioner, means—

(a) where the pensioner did not make an election under section 68 or 71—the annual rate of the invalidity pension of the pensioner; or

(b) where the pensioner made such an election—the rate that would have been the annual rate of that pension if the pensioner had not made the election;

‘relevant percentage’ means the percentage that represents A—B expressed as a percentage of B, where—

A is the only, or earliest, all groups consumer price index number for the weighted average of the 8 capital cities published by the Australian Statistician in respect of the March quarter of 1987; and

B is the only, or earliest, all groups consumer price index number for the weighted average of the 8 capital cities published by the Australian Statistician in respect of the June quarter of 1986.

“(2) Where rates at which invalidity pensions were payable immediately before the commencement of a prescribed year are increased in accordance with section 148, the rate that, immediately before that commencement, was (because of paragraph (a) of the definition of ‘prescribed maximum rate’ or the previous operation of this sub-section) the prescribed maximum rate is increased, with effect from that commencement, by the prescribed percentage, in relation to that prescribed year, of that rate.

“(3) Where an invalidity pensioner or a person acting on behalf of the pensioner gives the Commissioner particulars of the pensioner’s personal earnings and an estimate of those earnings for the next 12 months (whether in compliance with a notice under sub-section 74 (1) or otherwise), the Commissioner shall estimate the amount per annum that is the annual rate of the personal earnings of the pensioner.

“(4) Subject to sub-sections (5) and (6) but notwithstanding any other provision of this Act, during any period during which the sum of the relevant pension rate of an invalidity pensioner and the earnings rate of the pensioner exceeds the relevant maximum rate for the pensioner, then—

(a) where the lesser of the excess or of that earnings rate is less than the annual rate of the invalidity pension of the pensioner—the amount of the fortnightly instalments of that pension shall be ascertained as if the annual rate of the pension were reduced by the lesser of the excess or of that earnings rate; or

(b) where the lesser of the excess or of that earnings rate is equal to or exceeds the annual rate of that pension—the pension is suspended.

“(5) If, after making a calculation for the purposes of sub-section (4), the Commissioner ascertains that an invalidity pensioner has been, or is being, paid instalments of invalidity pension, that, by virtue of that sub-section, should not have been, or be, paid or the amount of which should have been, or be, lower, then, notwithstanding that sub-section, those instalments shall be taken to have been, or be, lawfully paid.

“(6) If, after making a calculation for the purposes of sub-section (4), the Commissioner ascertains that an invalidity pensioner has, because of a previous calculation for those purposes, not been paid instalments of invalidity pension that should have been paid or been paid instalments of invalidity

pension the amount of which should have been higher, that invalidity pensioner is not entitled to be paid, but may be paid, the amount of those instalments or of the balance of those instalments, as the case may be.

“(7) Where an invalidity pensioner—

(a) is, on the commencement of this section, in receipt of personal earnings; or

(b) begins, after the commencement of this section, to receive personal earnings,

the pensioner, or a person acting on behalf of the pensioner, shall give the Commissioner particulars in writing of these personal earnings and an estimate of the amount of the personal earnings that the pensioner expects to receive in the next 12 months.

“(8) Where—

(a) an estimate of the personal earnings of an invalidity pensioner has been given to the Commissioner under this Act; and

(b) the pensioner or a person acting on behalf of the pensioner revises that estimate,

the pensioner or the person acting on behalf of the pensioner shall give to the Commissioner particulars in writing of the personal earnings of the pensioner and an estimate of those earnings for the next 12 months.

“(9) In ascertaining, for the purposes of this Act or of the superseded Act, the annual rate of an invalidity pension or the rate at which an invalidity pension is payable, any reduction or suspension under this section shall be disregarded but nothing in this sub-section or in any other provision of this Act or in any provision of the superseded Act shall be taken to imply that a person is entitled to be paid an amount not paid because of such a reduction or suspension.”.

Power of the Commissioner to require invalidity pensioner to be medically examined, &c.

33. (1) Section 74 of the Principal Act is amended by omitting from sub-section (6) “sub-section 106 (3)” and substituting “sub-sections 106 (3) and 108 (3)”.

(2) Section 74 of the Principal Act is amended—

(a) by omitting from sub-section (1) “but who has not attained the age of 65 years”;

(b) by inserting in paragraph (1) (a) “, being a time before the person attains the age of 65 years,” after “time”;

(c) by inserting in paragraph (1) (b) “, being a period that ends before the person attains the age of 65 years,” after “period” (first occurring);

(d) by omitting sub-sections (2), (3), (4) and (5) and substituting the following sub-sections:

“(2) A notice under sub-section (1) shall set out the effect of sub-section (3).

“(3) Where a person fails to comply with a notice given under sub-section (1) and the Commissioner is not satisfied that there was a reasonable excuse for the failure, the Commissioner may, by notice in writing given to the person, suspend the person’s invalidity pension with effect from such day as the Commissioner determines, being a day not earlier than—

(a) in a case where the first-mentioned notice required the person to submit himself or herself for medical examination on a day specified in the notice—the day next following that day; or

(b) in a case where the first-mentioned notice required the person to furnish information within a period specified in the notice—the day next following the expiration of that period.

“(4) A notice to a person under sub-section (3) shall set out the effect of sub-sections (5c), (5e) and (5f) and of section 74a.

“(5) Subject to section 74a, a suspension of a person’s invalidity pension under sub-section (3) continues in force, unless sooner revoked, until the person attains the age of 65 years.

“(5a) Invalidity pension is not payable in respect of a period during which a suspension of the pension under sub-section (3) is in force.

“(5b) Where—

(a) the invalidity pension of a person is suspended under sub-section (3); and

(b) the Commissioner, having regard to such matters as he or she considers relevant, is of the opinion that the suspension should be revoked,

the Commissioner may, by notice in writing given to the person or to the person and a person acting on the person’s behalf, as the case requires, revoke the suspension with effect from such day as the Commissioner determines, being a day not later than the day on which the notice is given.

“(5c) Without limiting sub-section (5b), where the invalidity pension of a person (in this sub-section referred to as the ‘relevant person’) is suspended under sub-section (3), the relevant person, or another person acting on his or her behalf, may, by notice in writing given to the Commissioner, request the Commissioner to revoke the suspension, and where such a request is made, the Commissioner shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be—

(a) if the pension has been suspended by virtue of the relevant person’s having failed to comply with a notice requiring the

relevant person to submit himself or herself for medical examination—require the relevant person to submit himself or herself for medical examination by a medical practitioner at a time, being a time before the relevant person attains the age of 65 years, and place specified in the second-mentioned notice; or

(b) if the pension has been suspended by virtue of the relevant person’s having failed to comply with a notice requiring the relevant person to give information to the Commissioner (in this paragraph referred to as ‘the original notice’)—require the relevant person to give in writing to the Commissioner, within such period as is specified in the second-mentioned notice, being a period that ends before the relevant person attains the age of 65 years, such information as was required by the original notice to be given.

“(5d) A notice given by the Commissioner under sub-section (5c) shall set out the effects of sub-sections (5e) and (5f) and of section 74a.

“(5e) Where—

(a) because of a request having been made to revoke the suspension of the invalidity pension of a person (in this sub-section referred to as the ‘relevant person’), a notice under sub-section (5c) is given to the relevant person or to the relevant person and another person; and

(b) either—

(i) the relevant person complies with the notice; or

(ii) the relevant person fails to comply with the notice but the Commissioner is satisfied that there was a reasonable excuse for the failure,

the Commissioner shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be, revoke the suspension with effect from such day as the Commissioner determines, being a day not later than—

(c) in a case to which sub-paragraph (b) (i) applies—the day on which the relevant person so complied with the notice; or

(d) in a case to which sub-paragraph (b) (ii) applies—the day on which the Commissioner became so satisfied.

“(5f) Where—

(b) the relevant person fails to comply with the notice and the Commissioner is not satisfied that there was a reasonable excuse for the failure, the Commissioner shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be, refuse to revoke the suspension.

“(5g) A notice under sub-section (5f) shall set out the effect of section 74a.”; and

(e) by adding at the end the following sub-sections:

“(9) Where the Commissioner is required by this section to give a person a notice, the notice shall be taken to have been given to the person if—

(a) the notice is served on the person personally;

(b) the notice is sent to the person by pre-paid post as a letter and the person acknowledges receipt of the letter; or

(c) where the Commissioner has caused all reasonable steps to be taken to ascertain a reliable address of the person, the notice is sent to the person by pre-paid post to—

(i) in a case where the Commissioner is satisfied that at least one reliable address of the person has been ascertained—that reliable address, or one of the reliable addresses, ascertained; or

(ii) in any other case—the last address of the person known to the Commissioner.

“(10) A reference in sub-section (9) to a reliable address of a person shall be read as a reference to an address where, if a letter were sent to the person by pre-paid post to the address, the person would probably receive the letter.

“(11) Nothing in this section shall be taken, by implication, to exclude or limit the application of section 154 to decisions under this section that are reviewable decisions within the meaning of that section.”.

(3) Section 74 of the Principal Act is amended—

(a) by omitting paragraph (1) (b) and substituting the following paragraph:

“(b) to give in writing to the Commissioner, within such period as is specified in the notice, being a period that ends before the person attains the age of 65 years—

(i) such information as is required by the notice with respect to any employment (whether as an employee or on the person’s own account) in which the person has been engaged during such period as is specified in the notice; or

(ii) particulars of the person’s personal earnings, within the meaning of section 73a, and an estimate of the amount of those earnings that the person expects to receive in the next 12 months.”; and

(b) by inserting in sub-sections (6) and (7) “or sub- (4)” after “(3) of this section”.section 73a

(4) Section 74 of the Principal Act as amended by sub-section (2)—

(a) applies in relation to notices given under sub-section 74 (1) of the Principal Act before the commencement of this sub-section as if the notices had been given under sub-section 74 (1), and complied with sub-section 74 (2), of the Principal Act as so amended; and

(b) applies in relation to the suspension under section 74 of the Principal Act of invalidity pension before that commencement as if the suspension had been under sub-section 74 (3) of the Principal Act as so amended.

34. After section 74 of the Principal Act the following section is inserted:

Cancellation of invalidity pension where pension suspended for 12 months, &c.

“74a. Where—

(a) a person’s invalidity pension is suspended under sub-section 74 (3);

(b) immediately before the suspension, the person had not attained the age of 64 years; and

(i) in a case where a request to revoke the suspension is made under the Commissioner does not make a decision under section 74 in relation to that request within that period—upon the making of that decision; orsection 74 before the expiration of a period of 12 months after the suspension came into force and

(ii) in any other case—for a period of 12 months,

the Commissioner may, by notice in writing given to the person, cancel the person’s entitlement to invalidity pension.”.

35. After section 76 of the Principal Act the following section is inserted:

Renunciation of invalidity pension in favour of age pension

“76a. Where a person—

(a) became entitled to an invalidity pension under section 66 after attaining his or her minimum retiring age;

(b) did not make an election under section 69 or 72;

(c) would, if he or she had resigned or had retired otherwise than on the ground of invalidity, have been entitled to a pension under section 55 or 59; and

(d) has not attained the age of 65 years,

the person may make, by notice in writing to the Commissioner, an election to renounce the invalidity pension and, where the person does so, the person is not entitled to the invalidity pension on and after a day determined by the Commissioner (not being a day earlier than the day on which the election was made).”.

36 Payment of accumulated contributions where no other benefit payable under Part

36. Section 80 of the Principal Act is amended—

(a) by omitting from paragraph (2) (f) all the words after “exceeds” and substituting the following:

“the difference between—

(i) the total of the amounts of invalidity pension at any time paid to the person in accordance with section 67 or 70 and the amounts of deferred benefit by way of invalidity pension at any time paid to the person in accordance with either of those sections (other than an amount, if any, taken into account in a previous application of this sub-section or sub-section (3) in relation to the person); and

(ii) what would have been that total if the person had made an election under sub-section 68 (1) or 71 (1) in respect of the invalidity pension or deferred benefit so paid—

the amount of that excess.”; and

(b) by omitting from paragraph (3) (h) all the words after “exceeds” and substituting the following:

“the difference between—

(ii) what would have been that total if the person had made an election under sub-section 68 (1) or 71 (1) in respect of the invalidity pension or deferred benefit so paid—

the amount of that excess.”.

37 Entitlement to spouse’s benefit under Division

37. Section 81 of the Principal Act is amended—

(a) by omitting from paragraph (1) (c) “sub-section 84 (2) and, where the eligible employee had paid supplementary contributions, an additional lump sum benefit in accordance with sub-section 84 (3)” and substituting “that section”;

(b) by omitting from sub-paragraph (2) (d) (iii) “sub-section 87 (2) and, where the eligible employee had paid supplementary contributions, an additional lump sum benefit in accordance with sub-section 87 (3)” and substituting “that section”; and

(c) by omitting from paragraph (2) (e) “sub-section 88 (1) and, where the eligible employee had paid supplementary contributions, an additional lump sum benefit in accordance with sub-section 88 (2)” and substituting “section 88”.

38 Spouse’s benefit where benefit not reduced on medical grounds and election not made under section 83 or 84

38. Section 82 of the Principal Act is amended by omitting from sub-section (4) “, payable out of the Fund,”.

39 Election where pension not reduced on medical grounds

39. Section 83 of the Principal Act is amended by omitting from sub-section (4) “, payable out of the Fund,”.

40 Election where benefit not reduced on medical grounds and period of prospective service less than 8 years

40. Section 84 of the Principal Act is amended—

(a) by omitting from sub-section (1) “a lump sum benefit be paid in accordance with sub-section (2) of this section and, where the deceased eligible employee had paid supplementary contributions, an additional lump sum benefit in accordance with sub-section (3) of this section” and substituting “lump sum benefit be paid in accordance with this section”;

(b) by omitting from sub-section (2) “this sub-section” and substituting “this section”; and

41 Spouse’s benefit where benefit reduced on medical grounds, period of contributory service not less than 8 years and election not made under section 86 or 87

41. Section 85 of the Principal Act is amended by omitting from sub-section (4) “, payable out of the Fund,”.

42 Election where benefit reduced on medical grounds and period of contributory service not less than 8 years

42. Section 86 of the Principal Act is amended by omitting from sub-section (4) “, payable out of the Fund,”.

43 Election where pension reduced on medical grounds and period of contributory service less than 15, but not less than 8, years

43. Section 87 of the Principal Act is amended—

(a) by omitting from sub-section (1) “lump sum benefit be paid in accordance with sub-section (2) of this section and, where the

deceased eligible employee had paid supplementary contributions, an additional lump sum benefit in accordance with sub-section (3) of this section” and substituting “lump sum benefit be paid in accordance with this section”;

(b) by omitting from sub-section (2) “this sub-section” and substituting “this section”; and

44 Spouse’s benefit where pension reduced on medical grounds and period of contributory service less than 8 years

44. Section 88 of the Principal Act is amended—

(a) by omitting from sub-section (1) “this sub-section” and substituting “this section”; and

(b) by omitting sub-section (2).

45 Election to commute spouse’s additional pension entitlement

45. Section 92 of the Principal Act is amended—

(a) by omitting from sub-section (1) “payable to her”;

(b) by omitting from sub-section (2) “to commute her spouse’s additional pension”; and

46 Orphan benefit—death of eligible employee after attaining maximum retiring age

46. Section 97 of the Principal Act is amended by omitting from sub-section (3) “, payable out of the Fund,”.

47 Orphan benefit—death of eligible employee before attaining maximum retiring age where benefit not reduced on medical grounds and direction not given under section 99

47. Section 98 of the Principal Act is amended—

(a) by omitting from sub-section (3) “, payable out of the Fund,”; and

(b) by omitting from paragraph (5) (a) “out of the Fund”.

48 Orphan benefit—death of eligible employee before attaining maximum retiring age where benefit not reduced on medical grounds, period of prospective service less than 8 years and direction given under this section

48. Section 99 of the Principal Act is amended—

(a) by omitting from sub-section (1) “lump sum benefit be payable in accordance with sub-section (2) of this section and, where the deceased eligible employee had paid supplementary contributions, an additional lump sum benefit be payable in accordance with sub-section (3) of this section” and substituting “lump sum benefit be payable in accordance with this section”; and

(b) by omitting sub-section (3).

49 Orphan benefit—death of eligible employee before attaining maximum retiring age where benefit reduced on medical grounds and period of contributory service not less than 8 years

49. Section 100 of the Principal Act is amended—

(a) by omitting from sub-section (3) “, payable out of the Fund,”; and

(b) by omitting from paragraph (5) (a) “out of the Fund”.

50 Orphan benefit—death of eligible employee before attaining maximum retiring age where benefit reduced on medical grounds and period of contributory service less than 8 years

50. Section 101 of the Principal Act is amended—

(a) by omitting from sub-section (1) all the words from and including “to that child” (first occurring) and substituting “in respect of that child or those children in accordance with this section”;

(b) by omitting from sub-section (2) “this sub-section” and substituting “this section”; and

51 Eligible employee or retirement pensioner survived by more than one spouse

51. Section 110 of the Principal Act is amended by omitting sub-section (10).

Payments into and out of Consolidated Revenue Fund

52. (1) Section 112 of the Principal Act is amended—

(a) by omitting from sub-section (1) “, (4)”;

(b) by omitting sub-section (4);

(c) by inserting in sub-section (5) “, less an amount equal to the amount of his or her accumulated supplementary contributions upon his or her last ceasing to be an eligible employee,” after “eligible employee” (second occurring);

(d) by omitting from sub-section (6) “sub-sections (7) and (8)” and substituting “sub-section (7)”;

(e) by omitting sub-section (8); and

(f) by inserting in sub-section (9) “or her, less an amount equal to the amount of his or her accumulated supplementary contributions upon that deferred benefit becoming payable to him or her,” after “payable to him”.

(2) Section 112 of the Principal Act is amended by adding at the end the following sub-section:

“(10) Where a person makes an election under section 139a, the accumulated contributions of the person shall be paid out of the Superannuation Fund into the Consolidated Revenue Fund.”.

53 Attachment of benefits

53. Section 119 of the Principal Act is amended by omitting the penalty set out at the foot of sub-section (7) and substituting the following penalty:

“Penalty—

(a) if the offender is a natural person—$100 or imprisonment for 10 days; or

(b) if the offender is a body corporate—$500.”.

54 Effect of section 121, 122 or 123 in relation to a person to whom Part applies

54. Section 124 of the Principal Act is amended—

(a) by omitting from paragraph (1) (b) “, or his accumulated basic contributions have, under sub-section 112 (4),”; and

(b) by omitting from paragraph (1) (b) “or those accumulated basic contributions”.

55 Interpretation

55. Section 131 of the Principal Act is amended by omitting from paragraph (3) (b) “that section” and substituting “that sub-section”.

56 Eligible employment

56. Section 132 of the Principal Act is amended by omitting from paragraph (1) (b) “Administration of a Territory” and substituting “Northern Territory, by the Administration of a Territory (including the Northern Territory)”.

Election that Division apply

57. (1) Section 137 of the Principal Act is amended by omitting sub-section (1) and substituting the following sub-section:

“(1) A person who—

(a) ceases to be an eligible employee in circumstances to which paragraph (b) does not apply and, upon so ceasing, is not entitled to pension under this Act or invalidity benefit in accordance with section 69, 72 or 73; or

(b) ceases to be an eligible employee in circumstances by virtue of which the person is to be deemed, under sub-section 58 (3), to have retired involuntarily,

may, not later than 21 days after the person so ceases to be an eligible employee, elect, by notice in writing to the Commissioner, that this Division apply in relation to the person.”.

(2) An election made under sub-section 137 (1) of the Principal Act has effect, on and after the day on which this Act receives the Royal Assent, as if it had been made under sub-section 137 (1) of the Principal Act as amended by this Act.

58 Circumstances in which person entitled to deferred benefits

58. Section 139 of the Principal Act is amended by omitting from sub-sections (2), (3) and (6) “of 60 years” (wherever occurring) and substituting “that would have been the person’s minimum retiring age for the purposes of this Act if the person had not ceased to be an eligible employee and had continued to occupy the position held by the person immediately before so ceasing.”.

59. After section 139 of the Principal Act the following section is inserted:

Election for transfer value by persons in relation to whom deferred benefits are applicable

“139a. (1) Where a person in relation to whom deferred benefits are applicable under sub-section 139 (1)—

(a) is or becomes employed in public employment; and

(b) is or becomes a member of an eligible superannuation scheme that is applicable to persons employed in that employment,

the person may elect, by notice in writing given to the Commissioner, that, in lieu of those deferred benefits, a transfer value in respect of the person be paid to the person administering that scheme.

“(2) Where a person to whom deferred benefits are applicable and who is or becomes a member of an eligible superannuation scheme makes an election under sub-section (1) for the payment of a transfer value in respect of the person in lieu of those deferred benefits, a transfer value in respect of the person is payable to the person administering that scheme.

“(3) Where a transfer value in respect of a person in lieu of deferred benefits applicable in relation to that person is paid under sub-section (2), those deferred benefits cease to be applicable in relation to that person.

“(4) Notwithstanding sub-section (2), a transfer value is not payable under that sub-section in respect of a person in lieu of deferred benefits that are applicable in relation to that person if at any time after those deferred benefits first became so applicable they have been payable to the person.

“(5) Notwithstanding sub-section (2), a transfer value in respect of a person is not payable under that sub-section to the person administering an eligible superannuation scheme unless the person administering the superannuation scheme agrees to accept the transfer value and, under the rules of the scheme, the first-mentioned person will become entitled to retirement benefits under the scheme based upon the transfer value.”.

60 Person who is entitled to rights under Division not entitled to rights under other provisions of Act

60. Section 140 of the Principal Act is amended by omitting sub-section (2) and substituting the following sub-sections:

“(2) Where—

(a) a person referred to in sub-section 137 (1) has been paid—

(i) in a case where the person is a person to whom paragraph (a) of that sub-section applies—an amount by way of lump sum benefit to which the person has become entitled under section 80; or

(ii) in a case where the person is a person to whom paragraph (b) of that sub-section applies—an amount or amounts by way of pension or by way of pension and lump sum benefit to which the person has become entitled under section 59 or an amount by way of lump sum benefit to which the person has become entitled under section 62; and

(b) after that amount was, or those amounts were, paid, the person makes an election under section 137,

the election does not have effect unless an amount equal to that amount or to the aggregate of those amounts, as the case requires, is paid to the Commissioner within 7 days after the date of the election or within such further period as the Commissioner, in special circumstances, allows.

“(3) Where an amount is paid to the Commissioner by a person under sub-section (2), the Commissioner shall pay that amount into the Consolidated Revenue Fund and there shall thereupon be paid out of the Consolidated Revenue Fund (which is appropriated accordingly) into the Superannuation Fund—

(a) if the person is a person to whom paragraph 137 (1) (a) applies—an amount equal to the amount paid to the Commissioner; or

(b) if the person is a person to whom paragraph 137 (1) (b) applies—an amount equal to so much of the amount paid to the Commissioner as is equal to the amount that was paid to the Consolidated Revenue Fund in accordance with section 112 at the time that the person last ceased to be an eligible employee.”.

61 Certain former eligible employees not entitled to benefits under Division

61. Section 141 of the Principal Act is amended by omitting paragraph (1) (b) and substituting the following paragraph:

“(b) within that prescribed period at a time when the person was employed in public employment, the person died or attained the age that would have been the person’s minimum retiring age for the purposes of this Act if the person had not ceased to be an eligible employee and had continued to occupy the position held immediately before so ceasing; or”.

62 Invalidity pensioner restored to health

62. Section 143 of the Principal Act is amended—

(a) by omitting paragraph (1) (a) and substituting the following paragraphs:

“(a) if the pension is suspended under sub-section 74 (3)—deferred benefits do not again become applicable in relation to the person because only of the suspension of the pension;

(aa) if the person’s entitlement to the pension is cancelled under section 74a—deferred benefits again become applicable in relation to the person; and”; and

(b) by omitting from paragraph (1) (b) “sub-section 75 (2)” and substituting “section 75”.

Special provisions affecting certain former contributors under certain superannuation schemes

63. (1) Section 145 of the Principal Act is amended by omitting from sub-paragraph (9) (a) (ii) “of this sub-section” and substituting “of this section”.

(2) Section 145 of the Principal Act is amended—

(a) by omitting from sub-section (5) “Subject to sub-section (14), so” and substituting “So”;

(b) by adding at the end of sub-paragraph (7) (d) (i) “and the amount of any interest that, in accordance with the regulations, is payable in respect of that excess”;

(c) by adding at the end of paragraph (9) (b) “out of the Consolidated Revenue Fund, which is appropriated accordingly”; and

(d) by omitting sub-section (14).

64 Interpretation

64. Section 147 of the Principal Act is amended by omitting from sub-section (2) “6 State” and substituting “8”.

65 Increases in pensions

65. Section 148 of the Principal Act is amended—

(a) by omitting from sub-section (1) “6 State” (wherever occurring) and substituting “8”;

(b) by omitting from sub-section (1) “1975” and substituting “1985”;

(d) by omitting from sub-section (3) “1975” and substituting “1985”.

66 Review of decisions

66. Section 154 of the Principal Act is amended by omitting from sub-section (5) “either personally or by post”.

General provisions applicable to elections under Act

67. (1) Section 157 of the Principal Act is amended by omitting from paragraph (3) (a) “or 137” and substituting “, 128, 137 or 139a”.

(2) Section 157 of the Principal Act is amended by inserting in paragraph (3) (a) “, 76a” after “72”.

Cost of administration of, and of medical examinations under, Act, &c.

68. (1) Section 160 of the Principal Act is amended by inserting in sub-section (1) “and of the superseded Act” after “this Act”.

(2) Section 160 of the Principal Act is amended by adding at the end the following sub-sections:

“(4) The Minister may prepare an estimate of the costs to which sub-section (1) applies for a period commencing on or after the commencement of this sub-section.

“(5) An authority or body that is or has been an approved authority shall, if the Minister, by notice in writing, so directs, pay to the Commonwealth, in respect of a period that is specified in the notice, being a period that is included in, or that comprises the whole of, a period for which an estimate of costs has been prepared, an amount equal to so much of the amount of that estimate as is determined by the Minister having regard to such matters (if any) as are prescribed, and the authority or body may apply for that purpose any moneys under its control.”.

(3) Regulations made by virtue of sub-section 14a (3) of the Superannuation Act 1976, being regulations modifying section 160 of the Superannuation Act 1976, have, and shall be deemed, on and after 15 March 1981, to have had, the same effect as if—

(a) the sub-sections numbered (4) and (5) added by those regulations at the end of that section of that Act had been numbered (3a) and (3b) respectively; and

(b) the reference in that sub-section (5) to sub-section (4) were a reference to sub-section (3a),

but nothing in this sub-section precludes the repeal or amendment of those regulations by regulations made under the Superannuation Act 1976.

69. After section 163 of the Principal Act the following sections are inserted:

Power to require persons to give information and produce documents

“163a. (1) Where the Commissioner has reason to believe that a person is capable of giving information or producing a document relating to a matter that is relevant to the operation of this Act, the superseded Act or regulations under either Act in relation to the person or to another person for whom the first-mentioned person is authorised to act in relation to this Act, the Commissioner may, by notice in writing served on the first-mentioned person, require the first-mentioned person—

(a) to give to the Commissioner, by writing signed by the first-mentioned person or, in the case of a body corporate, by a competent officer of the body corporate, within the time and in the manner specified in the notice, any such information; or

(b) to produce to the Commissioner or to an officer or employee of the Australian Public Service specified in the notice acting on the

Commissioner’s behalf, in accordance with the notice, any such document.

“(2) A notice under this section requiring a person to give information or produce a document shall set out the effects of sub-sections (3), (4) and (5).

“(3) A person shall not refuse or fail to comply with a notice under this section to the extent that the person is capable of complying with it.

Penalty—

(a) if the offender is a natural person—$1,000 or imprisonment for 6 months, or both; or

(b) if the offender is a body corporate—$5,000.

“(4) A person who produces a document in pursuance of a notice under sub-section (1) that, to the knowledge of that person, is false or misleading in a material particular shall, upon so producing the document, give to the person to whom it is produced, a statement in writing signed by the first-mentioned person or, in the case of a body corporate, by a competent officer of the body corporate—

(a) stating that the document is, to the knowledge of the first-mentioned person, false or misleading in a material particular; and

(b) setting out, or referring to, the material particular in respect of which the document is, to the knowledge of the first-mentioned person, false or misleading.

Penalty—

(a) if the offender is a natural person—$1,000 or imprisonment for 6 months, or both; or

(b) if the offender is a body corporate—$5,000.

“(5) A person is not excused from giving information or producing a document in pursuance of this section on the ground that the information or the production of the document might tend to incriminate the person, but the information, the production of the document or any information, document or thing obtained as a direct or indirect consequence of the information or the production shall not be used in evidence against the person—

(a) in the case of a person other than a body corporate—in any criminal proceedings other than proceedings under, or arising out of this section or sub-section 167 (1) by virtue of paragraph (d) of that sub-section, being that paragraph in its application to the making of a statement in pursuance of this section; or

(b) in the case of a body corporate—in any criminal proceedings other than proceedings under, or arising out of, this Act, the superseded Act or regulations under either Act.

“(6) The Commissioner may inspect a document produced in pursuance of a notice under sub-section (1) and may make copies of, or take extracts from, the document.

“(7) The Commissioner may, for the purposes of this Act, take, and retain for so long as is necessary for those purposes, possession of a document produced in pursuance of a notice under sub-section (1) but the person otherwise entitled to possession of the document is entitled to be supplied, as soon as practicable, with a copy certified by the Commissioner, under the Commissioner’s hand, to be a true copy and the certified copy shall be received in all courts as evidence as if it were the original.

“(8) Until a certified copy of a document referred to in sub-section (7) is supplied, the Commissioner shall, at such times and place as the Commissioner thinks appropriate, permit the person otherwise entitled to the document, or a person authorised by that person, to inspect and make copies of, or take extracts from, the document.

“(9) The powers conferred on the Commissioner by a provision of this Act other than this section are in addition to, and not in derogation of, the powers conferred on the Commissioner by this section.

Correction of clerical errors

“163b. Where the Commissioner decides that there is a clerical error or obvious mistake in a document or instrument—

(a) made by the Superannuation Board, or a delegate of the Superannuation Board, under the superseded Act or under regulations under that Act; or

(b) made, whether before or after the commencement of this section, by the Commissioner, or a delegate of the Commissioner, under this Act, under the superseded Act or under regulations under either Act,

the Commissioner may correct that error or mistake.”.

70 Delegation

70. Section 165 of the Principal Act is amended—

(a) by omitting from sub-section (1) “that deals with matters arising under this Act any of his powers under this Act,” and substituting “all or any of the Minister’s powers under this Act or regulations under this Act,”; and

(b) by inserting in sub-section (2) “or regulations under this Act, as the case requires” after “this Act”.

71 Persons not to make false statements to Commissioner, &c.

71. Section 167 of the Principal Act is amended—

(a) by omitting from paragraph (1) (a) “, either orally or in writing, a false or misleading statement” and substituting “a statement, either orally or in writing,”;

(b) by adding at the end of paragraph (1) (a) “that is, to the person’s knowledge, false or misleading in a material particular”;

(c) by omitting from paragraph (1) (c) “a false or misleading statement or by means of impersonation; or” and substituting “a statement,

whether made orally or in writing, that is, to the person’s knowledge, false or misleading in a material particular or by means of impersonation;”;

(d) by omitting from paragraph (1) (d) “or present”;

(e) by omitting from paragraph (1) (d) “or document that is” and substituting “, either orally or in writing, that is, to the person’s knowledge”;

(f) by adding after paragraph (1) (d) the following word and paragraph:

“; or (e) present (otherwise than pursuant to section 163a) to an officer exercising powers or performing functions in relation to this Act a document, that is, to the person’s knowledge, false or misleading in a material particular.”;

(g) by omitting the penalty set out at the foot of sub-section (1) and substituting the following penalty:

“Penalty—

(a) if the offender is a natural person—$2,000 or imprisonment for 12 months, or both; or

(b) if the offender is a body corporate—$10,000.”; and

(h) by inserting after sub-section (1) the following sub-section:

“(1a) An offence against sub-section (1) is punishable on summary conviction.”.

72. After section 167 of the Principal Act the following section is inserted:

Proceedings against corporations

“167aa. (1) Where, in proceedings for an offence against this Act in respect of any conduct engaged in by a body corporate, it is necessary to establish the state of mind of the body, it is sufficient to show that a director, servant or agent of the body, being a director, servant or agent by whom the conduct was engaged in within the scope of his or her actual or apparent authority, had that state of mind.

“(2) Any conduct engaged in on behalf of a body corporate—

(a) by a director, servant or agent of the body within the scope of his or her actual or apparent authority; or

(b) by any other person at the direction or with the consent or agreement (whether express or implied) of a director, servant or agent of the body, where the giving of such direction, consent or agreement is within the scope of the actual or apparent authority of the director, servant or agent,

shall be deemed, for the purposes of a provision of this Act that creates an offence, to have been engaged in by the body.

“(3) A reference in sub-section (1) to the state of mind of a person includes a reference to the knowledge, intention, opinion, belief or purpose

of the person and the person’s reasons for the intention, opinion, belief or purpose.”.

73. Section 167a of the Principal Act is repealed and the following section is substituted:

Provision of superannuation under other laws, &c.

“167a. (1) Where a person holds an office or appointment, or is employed, under a relevant law, superannuation benefits for or in relation to the person shall not be provided under that law or under terms and conditions of employment determined under that law unless—

(a) the relevant law expressly provides for the provision of those benefits; or

(b) the relevant law allows the provision of those benefits and the Minister has, by writing signed by the Minister, approved the provision of those benefits.

“(2) Where a person holds an office or appointment in, or is employed by, a relevant body, that body shall not provide, or arrange for the provision of, superannuation benefits for or in relation to the person unless the body has power to provide those benefits and the Minister has, by writing signed by the Minister, approved the provision of those benefits.

“(3) An approval by the Minister for the purposes of this section of the provision of superannuation benefits may be approval of the provision under—

(a) a superannuation scheme that will provide benefits only for, or in relation to, persons to whom the approval applies; or

(b) an existing or proposed superannuation scheme specified in the approval that will also provide superannuation benefits for, or in relation to, persons other than persons to whom the approval applies.

“(4) Where the provision of superannuation benefits has been approved by the Minister under sub-section (1) or (2) and paragraph (3) (b) does not apply in relation to the benefits—

(a) a superannuation scheme for the provision of the benefits has no force or effect unless it is approved by the Minister by writing signed by the Minister; and

(b) an amendment of a superannuation scheme for the provision of the benefits has no force or effect unless it is approved by the Minister by writing signed by the Minister.

“(5) Sub-section (1) or (4) shall not be taken to prevent the provision of superannuation benefits under a superannuation scheme that was in existence on 23 April 1978.

“(6) Sub-section (2) or (4) shall not be taken to prevent the provision of superannuation benefits by, or arranged for by, a relevant body under a

superannuation scheme that was in existence immediately before the body became a relevant body.

“(7) An amendment of a superannuation scheme referred to in sub-section (5) or (6), other than a scheme that provides superannuation benefits for, or in relation to, persons other than persons of a kind referred to in sub-section (1) or (2), has no force or effect unless it is approved by the Minister by writing signed by the Minister.

“(8) In this section—

‘relevant body’ means—

(a) a company or other body corporate of a kind referred to in sub-paragraph (a) (iii) of the definition of ‘approved authority’ in sub-section 3 (1); or

(b) an authority or body of a kind referred to in sub-paragraph (a) (iv) of that definition (other than an authority or body established under an Act),

being a company, body or authority that is an approved authority or is declared by the Minister, by notice published in the Gazette, to be a relevant body for the purposes of this section;

‘relevant law’ means a law of the Commonwealth (including this Act) or of the Australian Capital Territory that is in force on the day on which this section comes into operation or that comes into force after that day;

‘superannuation benefits’ includes any benefits similar to the benefits provided under this Act;

‘superannuation scheme’ means a superannuation or retirement scheme, however established.

“(9) Where a person is a director of a company or other body corporate incorporated, whether before or after the commencement of this Act, under a law of a State or Territory, being a company or other body that is a relevant body, the person shall, for the purposes of this section, be deemed to be employed by the company or other body.”.

74 Regulations

74. Section 168 of the Principal Act is amended—

(a) by omitting from sub-section (3) “Regulations made” and substituting “Subject to sub-section (5), regulations made”; and

(b) by adding at the end the following sub-sections:

“(4) Regulations made within the period of 12 months after the commencement of this sub-section by virtue of in relation to—section 14a

(a) persons who are deemed to have been re-appointed to the Australian Public Service in pursuance of section 87q of the Public Service Act; or

(b) persons who are, or are deemed to be, re-appointed (otherwise than to the Australian Public Service) or re-employed in circumstances similar to the circumstances in which a person could be re-appointed to the Australian Public Service under or 66b of the Public Service Act or could be deemed to be re-appointed to the Australian Public Service in accordance with section 87q of that Act,section 63f, 63g

may be expressed to have effect from a day not earlier than 15 March 1981.

“(5) Regulations made after the commencement of this sub-section for the purposes of the definition of ‘maximum retiring age’ or ‘minimum retiring age’ in sub-section 3 (1) may be expressed to have taken effect from and including a day not earlier than 12 months before the making of the regulations.

“(6) Regulations made within a period of 2 years after the commencement of this sub-section by virtue of sub-section 126 (2) with respect to persons to whom paragraph (b) of the definition of ‘prescribed teacher’ in section 43P of the Commonwealth Teaching Service Act 1972 applies may be expressed to have taken effect from and including a day not earlier than 31 March 1977.

“(7) Regulations made after the commencement of this sub-section by virtue of sub-section 159 (3) may be expressed to have taken effect from and including a day not earlier than 12 months before the making of the regulations.

“(8) Regulations made within a period of 2 years after the commencement of this sub-section by virtue of section 180 may be expressed to have taken effect from and including a day not earlier than the commencing day.”.

Existing invalidity pensioners

75. (1) Section 180 of the Principal Act is amended—

(a) by inserting in sub-section (1) “as in force immediately before the repeal of that section” after “superseded Act”;

(b) by inserting in sub-section (3) “(other than a person to whom deferred benefit by way of a pension of a kind referred to in sub-section (1) of section 64a of the superseded Act as in force immediately before the repeal of that section is payable or would, but for the pension having been suspended, be payable)” after “existing invalidity pensioner”; and

(c) by inserting in sub-section (4) “(other than a person to whom deferred benefit by way of a pension of a kind referred to in sub-section (1) of of the superseded Act as in force immediately before the repeal of that section is payable or would, but for the pension having been suspended, be payable)” after “existing invalidity pensioner”.section 64a

(2) Section 180 of the Principal Act is amended—

(a) by inserting in sub-section (1) “(other than a deferred benefit by way of a pension referred to in sub-section (1) of of the superseded Act as so in force)” after “section” (fourth occurring);section 64a

(b) by inserting in sub-section (2) “, section 74a” after “(7))”;

(c) by omitting from sub-section (3) “(other than a person to whom deferred benefit by way of a pension of a kind referred to in sub-section (1) of section 64a of the superseded Act as in force immediately before the repeal of that section is payable or would, but for the pension having been suspended, be payable)”; and

(d) by omitting from sub-section (4) “(other than a person to whom deferred benefit by way of a pension of a kind referred to in sub-section (1) of of the superseded Act as in force immediately before the repeal of that section is payable or would, but for the pension having been suspended, be payable)”.section 64a

(3) Section 180 of the Principal Act is amended by omitting from sub-section (2) “Section 15” and substituting “Sections 15 and 73a”.

76 Medical examinations and benefit classification-certificates

76. Section 184 of the Principal Act is amended—

(a) by omitting paragraphs (2) (a) and (b) and substituting the following paragraphs:

“(a) a person to whom this section applies who, immediately before the commencing day, was (otherwise than because of an election made under section 81 of the superseded Act) a contributor to the Provident Account—

(i) ceases to be an eligible employee because of death or retirement on the ground of invalidity; or

(ii) becomes entitled to partial invalidity pension under the Commissioner is satisfied can properly be regarded as attributable to physical or mental incapacity;section 78 because of a decrease in the annual rate of the person’s salary that

(b) at the time when the person so ceases to be an eligible employee or becomes entitled to partial invalidity pension, as the case requires, the person’s period of contributory service is less than 20 years and the person has not attained the person’s maximum retiring age; and”;

(b) by omitting from paragraph (2) (c) “or the incapacity which was the ground for the retirement of the person” and substituting “, the incapacity which was the ground for the retirement of the person or the incapacity to which the Commissioner was satisfied that the decrease in the annual rate of salary of the person could properly be regarded as attributable, as the case requires,”;

(c) by adding at the end of sub-section (2) “or immediately before the person became entitled to partial invalidity pension under section 78, as the case requires”;

(d) by omitting sub-section (5) and substituting the following sub-sections:

“(5) Where the Commissioner is satisfied, in respect of a person who is a relevant person—

(a) that, at or in connection with a medical examination that the person underwent for the purpose of the superseded Act, the person failed to give information that the person was required to give or gave false or misleading information; and

(b) that a physical or mental condition of the person or physical or mental conditions of the person (in this sub-section referred to as an ‘unrecorded condition’ or as ‘unrecorded conditions’) that was not or were not relevant for the purposes of the superseded Act, would have been relevant for the purposes of that Act if the person had not failed to give the information the person was required to give or had not given that false or misleading information,

the Commissioner shall—

(c) if there is a benefit classification certificate in force in respect of the relevant person—revoke that certificate and issue a new benefit classification certificate in respect of the person in which the unrecorded condition or the unrecorded conditions is or are specified either in addition to or in substitution for the physical or mental condition that was, or any or all of the physical or mental conditions that were, specified in the first-mentioned certificate;

(d) if there is no benefit classification certificate in force in respect of the person but a physical or mental condition of the person or physical or mental conditions of the person was or were relevant for the purposes of the superseded Act—issue a benefit classification certificate in respect of the person in which the unrecorded condition or the unrecorded conditions is or are specified either in addition to or in substitution for the physical or mental condition that was, or any or all of the physical or mental conditions that were, relevant for the purposes of the superseded Act; or

(e) if there is no benefit classification certificate in force in respect of the person and no physical or mental condition of the person was relevant for the purposes of the superseded Act—issue a benefit classification certificate in respect of the person in which the unrecorded condition is or the unrecorded conditions are specified.

“(5a) In sub-section (5), a reference to a relevant person shall be read as a reference to a person to whom this section applies

(whether or not the person was, immediately before the commencing day, a contributor to the Provident Account)—

(a) who is an eligible employee, has a period of contributory service of less than 20 years and has not attained his or her maximum retiring age;

(b) who is or was an eligible employee to whom partial invalidity pension is or was payable and who, at the time when partial invalidity pension became so payable, had a period of contributory service of less than 20 years; or

(c) who has ceased (whether before or after the commencement of this sub-section) to be an eligible employee because of invalidity or death and who, at the time when he or she so ceased, had a period of contributory service of less than 20 years and had not attained his or her maximum retiring age.

“(5b) Where the Commissioner, in pursuance of paragraph (5) (c), revokes a benefit classification certificate and issues a new benefit classification certificate in substitution for that certificate, the first-mentioned certificate shall be deemed never to have been issued and the certificate issued by the Commissioner in substitution for the first-mentioned certificate shall be deemed to have been issued under sub-section 16 (4) on the commencing day.

“(5c) Where the Commissioner, in pursuance of paragraph (5) (d) or (e), issues a benefit classification certificate, the certificate shall be deemed to have been issued under sub-section 16 (4) on the commencing day.”;

(e) by inserting in paragraph (7) (c) “, at the time when the person became, or last became, a contributor to the Provident Account” after “by reason of which”; and

(f) by omitting from paragraph (7) (c) all the words after sub-paragraph (c) (ii) and substituting “other than a physical or mental condition that, in the opinion of the Commissioner, the Superannuation Board was, as a result of a medical examination under sub-section 79 (2) of the superseded Act, satisfied no longer existed unless the Commissioner is satisfied that, but for the failure of the person to give any information required to be given by the person or the giving of false information at or in connection with that medical examination, the Board would not have been so satisfied.”.

Part III — AMENDMENTS OF THE SUPERANNUATION ACT 1922

77 Principal Act

77. The Superannuation Act 1922² is in this Part referred to as the Principal Act.

78 Interpretation

78. Section 4 of the Principal Act is amended—

(a) by omitting from sub-section (1) the definition of “eligible child” and substituting the following definition:

“ ‘eligible child’ means—

(a) in relation to a deceased contributor or deceased pensioner, a child of the contributor or pensioner who is—

(i) a child the 16th anniversary of whose birth has not occurred;

(ii) a child—

(a) the 16th anniversary of whose birth has occurred but the 21st anniversary of whose birth has not occurred; and

(B) who is receiving full-time education at a school, college or university; or

(iii) a child—

(a) the 21st anniversary of whose birth has occurred but the 25th anniversary of whose birth has not occurred;

(B) who is receiving full-time education at a school, college or university and is not ordinarily in employment or engaged in work on his or her own account;

(C) where the child was born before the death of the contributor or pensioner—who was living with, or, in the opinion of the Commissioner, was wholly or substantially dependent upon, the contributor or pensioner immediately before that death; and

(D) where the child was born after the death of the contributor or pensioner—who, in the opinion of the Commissioner, would have been living with, or wholly or substantially dependent upon the contributor or pensioner immediately before that death if the child had been born before that death; and

(b) in relation to a person, being the widow, widower, wife or husband of a deceased contributor or a deceased pensioner, a child of the person who is—

(i) a child of the kind referred to in sub-paragraph (a) (i);

(ii) a child of the kind referred to in sub-paragraph (a) (ii); or

(iii) a child—

(a) of the kind referred to in sub-sub-paragraphs (a) (iii) (A) and (B); and

(b) who was born before the death of the contributor or pensioner and, in the opinion of the Commissioner, was wholly or substantially dependent upon the contributor or pensioner immediately before that death;”;

(b) by omitting from sub-section (1) the definition of “The Commissioner for Superannuation” and substituting the following definition:

“ ‘The Commissioner’ or ‘the Commissioner for Superannuation’ means the Commissioner for Superannuation under the Superannuation Act 1976;”; and

“(10) A reference in the definition of ‘eligible child’ in sub-section. (1) to an anniversary of the birth of a person shall be read as a reference to the day on which the anniversary occurred or occurs.

“(11) Where a person was born on 29 February in any year, then, in any subsequent year that is not a leap year, the anniversary of the birth of the person shall, for the purposes of this Act, be deemed to occur on 1 March of that subsequent year.”.

79 Pension to spouse and children on death of contributor

79. Section 46 of the Principal Act is amended by omitting from sub-sections (3) and (4) “each child of the contributor or of the widow or widower who is an eligible child” and substituting “each eligible child of the contributor and each eligible child of the widow or widower”.

80 Pension to spouse and children on death of pensioner

80. Section 47 of the Principal Act is amended by omitting from sub-sections (3) and (4) “each child of the pensioner or of the widow or widower who is an eligible child” and substituting “each eligible child of the pensioner and each eligible child of the widow or widower”.

81 Pension to orphans on death of contributor or pensioner

81. Section 48 of the Principal Act is amended by omitting from sub-section (1) “each child of the contributor or pensioner or of the wife or husband of the contributor or pensioner who is an eligible child” and substituting “each eligible child of the contributor or pensioner and each eligible child of the wife or husband of the contributor or pensioner”.

82 Special grants of pension

82. Section 48ab of the Principal Act is amended by omitting sub-section (3) and substituting the following sub-section:

“(3) Where the deceased pensioner referred to in sub-section (1) died before 1 July 1976, the Commissioner shall not grant a pension under sub-section (1) of this section to a person who, if the Superannuation Act 1976 had come into force before that deceased pensioner had died, would, at the time of the deceased pensioner’s death, have been a spouse of the deceased pensioner for the purposes of that Act, unless the Commissioner, having regard to such matters (if any) as are prescribed and such other matters as the Commissioner considers relevant, is satisfied that the person is in necessitous circumstances or that the granting of the pension is otherwise warranted.”.

83 Period for which pensions payable

83. Section 59 of the Principal Act is amended by omitting sub-section (2) and substituting the following sub-section:

“(2) Where pension became payable in respect of a person because the person is the eligible child of another person, being a deceased contributor or deceased pensioner or the widow, widower, wife or husband of a deceased contributor or deceased pensioner, pension is payable only while the child is such an eligible child.”.

84 Transfer value

84. Section 119s of the Principal Act is amended by omitting sub-section (1) and substituting the following sub-sections:

“(1) A reference in this Division to a transfer value payable in accordance with this Division in respect of a person who has ceased to be a contributor to the Fund or to the Provident Account is a reference—

(a) in the case of a person in respect of whom that transfer value has become payable by virtue of the operation of section 119v—

(i) unless sub-paragraph (ii) applies—to such amount as is determined by the Commissioner to be the value of the rights of the person under this Act as at the time immediately before the person ceased to be such a contributor; or

(ii) if the declaration under sub-section (1) of section 119r of the eligible superannuation scheme referred to in subparagraph 119v (1) (b) (ii) of which the person became a member—

(a) was made by instrument published in the Gazette after the commencement of this sub-section; and

(B) by virtue of the operation of sub-section (2) of Gazette,section 119r, came into operation on a day earlier than the day on which the instrument of declaration was published in the

to an amount equal to the sum of the amount that, but for this sub-paragraph, would be the amount of the transfer value and an amount of compound interest calculated thereon—

(C) in respect of the period commencing on the day next following the day on which the person so ceased to be a contributor and ending on 30 June 1976—at the rate of interest that is from time to time the prescribed rate of compound interest determined in accordance with section 90 of this Act; and

(d) in respect of the period commencing on 1 July 1976 and ending on the expiration of the period of 14 days after the day on which the Commissioner calculates that compound interest—at the rate at which interest is from time to time calculated in accordance with regulations made for the purposes of the definition of ‘accumulated basic contributions’ in sub-section (1) of Superannuation Act 1976; orsection 3 of the

(b) in the case of a person in respect of whom that transfer value has become payable because of an election under section 119wc—to an amount equal to the sum of the amount that would be the amount of the transfer value payable in respect of that person if that transfer value had become payable in respect of the person because of the operation of section 119v and had been determined under sub-paragraph (1) (a) (i) of this section and an amount of compound interest calculated thereon—

(i) in respect of the period commencing on the day next following the day on which the person so ceased to be a contributor and ending on 30 June 1976—at the rate of interest that is from time to time the prescribed rate of compound interest determined in accordance with section 90 of this Act; and

(ii) in respect of the period commencing on 1 July 1976 and ending on the expiration of the period of 14 days after the day on which the Commissioner calculates that compound interest—at the rate at which interest is from time to time calculated in accordance with regulations made for the purposes of the definition of ‘accumulated basic contributions’ in sub-section (1) of Superannuation Act 1976.section 3 of the

“(1a) If a payment was made under the Superannuation (Distribution of Surplus) Act 1974, or was or is made under section 176 of the Superannuation Act 1976, to a person referred to in sub-paragraph (1) (a) (ii) or paragraph (1) (b), the amount of compound interest referred to in that sub-paragraph or that paragraph, as the case requires, shall be reduced by such amount as the Commissioner determines to be appropriate having regard to the amount of that payment and the time at which that payment was or is made.”.

85 Election that Division apply

85. Section 119u of the Principal Act is amended by omitting from paragraph (6) (b) “the person leaves an eligible child or eligible children” and substituting “there is an eligible child of the person or an eligible child of the widow or widower”.

86 Circumstances in which person entitled to deferred benefits

86. Section 119w of the Principal Act is amended—

(a) by omitting from sub-sections (2), (3) and (6) “age of sixty years” and substituting “person’s relevant retiring age”; and

(b) by adding at the end the following sub-section:

“(9) In this section, ‘relevant retiring age’, in relation to a person, means the age that would have been the person’s minimum retiring age for the purposes of the Superannuation Act 1976 if the person—

(a) had not ceased to be a contributor to the Fund or to the Provident Account;

(b) had become an eligible employee for the purposes of that Act on 1 July 1976 by virtue of paragraph (a) of the definition of ‘eligible employee’ in sub-section 3 (1) of that Act; and

(c) had continued to occupy the position held immediately before ceasing to be a contributor to the Fund or to the Provident Account.”.

87. After section 119w of the Principal Act the following sections are inserted:

Medical examination, &c., of persons to whom deferred benefits by way of pension are payable under section 119 w

“119wa. (1) The Commissioner may, by notice in writing given to a person to whom deferred benefits by way of pension are payable by virtue of paragraph (a) of sub-section (2) of section 119w, require that person—

(a) to submit himself or herself for medical examination by a medical practitioner at a time, being a time before the person attains the age of 65 years, and place specified in the notice; or

(b) to give in writing to the Commissioner, within such period, being a period that ends before the person attains the age of 65 years, as is specified in the notice, such information as is required by the notice with respect to any employment (whether as an employee or on his or her own account) in which the person has been engaged during such period as is specified in the notice.

“(2) A notice under sub-section (1) shall set out the effect of sub-section (3).

“(3) Where a person fails to comply with a notice given to him or her under sub-section (1) and the Commissioner is not satisfied that there was a reasonable excuse for the failure, the Commissioner may by notice in

writing given to the person, suspend the person’s pension with effect from such day as the Commissioner determines, being a day not earlier than—

(a) in a case where the first-mentioned notice required the person to submit himself or herself for medical examination on a day specified in that notice—the day next following that day; or

(b) in a case where the first-mentioned notice required the person to give information within a period specified in the notice—the day next following the expiration of that period.

“(4) A notice to a person under sub-section (3) shall set out the effect of sub-sections (8), (10) and (11) and of section 119wb.

“(5) Subject to section 119wb, a suspension of a person’s pension under sub-section (3) continues in force, unless sooner revoked, until the person attains the age of 65 years.

“(6) Pension is not payable in respect of a period during which a suspension of the pension under sub-section (3) is in force.

“(7) Where—

(a) the pension of a person is suspended under sub-section (3); and

(b) the Commissioner, having regard to such matters as he or she considers relevant, is of the opinion that the suspension should be revoked,

“(8) Without limiting sub-section (7), where the pension of a person (in this sub-section referred to as the ‘relevant person’) is suspended under sub-section (3), the relevant person, or another person acting on his or her behalf, may, by notice in writing given to the Commissioner, request the Commissioner to revoke the suspension, and where such a request is made, the Commissioner shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be—

(a) if the pension has been suspended by virtue of the relevant person’s having failed to comply with a notice requiring the relevant person to submit himself or herself for medical examination—require the relevant person to submit himself or herself for medical examination by a medical practitioner at a time, being a time before the relevant person attains the age of 65 years, and place specified in the second-mentioned notice; or

relevant person attains the age of 65 years, such information as was required by the original notice to be given.

“(9) A notice given by the Commissioner under sub-section (8) shall set out the effect of sub-sections (10) and (11) and of section 119wb.

“(10) Where—

(a) because of a request having been made to revoke the suspension of the pension of a person (in this sub-section referred to as the ‘relevant person’), a notice under sub-section (8) is given to the relevant person or to the relevant person and another person; and

(b) either—

(i) the relevant person complies with the notice; or

(ii) the relevant person fails to comply with the notice but the Commissioner is satisfied that there was a reasonable excuse for the failure,

(c) in a case to which sub-paragraph (i) of paragraph (b) applies—the day on which the relevant person so complied with the notice; or

(d) in a case to which sub-paragraph (ii) of paragraph (b) applies—the day on which the Commissioner became so satisfied.

“(11) Where—

(b) the relevant person fails to comply with the notice and the Commissioner is not satisfied that there was a reasonable excuse for the failure,

the Commissioner shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be, refuse to revoke the suspension.

“(12) A notice under sub-section (11) shall set out the effect of section 119wb.

“(13) Where a person whose pension has been suspended under sub-section (3) dies before the pension again becomes payable, the person shall, for the purposes of sub-section 47 (1) or 48 (2), be deemed to have been in receipt of pension at the time of the person’s death and, for the purposes of sections 47 and 48, the pension shall be deemed to have been payable at the rate at which it would have been payable to the person if it had not been suspended.

“(14) Where pension again becomes payable to a person whose pension was suspended under sub-section (3), the person shall, for the purposes of the application of Part XI in relation to the pension, be deemed to have been in receipt of pension during the period of the suspension at the rate at which it would have been payable to the person if it had not been suspended.

“(15) The cost of any medical examination carried out for the purposes of this section shall be treated as part of the cost of the administration of this Act.

“(16) Where the Commissioner is required by this section to give a person a notice, the notice shall be taken to have been given to the person if—

(a) the notice is served on the person personally;

(b) the notice is sent to the person by pre-paid post as a letter and the person acknowledges receipt of the letter; or

(c) where the Commissioner has caused all reasonable steps to be taken to ascertain a reliable address of the person, the notice is sent to the person by pre-paid post to—

(i) in a case where the Commissioner is satisfied that at least one reliable address of the person has been ascertained—that reliable address, or one of the reliable addresses, ascertained; or

(ii) in any other case—the last address of the person known to the Commissioner.

“(17) A reference in sub-section (16) to a reliable address of a person shall be read as a reference to an address where, if a letter were sent to the person by pre-paid post to the address, the person would probably receive the letter.

“(18) A reference in this section to a medical examination by a medical practitioner does not include a reference to a medical examination by a person other than a person registered or licensed as a medical practitioner under a law of a State or Territory that provides for the registration or licensing of medical practitioners unless—

(a) the medical examination is made in a place that is not in Australia or an external Territory; and

(b) the person is registered or licensed as a medical practitioner under a law of that place that provides for the registration or licensing of medical practitioners.

“(19) Nothing in this section shall be taken, by implication, to exclude or limit the application of Superannuation Act 1976 to decisions under this section that are reviewable decisions within the meaning of that section.section 154 of the

Cancellation of pension where pension suspended for 12 months, &c.

“119wb. Where—

(a) a person’s pension is suspended under sub-section 119wa (3);

(b) immediately before the suspension, the person had not attained the age of 64 years; and

(i) in a case where a request to revoke the suspension is made under before the expiration of a period of 12 months after the suspension came into force and the Commissioner does not make a decision under section 119wa in relation to that request within that period—upon the making of that decision; orsection 119wa

(ii) in any other case—for a period of 12 months,

the Commissioner may, by notice in writing given to the person, cancel the person’s entitlement to pension.

Election for transfer value by persons in relation to whom deferred benefits are applicable

“119wc. (1) Where a person in relation to whom deferred benefits are applicable under sub-section (1) of section 119w—

(a) is or becomes employed in public employment; and

(b) is or becomes a member of an eligible superannuation scheme that is applicable to persons employed in that employment,

“(5) Notwithstanding sub-section (2), a transfer value in respect of a person is not payable under that sub-section to the person administering an eligible superannuation scheme unless the person administering the superannuation scheme agrees to accept the transfer value and, under the rules of that scheme, the first-mentioned person will become entitled to retirement benefits under the scheme based upon the transfer value.

“(6) Nothing in this section shall be taken, by implication, to preclude a person to whom different deferred benefits are applicable by reason of the person’s having made more than one election under section 119u from making more than one election under sub-section (1).”.

88 Certain former contributors not entitled to benefits under Division

88. Section 119y of the Principal Act is amended—

(a) by omitting from paragraph (1) (b) “age of sixty years” and substituting “persons relevant retiring age”; and

(b) by adding at the end the following sub-section:

“(3) In this section, ‘relevant retiring age’ has the same meaning as it has in section 119w.”.

89 Invalid pensioner restored to health

89. Section 119za of the Principal Act is amended—

(a) by omitting paragraph (1) (a) and substituting the following paragraphs:

“(a) if the pension is suspended under section 119wa—deferred benefits are not applicable in relation to the person during the period of the suspension of the pension;

(aa) if the person’s entitlement to the pension is cancelled under section 119wb—deferred benefits again become applicable in relation to the person; and”; and

(b) by omitting from paragraph (1) (b) “section 65 does not apply in relation to the person but”.

90 Interpretation

90. Section 120 of the Principal Act is amended by omitting from sub-section (2) “6 State” and substituting “8”.

91 Increases in pensions

91. Section 121 of the Principal Act is amended—

(a) by omitting from sub-section (1) “6 State” (wherever occurring) and substituting “8”;

(b) by omitting from sub-section (1) “1974” and substituting “1985”;

(d) by omitting from sub-section (3) “1974” and substituting “1985”.

1 NOTES

No. 31, 1976, as amended, For previous amendments, see No. 51, 1976; No. 80, 1977; Nos. 17, 134, 169 and 170, 1978; Nos. 52 and 155, 1979; No. 177, 1980; No. 92, 1981; No. 92, 1983; No. 165, 1984; and No. 80, 1986.

NOTES—continued

2. No. 33, 1922, as amended, For previous amendments, see No. 45, 1924; No. 22, 1930; No. 10, 1931; No. 45, 1934; No. 28, 1937; No. 53, 1942; No. 18, 1943; Nos. 15 and 30, 1945; No. 2, 1946; Nos. 1 and 35, 1947; No. 19, 1948; No. 76, 1950; Nos. 49 and 62, 1951; No. 92, 1952; No. 11, 1954; No. 27, 1955; Nos. 19 and 112, 1956; No. 94, 1957; No. 45, 1958; No. 102, 1959; No. 102, 1963; Nos. 97 and 154, 1965; Nos. 69 and 86, 1966; No. 52, 1967; Nos. 49 and 57, 1968; Nos. 14 and 26, 1969; No. 46, 1971; Nos. 46, 83 and 135, 1973; No. 216, 1973 (as amended by No. 20, 1974); No. 59, 1974; Nos. 32 and 37, 1976; No. 17, 1978; No. 92, 1981; No. 63, 1984; and No. 80, 1986.

[Minister’s second reading speech made in—

House of Representatives on 23 October 1986

Senate on 19 November 1986]

Superannuation Legislation Amendment Act (No. 2) 1986

Part I — PRELIMINARY

Part II — AMENDMENTS OF THE SUPERANNUATION ACT 1976

Part III — AMENDMENTS OF THE SUPERANNUATION ACT 1922

Part I — PRELIMINARY

Part II — AMENDMENTS OF THE SUPERANNUATION ACT 1976

Part III — AMENDMENTS OF THE SUPERANNUATION ACT 1922