Superannuation Legislation Amendment (Indexation) Act 2001

No. 148, 2001

Superannuation Legislation Amendment (Indexation) Act 2001

No. 148, 2001

An Act to amend certain Acts relating to superannuation, and for related purposes

Contents

1 Short title 2

2 Commencement 2

3 Schedule(s) 3

Schedule 1—Superannuation Act 1922 4

Superannuation Act 1922 4

Schedule 2—Superannuation Act 1976 9

Superannuation Act 1976 9

Schedule 3—Defence Force Retirement and Death Benefits Act 1973 14

Defence Force Retirement and Death Benefits Act 1973 14

Superannuation Legislation Amendment (Indexation) Act 2001

No. 148, 2001

[Assented to 1 October 2001]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Superannuation Legislation Amendment (Indexation) Act 2001.

2 Commencement 1

Subject to this section, this Act commences on the day on which it receives the Royal Assent.

2

(2) If the Superannuation Act 1922 is repealed before the day on which this Act receives the Royal Assent, this Act has effect as if the amendments of the Superannuation Act 1922 made by Schedule 1 to this Act were amendments of the Superannuation Act 1922 as that Act continues to apply under section 19 of the Superannuation Legislation (Commonwealth Employment—Saving and Transitional Provisions) Act 2001.

3

(3) If the Superannuation Act 1976 is repealed before the day on which this Act receives the Royal Assent, this Act has effect as if the amendments of the Superannuation Act 1976 made by Schedule 2 to this Act were amendments of the Superannuation Act 1976 as that Act continues to apply under section 11 of the Superannuation Legislation (Commonwealth Employment—Saving and Transitional Provisions) Act 2001.

4

(4) If the Superannuation Legislation Amendment (Post-retirement Commutations) Act 2001 commenced before the day on which this Act receives the Royal Assent, items 7, 8 and 9 in Schedule 2 to this Act commence on that day.

5

(5) If the Superannuation Legislation Amendment (Post-retirement Commutations) Act 2001 commences on or after the day on which this Act receives the Royal Assent, items 7, 8 and 9 in Schedule 2 to this Act commence on the day on which that Act commences, immediately after the commencement of that Act.

3 Schedule(s)

Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Superannuation Act 1922

Superannuation Act 1922

1 Paragraph 100A(3)(a)

Repeal the paragraph.

2 Paragraph 107A(3)(a)

Repeal the paragraph.

3 Part XB

Repeal the Part.

4 Part XI (heading)

Repeal the heading, substitute:

XI Pension increases on and after 1 January 2002

5 Subsection 120(1)

Insert:

first quarter, in relation to a half-year, means:

(a) for a half-year beginning on 1 January in a year—the March quarter of the year; and

(b) for a half-year beginning on 1 July in a year—the September quarter of the year.

6 Subsection 120(1)

Insert:

half-year means a period of 6 months beginning on 1 January or 1 July in any year.

7 Subsection 120(1)

Insert:

prescribed half-year means the half-year commencing on 1 January 2002 or a subsequent half-year.

8 Subsection 120(1) (definition of prescribed year)

Repeal the definition.

9 Subsection 120(2)

Omit “March quarter”, substitute “first quarter in a half-year”.

10 Subsection 121(1)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

11 Subsection 121(1)

Omit “year” (wherever occurring), substitute “half-year”.

12 Subsection 121(2)

Omit “year”, substitute “half-year”.

13 Subsection 121(3)

Omit “year” (wherever occurring), substitute “half-year”.

14 Subsection 121(3)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

15 Subsection 121(4)

Omit “year” (wherever occurring), substitute “half-year”.

16 Subsection 121(4)

Omit “30 June” (wherever occurring), substitute “30 June or 31 December (as the case requires)”.

17 Subsection 122(1)

Repeal the subsection, substitute:

1

The following provisions of this section have effect if:

(a) a person would, but for this section, be entitled to an increase in the amount of the annual pension that was payable in accordance with section 119W to the person immediately before the commencement of a prescribed half-year; and

(b) if the pension was payable to the person otherwise than as a widow or widower—the pension became payable during the half-year immediately preceding the relevant prescribed half-year; and

(c) if the pension was payable to the person as a widow or widower and:

(i) if a pension in accordance with section 119W was not payable to the husband or wife of the person immediately before his or her death—the pension became payable during the half-year immediately preceding the relevant prescribed half-year; or

(ii) if a pension in accordance with that section was payable to the husband or wife of the person immediately before his or her death—the pension that was payable to that husband or wife became payable during the half-year immediately preceding the relevant prescribed half-year.

18 Subsection 122(2)

Omit all the words from and including “the retirement referred to” to and including “the relevant prescribed year, or”.

19 Subsection 122(2)

Omit “clause (1)(c)(ii)(B)”, substitute “subparagraph (1)(c)(ii)”.

20 Subsection 122(2)

Omit “16 June in the year immediately preceding the relevant prescribed year”, substitute “16 June or 16 December (as the case requires) in the half-year immediately preceding the relevant prescribed half-year”.

21 Subsection 122(3)

Omit all the words from and including “the retirement referred to” to and including “the relevant prescribed year, or”.

22 Subsection 122(3)

Omit “clause (1)(c)(ii)(B)”, substitute “subparagraph (1)(c)(ii)”.

23 Subsection 122(3)

Omit “16 June in the year immediately preceding the relevant prescribed year”, substitute “16 June or 16 December (as the case requires) in the half-year immediately preceding the relevant prescribed half-year”.

24 Subsection 122(3)

Omit “the period that commenced on the day next following the day on which the retirement or death took place, or”.

25 Subsection 122(3)

Omit “30 June in that immediately preceding year bears to 12”, substitute “30 June or 31 December (as the case requires) in that immediately preceding half-year bears to 6”.

26 Section 123

Repeal the section.

27 Subsection 124(1)

Omit “Part XB or of”.

28 Subsection 124(2)

Omit “Part XB or of”.

29 Subsection 124(3)

Omit “Part XB or of”.

30 Section 126

Omit “123 or”.

31 Section 126

Omit “30 June in a year”, substitute “30 June or 31 December (as the case requires) in a half-year”.

32 Sections 127 and 128

Repeal the sections.

33 Application

1

The amendments and repeals made by this Schedule apply:

(a) for the purpose of working out an increase in the rate of a pension that is payable immediately before:

(i) the prescribed half-year beginning on 1 January 2002; and

(ii) each subsequent prescribed half-year; and

(b) for any other purpose related to the purpose mentioned in paragraph (a).

2

To avoid doubt:

(a) the repeal of Superannuation Act 1922 by this Schedule does not affect any increase in the amount of an annual pension that arose from the operation of that Part; andPart XB of the

(b) the other repeals and amendments made by this Schedule do not affect any increase in the rate of a pension that arose from the operation of any provision repealed or amended by this Schedule.

Schedule 2—Superannuation Act 1976

Superannuation Act 1976

1 Subsection 73A(1) (definition of prescribed maximum rate)

Repeal the definition, substitute:

prescribed maximum rate means:

(a) immediately before 1 January 2002—the rate that was the prescribed maximum rate under this section immediately before the commencement of item 1 of Schedule 2 to the Superannuation Legislation Amendment (Indexation) Act 2001; or

(b) on or after 1 January 2002—the rate that is the prescribed maximum rate because of subsection (2).

2 Subsection 73A(1) (definition of prescribed percentage)

Repeal the definition, substitute:

prescribed percentage, in relation to a prescribed half-year, means the prescribed percentage in relation to that half-year for the purposes of section 148.

3 Subsection 73A(1)

Insert:

prescribed half-year means a prescribed half-year within the meaning of Part X.

4 Subsection 73A(1) (definition of prescribed year)

Repeal the definition.

5 Subsection 73A(1) (definition of relevant percentage)

Repeal the definition.

6 Subsection 73A(2)

Omit “year” (wherever occurring), substitute “half-year”.

7 Paragraphs 146C(9)(a) and (b)

Repeal the paragraphs, substitute:

(a) beginning on 1 January or 1 July in a year; and

(b) ending at the end of the first pension pay day after that 1 January or 1 July;

8 Paragraphs 146E(9)(a) and (b)

Repeal the paragraphs, substitute:

(a) beginning on 1 January or 1 July in a year; and

(b) ending at the end of the first pension pay day after that 1 January or 1 July;

9 Paragraphs 146G(8)(a) and (b)

Repeal the paragraphs, substitute:

(a) beginning on 1 January or 1 July in a year; and

(b) ending at the end of the first pension pay day after that 1 January or 1 July;

10 Part X (heading)

Repeal the heading, substitute:

Note: The heading to subsection (9) is altered by omitting “in a financial year”.

Note: The heading to subsection (9) is altered by omitting “in a financial year”.

Note: The heading to subsection (8) is altered by omitting “in a financial year”.

X Pension increases on and after 1 January 2002

11 Subsection 147(1)

Insert:

first quarter, in relation to a half-year, means:

(a) for a half-year beginning on 1 January in a year—the March quarter of the year; and

(b) for a half-year beginning on 1 July in a year—the September quarter of the year.

12 Subsection 147(1)

Insert:

half-year means a period of 6 months beginning on 1 January or 1 July in any year.

13 Subsection 147(1)

Insert:

prescribed half-year means the half-year commencing on 1 January 2002 or a subsequent half-year.

14 Subsection 147(1) (definition of prescribed year)

Repeal the definition.

15 Subsection 147(2)

Omit “March quarter”, substitute “first quarter in a half-year”.

16 Subsection 148(1)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

17 Subsection 148(1)

Omit “year” (wherever occurring), substitute “half-year”.

18 Subsection 148(2)

Omit “year”, substitute “half-year”.

19 Subsection 148(3)

Omit “year” (wherever occurring), substitute “half-year”.

20 Subsection 148(3)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

21 Subsection 148(4)

Omit “year” (wherever occurring), substitute “half-year”.

22 Subsection 148(4)

Omit “30 June” (wherever occurring), substitute “30 June or 31 December (as the case requires)”.

23 Section 149

Omit “year” (wherever occurring), substitute “half-year”.

24 Subsection 150(1)

Omit “year” (wherever occurring), substitute “half-year”.

25 Section 150(2)

Omit “year”, substitute “half-year”.

26 Subsection 150(2)

Omit “16 June in the preceding year”, substitute “16 June or 16 December (as the case requires) in the preceding half-year”.

27 Subsection 150(3)

Omit “16 June in the preceding year”, substitute “16 June or 16 December (as the case requires) in the preceding half-year”.

28 Subsection 150(3)

Omit “30 June in the preceding year bears to 12”, substitute “30 June or 31 December (as the case requires) in the preceding half-year bears to 6”.

29 Subsection 153(1)

Omit “30 June in a year”, substitute “30 June or 31 December (as the case requires) in a half-year”.

30 Sections 153A and 153AAA

Repeal the sections.

31 At the end of section 168

Add:

19

(19) Regulations made within one year after the commencement of this subsection for purposes arising from any amendment of this Act made by the Superannuation Legislation Amendment (Indexation) Act 2001 may commence on a day:

(a) earlier than the day on which they are made; but

(b) not earlier than the commencement of this subsection.

32 Application

1

The amendments and repeals made by this Schedule apply:

(a) for the purpose of working out an increase in the rate of a pension that is payable immediately before:

(i) the prescribed half-year beginning on 1 January 2002; and

(ii) each subsequent prescribed half-year; and

(b) for the purpose of working out the prescribed maximum rate (Superannuation Act 1976) on or after 1 January 2002; andwithin the meaning of section 73A of the

(c) for any other purpose related to the purposes mentioned in paragraphs (a) and (b).

2

To avoid doubt, the repeals and amendments made by this Schedule do not affect any increase in the rate of a pension that arose from the operation of any provision repealed or amended by this Schedule.

Schedule 3—Defence Force Retirement and Death Benefits Act 1973

Defence Force Retirement and Death Benefits Act 1973

1 Subsection 98A(1)

Insert:

first quarter, in relation to a half-year, means:

(a) for a half-year beginning on 1 January in a year—the March quarter of the year; and

(b) for a half-year beginning on 1 July in a year—the September quarter of the year.

2 Subsection 98A(1)

Insert:

half-year means a period of 6 months beginning on 1 January or 1 July in any year.

3 Subsection 98A(1)

Insert:

prescribed half-year means the half-year commencing on 1 January 2002 or a subsequent half-year.

4 Subsection 98A(1) (definition of prescribed year)

Repeal the definition.

5 Subsection 98A(2)

Omit “March quarter”, substitute “first quarter in a half-year”.

6 Subsection 98B(1)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

7 Subsection 98B(1)

Omit “year” (wherever occurring), substitute “half-year”.

8 Subsection 98B(2)

Omit “year” (wherever occurring), substitute “half-year”.

9 Subsection 98B(3)

Omit “year” (wherever occurring), substitute “half-year”.

10 Subsection 98B(3)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

11 Subsection 98B(4)

Omit “year” (wherever occurring), substitute “half-year”.

12 Subsection 98B(5A)

Omit “March quarter” (wherever occurring), substitute “first quarter”.

13 Subsection 98B(5A)

Omit “year” (wherever occurring), substitute “half-year”.

14 Paragraph 98B(5B)(a)

Repeal the paragraph, substitute:

(a) in relation to the prescribed half-year that commenced on 1 July 2001—the amount that was the existing amount in relation to that provision, as calculated under this section immediately before the commencement of [this amending item]; and

15 Paragraph 98B(5B)(b)

Omit “year”, substitute “half-year”.

16 Subsection 98B(7)

Omit “30 June” (wherever occurring), substitute “30 June or 31 December (as the case requires)”.

17 Subsection 98B(7)

Omit “year” (wherever occurring), substitute “half-year”.

18 Section 98C

Omit “year” (wherever occurring), substitute “half-year”.

19 Subsection 98D(1)

Omit “year” (wherever occurring), substitute “half-year”.

20 Subsection 98D(2)

Omit “year” (wherever occurring), substitute “half-year”.

21 Subsection 98D(3)

Omit “16 June in the preceding year”, substitute “16 June or 16 December (as the case requires) in the preceding half-year”.

22 Subsection 98D(4)

Omit “16 June in the preceding year”, substitute “16 June or 16 December (as the case requires) in the preceding half-year”.

23 Subsection 98D(4)

Omit “30 June in the preceding year bears to 12”, substitute “30 June or 31 December (as the case requires) in the preceding half-year bears to 6”.

24 Section 98E

Omit “30 June in a year”, substitute “30 June or 31 December (as the case requires) in a half-year”.

25 Subsection 98F(1)

Omit “year” (wherever occurring), substitute “half-year”.

26 Subsection 98F(2)

Repeal the subsection.

27 Subsection 98F(3)

Omit “year” (wherever occurring), substitute “half-year”.

28 Subsection 98G(2)

Omit “year” (wherever occurring), substitute “half-year”.

29 Subsection 98G(3)

Repeal the subsection.

30 Sections 98GA and 98GB

Repeal the sections.

31 Application

Note: The heading to year” and substituting “half-year”.section 98F is altered by omitting “

Note: The heading to year” and substituting “half-year”.section 98G is altered by omitting “

1

The amendments and repeals made by this Schedule apply:

(a) for the purpose of working out an increase in the rate of a pension benefit that is payable immediately before:

(i) the prescribed half-year beginning on 1 January 2002; and

(ii) each subsequent prescribed half-year; and

(b) for any other purpose related to the purpose mentioned in paragraph (a).

2

To avoid doubt, the amendments and repeals made by this Schedule do not affect any increase in the rate of a pension benefit that arose from the operation of any provision amended or repealed by this Schedule.

[Minister’s second reading speech made in—

House of Representatives on 28 June 2001

Senate on 20 September 2001]

(134/01)