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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
Parliamentary Remuneration
Amendment (Salary Packaging)
Bill 2009
Contents
Page
1 Name of Act 2
2 Commencement 2
Schedule 1 Amendment of Parliamentary Remuneration Act 1989
No 160 3
Schedule 2 Amendment of other Acts 9
I certify that this public bill, which originated in the Legislative Assembly, has
finally passed the Legislative Council and the Legislative Assembly of New
South Wales.
Clerk of the Legislative Assembly.
Legislative Assembly,
Sydney, , 2009
New South Wales
Parliamentary Remuneration
Amendment (Salary Packaging)
Bill 2009
Act No , 2009
An Act to amend the Parliamentary Remuneration Act 1989, the Parliamentary
Contributory Superannuation Act 1971 and the Constitution Act 1902 with respect to
the provision of employment benefits and the making of superannuation
contributions for members of Parliament by way of salary sacrifice.
I have examined this bill and find it to correspond in all respects with the bill as
finally passed by both Houses.
Assistant Speaker of the Legislative Assembly.
Clause 1 Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009
The Legislature of New South Wales enacts:
1 Name of Act
This Act is the Parliamentary Remuneration Amendment (Salary
Packaging) Act 2009.
2 Commencement
This Act commences on the date of assent to this Act.
Page 2
Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009
Amendment of Parliamentary Remuneration Act 1989 No 160 Schedule 1
Schedule 1 Amendment of Parliamentary
Remuneration Act 1989 No 160
[1] Section 2A Purpose of Act
Insert "or received as employment benefits" after "income" in
section 2A (1) (a).
[2] Section 3 Definitions
Insert in alphabetical order in section 3 (1):
designated employer--see section 6A.
employment benefit--see section 6A.
salary sacrifice contribution means a superannuation
contribution made for a member by way of salary sacrifice.
[3] Part 2A
Insert after Part 2:
Part 2A Employment benefits
6A Employment benefits
(1) A member (including a recognised office holder) is entitled to be
provided with employment benefits if the member elects by
notice in writing to the designated employer to be provided with
those benefits and if the designated employer approves of that
election.
(2) For the purposes of this section, an employment benefit is a
benefit (other than a salary sacrifice contribution) that:
(a) is or is to be provided to a member at the cost of the State,
and
(b) is of a private nature, and
(c) is of a kind approved as an employment benefit by a
determination of the Tribunal, either generally or in
relation to any member or class of members.
(3) The cost of providing an employment benefit (including any
applicable tax or administrative costs) is to be as determined from
time to time by the designated employer and the remuneration
otherwise payable to the member is reduced by the cost of
providing the benefit.
Page 3
Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009
Schedule 1 Amendment of Parliamentary Remuneration Act 1989 No 160
(4) The designated employer may from time to time determine the
terms and conditions on which, including the manner in which,
employment benefits are to be provided.
(5) Any determination by the designated employer under this section
as to the costing or terms and conditions of, or any other matter
relating to, the provision of employment benefits is to be
consistent with any determination of the Tribunal relating to
those matters.
(6) The provision of an employment benefit to a member may be
terminated at any time by the member by notice in writing to the
designated employer.
(7) For the purposes of this section, the designated employer is the
person holding the position of Executive Manager, Parliamentary
Services in the Parliament's Department of Parliamentary
Services or the holder of a position of the following kind that is
prescribed by the regulations for the purposes of this section:
(a) a position of an officer of either House of Parliament,
(b) any position under the separate control of the President or
Speaker, or under their joint control.
(8) This section has effect despite anything to the contrary in this
Act, the Constitution Act 1902 or any other Act.
6B Functions of Tribunal relating to employment benefits
(1) The Tribunal may, from time to time, make determinations with
regard to employment benefits.
(2) The Tribunal may, by a determination:
(a) fix the type of benefits that may be provided as
employment benefits, and
(b) fix conditions on which employment benefits are to be
provided, and
(c) make provision for the costing of employment benefits.
(3) A determination may amend or revoke a determination that has
already been made.
(4) A determination or a provision of a determination may relate to
all or any members or to any class of members.
Page 4
Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009
Amendment of Parliamentary Remuneration Act 1989 No 160 Schedule 1
(5) In fixing the type of benefits that may be provided as employment
benefits, the Tribunal may only approve a benefit of a kind that is
available to a member of the Government Service (other than a
benefit that is only available to executive officers within the
meaning of Part 3.1 of the Public Sector Employment and
Management Act 2002).
6C Special determinations as to employment benefits
(1) The Minister may direct that a special determination be made by
the Tribunal as regards employment benefits.
(2) Any such direction:
(a) may relate to all or any employment benefits or any class
of them, and
(b) may relate to all or any individual members and recognised
office holders or to any class of them.
(3) A special determination is to be made by such time as the
Minister directs and is to take effect from such time as the
Tribunal specifies in the determination.
[4] Section 8 The Tribunal
Insert after section 8 (2):
(3) The Tribunal has such powers, authorities, duties or functions as
are conferred or imposed on it by or under this or any other Act.
[5] Section 9
Omit the section. Insert instead:
9 Tribunal may make determinations as to additional entitlements
The Tribunal may make determinations of additional
entitlements that are to be available to a member or recognised
office holder.
[6] Section 10 General provisions as to determinations of additional
entitlements
Insert "under this Part" after "determinations" in section 10 (1).
[7] Section 12A Financial implications of determinations
Omit "this Act" from section 12A (1). Insert instead "this Part".
[8] Section 14A Superannuation approvals
Omit "14" wherever occurring in section 14A (5) and (6). Insert instead "14I".
Page 5
Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009
Schedule 1 Amendment of Parliamentary Remuneration Act 1989 No 160
[9] Section 14C Definitions
Insert "and Division 3" after "Division".
[10] Section 14C, definition of "salary"
Omit paragraph (b) of the definition. Insert instead:
(b) the total of the following amounts:
(i) the remuneration payable to the member by way of
basic salary and additional salary (if any),
(ii) the cost of any employment benefits provided to the
person (as determined by the designated employer),
(iii) the amount of any additional superannuation
contributions made by way of salary sacrifice under
section 14F, or
[11] Part 3A, Division 3, heading
Insert after section 14E:
Division 3 Salary sacrifice for additional
superannuation contributions
[12] Section 14EA
Insert before section 14F:
14EA Application of Division
This Division applies to all members, including continuing
members under the Parliamentary Contributory Superannuation
Act 1971 referred to in section 14B (contributors to the PCSS).
[13] Section 14F Salary sacrifice arrangements
Omit section 14F (1) and (2). Insert instead:
(1) A member may elect, by notice in writing to the designated
employer, to make additional superannuation contributions by
way of salary sacrifice contributions.
(2) A salary sacrifice contribution is a contribution paid in
accordance with an approval by the designated employer under
which the member elects to forgo remuneration yet to be earned
and the remuneration foregone is to be applied by the designated
employer as a superannuation contribution to a superannuation
fund, approved deposit fund or retirement account.
Page 6
Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009
Amendment of Parliamentary Remuneration Act 1989 No 160 Schedule 1
[14] Section 14F (4)
Omit "The percentage or amount so specified is not to exceed 50%, or a
greater percentage prescribed by the regulations, of the total basic salary and
any additional salary of the member.".
[15] Section 14F (4A)
Insert after section 14F (4):
(4A) If an election is made by a contributor to the PCSS, the election
is to specify that the additional superannuation contributions are
to be paid to one of the following:
(a) the First State Superannuation Fund,
(b) a complying superannuation fund,
(c) a complying approved deposit fund,
(d) a retirement savings account.
[16] Section 14F (5)-(7)
Omit "Treasurer" wherever occurring. Insert instead "designated employer".
[17] Section 14F (8) (b)
Insert "under section 14E or this section" after "purpose".
[18] Part 3B, heading
Insert after section 14F:
Part 3B The Tribunal
[19] Sections 8 (as amended by item [4]), 13 and 14
Renumber the sections as sections 14G, 14H and 14I, respectively, and
transfer them to new Part 3B (as inserted by item [18]).
[20] Section 15 Payment of Parliamentary remuneration, allowances and
employment benefits
Insert after section 15 (4):
(4A) Employment benefits are subject to such provisions as may be
specified in a determination that is in force.
[21] Section 15 (6)
Insert "(including the cost of providing employment benefits and salary
sacrifice contributions)" after "this Act".
Page 7
Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009
Schedule 1 Amendment of Parliamentary Remuneration Act 1989 No 160
[22] Schedule 2 Parliamentary Remuneration Tribunal
Omit "(Section 8)". Insert instead "(Section 14G)".
[23] Schedule 3 Savings, transitional and other provisions
Insert at the end of clause 1:
Parliamentary Remuneration Amendment (Salary Packaging)
Act 2009
[24] Schedule 3, clause 4
Insert after clause 3:
4 Existing elections for superannuation contributions
(1) An existing contributions election continues in force as if it had
been made under this Act as amended by the Parliamentary
Remuneration Amendment (Salary Packaging) Act 2009.
(2) In this clause:
existing contributions election means an election by a member
that was in force under section 14F immediately before the
amendment of that section by the Parliamentary Remuneration
Amendment (Salary Packaging) Act 2009.
Page 8
Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009
Amendment of other Acts Schedule 2
Schedule 2 Amendment of other Acts
2.1 Constitution Act 1902 No 32
Section 13 Disqualifications
Insert after section 13 (4B):
(4C) Nothing in:
(a) subsection (1) applies so as to prevent a person from being
elected or from sitting or voting as a Member of either
House of Parliament, or
(b) subsection (2) requires or permits the seat of a Member of
either House of Parliament to be declared to be, or to
become or be, vacant,
on the ground that he or she elects or agrees to be provided with,
or receives, employment benefits (including salary sacrifice
contributions for superannuation) under the Parliamentary
Remuneration Act 1989 or any other Act.
2.2 Parliamentary Contributory Superannuation Act 1971 No 53
[1] Section 3 Definitions
Insert in alphabetical order in section 3 (1):
designated employer has the same meaning as in the
Parliamentary Remuneration Act 1989.
salary sacrifice contribution--see section 18AA.
[2] Section 3 (1), definition of "salary"
Insert at the end of paragraph (c) of the definition:
and
(d) the cost of any employment benefits (within the meaning
of the Parliamentary Remuneration Act 1989) provided to
the member or former member (as determined by the
designated employer), and
(e) if salary sacrifice contributions are made in respect of the
member or former member under this Act, the amounts
payable for those contributions under section 18AA, and
(f) if salary sacrifice contributions are made in respect of the
member or former member under section 14F of the
Parliamentary Remuneration Act 1989, the amounts of
those contributions,
Page 9
Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009
Schedule 2 Amendment of other Acts
[3] Section 6 Payments into and out of Fund
Insert "and salary sacrifice contributions" after "members" where firstly
occurring in section 6 (1) (b).
[4] Section 18AA
Insert after section 18:
18AA Salary sacrifice contributions
(1) The whole or part of the amount required to be deducted from the
salary of a member under this Act may be paid by salary sacrifice
contributions, if the member elects to make salary sacrifice
contributions and the designated employer and the trustees
approve of the election.
(2) A salary sacrifice contribution is a contribution paid in
accordance with an approval by the designated employer under
which the member elects to forgo remuneration yet to be earned
and the remuneration foregone is to be applied by the designated
employer to the amount required to be deducted from the salary
of a member under this Act.
(3) The amount payable for a salary sacrifice contribution to meet the
requirement for a salary deduction under this Act is to comprise
the following:
(a) the amount necessary (taking into account any deductions
not made on a salary sacrifice basis) to meet the required
deductions under this Act (the contribution element),
(b) the amount necessary to meet any tax payable under
Commonwealth taxation law in respect of the amount paid
under paragraph (a).
(4) A salary sacrifice contribution is to be paid within the same
period as a deduction from salary under section 18.
(5) An election under this section:
(a) may be made only in respect of future salary instalments,
and
(b) is to be in writing to the designated employer, and
(c) is to be accompanied by any information required by the
trustees and the designated employer, and
(d) takes effect when it is approved by the designated
employer and the trustees, and
(e) may be varied or revoked by notice in writing to the
designated employer and the trustees.
Page 10
Parliamentary Remuneration Amendment (Salary Packaging) Bill 2009
Amendment of other Acts Schedule 2
(6) In this Act and the regulations, a reference (however expressed)
to any of the following is taken to include a reference to the
contribution element of a salary sacrifice contribution in
accordance with an election under this section:
(a) a deduction from salary,
(b) a contribution by or in respect of a member.
(7) In this Act and the regulations, a reference (however expressed)
to:
(a) an employer-financed component of a benefit does not
include a reference to a salary sacrifice contribution or any
part of a benefit financed by a salary sacrifice contribution,
and
(b) an employee-financed component of a benefit includes a
reference to a contribution element of a salary sacrifice
contribution and any part of a benefit financed by the
contribution element of a salary sacrifice contribution.
(8) This section has effect despite any other provision of this Act.
[5] Schedule 1 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
Parliamentary Remuneration Amendment (Salary Packaging)
Act 2009
Page 11
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