Arrangements Under the Superannuation (Productivity Benefit) Act 1988
The Superannuation (Productivity Benefit) Act 1988 [
] (the PB Act) applies to most persons with no other employer-sponsored superannuation cover in respect of their Australian or ACT Government employment or appointment, but has been closed to new employees and statutory office holders (office holders) since 1 July 2006. Persons covered include certain casual and temporary employees, office holders and members of boards and commissions. The PB Act also covers certain contractors and consultants in Australian or ACT Government employment.
Australian and ACT Government employers are generally required to make contributions on behalf of employees and office holders covered by these arrangements, which are paid to one of the superannuation funds approved under the PB Act.
If an employee or office holder does not choose a fund, the contributions are paid to AustralianSuper [], which has been declared to be the default fund for the PB Act arrangements by the Minister for Finance and Deregulation.
Previously, the Australian Government Employees Superannuation Trust (AGEST) was the default fund for these contributions. However, as a result of AGEST merging with AustralianSuper on 1 January 2013, it was necessary for a new default fund to be declared with effect from this date.
The PB Act also provides safety net benefits for Australian and ACT Government employees and office holders whose employers have not paid contributions to a fund as required.
As noted above, the PB Act is now closed to Australian and ACT Government employees and office holders who commence employment or appointment on or after 1 July 2006. These employees and office holders will be covered by choice of fund arrangements provided by their employers.
For further information about the PB Act arrangements, contact: superbranch@finance.gov.au
Contribution and Interest Rates for the 2012-2013 Financial Year
PB Act Continuing Contribution Rates
| Weekly rate of salary | Weekly contribution |
|---|---|
| Less than $150.33 | $13.53 |
| $150.33 or more but less than $3,519.23 | The amount that is 9% of the employee's weekly rate of salary |
| $3,519.23 or more | $316.73 |
PB Act Interest Rates
| First Interest Factor | Second Interest Factor | Penalty Interest |
|---|---|---|
| 3.67% | 3.67% | 5.67% |
Recent Rates
PB Act Continuing Contribution Rates
2011-12 Financial Year
| Weekly rate of salary | Weekly contribution |
|---|---|
| Less than $150.33 | $13.53 |
| $150.33 or more but less than $3,370.77 | The amount that is 9% of the employee's weekly rate of salary |
| $3,370.77 or more | $303.37 |
2010-2011 Financial Year
| Weekly rate of salary | Weekly contribution |
|---|---|
| Less than $150.33 | $13.53 |
| $150.33 or more but less than $3,247.69 | The amount that is 9% of the employee's weekly rate of salary |
| $3,247.69 or more | $292.29 |
2009-2010 Financial Year
| Weekly rate of salary | Weekly contribution |
|---|---|
| Less than $150.33 | $13.53 |
| $150.33 or more but less than $3,090.00 | The amount that is 9% of the employee's weekly rate of salary |
| $3,090.00 or more | $278.10 |
2008-2009 Financial Year
| Weekly rate of salary | Weekly contribution |
|---|---|
| Less than $150.33 | $13.53 |
| $150.33 or more but less than $2,936.92 | The amount that is 9% of the employee's weekly rate of salary |
| $2,936.92 or more | $264.32 |
PB Act Interest Rates
| First Interest Factor | Second Interest Factor | Penalty Interest | |
|---|---|---|---|
| 2011-2012 Financial Year | 5.40% | 5.40% | 7.40% |
| 2010-2011 Financial Year | 5.71% | 5.71% | 7.71% |
| 2009-2010 Financial Year | 4.57% | 4.57% | 6.57% |
| 2008-2009 Financial Year | 6.29% | 6.29% | 8.29% |
For more historical PB Act rates, contact the Superannuation Branch.
Legislation and Legislative Instruments
A consolidated version of the PB Act [] can be accessed through the Commonwealth legislation database - ComLaw [].
The legislative instruments providing for the 2012-13 contribution and interest rates are available on ComLaw:
Other legislative instruments made under the PB Act [] can also be accessed through ComLaw.
Contact for information on this page: superbranch@finance.gov.au