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Thursday, 27 November 1986
Page: 3936

(Question No. 4642)


Mr McArthur asked the Minister for Trade, upon notice, on 19 September 1986:

Is the contribution rate paid by the Export Finance and Insurance Corporation to the Commonwealth Superannuation Fund for the benefit of EFIC employees comparable with that paid by the Housing Loans Insurance Corporation and the Defence Service Homes Insurance Scheme; if not, to what extent does it differ and why?


Mr Hurford —The Minister for Finance has provided the following answer to the honourable member's question:

With effect from 6 January 1986, the operations of the Export Finance and Insurance Corporation were subsumed into the operations of the Australian Trade Commission.

The Australian Trade Commission and the Housing Loans Insurance Corporation, together with a number of other non-departmental bodies, are required under the Superannuation Act 1976 to pay employer superannuation contributions to the Commonwealth in respect of their employees who are members for the Commonwealth Superannuation Scheme (CSS). The Australian Trade Commission currently pays employer superannuation contributions at the rate of 20% of the superannuable salaries of its staff, while the Housing Loans Insurance Corporation pays employer superannuation contributions at the rate of 20.7% of the superannuable salaries of its staff. In these respects, the contribution rates payable by the Australian Trade Commisison and the Housing Loans Insurance Corporation are comparable.

The Defence Service Homes Insurance Scheme is conducted by the Defence Service Homes Corporation. Because the Corporation dos not employ staff (it receives assistance from officers of the Department of Veteran's Affairs) it is not required under the Superannuation Act 1976 to pay employer superannuation contributions. However, a notional employer superannuation contribution at 20% of the superannuable salaries of staff assisting the Corporation full-time on the insurance activities is taken into account when assessing charges associated with the Insurance Scheme. Moneys recovered through charges in respect of superannuation costs are paid to the Consolidated Revenue Fund.