State Authorities Non-contributory Superannuation Regulation 2025

Part 1 Preliminary

1 Name of regulation

This regulation is the State Authorities Non-contributory Superannuation Regulation 2025.

2 Commencement

This regulation commences on 1 September 2025.

Note—

This regulation replaces the State Authorities Non-contributory Superannuation Regulation 2020, which is repealed on 1 September 2025 by the Subordinate Legislation Act 1989, section 10(2).

3 Definitions

In this regulation—

base salary, for Part 4—see section 19.

employee, for Part 3—see section 12.

employee’s loading, for Part 4—see section 19.

prescribed benefit, for Part 2, Division 2—see section 6.

relevant period, for Part 4—see section 19.

relevant shift, for Part 4—see section 19.

taxable date, for Part 2, Division 2—see section 6.

the Act means the State Authorities Non-contributory Superannuation Act 1987.

Note—

The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this regulation.

Part 2 Reductions of benefits

Division 1 Reductions relating to early release of benefits—the Act, s 23B

4 Consent to reduction relating to early release of benefit

Before releasing a benefit under the Act, section 23(1)(c) on the grounds of severe financial hardship or on compassionate grounds, STC must obtain the employee’s or former employee’s written consent to the reduction of benefits as a consequence of the early release.

5 Reduction of benefits

(1)  This section applies to the reduction of benefits payable under the Act, section 22, 24 or 26E to an employee or former employee to whom a benefit (an early release benefit) has been released under the Act, section 23(1)(c) on the grounds of severe financial hardship or on compassionate grounds.

(2)  If an early release benefit is released to a former employee for whom the basic benefit was preserved at the time of the release, STC must—

(a)  on and from the date of release, reduce the amount of the preserved basic benefit by the amount of the early release benefit, and

(b)  when the preserved benefit is payable, reduce the amount of the benefit by the amount of the early release benefit.

(3)  If subsection (2) does not apply, STC must—

(a)  create a debt account in relation to the employee or former employee, and

(b)  when a benefit is payable, reduce the benefit payable by the amount debited to the debt account.

(4)  Despite subsection (3), if an employee’s or former employee’s benefit is preserved after the release of an early release benefit but before the benefit is otherwise payable, STC must—

(a)  on and from the date the benefit is preserved, reduce the amount of benefit preserved by the amount debited to the debt account, and

(b)  when the preserved benefit is payable, reduce the benefit payable by the amount debited to the debt account.

(5)  In determining the amount of a reduced benefit, STC may obtain actuarial advice.

(6)  In this section—

amount debited, to a debt account, means the amount of the early release benefit and interest on that amount at a rate determined by STC.

Division 2 Reductions relating to tax liabilities—the Act, s 26A(2)

6 Definitions

In this division—

prescribed benefit means a benefit prescribed by section 7.

taxable date means the date on which STC is liable to pay income tax under a Commonwealth taxation law for employers’ contributions to the Fund.

Examples—

the Income Tax Assessment Act 1936 of the Commonwealth and the Income Tax Assessment Act 1997 of the Commonwealth

7 Prescribed benefits

For the Act, section 26A(2)(a), the benefits provided by the Act, sections 22 and 26E, including benefits preserved under the Act, sections 24 and 26F, are prescribed unless the benefit is payable as a result of the death of a person who was, immediately before death, an employee.

8 Reduction of basic benefit

(1)  This section applies to calculations of a reduction of a prescribed benefit for the Act, section 26A whenever the basic benefit—

(a)  is payable to an employee under the Act, section 23, or

(b)  is preserved for an employee in accordance with the Act, section 24.

(2)  For the Act, section 26A(2)(b), the prescribed method of calculating a reduction is—

 
where—

R represents the amount of the reduction.

F represents—

(a)  if an employee resigns or retires—the employee’s final average salary, or

(b)  otherwise—the employee’s final salary.

Z represents the employee’s years of eligible service calculated on a daily basis, commencing on or after the taxable date.

9 Reduction of deferred accrued benefit

(1)  This section applies to calculations of a reduction of a prescribed benefit for the Act, section 26A whenever the deferred accrued benefit—

(a)  is payable to an employee under the Act, section 23, or

(b)  is preserved for an employee in accordance with the Act, section 26F.

(2)  For the Act, section 26A(2)(b), the prescribed method of calculating a reduction is—

 
where—

R represents the amount of the reduction.

F represents the employee’s final average salary.

Z represents the employee’s years of eligible service calculated on a daily basis, during the period commencing on the taxable date and ending on 30 June 1992.

Division 3 Reductions relating to no-TFN tax—the Act, s 26AB(4)

10 Reductions relating to no-TFN tax

(1)  For the Act, section 26AB(1)(d), the benefit provided by the Act, section 22, including a benefit preserved under the Act, section 24, is prescribed.

(2)  STC must—

(a)  create a debt account in the Fund for each employee or former employee whose benefit is liable to be reduced under the Act, section 26AB, and

(b)  have regard to the debt account when determining the amount of the reduced benefit.

Note—

Under the Act, section 26AB(3), the amount of the reduced benefit is to be determined by STC after obtaining actuarial advice.

11 Provision of information

STC must, at least once a year—

(a)  give each employee and former employee for whom a debt account is established under section 10 a statement of the account balance, and

(b)  if a tax file number has not been previously given to STC for an employee or former employee—request the employee or former employee give the employee’s or former employee’s tax file number to STC.

Part 3 Family law provisions—the Act, s 27AL

12 Definition

In this part—

employee includes a former employee.

13 Valuation of superannuation interests—the Act, s 27AL(g)

(1)  This section applies for—

(a)  the Act, Part 4D, and

(b)  the family law superannuation legislation.

(2)  The value of an employee’s superannuation interest must be determined in accordance with the method set out in the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2025, Schedule 2, Part 9, as made under the Family Law (Superannuation) Regulations 2025 of the Commonwealth.

14 Prescribed period for non-employee spouses to nominate

For the Act, section 27AJ(5)(a) and (b), the prescribed period is 60 days after notice is given to a non-employee spouse under section 15(1).

15 Notice when entitlement becomes payable—the Act, s 27AL(e)

(1)  STC must give an employee and a non-employee spouse written notice if the employee’s superannuation interest is subject to a payment split.

(2)  The notice must be given—

(a)  for a payment split under a superannuation agreement or flag lifting agreement—within 28 days after the operative time for the payment split, or

(b)  for a payment split under a splitting order—within 28 days after the later of the following—

(i)  the operative time for the payment split,

(ii)  the day STC receives the order.

(3)  The notice given to the employee must specify the following—

(a)  the estimated amount of the non-employee spouse’s family law superannuation entitlement,

(b)  how the amount was calculated,

(c)  the period within which the amount will be paid,

(d)  the estimated effect of the payment on the employee’s entitlement under the State Authorities Non-contributory Superannuation Scheme.

(4)  The notice given to the non-employee spouse must—

(a)  specify the following—

(i)  the estimated amount of the non-employee spouse’s family law superannuation entitlement,

(ii)  how the amount was calculated,

(iii)  the circumstances in which the amount may be paid or released to the non-employee spouse,

(iv)  the circumstances in which the amount must be transferred or rolled over to a complying superannuation fund or an RSA, and

(b)  require the non-employee spouse to, within the period prescribed under section 14—

(i)  if the non-employee spouse meets a circumstance for payment or release—provide details as to the required payment method, or

(ii)  otherwise—nominate a complying superannuation fund or an RSA for the transfer or rollover of the amount, and

(c)  specify that the amount will be credited to the Aware Super Fund if, within the period prescribed under section 14—

(i)  the details are not provided, or

(ii)  the nomination is not made.

(5)  STC is not required to give notice if the superannuation interest ceases to be subject to a payment split within the notice period specified in subsection (2).

(6)  In this section—

operative time has the same meaning as in the Family Law Act 1975 of the Commonwealth, Part VIIIB.

16 Family law superannuation payments—the Act, s 27AL(f)

(1)  STC must pay a family law superannuation payment within the following periods—

(a)  for a payment in the circumstance specified in the Act, section 27AJ(3)(a)—as soon as practicable after receiving notice from the non-employee spouse,

(b)  for a payment in the circumstance specified in the Act, section 27AJ(3)(b)—within 30 days after receiving the non-employee spouse’s nomination of a complying superannuation fund or RSA,

(c)  for a payment in the circumstance specified in the Act, section 27AJ(5)—within 30 days after the end of the period prescribed under section 14.

(2)  STC must, within 28 days after taking an action specified in subsection (1), give the employee and non-employee spouse a written notice stating the following—

(a)  that STC paid, released, transferred or rolled over the non-employee spouse’s superannuation entitlement,

(b)  the amount of the entitlement,

(c)  how the amount was calculated,

(d)  for the notice given to the employee—the estimated amount of adjustment made to the benefit of the employee,

(e)  for the notice given to the non-employee spouse, if the amount was transferred or rolled over to a superannuation fund or an RSA—the name and contact details of the superannuation fund or RSA.

Note—

See the Family Law (Superannuation) Regulations 2025 of the Commonwealth, regulation 98 in relation to the fees STC may charge in relation to certain actions taken under this section.

17 Reduction of benefits of employee—the Act, s 27AL(j)

(1)  If a family law superannuation payment is made, the benefit payable to the employee under the Act must be reduced in accordance with this section.

(2)  A benefit payable to an employee, including a benefit transferred under the Act, but not including a preserved benefit, must be reduced when the benefit is paid to the employee or transferred.

(3)  A preserved benefit must be reduced—

(a)  if the benefit is preserved before the family law superannuation payment is made—when the family law superannuation payment is made, or

(b)  if the benefit is preserved after the family law superannuation payment is made —when the benefit is preserved.

(4)  The benefit must be reduced in accordance with the following calculation—

 
where—

R is the amount of the reduced benefit.

V is the amount of the benefit that would have been payable to the employee under the Act if the family law superannuation payment had not been made.

A is the ratio of the amount paid in relation to the non-employee spouse to the value of the benefit of the employee when the payment split occurred.

C is the ratio of the benefit accrual at the time of the payment split to the benefit accrual when the benefit is payable, deferred or transferred, as the case requires.

(5)  If family law superannuation payments are made to, or in relation to, more than one non-employee spouse, the amount of the reduced benefit must be further reduced by multiplying the reduced benefit by the following reduction factor for each family law superannuation payment—

 
where—

F is the reduction factor.

A and C have the same meaning as in subsection (4).

(6)  In this section—

benefit accrual, for a benefit at a point in time, means the benefit accrual as at that time as determined by STC in accordance with actuarial advice.

made, in relation to a family law superannuation payment, means paid, released, transferred or rolled over to, or in relation to, the non-employee spouse.

preserved benefit means a benefit preserved under the Act, section 24.

value, of a benefit, means the value of the benefit as determined by STC in accordance with actuarial advice.

18 Effect of benefit reductions on pensions and other benefits—the Act, s 27AL(j)

A benefit payable under the Act to a person on the death of an employee whose benefit has been, or is to be, reduced as a result of a family law superannuation payment must be based on the amount of the reduced benefit.

Part 4 Salary loading—the Act, s 4(1)(a)(i)

19 Definitions

In this part—

base salary, for an employee, means the remuneration, salary or wages payable to the employee under an award of an industrial tribunal or under an industrial or enterprise agreement, but excluding all additional allowances payable to the employee.

employee’s loading means the loading to be treated as part of an employee’s salary.

relevant period, for an employee, means the period of 12 months ending on 31 December immediately preceding the date on which the salary of the employee is calculated for the Act.

relevant shift means a shift worked by an employee for which a shift allowance is payable by an employer.

20 Determination of loading for shift allowance

An employee’s loading must be determined under whichever of the following applies to the employee—

(a)  section 21,

(b)  section 22,

(c)  section 23.

21 Employee’s loading—calculation based on relevant shifts

(1)  If an employee is paid shift allowances for shifts the employee has worked during a relevant period, the employee’s loading for the allowances must be determined by reference to the number of relevant shifts the employee is taken to have worked during the relevant period.

(2)  The number of relevant shifts an employee is taken to have worked during a relevant period is the number calculated as follows—

 
where—

N is the number of relevant shifts the employee is taken to have worked during the relevant period.

H is the number of hours per shift regularly required to be worked in relevant shifts during the relevant period.

H₀ is the smallest number of hours per shift regularly required to be worked, whether by the employee or a comparable worker, in relevant shifts during any calendar year after 1987, including the relevant period.

S is the sum of—

(a)  the number of relevant shifts the employee actually worked during the relevant period, and

(b)  the number of relevant shifts the employee would have actually worked during the relevant period but for the employee being on leave, being leave for which a shift allowance or an equivalent allowance or loading, including that part of annualised salary that replaces shift allowance in relation to the employee, is paid.

(3)  An employee’s loading in a relevant period is the percentage of the employee’s base salary for the period corresponding to the number of relevant shifts the employee is taken to have worked during the relevant period in the table to this subsection.

Table

Number of relevant shifts	Percentage of base salary
0–104	Nil
105–156	10%
157–208	15%
209 or more	20%

22 Employee’s loading—if amounts under agreement more than loading under section 21

(1)  An employee’s loading for shift allowances is the total of the amounts the employer pays to the employee as shift allowances for relevant shifts worked by the employee during a relevant period (relevant amounts) if—

(a)  there is in force an agreement between, or a practice accepted by, a trade union and the employer of the employee that was in force immediately before 18 December 1987, and

(b)  the effect of the agreement or practice is that the relevant amounts are treated as loading for superannuation purposes, and

(c)  the total of the relevant amounts is more than the loading determined for the period for the employee in accordance with section 21.

(2)  In this section—

trade union means—

(a)  an industrial organisation of employees within the meaning of the Industrial Relations Act 1996, or

(b)  an association of employees registered as an organisation under the Fair Work (Registered Organisations) Act 2009 of the Commonwealth.

23 Employee’s loading—if amounts less than loading under section 21

If the total of the amounts paid or payable to an employee as shift allowances for shifts the employee has worked during a relevant period is less than the loading determined for the period in accordance with section 21, the total of the amounts is the employee’s loading for the allowances.

Part 5 Miscellaneous

24 Determination of eligible service—the Act, s 22(3)

(1)  Eligible service accrued by an employee for a day is the proportion of the day equal to the salary ratio of the employee on the day.

(2)  An employee who is on leave without pay that is not prescribed leave has a salary ratio of 0 in relation to the leave.

(3)  A continuous period of leave without pay must not be regarded as leave without pay for this section if the period is—

(a)  5 days or less, and

(b)  not prescribed leave.

(4)  In this section—

leave without pay, for an employee, means a period of leave from employment with an employer, otherwise than on secondment as referred to in the Act, section 4, during which the employee is not entitled to receive payment of salary from the employer.

prescribed leave, for an employee, means leave without pay during which the employee on leave is absent from employment with an employer—

(a)  because of a grant of sick leave, or

(b)  for a period during which the employee receives periodic payments under an Act providing compensation for workers’ injuries, or

(c)  because of a grant of parental leave, or

(d)  if—

(i)  the absence is under an agreement with the employer for the secondment of the employee, and

(ii)  the employee is seconded to employment that is not employment with an employer, or

(e)  to enable the employee to perform trade union duties unless, in a particular case, the employer certifies to STC in writing that this paragraph is not to apply, or

(f)  to enable the employee to perform duties that the employer certifies to STC in writing to be in the interests of the employer or the State, or

(g)  while on service with the naval, military or air forces of the Commonwealth.

25 Death or incapacity benefits for firefighters—the Act, s 27AG(1)(d)

(1)  For the Act, section 27AE, definition of firefighters award, the Crown Employees (Fire and Rescue NSW Firefighting Staff Death and Disability) Award 2023 is prescribed.

(2)  In complying with or giving effect to the firefighters award, STC—

(a)  may give information obtained in the administration of the Act about an employee or former employee who is or was a firefighter to the following persons—

(i)  Fire and Rescue NSW,

(ii)  the trustees of the Death and Disability Superannuation Fund, and

(b)  must transfer to the Death and Disability Superannuation Fund an amount required as an offset under the firefighters award.

(3)  Despite subsection (2), STC must not give information or transfer an amount unless STC has obtained the employee’s written consent.

(4)  In this section—

Death and Disability Superannuation Fund means the fund established in accordance with the firefighters award.

26 Section 16A employer contributions—salary percentage

For the Act, section 16A(3), 3% is the prescribed percentage for the financial year starting on 1 July 2025 and each following financial year.

27 Savings

An act, matter or thing that, immediately before the repeal of the State Authorities Non-contributory Superannuation Regulation 2020, had effect under that regulation continues to have effect under this regulation.