Arrangements Under the Superannuation (Productivity Benefit) Act 1988

The Superannuation (Productivity Benefit) Act 1988 [External Site] (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 [External Site], which is the default fund for the PB Act arrangements, as a result of AGEST merging with AustralianSuper on 1 January 2013.

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

The PB Act and the Superannuation Guarantee

From 23 June 2008 the PB Act was amended to ensure that person's under the PB Act arrangements receive contributions that at least meet the requirements of the Superannuation Guarantee (Administration) Act 1992. The amendments require employers to make an additional contribution each quarter, where necessary, to ensure that the employer does not have an individual superannuation guarantee shortfall. That is, if contributions made under the PB Act are not sufficient to prevent an individual superannuation guarantee shortfall in a particular quarter, then an additional 'top up' contribution must be made to prevent a shortfall from eventuating.

Contribution and Interest Rates for the 2013-2014 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 $3,695.38* The amount that is 9.25% of the employee's weekly rate of salary
$3,695.38* or more $341.82

PB Act Interest Rates

First Interest Factor Second Interest Factor Penalty Interest
3.36% 3.36% 5.36%

Recent Rates

PB Act Continuing Contribution Rates

2012-13 Financial Year

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

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
2012-2013 Financial Year 3.67% 3.67% 5.67%
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 [External Site] can be accessed through the Commonwealth legislation database - ComLaw [External Site].

The legislative instruments providing for the 2013-14 contribution and interest rates, and rates for future years, are available on ComLaw:

Other legislative instruments made under the PB Act [External Site] can also be accessed through ComLaw.

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Contact for information on this page: superbranch@finance.gov.au