Media Release - Discussion Paper Released on Superannuation for Councillors

Nambucca Valley Council is advising the community that the Office of Local Government has released a Discussion Paper on the possible provision of superannuation guarantee payments in addition to councillors’ and mayors’ annual allowances.

Nambucca Valley Council Mayor, Councillor Rhonda Hoban OAM, said "The paper has been released based on concerns expressed by some mayors and councillors that the non-payment of superannuation is inequitable and that it is a deterrent to more women and young people standing for Council.

"The Commonwealth Superannuation Guarantee (Administration) Act 1993 (SG Act) imposes an obligation on an employer to pay the superannuation guarantee of 9.5% of an employee’s earnings to a complying superannuation fund nominated by the employee.

"The obligations under the SG Act do not extend to councils with respect to the fees they pay to mayors and councillors because they are not employees of the council for the purposes of that Act.

"However, an amendment could be made to the Local Government Act to allow an amount equivalent to the superannuation guarantee to be paid to councillors either voluntarily or compulsorily into a nominated superannuation fund. The additional cost for this Council, if introduced, would be approximately $14,000 p.a." said Mayor Hoban.

"I encourage community members to download the discussion paper and after consideration make a submission to the Office of Local Government." concluded Mayor Hoban.

Please click here to view the Councillor Superannuation Discussion Paper issued by the Office of Local Government. 

Submissions close on Friday 8 May 2020 and may be made to olg@olg.nsw.gov.au labelled 'Councillor Superannuation Consultation’ and marked to the attention of OLG’s Council Governance Team.

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For enquiries please contact the Mayor, Rhonda Hoban OAM on 0408 661 412 or the General Manager, Michael Coulter on 6568 0200 or 0409 153 788.

MICHAEL COULTER, GENERAL MANAGER


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