Superannuation Guarantee (Administration) Act 1992
A benefit certificate is a certificate by an actuary relating to one or more specified defined benefit superannuation schemes and specifying the rate, expressed as a percentage, that is, in the opinion of the actuary, the notional employer contribution rate, in relation to a specified class of employees (being members of the scheme or schemes, as the case may be), of an employer who is a contributor under the scheme or schemes (as the case may be) for the benefit of an employee in that class.
[ CCH Note: S 10(1) will be amended by No 57 of 2025, s 3 and Sch 1 items 37 and 38, by substituting " benefit certificate " for " benefit certificate " and " defined benefit members " for " members " , effective 1 July 2026. For application and transitional provisions, see note under s 16 .]
10(2)
The notional employer contribution rate, in relation to a class of employees specified in a benefit certificate relating to one or more defined benefit superannuation schemes, is the contribution rate required to meet the expected long-term cost, to an employer who contributes to the scheme or schemes for the benefit of employees in the class, of the minimum benefits accruing in respect of all employees in the class from the date of effect of the benefit certificate onwards.
10(3)
A benefit certificate has effect from the date specified in the certificate until: (a) a superannuation scheme to which it relates is amended in a way that affects, or may affect, the level or method of calculation of the minimum benefits provided under the scheme for the class of employees specified in the certificate; or (b) another benefit certificate is issued in relation to the same class of employees and the same scheme or schemes; or (c) a period of 5 years from the date of issue expires; or (d) in the case of a certificate that relates to a scheme that is a defined benefit superannuation scheme because of the operation of subsection 6A(2) - the conversion notice under section 6B is revoked;
whichever occurs first.
View history note
Hide history note10(4)
A benefit certificate may be expressed to have effect from: (a) a day that is no earlier than:
(i) if the certificate is issued before 15 May in a quarter starting on 1 April, or before a later day in that quarter allowed by the Commissioner - 1 January in the previous quarter; or
(ii) if the certificate is issued before 15 August in a quarter starting on 1 July, or before a later day in that quarter allowed by the Commissioner - 1 April in the previous quarter; or
(iii) if the certificate is issued before 15 November in a quarter starting on 1 October, or before a later day in that quarter allowed by the Commissioner - 1 July in the previous quarter; or
(iv) if the certificate is issued before 15 February in a quarter starting on 1 January, or before a later day in that quarter allowed by the Commissioner - 1 October in the previous quarter; or
(b) a day that is no later than the day on which the certificate is issued.
(v) in any other case - the first day of the quarter in which the certificate is issued; and
10(6)
The regulations may make provision regarding: (a) the issue and form of benefit certificates; and (b) the way in which the expected long-term cost to an employer of benefits accruing to all employees is to be calculated under subsection (2) ; and (c) the manner in which the contribution rate is to be expressed under subsection (2) ; and (d) the way in which minimum benefits accruing to all employees are to be calculated under subsection (2) .
[
CCH Note:
S 10A will be inserted by No 57 of 2025, s 3 and Sch 1 item 11, effective 1 July 2026. For application and transitional provisions, see note under s
16
. S 10A will read:
an amount equal to the total of those reductions. For paragraph
(h)
, reductions are not counted if they are of amounts excluded by subsection
(3)
from being qualifying earnings.
SECTION 10A INTERPRETATION: EXPRESSIONS RELATING TO QUALIFYING EARNINGS
Meaning of
qualifying earnings
10A(1)
A person
'
s
qualifying earnings
are amounts covered by one or more of the following paragraphs:
(a)
the person
'
s ordinary time earnings;
(b)
all commissions payable to the person;
(c)
all payments for the performance of the person
'
s duties as a member of the executive body (whether described as the board of directors or otherwise) of a body corporate;
(d)
all payments under a contract referred to in subsection
12(3)
that are in respect of the person
'
s labour under the contract;
(e)
all remuneration of the person as a member of the Parliament of the Commonwealth or a State or the Legislative Assembly of a Territory;
(f)
all payments to the person for work referred to in subsection
12(8)
;
(g)
all remuneration of the person in circumstances referred to in subsection
12(9)
or
(10)
;
(h)
if under an arrangement the person agreed for:
(i)
a contribution to be made to a complying superannuation fund or an RSA for the benefit of the person by the person
'
s employer; and
(ii)
in return, for the reduction (including to nil) of one or more amounts of a kind described in paragraphs
(a)
to
(g)
of this subsection but not in subsection
(3)
of this section;
Note:
10A(2)
To the extent that an amount is covered by more than one paragraph of subsection (1) , the amount is counted only once.
Exclusions
10A(3)
However, a person ' s qualifying earnings do not include any of the following:
(a) a payment of an amount that represents the reversal of all or part of a sacrificed contribution;
(b) earnings or remuneration of, or payments to, the person to the extent that:
(i) the person is an employee of a kind prescribed by the regulations; or
(ii) the earnings, remuneration or payments are for work done of a kind prescribed by the regulations; or
(iii) the earnings, remuneration or payments are otherwise of a kind prescribed by the regulations.
Meaning of payment of qualifying earnings to or for an employee
10A(4)
A payment of qualifying earnings to or for an employee by an employer means:
(a) a payment of qualifying earnings to the employee by or on behalf of the employer; or
(b) for qualifying earnings described by paragraph (1)(h) - the reductions described in that paragraph made in return for the making of the sacrificed contribution for the benefit of the employee.
Meaning of maximum contributions base
10A(5)
The maximum contributions base , for a payment of qualifying earnings to or for an employee, is the following amount (rounded down to the nearest multiple of $ 10):
| Concessional contributions cap | × | 100 | ||
| Charge percentage |
where:
charge percentage
has the same meaning as in subsection
17A(2)
.
concessional contributions cap
is the basic concessional contributions cap (within the meaning of the
Income Tax Assessment Act 1997
) for the financial year in which the payment is made.
10A(6)
For the purposes of this Act (other than this section), if an employer ' s payment of qualifying earnings to or for an employee during a financial year results in the employee ' s total qualifying earnings:
(a) during the financial year; and
(b) in relation to the employer;
exceeding the maximum contributions base, then treat the amount of that payment as if it were equal to:
(c) if that payment caused that total to exceed that base - so much of that payment as does not include the excess; or
(d) if an earlier payment had already caused that total to exceed that base - nil.
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