Superannuation Guarantee (Administration) Act 1992

PART 2 - EXPLANATION OF TERMS USED IN THE ACT  

SECTION 15A   INTERPRETATION: SALARY SACRIFICE ARRANGEMENTS  


Salary sacrifice arrangement

15A(1)    
An arrangement under which a contribution is, or is to be, made to a complying superannuation fund or an RSA by an employer for the benefit of an employee is a salary sacrifice arrangement if the employee agreed:


(a) for the contribution to be made; and


(b) in return, for either or both of the following amounts to be reduced (including to nil):


(i) the ordinary time earnings of the employee;

(ii) the salary or wages of the employee.


Sacrificed amounts

15A(2)    
If an amount mentioned in subparagraph (1)(b)(i) or (ii) is reduced under a salary sacrifice arrangement, the amount of that reduction is:


(a) if ordinary time earnings for a quarter are reduced - a sacrificed ordinary time earnings amount of the employee for the quarter in respect of the employer; and


(b) if salary or wages for a quarter are reduced - a sacrificed salary or wages amount of the employee for the quarter in respect of the employer.

Excluded salary or wages

15A(3)    
In working out the amount of a reduction for the purposes of subsection (2), disregard any amounts that, had they been paid to the employee (instead of being reduced), would have been excluded salary or wages.

15A(4)    
For the purposes of this section, excluded salary or wages are salary or wages that, under section 27 or 28 , are not to be taken into account for the purpose of making a calculation under section 19 .




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.