Superannuation Guarantee (Administration) Act 1992

[ CCH Note: S 17 will be substituted by No 57 of 2025, s 3 and Sch 1 item 12, effective 1 July 2026. For application and transitional provisions, see note under s 16 . S 17 will read:

Subdivision B - Individual superannuation guarantee amounts arise if qualifying earnings are paid etc.

SECTION 17 SIMPLIFIED OUTLINE OF THIS SUBDIVISION  
17

If on a particular day an employer:

(a) pays qualifying earnings to an employee; or

(b) reduces an employee ' s qualifying earnings so that a sacrificed contribution can be made for the employee;

then, on that day, the employer has an individual superannuation guarantee amount for the employee equal to a particular percentage of the payment or reduction.

However, the amount will be nil if an exemption certificate covers the employer and the employee for that day.

[ CCH Note: S 17A to 17D will be inserted by No 57 of 2025, s 3 and Sch 1 item 12, effective 1 July 2026. For application and transitional provisions, see note under s 16 . S 17A to 17D will read:

SECTION 17A WHEN AN INDIVIDUAL SUPERANNUATION GUARANTEE AMOUNT ARISES  

17A(1)
This Subdivision applies if an employer makes a payment of qualifying earnings to or for an employee on a particular day (the QE day ).

Note:

This includes reducing the employee ' s earnings so that a sacrificed contribution can be made for the employee (see paragraphs 10A(1)(h) and (4)(b) ).

17A(2)
On the QE day, the employer has an individual superannuation guarantee amount for the employee equal to:

	Amount of the qualifying earnings	×	Charge percentage
			100

where:

amount of the qualifying earnings
means:

(a) if there is one such payment - the amount of the payment; or

(b) if there are 2 or more such payments - the sum of the amounts of the payments.

Note:

If the payment of qualifying earnings is in the form of a reduction so that a sacrificed contribution can be made, the amount of the payment is the amount of the reduction (see paragraph 10A(1)(h) ).

charge percentage
means 12.

SECTION 17B AN EXEMPTION CERTIFICATE CAN REDUCE THIS AMOUNT TO NIL  
17B
However, if an employer shortfall exemption certificate is in force for the employee in relation to:

(a) the employer; and

(b) a period that includes the QE day;

treat the employee as having already reached the maximum contributions base before the QE day.

Note 1:

This means:

(a) the amount of the payment of qualifying earnings on the QE day is treated as if it were nil (see subsection 10A(6) ); and

(b) the individual superannuation guarantee amount is nil.

Note 2:

If the employee has more than one employer and the certificate is issued in relation to only this employer, then the certificate does not affect the other employers ' individual superannuation guarantee amounts.

SECTION 17C ISSUING AN EXEMPTION CERTIFICATE  
Issuing of certificate

17C(1)
The Commissioner may, on application by an employee, issue a certificate (an employer shortfall exemption certificate ) to the applicant for:

(a) a specified employer of the applicant at the time the application is made; and

(b) a specified period ending at the end of a specified financial year;

if the Commissioner is satisfied of the matters in subsection (2).

17C(2)
The matters are that:

(a) if the certificate is not issued, the applicant is likely to have excess concessional contributions for that financial year (whether or not issuing the certificate would prevent that result); and

(b) if the certificate is issued for that period, at least one other employer of the applicant is likely to have an individual superannuation guarantee amount for:

(i) the applicant; and

(ii) a QE day during that financial year;

that is greater than nil; and

(c) it is appropriate in the circumstances to issue the certificate.

17C(3)
When considering a matter in subsection (2) , the Commissioner:

(a) for the matter in paragraph (2)(a) or (b) - must have regard to any other employer shortfall exemption certificate that has been issued, or is proposed to be issued, to the applicant for that financial year; and

(b) for the matter in paragraph (2)(c) - may have regard to:

(i) the effect that issuing the certificate is likely to have on the applicant ' s concessional contributions for that financial year; and

(ii) any other matter that the Commissioner considers relevant.

Application for certificate

17C(4)
An application for an employer shortfall exemption certificate:

(a) must be in the approved form; and

(b) must specify the employer, period and financial year to be specified in the certificate; and

(c) must be made at least 30 days before the first day of the period.

Objections and other matters

17C(5)
A person who is dissatisfied with a decision of the Commissioner under subsection (1) may object against the decision in the manner set out in Part IVC of the Taxation Administration Act 1953 .

17C(6)
The Commissioner may not vary or revoke an employer shortfall exemption certificate.

17C(7)
An employer shortfall exemption certificate:

(a) may be issued after the first day of the period specified in the certificate; and

(b) is not a legislative instrument.

SECTION 17D NOTICE ABOUT AN EXEMPTION CERTIFICATE  

17D(1)
If the Commissioner makes a decision under subsection 17C(1) about an application, the Commissioner must give written notice of the decision to:

(a) the applicant; and

(b) if the decision is to issue a certificate - the employer to which the certificate relates.

17D(2)
A notice of a decision to issue a certificate must include a copy of the certificate.

17D(3)
The Commissioner is treated as having decided not to issue a certificate to the applicant if the Commissioner does not give notice (under subsection (1) ) of the decision during the 60-day period starting on the day the application was made.