Superannuation Guarantee (Administration) Act 1992

PART 3 - LIABILITY OF EMPLOYERS OTHER THAN THE COMMONWEALTH AND TAX-EXEMPT COMMONWEALTH AUTHORITIES TO PAY SUPERANNUATION GUARANTEE CHARGE  

Division 2 - Superannuation guarantee charge payable by employers  

Subdivision C - Individual superannuation guarantee shortfalls arise if insufficient timely eligible superannuation contributions are made  

SECTION 18C   EMPLOYER ' S INDIVIDUAL BASE SUPERANNUATION GUARANTEE SHORTFALL FOR AN EMPLOYEE AND A QE DAY  

Meaning of individual base superannuation guarantee shortfall

18C(1)    
An employer ' s individual base superannuation guarantee shortfall for an employee and a QE day is equal to:

Individual superannuation guarantee amount for the employee and the QE day − Eligible contributions relevant for the QE day

where:

eligible contributions relevant for the QE day
means so much of each eligible contribution made by the employer for the benefit of the employee as:

(a) is applied under this subsection for the QE day (the current QE day ), and has not been applied under this subsection or section 18D for an earlier QE day; and

(b) is applied under this subsection in the order that it is received by the relevant fund, RSA, representative or scheme; and

(c) is so received during one of these periods (the standard periods ):

(i) the usual period for the current QE day; or

(ii) the 12-month period ending on the day before the current QE day;

or before the end of the latest day in any applicable items of the table in subsection (2) of this section; and

(d) does not cause the amount resulting from this subsection for the employee and the QE day to be less than nil.

Note:

An eligible contribution in the form of a notional contribution to a defined benefit superannuation scheme will always be covered by subparagraph (c)(i) because it is treated as being received on the current QE day (see subsection 18A(3) ).

Allowable longer periods for receiving eligible contributions

18C(2)    
In addition to the standard periods, the eligible contribution can be received before the end of the latest day in any applicable item of the following table:

Allowable longer periods for receiving eligible contributions
Item	If this happens:	The eligible contribution is to be received:
1	the eligible contribution is the first eligible contribution made to a particular complying superannuation fund or RSA by the employer for the benefit of the employee: (a) after the employee commenced (or recommenced) employment with the employer; or (b) after the employer ceased making one or more eligible contributions for the benefit of the employee to another complying superannuation fund or RSA	during the extended usual period for the current QE day.
2	(a) the current QE day relates to qualifying earnings of a kind determined under subsection (3) ; and (b) a later QE day (a standard QE day ) for the employer and the employee relates to qualifying earnings not of a kind determined under subsection (3)	before the end of the usual period for the first standard QE day after the current QE day.
3	the employer and the current QE day are covered by a determination under subsection (4)	before the later of: (a) the end of the extended usual period for the current QE day; and (b) the end of the period of 20 business days starting on the day after the determination is made.
4	the usual period for the current QE day ends before the latest day (the latest due day ) that an earlier eligible contribution that: (a) was made by the employer for the benefit of the employee; and (b) was applied under subsection (1) for an earlier QE day; was able to be received for the purposes of subsection (1)	before the end of the latest due day.

Note:

When the contribution is received is not the only factor for whether it is an eligible contribution relevant for the QE day (see paragraphs (a) , (b) and (d) of the definition of that expression in subsection (1) ).

Kinds of out-of-cycle qualifying earnings

18C(3)    
The Commissioner may, by legislative instrument, determine:

(a)    kinds of out-of-cycle qualifying earnings; and

(b)    the circumstances that must exist for qualifying earnings to be one of those kinds.

Qualifying earnings in exceptional circumstances

18C(4)    
The Commissioner may, by legislative instrument, determine:

(a)    one or more kinds of employers that are affected by exceptional circumstances of a kind prescribed by the regulations that affect the ability of the employers to make eligible contributions; and

(b)    the period during which any QE days for payments of qualifying earnings by those employers are affected by those exceptional circumstances.

The period determined for the purposes of paragraph (b) may start before the day the determination is made.

Note 1:

Examples of exceptional circumstances for this purpose include natural disasters, or widespread outages of information and communications technology services, that affect multiple employers on a large scale.

Note 2:

If the period starts before the day the determination is made, eligible contributions can still be counted if made before the end of the 20 business day period starting on the day after the determination is made (see item 3 of the table in subsection (2) ).