SUPERANNUATION GUARANTEE (ADMINISTRATION) ACT 1992

PART 3A - CHOICE OF FUND REQUIREMENTS  

Division 8 - Miscellaneous  

SECTION 32Y   NOTIONAL EARNINGS BASE TO CONTINUE TO BE USED  

32Y(1)   [Application to other fund]  

This section applies if:


(a) an employer is contributing to a fund (the choice fund ) that is a chosen fund of an employee; and


(b) it is reasonable to assume that, if the choice of fund requirements did not apply, the employer would instead have contributed to a different fund (the other fund ) for the benefit of that employee; and


(c) contributions to the other fund would not have been covered by subsection 23(5) .

32Y(2)   [Application to reduction in charge percentage]  

This section also applies if:


(a) an employer is contributing to a fund (the choice fund ) that is a chosen fund of an employee; and


(b) it is reasonable to assume that, if the choice of fund requirements did not apply, that a reduction in the charge percentage for the employer would have been made under subsection 22(2) as a result of a scheme (the other fund ) for the benefit of that employee.

32Y(3)   [Reduction in charge percentage where contribution taken into account]  

In working out the reduction in the charge percentage under subsection 23(2) , (3) , (4) , (4A) or (4D) as a result of a contribution to the choice fund, the employee's notional earnings base is taken to be equal to the lesser of that notional earnings base and the amount that would have been the employee's notional earnings base if the contribution had been made to the other fund, or the reduction had been made under subsection 22(2) as a result of the other fund (as the case requires).

32Y(4)   [Reduction in charge percentage where contribution not taken into account]  

In working out the reduction in the charge percentage under subsection 23(5) as a result of a contribution to the choice fund, the employee's ordinary time earnings are taken to be equal to the lesser of those ordinary time earnings and the amount that would have been the employee's notional earnings base if the contribution had been made to the other fund, or the reduction had been made under subsection 22(2) as a result of the other fund (as the case requires).




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