Superannuation Guarantee (Administration) Regulations 2018

[ CCH Note: Pt 4 will be substituted by FRLI No F2026L00133, s 4 and Sch 1 item 18, effective 1 July 2026. Pt 4 will read:

PART 4 - LIABILITY OF EMPLOYERS TO SUPERANNUATION GUARANTEE CHARGE

Division 1 - Exclusions from qualifying earnings

SECTION 11 EXCLUSIONS FROM QUALIFYING EARNINGS - KINDS OF EMPLOYEES  

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For the purposes of subparagraph 10A(3)(b)(i) of the Act, a person ' s qualifying earnings do not include earnings or remuneration of, or payments to, the person to the extent that the person is an employee of any of the following kinds:

(a) an employee who has been appointed by a company operating in Australia to be the national managing executive or deputy national managing executive or a state manager and who is the holder of:

(i) a Subclass 456 (Business (Short Stay)) visa granted under the Migration Act 1958 ; or

(ii) a Subclass 400 (Temporary Work (Short Stay Specialist)) visa granted under that Act;

(b) an employee who is the holder of a visa referred to in paragraph (a) if:

(i) the employee holds a position as a senior executive of a company operating in Australia or is establishing a business activity in Australia on behalf of the employer; and

(ii) the employee ' s position carries substantial executive responsibility; and

(iii) the employee ' s qualifications for the position are appropriate; and

(iv) the employee ' s position is a full-time position;

(c) an employee who is the holder of a Subclass 482 (Skills in Demand or Temporary Skill Shortage) visa or a Subclass 457 (Temporary Work (Skilled)) visa granted under the Migration Act 1958 if:

(i) the employee has been appointed by a company operating in Australia to be the national managing executive or deputy national managing executive or a state manager; and

(ii) the employee was nominated as mentioned in clause 482.212 of Schedule 2 to the Migration Regulations 1994 or in paragraph 457.223(2)(c) or 457.223(4)(a) of that Schedule (as in force before 18 March 2018);

(d) an employee who is the holder of a Subclass 482 (Skills in Demand or Temporary Skill Shortage) visa or a Subclass 457 (Temporary Work (Skilled)) visa granted under the Migration Act 1958 if:

(i) the employee holds a position as a senior executive of a company operating in Australia; and

(ii) the employee was nominated as mentioned in clause 482.212 of Schedule 2 to the Migration Regulations 1994 or in paragraph 457.223(2)(c) or 457.223(4)(a) of that Schedule (as in force before 18 March 2018); and

(iii) the employee ' s position carries substantial executive responsibility; and

(iv) the employee ' s qualifications for the position are appropriate; and

(v) the employee ' s position is a full-time position;

(e) an employee who is the holder of a Subclass 482 (Skills in Demand or Temporary Skill Shortage) visa or a Subclass 457 (Temporary Work (Skilled)) visa granted under the Migration Act 1958 if:

(i) the employee is establishing a business activity in Australia on behalf of the employer; and

(ii) the employee ' s position carries substantial executive responsibility; and

(iii) the employee ' s qualifications for the position are appropriate; and

(iv) the employee ' s position is a full-time position;

(f) a part-time employee who is under 18.

SECTION 12 EXCLUSIONS FROM QUALIFYING EARNINGS - KINDS OF EARNINGS, REMUNERATION OR PAYMENTS  

12(1)
For the purposes of subparagraph 10A(3)(b)(iii) of the Act, a person ' s qualifying earnings do not include earnings or remuneration of, or payments to, the person (the payments to the person ) to the extent that the payments to the person are of any of the following kinds:

(a) payments to the person for a period of parental leave;

(b) payments to the person:

(i) where the person is engaged in an eligible community service activity; and

(ii) by the person ' s usual employer while the person is absent from the employee ' s usual employment;

(c) payments to the person:

(i) in respect of service that the person is undertaking with the Australian Defence Force; and

(ii) by the person ' s usual employer while the person is absent from the person ' s usual employment; and

(iii) that are not paid by the Australian Defence Force;

(d) if a scheduled international social security agreement provides that an employer to which the payments to the person relate is not subject to the Act in relation to the work for which the payments to the person are paid - the payments to the person so paid;

(e) payments to the person:

(i) paid on or after 1 November 2022; and

(ii) funded by a payment made to the person ' s employer under the program established by the Commonwealth and known as the Aged Care Registered Nurses ' Payment to reward clinical skills and leadership;

(f) payments to the person that are fringe benefits (within the meaning of the Fringe Benefits Tax Assessment Act 1986 );

(g) if the person is not a resident of Australia, either of the following:

(i) payments to the person for work done outside Australia (except to the extent that the payments to the person relate to employment covered by a certificate under section 15C of the Act);

(ii) payments to the person by their employer for work done in the Joint Petroleum Development Area (within the meaning of the Petroleum (Timor Sea Treaty) Act 2003 );

(h) if the person is a resident of Australia and the employer is not a resident of Australia - payments to the person by their employer for work done outside Australia;

(i) payments to the person that are exempt from income tax under item 1.4 of the table in section 51-5 of the Income Tax Assessment Act 1997 ;

(j) payments to the person under a contract for the employment of the person, for not more than 30 hours per week, for work that is wholly or principally of a domestic or private nature.

12(2)
Paragraph (1)(b) does not apply to payments to the person where the person engages in the eligible community service activity in the capacity of an employee of the employer that carries on the activity.

12(3)
Paragraphs (1)(b) and (c) do not apply to a payment to the person relating to:

(a) annual leave; or

(b) sick leave; or

(c) long service leave;

that is paid in relation to the period during which the person is engaged in the relevant activity or performing the relevant work.

Division 2 - Superannuation guarantee shortfalls

SECTION 13 EXCEPTIONAL CIRCUMSTANCES THAT AFFECT ABILITY OF EMPLOYERS TO MAKE ELIGIBLE CONTRIBUTIONS  
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For the purposes of paragraph 18C(4)(a) of the Act, the following kinds of exceptional circumstances are prescribed:

(a) natural disasters;

(b) widespread outages of:

(i) information and communication technology services; or

(ii) other technology services or platforms that facilitate or support employers to make contributions.

Division 3 - Administrative uplift amounts for superannuation guarantee shortfalls

SECTION 13A SIMPLIFIED OUTLINE OF THIS DIVISION  

An employer ' s administrative uplift amount for a QE day is 60% of the sum of the totals of its individual final superannuation guarantee shortfalls, and individual notional earnings components, for the QE day.

However, this 60% can be reduced by this Division in 2 ways and can be reduced to 0%.

The first way can reduce the percentage to 40% if the Commissioner has not initiated an assessment, or made an estimate, of superannuation guarantee charge for the employer during the past 24 months.

The second way can reduce the percentage if the employer lodges a voluntary disclosure statement for the QE day:

(a) in the approved form; and

(b) before the day an assessment is made for the employer and the QE day.

SECTION 13B REDUCING AN EMPLOYER ' S ADMINISTRATIVE UPLIFT AMOUNT  

13B(1)
This Division sets out how an employer ' s administrative uplift amount for a QE day can be reduced.

13B(2)
This amount is reduced (but not below nil) if either or both of sections 13C or 13D apply to reduce the percentage in subsection 19B(1) of the Act.

Note:

That percentage is 60% of the sum of the totals of the employer ' s individual final superannuation guarantee shortfalls, and individual notional earnings components, for the QE day (see subsection 19B(1) of the Act).

SECTION 13C REDUCTION IF NO COMMISSIONER-INITIATED ASSESSMENT IN THE PAST 24 MONTHS  

13C(1)
This section applies to reduce the percentage for the QE day by 20% if, during the 24-month period ending on the QE day:

(a) no Commissioner-initiated assessment that is made, during the period, for the employer is in force on the QE day; and

(b) no estimate under subsection 268-10(1) in Schedule 1 to the Taxation Administration Act 1953 has been made, during the period, for the employer for a liability to pay superannuation guarantee charge.

Note:

If this subsection applies, then the 60% in subsection 19B(1) of the Act is reduced to 40%.

13C(2)
For the purposes of paragraph (1)(b) , disregard an estimate for which either of the following is satisfied on or before the QE day:

(a) the estimate has been revoked;

(b) the amount of the estimate has been reduced to nil.

Note:

Subdivision 268-D in Schedule 1 to the Taxation Administration Act 1953 deals with reducing and revoking estimates.

13C(3)
Despite subsection (1) , if the QE day is between 1 July 2026 and 30 June 2028 (inclusive), then treat the period mentioned in subsection (1) as if it started on 1 July 2026.

13C(4)
A Commissioner-initiated assessment , for the employer, is an assessment of superannuation guarantee charge that:

(a) is of an amount of charge that is greater than nil; and

(b) is made under subsection 36(1) of the Act for the employer and a QE day; and

(c) satisfies subsection (5) .

13C(5)
The assessment satisfies this subsection if:

(a) it was made on the Commissioner ' s own initiative; or

(b) it was made in response to a statement that:

(i) was purportedly lodged by the employer under section 33 of the Act as a voluntary disclosure statement; but

(ii) is not a voluntary disclosure statement.

Note:

Section 33 of the Act sets out when a statement is a voluntary disclosure statement.

SECTION 13D REDUCTION IF A VOLUNTARY DISCLOSURE STATEMENT IS LODGED FOR THE QE DAY  

13D(1)
This section applies to reduce the percentage for the QE day by the percentage in column 1 of an item of the following table if the employer lodges a voluntary disclosure statement for the QE day:

(a) on a day covered by column 2 of that table item (the lodgment day ); and

(b) before the day an assessment under subsection 36(1) of the Act is made for the employer and the QE day.

Reductions in percentage if a voluntary disclosure statement is lodged for the QE day
	Column 1	Column 2
Item	Reduce the percentage by:	… if the lodgment day is:
1	40%	before the end of the 30-day period starting on the QE day.
2	35%	during the period: (a) starting immediately after the end of the period mentioned in item 1; and (b) ending at the end of the 60-day period starting on the QE day.
3	30%	during the period: (a) starting immediately after the end of the period mentioned in item 2; and (b) ending at the end of the 120-day period starting on the QE day.
4	15%	after the end of the 120-day period starting on the QE day.

Example 1:

If section 13C applies and table item 1 applies, the 60% in subsection 19B(1) of the Act is reduced to 0%.

Example 2:

If section 13C does not apply but table item 2 applies, the 60% in subsection 19B(1) of the Act is reduced to 25%.

Note:

Section 33 of the Act sets out when a statement is a voluntary disclosure statement.