Corporations Amendment (Insolvency) Act 2007 (132 of 2007)

Schedule 1   Improving outcomes for creditors

Part 1   Enhancing protection of employee entitlements

Corporations Act 2001

7   After subsection 556(1A)

Insert:

(1AB) For the purposes of paragraph (1)(e), if:

(a) the company has a superannuation guarantee shortfall for a quarter; and

(b) the shortfall relates to one or more employees; and

(c) the quarter ends before the relevant date;

superannuation guarantee charge in respect of the quarter is taken to be payable by the company in respect of services rendered to the company by those employees before the relevant date.

(1AC) If:

(a) the company has a superannuation guarantee shortfall for a quarter; and

(b) the shortfall relates to one or more employees; and

(c) the relevant date occurs during the quarter; and

(d) the relevant date is not the first day of the quarter;

then:

(e) for the purposes of paragraph (1)(e), so much of the superannuation guarantee charge in respect of the quarter as is attributable to the period before the relevant date is taken to be payable by the company in respect of services rendered to the company by those employees before the relevant date; and

(f) the remainder of the superannuation guarantee charge in respect of the quarter is taken:

(i) to be an expense referred to in paragraph (1)(a); and

(ii) not to be an amount of superannuation guarantee charge referred in paragraph (1)(e).

(1AD) If:

(a) the company has a superannuation guarantee shortfall for a quarter; and

(b) the shortfall relates to one or more employees; and

(c) the relevant date is the first day of the quarter;

the superannuation guarantee charge in respect of the quarter is taken:

(d) to be an expense referred to in paragraph (1)(a); and

(e) not to be an amount of superannuation guarantee charge referred in paragraph (1)(e).

(1AE) For the purposes of paragraph (1)(e), if:

(a) the company has a superannuation guarantee shortfall for a quarter; and

(b) the shortfall relates to one or more employees; and

(c) the quarter begins after the relevant date; and

(d) one or more payments were made by the company during the quarter on account of wages payable to those employees in respect of services rendered to the company by those employees before the relevant date; and

(e) those payments were made as a result of an advance of money by a person after the relevant date for the purpose of making those payments;

then:

(f) for the purposes of paragraph (1)(e), so much of the superannuation guarantee charge in respect of the quarter as is attributable to those payments is taken to be payable by the company in respect of services rendered to the company by those employees before the relevant date; and

(g) the remainder of the superannuation guarantee charge in respect of the quarter is taken:

(i) to be an expense referred to in paragraph (1)(a); and

(ii) not to be an amount of superannuation guarantee charge referred in paragraph (1)(e).

(1AF) If:

(a) the company has a superannuation guarantee shortfall for a quarter; and

(b) the shortfall relates to one or more employees; and

(c) the relevant date occurs during the quarter; and

(d) one or more payments were made by the company during the quarter on account of wages payable to those employees in respect of services rendered to the company by those employees before the relevant date; and

(e) those payments were made as a result of an advance of money by a person after the relevant date for the purpose of making those payments;

then:

(f) for the purposes of paragraph (1)(e), so much of the superannuation guarantee charge in respect of the quarter as is attributable to either or both of the following:

(i) those payments;

(ii) the period before the relevant date;

is taken to be payable by the company in respect of services rendered to the company by those employees before the relevant date; and

(g) the remainder of the superannuation guarantee charge in respect of the quarter is taken:

(i) to be an expense referred to in paragraph (1)(a); and

(ii) not to be an amount of superannuation guarantee charge referred in paragraph (1)(e); and

(h) subsections (1AC) and (1AD) do not apply to the superannuation guarantee charge in respect of the quarter.