Superannuation Guarantee Determination

SGD 93/2

When calculating the base year annual national payroll for an employer, are all the businesses of an individual or a non-incorporated entity treated as separate employers?

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FOI status:

1. No. Even though an individual or a non-incorporated entity (e.g. a partnership) carries on more than one business (none of which is incorporated) that person or entity is still treated as a single employer for the purposes of the Superannuation Guarantee.

Example :

Michael Jones has two businesses:

the businesses are not incorporated entities;

each has its own Group Employer Number;

each uses a registered business name;

they both were employers for the whole of the 1991-92 financial year.

Michael's base year annual national payroll was

Frog Services had a payroll for 1991-92 of $750,000

Tadpole Constructions had a payroll for1991-92 of $700,000

Michael's base year annual national payroll is $1,450,000.

Michael therefore has a charge percentage for each of his employees for the contribution period:

1 July 1992 to 31 December 1992 of 4%; and

1 January 1993 to 30 June 1993 of 5%.

Commissioner of Taxation
11/2/93

References

ATO references:
NO 92/7705-6

Subject References:
annual national payroll;
employer;
base year

Legislative References:
SGAA 6(1);
SGAA 20(2)
and 21(2)