SUPERANNUATION GUARANTEE (ADMINISTRATION) ACT 1992

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

SECTION 19   INDIVIDUAL SUPERANNUATION GUARANTEE SHORTFALLS  

19(1)  


An employer ' s individual superannuation guarantee shortfall for an employee for a quarter is the amount worked out using the formula:


Total salary or wages paid
by the employer to the  
employee for the quarter  
× Charge percentage for the
  employer for the quarter  
          100

where:

charge percentage
, for an employer for a quarter, means:


(a) the number specified in subsection (2) for the quarter (unless paragraph (b) applies); or


(b) if the number specified in subsection (2) for the quarter is reduced in respect of the employee by either or both sections 22 and 23 - the number as reduced.

19(2)  


The charge percentage for a quarter in a year described in an item of the table is the number specified in column 2 of the item.


Charge percentage (unless reduced under section 22 or 23)
Item Column 1
Year
Column 2
Charge percentage
1 Year starting on 1 July 2013 9.25
2 Year starting on 1 July 2014 9.5
3 Year starting on 1 July 2015 9.5
4 Year starting on 1 July 2016 9.5
5 Year starting on 1 July 2017 9.5
6 Year starting on 1 July 2018 9.5
7 Year starting on 1 July 2019 9.5
8 Year starting on 1 July 2020 9.5
9 Year starting on 1 July 2021 10
10 Year starting on 1 July 2022 10.5
11 Year starting on 1 July 2023 11
12 Year starting on 1 July 2024 11.5
13 Year starting on or after 1 July 2025 12

19(2A)  


If an employer makes one or more contributions (the no choice contributions ) to an RSA or a complying superannuation fund other than a defined benefit superannuation scheme, for the benefit of an employee during a quarter and the contributions are not made in compliance with the choice of fund requirements, the employer ' s individual superannuation guarantee shortfall for the employee for the quarter is increased by the amount worked out in accordance with the formula:
formula19(2A)

where:

notional quarterly shortfall
is the amount that would have been worked out under subsection (1) if the no choice contributions had not been made.

Note 1:

See also subsection (2E) and section 19A.

Note 2:

Part 3A sets out the choice of fund requirements.

19(2B)  


If:


(a) a reduction of the charge percentage for an employee for a quarter is made under subsection 22(2) in respect of a defined benefit superannuation scheme; and


(b) there is at least one relevant day in the quarter where, if contributions (the notional contributions ) had been made to the scheme by the employer for the benefit of the employee on the day, the notional contributions would have been made not in compliance with the choice of fund requirements; and


(c) section 20 (which deals with certain cases where no contributions are required) does not apply to the employer in respect of the employee in respect of the scheme for the quarter;

the employer ' s individual superannuation guarantee shortfall for the employee for the quarter is increased by the amount worked out in accordance with the formula:

formula19(2B)

where:

notional quarterly shortfall
is the amount that would have been worked out under subsection (1) if no reduction were made under subsection 22(2) in respect of the scheme.

number of breach of condition days
is the number of relevant days in the quarter on which, if a contribution had been made to the scheme by the employer for the benefit of the employee, those contributions would have been made not in compliance with the choice of fund requirements.

Note 1:

See also subsection (2E) and section 19A.

Note 2:

Part 3A sets out the choice of fund requirements.

19(2C)  


The following days in a quarter are relevant days for the purposes of subsection (2B):


(a) if the value of B in the formula in subsection 22(2) for the quarter is 1 - every day in the quarter; or


(b) in any other case - every day in the quarter that is in the shorter of the scheme membership period or the certificate period referred to in subsection 22(2).

19(2CA)  


For the purposes of paragraph (2B)(b), if the employee is a defined benefit member of a superannuation fund, subsection 32C(2) applies in relation to the employee and the fund as if it did not include paragraph 32C(2)(c) (requirement that fund includes a MySuper product).

19(2D)  


A reference in subsections (2A) and (2B) to an employer ' s individual superannuation guarantee shortfall being increased includes a reference to the shortfall being increased from nil.

19(2E)  


The Commissioner may, after taking account, wherever appropriate, of the operation of section 19A , reduce (including to nil) the amount of an increase in an employer ' s individual superannuation guarantee shortfall for an employee for a quarter under subsection (2A) or (2B).
Note:

The Commissioner must have regard to written guidelines when deciding whether or not to make a decision under this subsection: see section 21.

19(3)  


If the total salary or wages paid by an employer to an employee in a quarter exceeds the maximum contribution base for the quarter, the total salary or wages to be taken into account for the purposes of the application of subsection (1) in relation to the quarter is the amount equal to the maximum contribution base.

19(4)  
(Repealed by No 15 of 2007)

19(5)  
(Repealed by No 15 of 2007)

19(6)  
(Repealed by No 15 of 2007)

19(7)  
(Repealed by No 15 of 2007)


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