Superannuation Guarantee (Administration) Act 1992

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

Division 2 - Superannuation guarantee charge payable by employers  

Subdivision C - Individual superannuation guarantee shortfalls arise if insufficient timely eligible superannuation contributions are made  

SECTION 18A   MEANING OF ELIGIBLE CONTRIBUTION - MAIN RULES  

18A(1)    
An eligible contribution , made by an employer for the benefit of an employee, is:

(a)    a contribution (other than a sacrificed contribution) made by the employer for the benefit of the employee that:

(i) is to a complying superannuation fund; and

(ii) is able to be allocated within the fund for the benefit of the employee; and

(iii) is not made for the benefit of the employee as a defined benefit member of a defined benefit superannuation scheme; and

(iv) is not made at a time when a conversion notice has effect in relation to the fund; or

(b)    a contribution (other than a sacrificed contribution) made by the employer for the benefit of the employee:

(i) to an RSA; and

(ii) that is able to be allocated within the RSA for the benefit of the employee; or

(c)    if:

(i) the employee has died; and

(ii) the employer would, if the employee had not died, have made a contribution covered by paragraph (a) or (b) for the benefit of the employee; and

(iii) the employer instead pays an equivalent amount to the employee ' s legal personal representative;

that equivalent amount paid by the employer; or

(d)    a contribution notionally made as described in subsection (3) to a defined benefit superannuation scheme for the benefit of the employee as a defined benefit member of the scheme.

Note:

For the purposes of subparagraphs (a)(ii) and (b)(ii) , regulations under the Superannuation Industry (Supervision) Act 1993 and under the Retirement Savings Accounts Act 1997 deal with the allocation of contributions.

Presumption for contributions to certain superannuation funds

18A(2)    
A contribution made by the employer for the benefit of the employee to a superannuation fund is conclusively presumed to be a contribution to a complying superannuation fund for the purposes of subparagraph (1)(a)(i) if:

(a)    at or before the time the contribution is made, the employer has obtained a written statement provided by or on behalf of the trustee of the fund; and

(b)    the statement provides that the fund:

(i) is a resident regulated superannuation fund; and

(ii) is not subject to a direction under section 63 of the Superannuation Industry (Supervision) Act 1993 .

Note 1:

The presumption does not extend to any of the other elements of paragraph (1)(a) , such as that the contribution must not be a sacrificed contribution.

Note 2:

The presumption may not always be available (see section 18B ).

Notional contributions for defined benefit members of defined benefit superannuation schemes

18A(3)    
If, on a QE day for the employer and the employee:

(a)    a benefit certificate for a defined benefit superannuation scheme has effect; and

(b)    the scheme is operating for the benefit of the employee:

(i) as a defined benefit member of the scheme; and

(ii) in relation to payments of qualifying earnings to or for the employee by the employer; and

(c)    the benefit certificate:

(i) covers a class of employees (that includes the employee) as defined benefit members of the scheme; and

(ii) specifies the notional employer contribution rate in relation to that class of employees; and

(d)    the employer has a written statement, provided by or on behalf of the trustee of the scheme, that the scheme:

(i) is a resident regulated superannuation fund; and

(ii) is not subject to a direction under section 63 of the Superannuation Industry (Supervision) Act 1993 ; and

(iii) has not been subject to such a direction at any time since the beginning of the day on which the benefit certificate is expressed to take effect;

treat the scheme as having received, on the QE day, a notional contribution made by the employer for the benefit of the employee that is equal to:

Amount of the qualifying earnings × Notional employer contribution rate

where:

amount of the qualifying earnings
has the same meaning as in subsection 17A(2) for the one or more payments of qualifying earnings to or for the employee made by the employer on the QE day.

Note:

The written statement may not always have effect (see section 18B ).