Superannuation Guarantee (Administration) Regulations 2018

PART 4 - LIABILITY OF EMPLOYERS TO SUPERANNUATION GUARANTEE CHARGE

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Division 1 - Exclusions from qualifying earnings

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

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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)

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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.

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History

S 12 substituted by FRLI No F2026L00133, s 4 and Sch 1 item 18, effective 1 July 2026. S 12 formerly read:

SECTION 12 CERTAIN SALARY OR WAGES EXCLUDED
12(1)
For the purposes of paragraph 27(1)(e) of the Act, the following are prescribed:
(a) salary or wages paid to an employee for a period of parental leave;
(b) salary or wages:

(i) paid to an employee who is engaging in an eligible community service activity; and

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

(c) salary or wages:

(i) paid to an employee who is undertaking service with the Australian Defence Force; and

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

(d) salary or wages consisting of a payment of green army allowance (within the meaning of the Social Security Act 1991 );
(e) if a scheduled international social security agreement provides that an employer to which salary or wages relate is not subject to the Act in relation to the work for which the salary or wages were paid - the salary or wages so paid;
(f) salary or wages:

(i) paid on or after 1 June 2020; and

(ii) funded by a payment made to the employer under the program established by the Commonwealth and known as the Aged Care Workforce Retention Grant Opportunity;

(g) salary or wages:

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

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

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History

S 12(1) amended by FRLI No F2022L01355, s 4 and Sch 1 item 1, by inserting para (g), effective 18 October 2022.

S 12(1) amended by FRLI No F2020L00859, s 4 and Sch 1 item 1, by inserting para (f), effective 1 July 2020.

12(2)
Paragraph (1)(b) does not apply to the salary or wages of an employee who engages in the eligible community service activity in the capacity of an employee of the employer that carries on the activity.

12(3)
Paragraph (1)(c) does not apply to salary or wages paid by the Australian Defence Force (other than salary or wages to which section 29 of the Act applies).

12(4)
Paragraphs (1)(b) and (c) do not apply to a payment 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 employee is engaged in the relevant activity or performing the relevant work.

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