Taxation Laws Amendment (Superannuation) Act 1992 (208 of 1992)

Part 4   AMENDMENT OF THE SUPERANNUATION GUARANTEE (ADMINISTRATION) ACT 1992

Division 2   Amendments relating to notional earnings base

80   Reduction of charge percentage where contribution made to fund other than defined benefit superannuation scheme

Section 23 of the Principal Act is amended:

(a) by omitting subsection (2) and substituting the following subsection:
        

(Reduction of charge percentage where contribution made under industrial award or law)

"(2) Subject to subsections (6) and (7), if, in a contribution period:

(a) an employer is required by an industrial award or a law of a kind referred to in paragraph 13(1)(ab) or 14(1)(ab) to contribute for the benefit of an employee to a superannuation fund; and

(b) the requisite contribution is a specified percentage of the employee's notional earnings base or a percentage of that base calculated in accordance with the award or law; and

(c) the employer contributes to a complying superannuation fund for the benefit of the employee in accordance with the award or law;

the charge percentage for the employer, as calculated under section 20 or 21, in respect of the employee for the contribution period is reduced, in addition to any other such reduction made under this section or section 22, by the amount worked out using the formula:

A x B

where:

'A' is the amount of the percentage figure that expresses the contribution to the fund referred to in paragraph (c) as a proportion of the total amount of the employee's notional earnings base:

(A) if the employee is employed under the industrial award or law for the whole of the contribution period-for the whole of that period; or

(B) if the employee is employed under the award or law for a part of the period-for that part of the period;

'B' is:

(A) 1; or

(B) if, in relation to the contribution period, the period for which the employee is employed by the employer is greater than the period of employment under the industrial award or law referred to in paragraph (a)-the fraction that represents the period of employment under the award or law as a proportion of the period of employment in the contribution period.";

(b) by omitting subsection (9) and substituting the following subsection:
        

"(9) An industrial award, an occupational superannuation arrangement, a law of a kind referred to in paragraph 13(1)(ab) or 14(1)(ab) or a superannuation scheme is to be taken not to specify the requisite employer contribution as a percentage of an employee's notional earnings base if the award, arrangement, law or scheme:

(a) determines the earnings of the employee by reference to which the requisite employer contribution is to be calculated by specifying an amount of money; and

(b) makes no provision for adjustment of that amount by reference to changes in the earnings of an employee.".