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

81   After section 25 of the Principal Act the following section is inserted

Certain contributions taken to be in accordance with industrial award that specifies notional earnings base

"25A.(1) This section applies to an industrial award if:

(a) the award specifies an amount of money ('the contribution amount'), in relation to a class of employees identified by the award, as a requisite contribution by an employer to a superannuation fund for the benefit of an employee in the class ('a relevant employee'); and

(b) that amount is required, whether by the award or otherwise, to be adjusted, if there is an increase in the earnings ('the adjustment earnings') of the employees in a certain class of employees identified by the award, by reference to that increase.

"(2) If, in relation to a contribution period, an employer:

(a) is contributing, for the benefit of a relevant employee, to a superannuation fund under an industrial award to which this section applies; and

(b) the award was operative immediately before 21 August 1991 and has not, on or after that day, been amended in a way that has the effect of reducing an employee's notional earnings base;

the employer is taken, for the purposes of subsection 23(2), to have made a contribution to the fund in accordance with an industrial award that specifies, as the percentage referred to in paragraph 23(2)(b), the percentage that represents the contribution amount as a proportion of the employee's notional earnings base in relation to the contribution period for the purposes of subsection 23(2).

"(3) Subject to subsection (4), the employee's notional earnings base in relation to a contribution period for the purposes of subsection 23(2) is the adjustment earnings in respect of that period.

"(4) If the employee's notional earnings base in relation to a contribution period under subsection (3) would be an amount greater than the maximum contribution base for that period, the employee's notional earnings base is the amount equal to the maximum contribution base.".