Taxation Laws Amendment Act (No. 2) 1995 (169 of 1995)

Schedule 4   SUPERANNUATION GUARANTEE

Part 2   AMENDMENT OF THE SUPERANNUATION GUARANTEE (ADMINISTRATION) ACT 1992 RELATING TO 'FLAT DOLLAR' AWARD CONTRIBUTIONS

2   After subsection 23(4)

Insert:

"(4A) Subject to subsections (6), (6A) and (7), if:

(a) an industrial award applying throughout a contribution period

(the current contribution period) specifies that an amount (the award

contribution amount) must be contributed by employers to a

superannuation fund for the benefit of the employer's employees in a

class; and

(b) the award contribution amount is required, whether by the award

or otherwise, to be adjusted by reference to any increase in the

earnings of:

(i) the employees (the adjustment employees) in the class; or

(ii) employees (also the adjustment employees) of a particular kind

in the class; and

(c) immediately before 21 August 1991 the award was operative and

specified an amount in accordance with paragraphs (a) and (b); and

(d) the award has not, on or after that date and before the end of

the current contribution period, been amended in a way that has the

effect of reducing the notional earnings base (see subsection (4C)) of

the employees in the class for any contribution period; and

(e) during the current contribution period, an employer contributes

an amount (the actual contribution amount), whether or not equal to

the award contribution amount, for the benefit of an employee in the

class, to the superannuation fund;

the charge percentage for the employer, as calculated under section 20

or 21, in respect of the employee for the current contribution period,

is reduced in accordance with subsection (4B).

"(4B) The reduction is in addition to any other reduction under this

section or section 22 and its amount is worked out using the formula:

[(Actual contribution amount)/(Notional earnings base (see subsection 4C) of the employee in relation to the current contribution period)]*(Employment factor of the employee in relation to the current contribution period)*(100%)

"(4C) In subsection (4A) or (4B):

employment factor, in relation to an employee in the class for a

contribution period, means:

(a) if, in the contribution period, the period for which the

employee is employed by the employer is greater than the period of

employment under the award-the fraction that represents the period of

employment under the award as a proportion of the period of employment

in the contribution period; or

(b) in any other case-1;

notional earnings base, in relation to an employee in the class for a

contribution period, means an amount equal to the lesser of the

maximum contribution base (see section 15) for the period and:

(a) if the employee is a full-time employee-the earnings of each of

the adjustment employees, under the award, in the contribution period;

or

(b) if the employee is a part-time employee-the amount worked out

using the formula:

[(Number of hours employed)/(Full-time employee's hours)]*(Adjustment earnings)

where:

Adjustment earnings means the earnings of each of the adjustment

employees, under the award, in the contribution period;

Full-time employee's hours means the number of ordinary hours of work

for which an equivalent full-time employee would have been employed in

the period under the award;

Number of hours employed means the number of hours for which the

employee is employed in the contribution period.".