Treasury Laws Amendment (2018 Superannuation Measures No. 1) Act 2019 (78 of 2019)

Schedule 1   Superannuation: employees with multiple employers

Part 1   Main amendments

Superannuation Guarantee (Administration) Act 1992

2   After section 19

Insert:

19AA Employer shortfall exemption certificate

(1) This section applies if the Commissioner has issued an employer shortfall exemption certificate to a person in relation to:

(a) an employer of the person; and

(b) a quarter in a financial year.

(2) Treat the maximum contribution base for the quarter as nil for the purposes of working out the employer's individual superannuation guarantee shortfall under section 19 for the person for the quarter.

Note: An employer shortfall exemption certificate issued to a person in relation to a particular employer does not affect any other employer's individual superannuation guarantee shortfall for the person.

19AB Employer shortfall exemption certificate - application and issuing

Application for certificate

(1) A person may apply to the Commissioner for the Commissioner to issue a certificate under this section (an employer shortfall exemption certificate ) to the person in relation to:

(a) a specified employer of the person (which must be an employer of the person at the time the application is made); and

(b) a specified quarter in a specified financial year.

(2) The application:

(a) must be in the approved form; and

(b) must specify the employer, the quarter and the financial year; and

(c) must be made on or before the day that is 60 days before the first day of the quarter.

Issuing of certificate

(3) The Commissioner may issue the employer shortfall exemption certificate if the Commissioner is satisfied that:

(a) if the certificate is not issued, the person is likely to have excess concessional contributions (within the meaning of the Income Tax Assessment Act 1997) for the financial year (whether or not issuing the certificate would prevent that result); and

(b) if the certificate is issued, at least one other employer of the person is likely to have an individual superannuation guarantee shortfall for the person for the quarter that:

(i) is greater than nil; or

(ii) would be greater than nil but for a reduction under section 22 or 23; and

(c) it is appropriate in the circumstances to issue the certificate.

(4) For the purposes of paragraph (3)(a), the Commissioner is to have regard to any other employer shortfall exemption certificate that has been issued, or is proposed to be issued, in relation to the person and a quarter in the financial year.

(5) For the purposes of paragraph (3)(b), the Commissioner is to have regard to any other employer shortfall exemption certificate that has been issued, or is proposed to be issued, in relation to the person and the quarter.

(6) For the purposes of paragraph (3)(c), the Commissioner may have regard to:

(a) the effect that issuing the employer shortfall exemption certificate is likely to have on the person's concessional contributions (within the meaning of the Income Tax Assessment Act 1997) for the financial year; and

(b) any other matter that the Commissioner considers relevant.

(7) A person who is dissatisfied with a decision of the Commissioner under subsection (3) may object against the decision in the manner set out in Part IVC of the Taxation Administration Act 1953.

(8) The Commissioner may not vary or revoke an employer shortfall exemption certificate.

(9) An employer shortfall exemption certificate is not a legislative instrument.

19AC Employer shortfall exemption certificate - notice of decision

(1) If the Commissioner issues an employer shortfall exemption certificate to a person under section 19AB, the Commissioner must give written notice of the decision to:

(a) the person; and

(b) the employer to which the certificate relates.

(2) A notice under subsection (1) must identify the following:

(a) the person;

(b) the employer;

(c) the quarter to which the certificate relates.

(3) If the Commissioner decides not to issue an employer shortfall exemption certificate to a person under section 19AB, the Commissioner must give written notice of the decision to the person.

(4) The Commissioner is taken to have refused to issue an employer shortfall exemption certificate to a person if the Commissioner does not give notice of the Commissioner's decision before the end of 60 days after the person made the application for the certificate.