Superannuation Guarantee Determination
SGD 2003/4
Superannuation guarantee: method of preparing a benefit certificate for superannuation funds which are 'deemed' defined benefit superannuation schemes under subsection 6A(2) of the Superannuation Guarantee (Administration) Act 1992.
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Please note that the PDF version is the authorised version of this ruling.
FOI status:
may be released| Preamble |
| Superannuation Guarantee Determinations do not have the force of law. Each decision made by the Australian Taxation Office is made on the merits of the individual case having regard to any relevant Rulings and Determinations. |
1. The trustee of a fund other than a defined benefit fund, for example an accumulation fund, can elect that the fund be treated as a defined benefit superannuation scheme for the purposes of the Superannuation Guarantee (Administration) Act 1992 (SGAA).[F1]
2. Where a trustee makes the election, employers providing support in the fund will be treated as employers in defined benefit superannuation schemes. Consequently, employers who wish to use the scheme for superannuation guarantee purposes will need to obtain a benefit certificate from an actuary specifying the notional employer contribution rate (the NECR) in relation to the employees specified in the certificate.
3. The NECR in respect of a class of employees is calculated in accordance with either regulation 4, 5 or 6 of the Superannuation Guarantee (Administration) Regulations. Regulation 4 applies if neither regulations 5 nor 6 apply to calculate the NECR. Regulation 4 provides that the NECR is to be calculated in accordance with a method decided by an actuary.
4. For an alternative calculation to be adopted under regulation 4, an actuary must certify that the method is applicable to the class of employees, is consistent with regulations 5 or 6, and determines a rate comparable to the rate at which the employer of the employees must contribute to the superannuation scheme, or schemes, to provide the employees with the minimum requisite benefit.
5. For the purposes of regulation 4, where the fund is a defined benefit superannuation scheme under subsection 6A(2) of the SGAA, we will accept methods of calculating a NECR which are consistent with Guidance Note 457 issued on 30 June 1993 (and revised in March 1995) by The Institute of Actuaries of Australia and entitled 'Benefit Certificates for "Deemed" Defined Benefit Funds'.
6. The Institute of Actuaries Guidance Note 457 is available from:
- The Institute of Actuaries of Australia
- Level 7
- Challis House
- 4 Martin Place
- SYDNEY NSW 2000
- Telephone: (02) 9233 3466
- Facsimile: (02) 9233 3446
- Internet: http://www.actuaries.asn.au
Date of Effect:
7. This Determination applies from 1 October 2003. It replaces SGD 93/9 which issued on 8 July 1993. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of issue of the Determination.
Commissioner of Taxation
1 October 2003
Previously released as SGD 93/9.
References
ATO references:
NO 93/356-2
Subject References:
benefit certificates
notional employer contribution rate
deemed defined benefit
minimum requisite benefits
Legislative References:
SGAA 1992
SGAA 1992 6A(2)
Superannuation Guarantee (Administration) Regulations 1993 4
Superannuation Guarantee (Administration) Regulations 1993 5
Superannuation Guarantee (Administration) Regulations 1993 6