Superannuation Guarantee (Administration) – Stapled Fund – Guidelines for the Reduction of an Employer’s Individual Superannuation Guarantee Shortfall for Late Contributions Due to Non-acceptance by Notified Stapled Fund Determination 2021
4. Determination4. Determination
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4. Determination
(1) In order to avoid a superannuation guarantee charge liability, employers need to provide a minimum level of superannuation support for their eligible employees by making contributions (superannuation guarantee contributions) to a complying superannuation fund or scheme or a retirement savings account within 28 days after the end of each quarter (the quarterly due date) under Part 3 of the SGAA.
(2) If the actual level of superannuation support made for an employee by the quarterly due date is less than the level of superannuation support prescribed in the legislation, the employer will have a shortfall under section 19 of the SGAA because the level of contributions made will not reduce the employer’s shortfall to nil under sections 22 or 23 of the SGAA.
(3) With effect from 1 November 2021, the Commissioner may reduce (including to nil) the amount of an employer’s shortfall for an employee for the quarter in accordance with subsection 19(2F) of the SGAA where:
(a) the employer, or their agent, was most recently notified by the Commissioner that a fund was a stapled fund for an employee following the employer (or their agent) making a request in accordance with section 32R of the SGAA
(b) the employer attempted to make superannuation guarantee contributions to the most recently notified stapled fund for the employee
(c) the fund did not accept contributions from the employer for the employee
(d) the employee did not have a chosen fund at the time the employer attempted to make the superannuation guarantee contribution, and
(e) the employer subsequently made a superannuation guarantee contribution to a fund on behalf of the employee after the quarterly due date.
(4) The Commissioner, in making a decision on whether or not to reduce the employer’s shortfall, is required by subsection 21(2) of the SGAA to have regard to particular guidelines. This instrument sets out those guidelines.
(5) The Commissioner will have regard to all the relevant facts and circumstances of each individual case in making a decision whether or not to reduce an employer’s shortfall for an employee.
(6) The Commissioner may apply the same level of reduction to the employer’s shortfall for each employee in the group in a quarter where it is evident that the circumstances are similar for a group of employees.