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Tax and Superannuation Laws Amendment (Norfolk Island Reforms) Bill 2015

Schedule 2 Superannuation guarantee

   

Superannuation Guarantee (Administration) Act 1992

1  Paragraphs 27(1)(b) and (c)

Repeal the paragraphs, substitute:

                     (b)  salary or wages paid to an employee who is not a resident of Australia for work done outside Australia (except to the extent that the salary or wages relate to employment covered by a certificate under section 15C);

                     (c)  salary or wages paid by an employer who is not a resident of Australia to an employee who is a resident of Australia for work done outside Australia;

2  Application and transitional

(1)       The amendments made by this Part apply in relation to quarters starting on or after 1 July 2016.

(2)       However, for the purpose of making the calculation of an employer’s individual superannuation guarantee shortfall for an employee for a quarter under section 19 of the Superannuation Guarantee (Administration) Act 1992 , if:

                     (a)  some or all of the salary or wages paid by the employer to the employee for the quarter consists of Norfolk Island salary or wages; and

                     (b)  the quarter occurs in a financial year starting on or after1 July 2016, and ending before 1 July 2027;

the total salary and wages paid by the employer to the employee for the quarter is taken to be reduced by an amount worked out using the formula:

where:

charge percentage is the charge percentage for the employer for the quarter, as specified in subsection 19(2) of the Superannuation Guarantee (Administration) Act 1992 .

Norfolk Island charge percentage is:

                     (a)  if the quarter occurs in the financial year starting on 1 July 2016—1; or

                     (b)  if the quarter occurs in a later financial year—the number worked out by increasing by 1 the Norfolk Island charge percentage for a quarter that occurred in the financial year preceding that later financial year.

Example: If the quarter occurs in the 2018-19 financial year, the Norfolk Island charge percentage will be 3, because in the quarters of the 2017-18 financial year it will have been 2 (having increased by 1 from the 2016-17 financial year).

(3)       In this item:

Norfolk Island salary or wages means salary or wages that, if the amendments made by this Part had not been made, would, because of subparagraph 27(1)(b)(ii) or (c)(ii) of the Superannuation Guarantee (Administration) Act 1992 , not have been taken into account for the purpose of making a calculation under section 19 of that Act.

(52/15)