Document ID: chunk:federal_register_of_legislation:F2021L01451:body:0:p1
Version: federal_register_of_legislation:F2021L01451
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Legislative Instrument

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

I, Usha Narain, Acting Deputy Commissioner of Taxation, make this determination under subsection 21(2) of the Superannuation Guarantee (Administration) Act 1992.

Usha Narain
Acting Deputy Commissioner of Taxation
Policy, Analysis and Legislation
Law Design and Practice

8 October 2021

    1.             Name of instrument
    This determination is the 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.

    2.             Commencement
    This instrument commences on 1 November 2021.

    3.             Application
       (1)          This instrument applies to decisions by the Commissioner of Taxation (the Commissioner) about whether or not to reduce an employer's individual superannuation guarantee shortfall (shortfall) for an employee for a quarter for the purposes of subsection 19(2F) of the Superannuation Guarantee (Administration) Act 1992 (SGAA) where the conditions in subsection 19(2G) of the SGAA apply.

       (2)          This instrument does not apply to:

           (a)          the part of an employer's shortfall where the superannuation guarantee contributions made by an employer to a fund for an employee for a quarter do not otherwise reduce the employer's charge percentage to nil under sections 22 or 23 of the SGAA, or

           (b)          an increase to an employer's shortfall imposed by subsections 19(2A) and (2B) of the SGAA because the employer did not make the superannuation guarantee contributions to a fund that complies with the choice of fund requirements.

    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