Document ID: chunk:federal_register_of_legislation:F2021L01451:body:0:p2
Version: federal_register_of_legislation:F2021L01451
Segment Type: other
Provision Reference: 
Character Range: 2956–5984

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.

    Introductory period for single default accounts

       (7)          The Commissioner will apply a transitional approach to making decisions on whether to reduce the employer's shortfall for a quarter during an introductory period of 12 months. This period commences on 1 November 2021, being the commencement of the stapled fund requirements  and concludes on 31 October 2022.

       (8)          During this introductory period, the Commissioner will reduce an employer's shortfall for one or more employees to nil where the circumstances set out in section 4(3)(a) to (e) of this instrument have been met and the employer has made reasonable attempts to comply with the choice of fund rules when making the late superannuation guarantee contributions.

       (9)          If an employer has not made reasonable attempts to comply with the choice of fund rules during the introductory period, the Commissioner will determine whether or not to reduce the employer's shortfall in accordance with the general Reduction guidelines outlined below.

    Reduction guidelines

       (10)      The Commissioner may reduce the amount of the employer's shortfall in whole or in part where all of the circumstances set out in section 4(3)(a) to (e) of this instrument have been met unless the employer has a superannuation guarantee charge (SGC) assessment for the quarter and has chosen to offset the late contributions against the SGC