Superannuation Guarantee (Administration) Amendment Act 2012
No. 22, 2012
An Act to improve superannuation coverage for employees and change the way of working out employers’ individual superannuation guarantee shortfalls, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Superannuation guarantee age and percentage
Superannuation Guarantee (Administration) Act 1992
Superannuation Guarantee (Administration) Amendment Act 2012
No. 22, 2012
An Act to improve superannuation coverage for employees and change the way of working out employers’ individual superannuation guarantee shortfalls, and for related purposes
[Assented to 29 March 2012]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Superannuation Guarantee (Administration) Amendment Act 2012.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 29 March 2012 |
2. Schedule 1 | 1 July 2013. However, the provision(s) do not commence at all unless all of the following Acts have commenced before 1 July 2013: (a) the Minerals Resource Rent Tax Act 2012; (b) the Minerals Resource Rent Tax (Imposition—Customs) Act 2012; (c) the Minerals Resource Rent Tax (Imposition—Excise) Act 2012; (d) the Minerals Resource Rent Tax (Imposition—General) Act 2012. | 1 July 2013 |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Superannuation guarantee age and percentage
Superannuation Guarantee (Administration) Act 1992
1 Subsection 19(1) (paragraphs (a) and (b) of the definition of charge percentage)
After “subsection (2)”, insert “for the quarter”.
2 Subsection 19(2)
Repeal the subsection, substitute:
(2) The charge percentage for a quarter in a year described in column 1 of an item of the table is the number specified in column 2 of the item.
Charge percentage (unless reduced under section 22 or 23) |
Item | Column 1
Year | Column 2
Charge percentage |
1 | Year starting on 1 July 2013 | 9.25 |
2 | Year starting on 1 July 2014 | 9.5 |
3 | Year starting on 1 July 2015 | 10 |
4 | Year starting on 1 July 2016 | 10.5 |
5 | Year starting on 1 July 2017 | 11 |
6 | Year starting on 1 July 2018 | 11.5 |
7 | Year starting on or after 1 July 2019 | 12 |
3 Subsection 23(2) (example)
Omit “If there are no other contributions, and no reduction under section 22, then the charge percentage will be 3 (instead of 9).”.
4 Paragraph 27(1)(a)
Repeal the paragraph.
5 Application
The amendments made by this Schedule apply for the purpose of calculations under section 19 of the Superannuation Guarantee (Administration) Act 1992 for quarters starting on and after 1 July 2013.
[Minister’s second reading speech made in—
House of Representatives on 2 November 2011
Senate on 7 February 2012]
Overview
The Superannuation Guarantee (Administration) Amendment Act 2012 was enacted by the Parliament of Australia to enhance the coverage of superannuation for employees and modify the calculation of employers' individual superannuation guarantee shortfalls. This Act amends the Superannuation Guarantee (Administration) Act 1992, primarily by adjusting the superannuation guarantee charge percentage to incrementally increase from 9.25% starting 1 July 2013 to 12% by 1 July 2019. This progressive increase is intended to bolster superannuation savings over time, ensuring that employees have a more substantial retirement fund. The Act also repeals certain provisions to streamline the calculation process for superannuation guarantees. The changes introduced by this Act aim to address gaps in superannuation coverage and improve the financial security of employees in their retirement.
Scope and Application
The Superannuation Guarantee (Administration) Amendment Act 2012 amends the Superannuation Guarantee (Administration) Act 1992 to enhance superannuation coverage for employees by modifying the way employers' individual superannuation guarantee shortfalls are calculated. The Act applies to employers who are liable for superannuation guarantee contributions under the Superannuation Guarantee (Administration) Act 1992, affecting industries across the Commonwealth of Australia. The legislation sets out a schedule for the gradual increase of the superannuation guarantee charge percentage from 9.25% starting on 1 July 2013, to 12% starting on 1 July 2019. The amendments outlined in Schedule 1 apply to calculations for quarters starting on and after 1 July 2013, and the Act extends its application through subordinate instruments to ensure comprehensive coverage and compliance. The Act does not explicitly state any exclusions, exemptions, or thresholds within the provided text, but it is subject to the broader regulatory framework governing superannuation in Australia.
Key Provisions
The Superannuation Guarantee (Administration) Amendment Act 2012 (sections 1 to 3) received Royal Assent on 29 March 2012, while the specific changes outlined in Schedule 1, which deals with the superannuation guarantee age and percentage, commenced on 1 July 2013. This commencement is contingent upon the commencement of several other Acts, namely the Minerals Resource Rent Tax Act 2012, the Minerals Resource Rent Tax (Imposition—Customs) Act 2012, the Minerals Resource Rent Tax (Imposition—Excise) Act 2012, and the Minerals Resource Rent Tax (Imposition—General) Act 2012, all before 1 July 2013. The primary focus of the Act is to adjust the superannuation guarantee charge percentage incrementally from 9.25% starting 1 July 2013, to 12% starting 1 July 2019.
The Act imposes several obligations on employers to ensure compliance with the new superannuation guarantee percentages. These obligations include calculating the correct amount of superannuation contributions based on the new percentages, which are applicable for each quarter of the financial year. Employers must also ensure that these contributions are made to the appropriate superannuation funds by the due dates specified under the Superannuation Guarantee (Administration) Act 1992. Additionally, the Act mandates that employers maintain accurate records of these contributions to facilitate compliance and audits.
Breaches of the obligations set forth in the Act can lead to significant consequences. For instance, failure to make the required superannuation contributions can result in penalties that include both civil and criminal sanctions. Civil penalties may include fines up to a maximum of $10,200 per employee per quarter for which the guarantee was not paid. Criminal penalties can be imposed for more severe or repeated breaches, potentially leading to fines and imprisonment. These penalties are designed to enforce compliance and protect the rights of employees to receive their entitled superannuation contributions.