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Maximum Super Contribution Base

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I work in sales and my monthly salary can be volatile and I receive the standard 9.5% SG from my employer. I believe the maximum Super contribution base is approx $54k gross per quarter with SG about $5k. In the 2018 Jul - Sep quarter I grossed $90k ($11,500 / $69,475 / $9,405) with SG payments of $3,661 ($1098 / $1,670 / $893). My employer calculated my SG on a month by month basis, however I assume that if it was calculated quarterly I would of received approx $5k rather than the $3,661.

 

Is my assumption correct and is my employer permitted to calculate my SG this way - monthly rather than quarterly?

 

 

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Devotee

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Hi @Whatto 

 

The maximum super contribution base is used to determine the maximum limit on any individual employee's earnings base for each quarter of any financial year. The SG law Superannuation Guarantee (Administration) Act 1992 - Section 19 provides that an employer must calculate their employees's SG entitelment on a quarterly basis by applying the formula prescribed in the legislation (linked above), or else they will be liable to pay penalty charges known as the Superannuation Guarante Charges. To this end, I would agree with you in the quarter where you have earned 90k of salary, SG should have been calculated as 0.095*$55,270 = $5,250.65 in SG,

 

I would recommend you speak to your employer to clarify and your payroll offiicer for confirmation. If they refuse to corporate you should contact the ATO if you wish to take further action.

 

https://www.ato.gov.au/rates/key-superannuation-rates-and-thresholds/?page=25

Maximum super contributions base

Income yearIncome per quarter

2019–20

$55,270

 

 

Hope this helps

R

 

1 REPLY 1

Best answer

Devotee

Replies 0

Hi @Whatto 

 

The maximum super contribution base is used to determine the maximum limit on any individual employee's earnings base for each quarter of any financial year. The SG law Superannuation Guarantee (Administration) Act 1992 - Section 19 provides that an employer must calculate their employees's SG entitelment on a quarterly basis by applying the formula prescribed in the legislation (linked above), or else they will be liable to pay penalty charges known as the Superannuation Guarante Charges. To this end, I would agree with you in the quarter where you have earned 90k of salary, SG should have been calculated as 0.095*$55,270 = $5,250.65 in SG,

 

I would recommend you speak to your employer to clarify and your payroll offiicer for confirmation. If they refuse to corporate you should contact the ATO if you wish to take further action.

 

https://www.ato.gov.au/rates/key-superannuation-rates-and-thresholds/?page=25

Maximum super contributions base

Income yearIncome per quarter

2019–20

$55,270

 

 

Hope this helps

R

 

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