The Governor-General has released the Superannuation Guarantee (Administration) Amendment (Jobkeeper Payment) Regulations 2020, ensuring that employers only need to make minimum super contributions in respect of amounts that are required to be paid to an employee for the performance of work.
The regulations recognise that while some employees will be receiving a greater amount on JobKeeper than their usual salary or wage, the employer should not be required to make contributions in relation to additional amounts paid to satisfy the wage condition.
Accordingly, the regulations are designed to balance adequate superannuation support for employees with assistance for businesses in this period of downturn.
Prior to the regulations, all wages paid to employees to satisfy the JobKeeper minimum wage condition of $1,500 per fortnight, irrespective of work undertaken, needed to be considered when calculating an employer’s superannuation guarantee liability.
The regulations are retrospective in application, meaning that they affect an employer’s superannuation guarantee obligations from the commencement of the JobKeeper scheme on 30 March 2020.
“The regulations are beneficial for employers participating in the JobKeeper scheme as the regulations reduce their potential superannuation guarantee charge liability in respect of the payment of minimum superannuation contributions for their employees,” the explanatory document reads.
An example included in the explanatory document introduces Rachel, a part-time employee who earns her usual wage of $1,000 per fortnight, plus the $500 that her employer must pay her to satisfy the wage condition for JobKeeper.
Under the new regulations, the additional payment of $500 is excluded from being salary or wages, meaning it is not subject to super guarantee obligations.
The regulations also explain that if salary or wages are below $450 for a calendar month, then they too are excluded from superannuation contributions.
To view the new regulations, click here.