The Australian Bookkeepers Association, Chartered Accountants ANZ, CPA Australia, the Institute of Certified Bookkeepers, the Institute of Public Accountants and the SMSF Association (the Joint Bodies) have made a submission to the Fair Work Commission regarding the operation of superannuation provisions in modern awards.

The Joint Bodies acknowledge that modern awards often provide employees with superannuation benefits that exceed the minimum requirements of the Superannuation Guarantee (Administration) Act 1992 (SGAA). These provisions are generally intended to supplement, rather than replace, an employer’s statutory superannuation obligations. However, they argue that some award clauses may interact with the SGAA and the Australian Taxation Office’s compliance framework in unintended ways. The introduction of Payday Super from 1 July 2026 has brought these issues into sharper focus.

A key concern is that certain award provisions require superannuation contributions on payments that do not qualify as “Qualifying Earnings” (QE) under the SGAA, such as specific periods of paid leave or work-related injury leave. While intended to provide additional employee benefits, these contributions may be treated as eligible employer contributions under SGAA rules due to payroll and reporting practices. Consequently, they can reduce the amount of superannuation employers are required to pay on later qualifying earnings.

While not advocating a specific amendment, the Joint Bodies encourage the Fair Work Commission to review award wording and use its powers under section 160 of the Fair Work Act 2009 to address ambiguity, uncertainty or errors, ensuring award provisions align with evolving superannuation policy objectives.