Date posted: 11/06/2020 3 min read

Super guarantee regulations clarify JobKeeper condition

Employers won’t be subject to additional superannuation guarantee obligations as a result of the JobKeeper scheme

In Brief

  • Regulations registered to ensure employers do not have to make superannuation contributions on the excess amount received by employees as a result of the JobKeeper wage condition
  • Regulations apply retrospectively from 30 March 2020

New regulations have been registered to ensure employers are not subject to additional superannuation guarantee obligations as a result of Australia’s JobKeeper scheme.

The Superannuation Guarantee (Administration) Amendment (Jobkeeper Payment) Regulations 2020 were registered on 2 June 2020. They prescribe the amounts of salary or wages that do not relate to the performance of work and are paid to an employee only to satisfy the A$1500 (pre-tax) wage condition for getting JobKeeper payment, as excluded salary or wages for the purposes of paragraph 27(1)(e) of the Superannuation Guarantee (Administration) Act 1992 Act.

These amounts are excluded from the calculations of an employer’s superannuation guarantee shortfall and the minimum superannuation contribution an employer is required to make.

For example, where an employee had been paid less than A$1500 (pre-tax) per fortnight but as a result of the employer participating in the JobKeeper scheme, the employee now is paid A$1500 (pre-tax) per fortnight, the employer will not have to make a superannuation contribution on the excess amount.

The regulations apply retrospectively from the start of the JobKeeper scheme on 30 March 2020.

In addition, an employer does not have to be entitled to a JobKeeper payment for the regulations to apply. This is intended to allow an employer to apply the regulations where the employer has a reasonable belief that it is entitled to a JobKeeper payment and has subsequently satisfied the wage condition in respect of its employees but is ultimately not entitled to a JobKeeper payment.

For example, this may occur where an employer has relied on false statements provided by an employee about the employee’s eligibility to participate in the JobKeeper scheme. In this case, an employer may rely on the regulations even though it is not entitled to a JobKeeper payment in respect of the employee.

Read the Regulations

This instrument is the Superannuation Guarantee (Administration) Amendment (Jobkeeper Payment) Regulations 2020.

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ATO website - Paying your eligible employees

You need to pay all your eligible employees at least the minimum amount of $1,500, even if they earn less than this per fortnight. The amount of $1,500 includes gross salary, wages, commission, bonus payments and allowances, inclusive of PAYG withholding, and any fringe benefits or superannuation contributions provided under an effective salary sacrifice agreement.

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JobKeeper - what you need to know

The JobKeeper payment is a $130 billion temporary subsidy scheme to support businesses (including not-for-profits) that have been impacted by Coronavirus (COVID-19)

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