Circular 98-102 advised of the new method of calculating notional salary effective from 1 July 1998. The circular states that the Superannuation Guarantee charge percentage (levy) is only payable on earnings up to the maximum contribution base determined each year by the Australian Taxation Office in accordance with the Act.

The maximum contribution base changes annually and the charge percentage changes every second year until 2002. The new maximum contribution base effective from 1 July 1999 is $100,960. The charge percentage remains unchanged at 7%.

From 1 July 1999 the following calculations apply to determine the notional salary for a SES Remuneration package. (NOTE: these calculations are for notional salary purposes only).

If the Total Remuneration Package (TRP) is greater than $108,027.20 then the notional salary is the TRP - $7,067.20.

Notional Salary = TRP - $7,067.20

For example if an SES officer was on a TRP of $200,000.00 then the notional salary for that package is $200,000.00 - $7,067.20 = $192,932.80

If the TRP is less than or equal to $108,027.20 then the notional salary is the TRP divided by 1.07

Notional Salary = TRP ¸ 1.07

For example, if an SES officer was on a TRP of $100,000.00 then the notional salary for that package is $100,000.00 ¸ 1.07 = $93,457.94

This Circular replaces the calculation figures provided in Circular 98-102, however the theory of the calculations remains valid. 

C. Gellatly
Director-General