Circular 98-102 advised of the new method of calculating notional salary effective from 1 July 1998. It stated 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.

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 2001 is $110,040. The charge percentage remains 8% (from 1 July 2000) as advised in Circular 2000-22.

From 1 July 2001 the following calculations apply to determine the notional salary for a SES remuneration package. (NOTE: these calculations are for notional salary purposes only). This Circular replaces Circular 2000-36.

If the Total Remuneration Package (TRP) is greater than $118,843.20 then the notional salary is the TRP - $8,803.20.

Notional Salary = TRP - $8,803.20

For example if an SES officer is on a TRP of $200,000.00 then the notional salary for that package is $200,000.00 - $8,803.20 = $191,196.80

If the TRP is less than or equal to $118,843.20 then the notional salary is the TRP divided by 1.08

Notional Salary = TRP ÷ 1.08

For example, if an SES officer is on a TRP of $100,000.00 then the notional salary for that package is $100,000.00 ÷ 1.08 = $92,592.59

C. Gellatly
Director-General

Supersedes C96-13. In turn it is superseded by C2002-32.