From 1 July 2003 Commonwealth legislation requires employers to make superannuation guarantee (SG) contributions at least quarterly and to provide written advice to each employee following every SG contribution.

Quarterly Payments
In an accumulation fund, such as First State Super, the contributions are the amounts that the employer forwards for each of its employees. Most employers already make at least monthly contributions to their employees' accumulation funds. For the defined benefit funds, that is, the State Superannuation Scheme, the State Authorities Superannuation Scheme, and the Police Superannuation Scheme, employers will need to obtain a benefit certificate quarterly from the scheme trustee to show they are meeting their superannuation guarantee requirements.

Written advice to employees in accumulation funds
From 1 July 2003 employers are required to provide written advice to each employee within 30 days of each accumulation fund contribution made that counts toward superannuation guarantee compliance, otherwise penalties may apply. This requirement is set out in Section 23A of the Superannuation Guarantee (Administration) Act 1992 and 6A of the Superannuation Guarantee (Administration) Amendment Regulations 2003.

Reporting requirements have been introduced so that employees know the amount of superannuation contributions made on their behalf and the name of the superannuation fund into which it has been paid.

Employers must report to each employee:

• The amount of the contribution.
• The name of the superannuation fund or retirement savings account (RSA) provider to which the contribution is made.
• The account number of the fund member, if this is known.

Members of NSW public sector superannuation schemes may also check their accounts online at www.firststatesuper.nsw.gov.au and www.statesuper.nsw.gov.au or by calling:

• First State Super (FSS) 1300 650 873
• State Super Scheme (SSS) 1300 130 096
• State Authorities Super Scheme (SASS) 1300 130 095
• Police Superannuation Scheme (PSS) 1300 130 097
• Deferred Benefits 1300 130 094

between 8.30am and 5.30pm Monday to Friday.

Employers must notify employees of contributions actually made, not contributions intended. This means that reporting on a payslip the amount of a contribution to be made in the next few days would not meet the requirements of the Act.

Employers should note that penalties may be applied under the Criminal Code for non-compliance with these reporting requirements.

The ATO is advising by its website that employers need only report within 30 days of making the final contribution for each quarter. However, the Act requires a statement to be issued within 30 days of each contribution.

What form should the written advice to the employee take?
The ATO has indicated that the advice may be:

• a letter to the employee signed and dated by the employer;
  an email communication;
• notification on the employee payslip (if the contribution has already been made); or
• a copy of a receipt for contributions from the superannuation provider.

Employers need to keep records to demonstrate that a report has been made in the required form.

Fact Sheets and further information can be found at the Australian Taxation Office website, www.ato.gov.au/super.

C Gellatly
Director-General

Issued : Employee Relations
Contact: Paul Petersen
EMail: [email protected]
Telephone no: 9228 3929 Facsimile: 9228 3622
File no: S0 1626.4
Date: 23 June 2003
This circular does not supersede any other circular
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This circular has been superseded by C2005-12