Superannuation Guarantee legislation requires quarterly employer contributions of at least 9% of ordinary time earnings, up to the maximum contribution base. The Australian Taxation Office has advised the maximum contribution base will be adjusted to $35,240 per quarter ($140,960 per annum) from 1 July 2006.

As a result, from 1 July 2006, the following calculations apply to determine notional salary for a SES remuneration package. (Note: these calculations are for notional salary purposes only and are used for cashing out and paying out SES entitlements or when non-SES act in SES positions).

• If the Total Remuneration Package (TRP) is greater than $153,646.40 p.a. then the notional salary is the TRP less $12,686.40.

For example, if an SES officer is on a TRP of $200,000 then the notional salary for that package is $200,000 - $12,686.40 = $187,313.60.

• If the TRP is less than or equal to $153,646.40 p.a. then the notional salary is the TRP divided by 1.09.

For example, if an SES officer is on a TRP of $140,000 then the notional salary for that package is $140,000 ÷ 1.09 = $128,440.37. 

C Gellatly
Director-General

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superseded by C2007-29