Keypoints

Notional salary is the total remuneration package less the employer’s required superannuation contribution under the Superannuation Guarantee (Administration) Act 1992 (Cth).

Superannuation Guarantee legislation requires quarterly employer contributions of at least 9% of ordinary time earnings, up to the maximum contribution base (MCB). The MCB is the salary level above which superannuation guarantee contributions are not required in respect of that officer.

The Australian Taxation Office (ATO) has determined the MCB to be $42,220 per quarter ($168,880 per annum) from 1 July 2010.

From 1 July 2010, notional salary calculations are:

• If the Total Remuneration Package (TRP) is greater than $184,079.20 pa, the notional salary is the TRP less $15,199.20.

For example, if an SES officer is on a TRP of $200,000 then the notional salary is
$200,000 - $15,199.20 = $184,800.80.

• If the TRP is less than or equal to $184,079.20 pa, the notional salary is the TRP divided by 1.09.

For example, if an SES officer is on a TRP of $180,000 then the notional salary is
$180,000 ÷ 1.09 = $165,137.61.

Brendan O’Reilly
Director General