Commonwealth: Superannuation Guarantee (Administration) Act 1992 (Cth)

Superannuation Guarantee (Administration) Act 1992 No. 111, 1992 Compilation No. 76 Compilation date: 23 February 2022 Includes amendments up to: Act No. 10, 2022 Registered: 8 March 2022 About this compilation This compilation This is a compilation of the Superannuation Guarantee (Administration) Act 1992 that shows the text of the law as amended and in force on 23 February 2022 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Part 1—Preliminary 1 Short title 2 Commencement 3 Act binds Crown etc. 4 Application 5 Application of Act to Commonwealth 5A Application of Act to Commonwealth authorities 5B Jurisdiction etc. of the Fair Work Commission not affected 5C Application of the Criminal Code Part 2—Explanation of terms used in the Act 6 Interpretation—general 6AA Interpretation: defined benefit member 6A Interpretation: defined benefit superannuation scheme 6B Interpretation: conversion notice 7 Interpretation: complying superannuation fund or scheme 7A Interpretation: complying approved deposit fund 8 Interpretation: resident of Australia 9 Interpretation: indexation factor 10 Interpretation: benefit certificate 11 Interpretation—salary or wages 12 Interpretation: employee, employer 12A Interpretation: references to industrial instruments 15 Interpretation: maximum contribution base 15A Interpretation: salary sacrifice arrangements Part 3—Liability of employers other than the Commonwealth and tax‑exempt Commonwealth authorities to pay superannuation guarantee charge 15B Application of Part to former employees 15C Certificates of coverage for international social security agreements 16 Charge payable by employer 17 Superannuation guarantee shortfall 19 Individual superannuation guarantee shortfalls 19AA Employer shortfall exemption certificate 19AB Employer shortfall exemption certificate—application and issuing 19AC Employer shortfall exemption certificate—notice of decision 19A Limit on shortfall increases arising from failure to comply with choice of fund requirements 20 Defined benefit schemes—certain cases where members cannot choose another fund 21 Guidelines for reducing an increase in an individual superannuation guarantee shortfall 22 Reduction of charge percentage where contribution made to defined benefit superannuation scheme 23 Reduction of charge percentage if contribution made to RSA or to fund other than defined benefit superannuation scheme 23A Offsetting late payments against charge 23B Contributions through an approved clearing house 24 Certain benefit certificates presumed to be certificates in relation to complying superannuation scheme 25 Certain contributions presumed to be contributions to complying superannuation fund 26 Certain periods not to count as periods of employment 27 Salary or wages: general exclusions 28 Salary or wages: excluded earnings of young persons 29 Salary or wages: excluded earnings of members of Reserves 30 Arrangements to avoid payment of superannuation guarantee charge 31 Nominal interest component 32 Administration component Part 3A—Choice of fund requirements Division 1—Overview of Part 32A Purpose of Part 32B Structure of Part Division 2—Which contributions satisfy the choice of fund requirements? 32C Contributions that satisfy the choice of fund requirements 32CA Certain contributions taken not to satisfy the choice of fund requirements Division 3—Eligible choice funds 32D What funds are eligible choice funds? 32E Meaning of funds—includes RSAs and schemes Division 4—Choosing a fund 32F What is a chosen fund 32FA Employer may refuse to accept certain chosen funds 32G Limit on funds that may be chosen 32H When fund ceases to be a chosen fund 32J A successor fund may become a chosen fund Division 6—Standard choice forms 32N When a standard choice form must be provided 32NA When a standard choice form does not have to be provided 32P Standard choice form Division 7—Stapled funds 32Q What is the stapled fund for an employee 32R Identifying any stapled funds for employees Division 8—Miscellaneous 32W Disclosing tax file numbers provided in standard choice forms 32X Application of Part to different employers of an employee 32Z Contributions satisfy Commonwealth or Territory industrial award requirements—chosen funds and stapled funds etc. 32ZAA Contributions satisfy State or Territory law requirements—chosen funds and stapled funds etc. 32ZAB Effect of blocking contributions to PSSAP etc.—eligible choice funds 32ZA Employers not liable for damages Part 4—Superannuation guarantee statements and assessments 33 Superannuation guarantee statements 34 Power to require information where no superannuation guarantee statement 35 First superannuation guarantee statement for a quarter taken to be assessment 36 Default assessments 37 Amendment of assessments 38 Refund of overpaid amounts 39 Amended assessment to be an assessment 40 Notice of assessment or amendment 41 Validity of assessment 42 Objections against assessment Part 5—Administration 43 General administration of Act 44 Annual report Part 6—Collection and recovery of charge 46 When superannuation guarantee charge becomes payable 47 When additional superannuation guarantee charge becomes payable 49 Unpaid superannuation guarantee charge 50 Order of payments 57 Public officer of company 57A Notifying and serving companies 58 Public officer of trust estate Part 7—Additional superannuation guarantee charge 59 Failure to provide statements or information 60 Amnesty from liability to pay additional superannuation guarantee charge 62 Assessment of additional superannuation guarantee charge 62A Offsets to be disregarded Part 8—Payments of amounts of shortfall components for the benefit of employees 63A Payments to which this Part applies 63B Overview of this Part 64A The shortfall component for one benefiting employee 64B The shortfall component for more than one benefiting employee 65 Payment of shortfall component 65AA Shortfall component and former temporary resident 65A Payment to employee who is over 65 66 Payment to employee retired due to permanent incapacity or invalidity 66A Payment to employee with terminal medical condition 67 Payment where employee deceased 69 Repayment of overpayments in relation to a shortfall component 69A Recovery of shortfall component incorrectly credited to an account kept under the Small Superannuation Accounts Act 1995 70 Recovery of overpayments 71 Appropriation Part 9—Miscellaneous 72 Treatment of partnerships 73 Treatment of unincorporated associations 74 Amnesty in relation to historic amounts of superannuation guarantee shortfall 79 Records to be kept and retained by employers 79A Approved clearing house 80 Regulations Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history Endnote 5—Editorial changes An Act relating to the establishment and administration of the Superannuation Guarantee Scheme, and for related purposes Part 1—Preliminary 1 Short title This Act may be cited as the Superannuation Guarantee (Administration) Act 1992. 2 Commencement This Act commences on 1 July 1992. 3 Act binds Crown etc. (1) This Act binds the Crown in right of the Commonwealth, each State, the Australian Capital Territory and the Northern Territory. (2) Nothing in this Act permits the Crown to be prosecuted for an offence. 4 Application This Act extends to every external Territory referred to in the definition of Australia. 5 Application of Act to Commonwealth (1) The Commonwealth, Commonwealth Departments and untaxable Commonwealth authorities are not liable to pay superannuation guarantee charge. (2) However, subject to this Act and to such modifications as are prescribed, this Act applies in all other respects, in respect of any matter or thing in respect of the employment of a Commonwealth employee, as if: (a) the employee were employed by the responsible Department and not by the Commonwealth; and (b) the responsible Department were a company and each other Department, and each authority of the Commonwealth, were a company related to the responsible Department; and (c) the responsible Department were a government body. (2A) In addition, subject to such modifications as are prescribed, this Act applies in relation to an untaxable Commonwealth authority in the same way as it applies in relation to a Commonwealth Department. (2B) The Finance Minister may give such directions in writing as are necessary or convenient to be given for carrying out or giving effect to this section and, in particular, may give directions in relation to the transfer of money within an account, or between accounts, operated by the Commonwealth or a Commonwealth entity. (2C) Directions under subsection (2B) have effect, and must be complied with, notwithstanding any other law of the Commonwealth. (3) Part 8 has effect as if any superannuation guarantee charge for a quarter in respect of a superannuation guarantee shortfall of the Commonwealth had been paid on: (a) for a quarter beginning on 1 January—28 May in the next quarter; and (b) for a quarter beginning on 1 April—28 August in the next quarter; and (c) for a quarter beginning on 1 July—28 November in the next quarter; and (d) for a quarter beginning on 1 October—28 February in the next quarter. (4) Subsection 14ZX(4), section 14ZZ and Divisions 4 and 5 of Part IVC of the Taxation Administration Act 1953 do not apply to the Commonwealth, Commonwealth Departments or untaxable Commonwealth authorities. (5) In this section: Commonwealth Department means: (a) a Department of State; or (b) a Department of the Parliament established under the Parliamentary Service Act 1999; or (c) a branch or part of the Australian Public Service in relation to which a person has, under an Act, the powers of, or exercisable by, the Secretary of a Department of the Australian Public Service. Commonwealth entity means a Commonwealth entity (within the meaning of the Public Governance, Performance and Accountability Act 2013) that cannot be made liable to taxation by a Commonwealth law. Finance Department means the Department administered by the Finance Minister. Finance Minister means the Minister administering the Public Governance, Performance and Accountability Act 2013. responsible Department, in relation to the employment of a Commonwealth employee, means: (a) where the remuneration in respect of that employment is or was paid wholly or principally out of money appropriated under an annual Appropriation Act—the Commonwealth Department in respect of which the money was appropriated; and (b) where the remuneration in respect of that employment is or was paid wholly or principally out of money appropriated under an Act other than an annual Appropriation Act: (i) if the employee performs or performed the duties of that employment in, or in respect of, a Commonwealth Department—that Commonwealth Department; or (ii) in any other case—the Department of State administered by the Minister who administers the Act under which that money was appropriated, insofar as the Act appropriated that money; and (c) where the remuneration in respect of that employment is or was paid wholly or principally out of money appropriated by the Constitution—the Finance Department. untaxable Commonwealth authority means an authority of the Commonwealth that cannot, by a law of the Commonwealth, be made liable to taxation by the Commonwealth. 5A Application of Act to Commonwealth authorities (1) In this section: Commonwealth authority means an authority or body that is established by or under a law of the Commonwealth. (2) If: (a) a law, or a provision of a law, passed before the commencement of this section purports to exempt a Commonwealth authority from liability to pay: (i) taxes under the laws of the Commonwealth; or (ii) certain taxes under the laws of the Commonwealth; and (b) apart from this subsection, the exemption would apply to superannuation guarantee charge; that law or provision is taken not to have exempted, or not to exempt, that authority from liability to pay the charge. (3) If: (a) a law, or a provision of a law, passed after the commencement of this section purports to exempt a Commonwealth authority from liability to pay: (i) taxes under the laws of the Commonwealth; or (ii) certain taxes under the laws of the Commonwealth; and (b) apart from this subsection, the exemption would apply to superannuation guarantee charge; the law or provision is not taken to have exempted, or to exempt, the authority from liability to pay the charge unless the law or provision expressly exempts the authority from liability to pay the charge. 5B Jurisdiction etc. of the Fair Work Commission not affected (1) To avoid doubt, but subject to subsection (2), nothing in this Act (other than Part 3A) or in the Superannuation Guarantee Charge Act 1992 affects: (a) the jurisdiction, functions or powers of the Fair Work Commission; or (b) the operation of the Fair Work Act 2009, the Fair Work (Registered Organisations) Act 2009, or the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 in any other way. (2) Subsection (1) does not apply to any express reference in the Fair Work Act 2009, the Fair Work (Registered Organisations) Act 2009, or the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 to this Act or to the Superannuation Guarantee Charge Act 1992. 5C Application of the Criminal Code Chapter 2 of the Criminal Code applies to all offences against this Act. Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. Part 2—Explanation of terms used in the Act 6 Interpretation—general (1) In this Act, unless the contrary intention appears: actuary means a Fellow or Accredited Member of The Institute of Actuaries of Australia. administration component, in relation to an employer and a quarter, means the amount worked out according to section 32. approved clearing house has the meaning given by subsection 79A(3). approved deposit fund has the same meaning as in the Superannuation Industry (Supervision) Act 1993. approved form has the meaning given by section 388‑50 in Schedule 1 to the Taxation Administration Act 1953. arrangement, for the purposes of section 30, means: (a) an agreement, arrangement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings; or (b) any scheme, plan, proposal, action, course of action or course of conduct. assessment means: (a) the ascertainment of an employer's superannuation guarantee shortfall for a quarter and of the superannuation guarantee charge payable on the shortfall; or (b) the ascertainment of additional superannuation guarantee charge payable under Part 7. Australia, when used in a geographical sense, has the same meaning as in the Income Tax Assessment Act 1997. Commissioner means the Commissioner of Taxation. Commonwealth employee means an employee of the Commonwealth. Commonwealth industrial award means: (a) an industrial award or determination made under a law of the Commonwealth; or (b) an industrial agreement approved or registered under such a law; or (c) a notional agreement preserving State awards; or (d) a preserved State agreement. complying approved deposit fund has the meaning given by section 7A. complying superannuation fund has the meaning given by section 7. complying superannuation scheme has the meaning given by section 7. CSS means the scheme known as the Commonwealth Superannuation Scheme. data processing device means any article or material from which information is capable of being reproduced with or without the aid of any other article or device. defined benefit member, subject to section 6AA, means a member entitled on retirement to be paid a benefit defined, wholly or in part, by reference to either or both of the following: (a) the amount of the member's salary: (i) at the date of the member's retirement or an earlier date; or (ii) averaged over a period before retirement; (b) a specified amount. defined benefit superannuation scheme has the meaning given by section 6A. Deputy Commissioner means a Deputy Commissioner of Taxation. employer shortfall exemption certificate means a certificate issued under section 19AB. general interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953. government body means: (a) the Commonwealth or a State or Territory; or (b) a Commonwealth, State or Territory authority. indexation factor, in relation to a year, has the meaning given by section 9. individual superannuation guarantee shortfall, has the meaning given by section 19. industrial award means a Commonwealth industrial award, a State industrial award or a Territory industrial award. liability to the Commonwealth means a liability to the Commonwealth arising under an Act of which the Commissioner has the general administration. lodge means lodge with the Commissioner. MySuper member has the same meaning as in the Superannuation Industry (Supervision) Act 1993. nominal interest component, in relation to an employer and a quarter, has the meaning given by section 31. occupational superannuation arrangement, in relation to the employment of a person, means an agreement that imposes an obligation on the person's employer to contribute to a superannuation fund for the benefit of the person. offence against this Act includes an offence relating to this Act against: (a) the Crimes Act 1914; or (b) the Taxation Administration Act 1953. ordinary time earnings, in relation to an employee, means: (a) the total of: (i) earnings in respect of ordinary hours of work other than earnings consisting of a lump sum payment of any of the following kinds made to the employee on the termination of his or her employment: (A) a payment in lieu of unused sick leave; (B) an unused annual leave payment, or unused long service leave payment, within the meaning of the Income Tax Assessment Act 1997; and (ii) earnings consisting of over‑award payments, shift‑loading or commission; or (b) if the total ascertained in accordance with paragraph (a) would be greater than the maximum contribution base for the quarter—the maximum contribution base. part‑time employee means a person who is employed to work not more than 30 hours per week. penalty charge, in respect of superannuation guarantee charge and a quarter, means: (a) general interest charge in respect of non‑payment of the superannuation guarantee charge; or (b) additional superannuation guarantee charge that is payable under section 59 and calculated by reference to the superannuation guarantee charge. proceeding under this Act includes: (a) a proceeding for an offence against this Act; or (b) a proceeding under the Taxation Administration Act 1953 relating to this Act. PSS means the Public Sector Superannuation Scheme within the meaning of the Superannuation Act 1990. PSSAP means the Public Sector Superannuation Accumulation Plan within the meaning of the Superannuation Act 2005. public sector scheme means a scheme of superannuation established: (a) by or under a law of the Commonwealth or of a State or Territory; or (b) under the authority of: (i) the Commonwealth or the government of a State or Territory; or (ii) a municipal corporation, another local governing body or a public authority constituted by or under a law of the Commonwealth or of a State or Territory. quarter means a period of 3 months beginning on 1 January, 1 April, 1 July or 1 October. quarterly salary or wages base, for an employer in respect of an employee, for a quarter has the meaning given by subsection 19(1). resident of Australia has the meaning given by section 8. RSA has the same meaning as in the Retirement Savings Accounts Act 1997. RSA provider has the same meaning as in the Retirement Savings Accounts Act 1997. sacrificed contribution means a contribution to a complying superannuation fund or an RSA made under a salary sacrifice arrangement. sacrificed ordinary time earnings amount has the meaning given by subsection 15A(2). sacrificed salary or wages amount has the meaning given by subsection 15A(2). salary sacrifice arrangement has the meaning given by subsection 15A(1). Second Commissioner means a Second Commissioner of Taxation. stapled fund has the meaning given by section 32Q. State industrial award means: (a) an industrial award or determination made under a law of a State; or (b) an industrial agreement approved or registered under such a law. superannuation fund has the same meaning as in the Superannuation Industry (Supervision) Act 1993. superannuation guarantee charge means charge imposed by the Superannuation Guarantee Charge Act 1992. superannuation guarantee shortfall has the meaning given by section 17. superannuation guarantee statement means a superannuation guarantee statement under section 33. superannuation scheme means: (a) a defined benefit superannuation scheme whether or not embodied in the governing rules of a superannuation fund; or (b) any other scheme embodied in the governing rules of a superannuation fund. Territory industrial award means: (a) an industrial award or determination made under a law of a Territory; or (b) an industrial agreement approved or registered under such a law. trustee, in relation to a superannuation scheme, means: (a) if: (i) the scheme is embodied in the governing rules of a fund; and (ii) there is a trustee of the fund; the trustee of the fund; or (b) in any other case—the person who manages the scheme. trustee, except in relation to a superannuation fund or superannuation scheme, includes: (a) a person appointed or constituted trustee by: (i) act of parties; or (ii) order or declaration of a court; or (iii) operation of law; and (b) an executor, administrator or other personal representative of a deceased person; and (c) a guardian or committee; and (d) a receiver or receiver and manager; and (e) a liquidator of a company; and (f) a person: (i) having or taking upon himself or herself the administration or control of any real or personal property affected by any express or implied trust; or (ii) acting in any fiduciary capacity; or (iii) having the possession, control or management of any real or personal property of a person under any legal or other disability. unfunded public sector scheme means a public sector scheme that is a defined benefit superannuation scheme: (a) in respect of which no fund is established for the purposes of the scheme; or (b) under which all or some of the amounts that will be required for the payment of benefits are not paid into the fund established for the purposes of the scheme or are not paid until the members become entitled to receive the benefits. year means financial year. (2) For the purposes of this Act, a reference to a contribution made by an employer for the benefit of an employee includes a reference to a contribution made on behalf of the employer. (3) For the purposes of this Act, a reference to salary or wages paid by an employer to an employee includes a reference to a payment made on behalf of the employer. 6AA Interpretation: defined benefit member The regulations may prescribe: (a) circumstances in which a member of a superannuation fund is not a defined benefit member for the purposes of this Act, or a provision of this Act; and (b) circumstances in which a member of a superannuation fund who is not otherwise a defined benefit member is to be taken to be a defined benefit member for the purposes of this Act, or a provision of this Act. 6A Interpretation: defined benefit superannuation scheme (1) Subject to subsection (2), a defined benefit superannuation scheme is a scheme under which: (a) one or more members of the scheme are entitled, on retirement, to be paid a benefit defined, wholly or in part, by reference to either or both of the following: (i) the amount of the member's annual salary: (A) at the date of the member's retirement; or (B) at a date before retirement; or (C) averaged over a period of employment before retirement; (ii) a specified amount; and (b) if the scheme is not a public sector scheme—some or all of the contributions under the scheme (out of which, together with earnings on those contributions, the benefits are to be paid) are not paid into a fund, or accumulated in a fund, in respect of any individual member but are paid into and accumulated in a fund in the form of an aggregate amount. (2) A scheme embodied in the governing rules of a superannuation fund (other than a scheme of the kind referred to in subsection (1)) is a defined benefit superannuation scheme if a conversion notice has effect in relation to the fund or scheme. (3) If the conversion notice is expressed to take effect on a day before the day on which the notice is given, the scheme in question is taken to have been a defined benefit superannuation scheme from the day on which the notice is expressed to take effect. (4) Subsection (3) has effect regardless of the making of any assessment, or the payment of any superannuation guarantee charge, in respect of a quarter that ended after the conversion notice took effect. 6B Interpretation: conversion notice (1) A conversion notice is a written notice by the trustee of a superannuation fund given to the Commissioner stating that the fund, or a particular superannuation scheme embodied in the governing rules of the fund, is to be treated as a defined benefit superannuation scheme for the purposes of this Act. (2) Subject to subsection (4), a conversion notice takes effect in relation to the fund or scheme on the day specified in the notice. Subject to subsection (4), the trustee may, by written notice (revocation notice) given to the Commissioner, revoke the conversion notice. (3) A conversion notice may be expressed to take effect on a day that is not earlier than: (a) if the notice is given before 15 May in a quarter starting on 1 April—1 January in the previous quarter; or (b) if the notice is given before 15 August in a quarter starting on 1 July—1 April in the previous quarter; or (c) if the notice is given before 15 November in a quarter starting on 1 October—1 July in the previous quarter; or (d) if the notice is given before 15 February in a quarter starting on 1 January—1 October in the previous quarter; or (e) in any other case—the first day of the quarter in which the notice is given. (4) A conversion notice or a revocation notice will not be effective unless, before it is given, the trustee gives each employer contributing to the fund or scheme for the benefit of employees written notice of: (a) the trustee's intention to give the notice; and (b) the proposed date of effect of the notice. (5) If an employer begins contributing to a superannuation fund or a superannuation scheme for the benefit of employees at a time when a conversion notice has effect in relation to the fund or scheme, the trustee must give the employer written notice of: (a) the giving of the conversion notice; and (b) the date of effect of the notice; within 30 days of the receipt by the trustee of the employer's first contribution. (6) A notice under this section may be given by post. 7 Interpretation: complying superannuation fund or scheme A superannuation fund or scheme is a complying superannuation fund or scheme (as the case may be) in relation to a period for the purposes of this Act if it is a complying superannuation fund in relation to that period for the purposes of the Income Tax Assessment Act 1997. 7A Interpretation: complying approved deposit fund An approved deposit fund is a complying approved deposit fund at a particular time for the purposes of this Act if it is a complying approved deposit fund in relation to the year of income in which that time occurred for the purposes of the Income Tax Assessment Act 1997. 8 Interpretation: resident of Australia A person is a resident of Australia for the purposes of this Act at any time when the person is a resident of Australia for the purposes of the Income Tax Assessment Act 1936. 9 Interpretation: indexation factor (1) The indexation factor for a year is whichever is the greater of the following: (a) 1; (b) the number calculated (to 3 decimal places) by dividing the AWOTE amount for the December quarter in the preceding year by the AWOTE amount for the December quarter in the year preceding that year. Note: The December quarter is a quarter beginning on 1 October. (2) The AWOTE amount for a quarter is the estimate of the full‑time adult average weekly ordinary time earnings for persons in Australia for the middle month of the quarter published by the Australian Statistician in relation to the month. (3) If the Australian Statistician publishes an estimate of full‑time adult average weekly ordinary time earnings for persons in Australia for a period for which such an estimate was previously published by the Australian Statistician, the publication of the later estimate is to be disregarded for the purposes of this section. (4) If the number calculated for the purposes of paragraph (1)(b) in relation to a year would, if calculated to 4 decimal places, end with a numeral higher than 4, the number is to be taken to be the number calculated to 3 decimal places and increased by 0.001. 10 Interpretation: benefit certificate (1) A benefit certificate is a certificate by an actuary relating to one or more specified defined benefit superannuation schemes and specifying the rate, expressed as a percentage, that is, in the opinion of the actuary, the notional employer contribution rate, in relation to a specified class of employees (being members of the scheme or schemes, as the case may be), of an employer who is a contributor under the scheme or schemes (as the case may be) for the benefit of an employee in that class. (2) The notional employer contribution rate, in relation to a class of employees specified in a benefit certificate relating to one or more defined benefit superannuation schemes, is the contribution rate required to meet the expected long‑term cost, to an employer who contributes to the scheme or schemes for the benefit of employees in the class, of the minimum benefits accruing in respect of all employees in the class from the date of effect of the benefit certificate onwards. (3) A benefit certificate has effect from the date specified in the certificate until: (a) a superannuation scheme to which it relates is amended in a way that affects, or may affect, the level or method of calculation of the minimum benefits provided under the scheme for the class of employees specified in the certificate; or (b) another benefit certificate is issued in relation to the same class of employees and the same scheme or schemes; or (c) a period of 5 years from the date of issue expires; or (d) in the case of a certificate that relates to a scheme that is a defined benefit superannuation scheme because of the operation of subsection 6A(2)—the conversion notice under section 6B is revoked; whichever occurs first. (4) A benefit certificate may be expressed to have effect from: (a) a day that is no earlier than: (i) if the certificate is issued before 15 May in a quarter starting on 1 April, or before a later day in that quarter allowed by the Commissioner—1 January in the previous quarter; or (ii) if the certificate is issued before 15 August in a quarter starting on 1 July, or before a later day in that quarter allowed by the Commissioner—1 April in the previous quarter; or (iii) if the certificate is issued before 15 November in a quarter starting on 1 October, or before a later day in that quarter allowed by the Commissioner—1 July in the previous quarter; or (iv) if the certificate is issued before 15 February in a quarter starting on 1 January, or before a later day in that quarter allowed by the Commissioner—1 October in the previous quarter; or (v) in any other case—the first day of the quarter in which the certificate is issued; and (b) a day that is no later than the day on which the certificate is issued. (6) The regulations may make provision regarding: (a) the issue and form of benefit certificates; and (b) the way in which the expected long‑term cost to an employer of benefits accruing to all employees is to be calculated under subsection (2); and (c) the manner in which the contribution rate is to be expressed under subsection (2); and (d) the way in which minimum benefits accruing to all employees are to be calculated under subsection (2). 11 Interpretation—salary or wages (1) In this Act, salary or wages includes: (a) commission; and (b) payment for the performance of duties as a member of the executive body (whether described as the board of directors or otherwise) of a body corporate; and (ba) payments under a contract referred to in subsection 12(3) that are made in respect of the labour of the person working under the contract; and (c) remuneration of a member of the Parliament of the Commonwealth or a State or the Legislative Assembly of a Territory; and (d) payments to a person for work referred to in subsection 12(8); and (e) remuneration of a person referred to in subsection 12(9) or (10). (2) Remuneration under a contract for the employment of a person, for not more than 30 hours per week, in work that is wholly or principally of a domestic or private nature is not to be taken into account as salary or wages for the purposes of this Act. (3) Fringe benefits within the meaning of the Fringe Benefits Tax Assessment Act 1986 are not salary or wages for the purposes of this Act. 12 Interpretation: employee, employer (1) Subject to this section, in this Act, employee and employer have their ordinary meaning. However, for the purposes of this Act, subsections (2) to (11): (a) expand the meaning of those terms; and (b) make particular provision to avoid doubt as to the status of certain persons. (2) A person who is entitled to payment for the performance of duties as a member of the executive body (whether described as the board of directors or otherwise) of a body corporate is, in relation to those duties, an employee of the body corporate. (3) If a person works under a contract that is wholly or principally for the labour of the person, the person is an employee of the other party to the contract. (4) A member of the Parliament of the Commonwealth is an employee of the Commonwealth. (5) A member of the Parliament of a State is an employee of the State. (6) A member of the Legislative Assembly for the Australian Capital Territory is an employee of the Australian Capital Territory. (7) A member of the Legislative Assembly of the Northern Territory is an employee of the Northern Territory. (8) The following are employees for the purposes of this Act: (a) a person who is paid to perform or present, or to participate in the performance or presentation of, any music, play, dance, entertainment, sport, display or promotional activity or any similar activity involving the exercise of intellectual, artistic, musical, physical or other personal skills is an employee of the person liable to make the payment; (b) a person who is paid to provide services in connection with an activity referred to in paragraph (a) is an employee of the person liable to make the payment; (c) a person who is paid to perform services in, or in connection with, the making of any film, tape or disc or of any television or radio broadcast is an employee of the person liable to make the payment. (9) A person who: (a) holds, or performs the duties of, an appointment, office or position under the Constitution or under a law of the Commonwealth, of a State or of a Territory; or (b) is otherwise in the service of the Commonwealth, of a State or of a Territory (including service as a member of the Defence Force or as a member of a police force); is an employee of the Commonwealth, the State or the Territory, as the case requires. However, this rule does not apply to a person in the capacity of the holder of an office as a member of a local government council. (9A) Subject to subsection (10), a person who holds office as a member of a local government council is not an employee of the council. (10) A person covered by paragraph 12‑45(1)(e) in Schedule 1 to the Taxation Administration Act 1953 (about members of local governing bodies subject to PAYG withholding) is an employee of the body mentioned in that paragraph. (11) A person who is paid to do work wholly or principally of a domestic or private nature for not more than 30 hours per week is not regarded as an employee in relation to that work. 12A Interpretation: references to industrial instruments (1) In this Act, the following expressions have the same meanings as in the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009: (a) AWA; (b) collective agreement; (c) ITEA; (d) notional agreement preserving State awards; (e) old IR agreement; (f) pre‑reform AWA; (g) pre‑reform certified agreement; (h) preserved State agreement; (i) Division 2B State instrument; (j) State reference transitional award or common rule. Note: For an instrument referred to in this subsection, see item 4 of Schedule 2 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009. (2) In this Act, enterprise agreement has the same meaning as in the Fair Work Act 2009. (3) In this Act, workplace determination means a workplace determination made under the Fair Work Act 2009 or the Workplace Relations Act 1996. 15 Interpretation: maximum contribution base (1) The maximum contribution base for a quarter in the 2001‑02 year is $27,510. (3) The maximum contribution base for a quarter in any later year is the amount worked out using the formula: (4) Amounts calculated under subsection (3) must be rounded to the nearest 10 dollar multiple (rounding 5 dollars upwards). (5) Despite subsections (3) and (4), the maximum contribution base for a quarter in the 2017‑18 year or any later year is the amount worked out using the following formula, if that amount is less than the amount worked out under those subsections: where: charge percentage is the number specified in subsection 19(2) for the quarter. concessional contributions cap is the basic concessional contributions cap, within the meaning of the Income Tax Assessment Act 1997, for the financial year in which the quarter occurs. (6) Amounts calculated under subsection (5) must be rounded down to the nearest 10 dollar multiple. 15A Interpretation: salary sacrifice arrangements Salary sacrifice arrangement (1) An arrangement under which a contribution is, or is to be, made to a complying superannuation fund or an RSA by an employer for the benefit of an employee is a salary sacrifice arrangement if the employee agreed: (a) for the contribution to be made; and (b) in return, for either or both of the following amounts to be reduced (including to nil): (i) the ordinary time earnings of the employee; (ii) the salary or wages of the employee. Sacrificed amounts (2) If an amount mentioned in subparagraph (1)(b)(i) or (ii) is reduced under a salary sacrifice arrangement, the amount of that reduction is: (a) if ordinary time earnings for a quarter are reduced—a sacrificed ordinary time earnings amount of the employee for the quarter in respect of the employer; and (b) if salary or wages for a quarter are reduced—a sacrificed salary or wages amount of the employee for the quarter in respect of the employer. Excluded salary or wages (3) In working out the amount of a reduction for the purposes of subsection (2), disregard any amounts that, had they been paid to the employee (instead of being reduced), would have been excluded salary or wages. (4) For the purposes of this section, excluded salary or wages are salary or wages that, under section 27 or 28, are not to be taken into account for the purpose of making a calculation under section 19. Part 3—Liability of employers other than the Commonwealth and tax‑exempt Commonwealth authorities to pay superannuation guarantee charge 15B Application of Part to former employees This Part applies to salary or wages paid to, and contributions for the benefit of, a former employee as if the former employee were an employee of the person who was the former employee's employer. 15C Certificates of coverage for international social security agreements (1) This section applies if a scheduled international social security agreement (within the meaning of section 5 of the Social Security (International Agreements) Act 1999) prevents double coverage of the compulsory retirement savings arrangements under the laws of the parties to the agreement. (2) An entity mentioned in subsection (3) may apply in writing to the Commissioner for a certificate under subsection (4) covering the employment of a particular employee. (3) For the purposes of subsection (2), the entity must be: (a) if the employee's employer is not a resident of Australia—a related entity (within the meaning of the agreement) of the employer; or (b) otherwise—the employee's employer. (4) The Commissioner may give the entity that made the application a certificate under this subsection if the Commissioner is satisfied that doing so is in accordance with the agreement mentioned in subsection (1). (5) The certificate must: (a) state the name of the employer and the employee; and (b) state the time at which, or the circumstances in which, the certificate stops covering the employment; and (c) contain any other information that the Commissioner considers relevant. (6) The Commissioner may revoke or vary a certificate under subsection (4), if doing so would be in accordance with the administrative arrangements to the agreement mentioned in subsection (1) that are agreed between the parties to the agreement. (7) A person who is dissatisfied with a decision of the Commissioner under subsection (4) or (6) may object against the decision in the manner set out in Part IVC of the Taxation Administration Act 1953. (8) If the entity that made the application is not the employee's employer, this Part (apart from this section) applies to salary or wages relating to employment covered by the certificate that are paid to the employee as if the entity that made the application were the employee's employer. 16 Charge payable by employer Superannuation guarantee charge imposed on an employer's superannuation guarantee shortfall for a quarter is payable by the employer. 17 Superannuation guarantee shortfall If an employer has one or more individual superannuation guarantee shortfalls for a quarter, the employer has a superannuation guarantee shortfall for the quarter worked out by adding together: (a) the total of the employer's individual superannuation guarantee shortfalls for the quarter; and (b) the employer's nominal interest component for the quarter; and (c) the employer's administration component for the quarter. 19 Individual superannuation guarantee shortfalls (1) An employer's individual superannuation guarantee shortfall for an employee for a quarter is the amount worked out using the formula: where: charge percentage, for an employer for a quarter, means: (a) the number specified in subsection (2) for the quarter (unless paragraph (b) applies); or (b) if the number specified in subsection (2) for the quarter is reduced in respect of the employee by either or both sections 22 and 23—the number as reduced. quarterly salary or wages base, for an employer in respect of an employee, for a quarter means the sum of: (a) the total salary or wages paid by the employer to the employee for the quarter; and (b) any sacrificed salary or wages amounts of the employee for the quarter in respect of the employer. (2) The charge percentage for a quarter in a year described in an item of the table is the number specified in column 2 of the item. Charge percentage (unless reduced under section 22 or 23) Item Column 1 Column 2 Year Charge percentage 1 Year starting on 1 July 2013 9.25 2 Year starting on 1 July 2014 9.5 3 Year starting on 1 July 2015 9.5 4 Year starting on 1 July 2016 9.5 5 Year starting on 1 July 2017 9.5 6 Year starting on 1 July 2018 9.5 7 Year starting on 1 July 2019 9.5 8 Year starting on 1 July 2020 9.5 9 Year starting on 1 July 2021 10 10 Year starting on 1 July 2022 10.5 11 Year starting on 1 July 2023 11 12 Year starting on 1 July 2024 11.5 13 Year starting on or after 1 July 2025 12 (2A) If an employer makes one or more contributions (the no choice contributions) to an RSA or a complying superannuation fund other than a defined benefit superannuation scheme, for the benefit of an employee during a quarter and the contributions are not made in compliance with the choice of fund requirements, the employer's individual superannuation guarantee shortfall for the employee for the quarter is increased by the amount worked out in accordance with the formula: where: notional quarterly shortfall is the amount that would have been worked out under subsection (1) if the no choice contributions had not been made. Note 1: See also subsection (2E) and section 19A. Note 2: Part 3A sets out the choice of fund requirements. (2B) If: (a) a reduction of the charge percentage for an employee for a quarter is made under subsection 22(2) in respect of a defined benefit superannuation scheme; and (b) there is at least one relevant day in the quarter where, if contributions (the notional contributions) had been made to the scheme by the employer for the benefit of the employee on the day, the notional contributions would have been made not in compliance with the choice of fund requirements; and (c) section 20 (which deals with certain cases where defined benefit members cannot choose another fund) does not apply to the employer in respect of the employee in respect of the scheme for the quarter; the employer's individual superannuation guarantee shortfall for the employee for the quarter is increased by the amount worked out in accordance with the formula: where: notional quarterly shortfall is the amount that would have been worked out under subsection (1) if no reduction were made under subsection 22(2) in respect of the scheme. number of breach of condition days is the number of relevant days in the quarter on which, if a contribution had been made to the scheme by the employer for the benefit of the employee, those contributions would have been made not in compliance with the choice of fund requirements. Note 1: See also subsection (2E) and section 19A. Note 2: Part 3A sets out the choice of fund requirements. (2C) The following days in a quarter are relevant days for the purposes of subsection (2B): (a) if the value of B in the formula in subsection 22(2) for the quarter is 1—every day in the quarter; or (b) in any other case—every day in the quarter that is in the shorter of the scheme membership period or the certificate period referred to in subsection 22(2). (2CA) For the purposes of paragraph (2B)(b), if the employee is a defined benefit member of a superannuation fund, subsection 32C(2) applies in relation to the employee and the fund as if it did not include paragraph 32C(2)(c) (requirement that fund includes a MySuper product). (2D) A reference in subsections (2A) and (2B) to an employer's individual superannuation guarantee shortfall being increased includes a reference to the shortfall being increased from nil. (2E) The Commissioner may, after taking account, wherever appropriate, of the operation of section 19A, reduce (including to nil) the amount of an increase in an employer's individual superannuation guarantee shortfall for an employee for a quarter under subsection (2A) or (2B). Note: The Commissioner must have regard to guidelines in force under subsection 21(1) when deciding whether or not to make a decision under this subsection. (2F) If: (a) subsection (2G) applies to one or more contributions for a quarter that were not able to be made by an employer to a particular fund for the benefit of an employee; and (b) after the period of 28 days after the end of the quarter, the employer made those contributions to any fund for the benefit of the employee; the Commissioner may reduce (including to nil) so much of the amount of the employer's individual superannuation guarantee shortfall for the employee for the quarter as is due to the lateness of those contributions. Note: The Commissioner must have regard to guidelines in force under subsection 21(2) when deciding whether or not to make a decision under this subsection. (2G) This subsection applies to a contribution for a quarter that was not able to be made by an employer to a particular fund for the benefit of an employee if: (a) the employer attempts to make the contribution at a particular time; and (b) at that time, there is no chosen fund for the employee; and (c) at that time, the most recent notification to the employer: (i) by the Commissioner; and (ii) relating to a request by the employer (or by the employer's agent) for the Commissioner to identify any stapled fund for the employee; is that the Commissioner is satisfied that the fund is the stapled fund for the employee; and (d) the fund does not accept the contribution from the employer for the benefit of the employee. (3) For the purposes of the definition of quarterly salary or wages base in subsection (1), disregard an amount in a quarter if: (a) the amount would be covered by paragraph (a) of that definition for the quarter (about amounts paid to the employee); but (b) the amount is taken into account under paragraph (b) of that definition (about sacrificed salary or wages amounts) for any quarter. Note: This prevents double counting if a sacrificed salary or wages amount is later paid as salary or wages, instead of being contributed to superannuation. (4) If the quarterly salary or wages base, for an employer in respect of an employee, for a quarter exceeds the maximum contribution base for the quarter, the employer's quarterly salary or wages base to be taken into account for the purposes of the application of subsection (1) in relation to the quarter is the amount equal to the maximum contribution base. 19AA Employer shortfall exemption certificate (1) This section applies if the Commissioner has issued an employer shortfall exemption certificate to a person in relation to: (a) an employer of the person; and (b) a quarter in a financial year. (2) Treat the maximum contribution base for the quarter as nil for the purposes of working out the employer's individual superannuation guarantee shortfall under section 19 for the person for the quarter. Note: An employer shortfall exemption certificate issued to a person in relation to a particular employer does not affect any other employer's individual superannuation guarantee shortfall for the person. 19AB Employer shortfall exemption certificate—application and issuing Application for certificate (1) A person may apply to the Commissioner for the Commissioner to issue a certificate under this section (an employer shortfall exemption certificate) to the person in relation to: (a) a specified employer of the person (which must be an employer of the person at the time the application is made); and (b) a specified quarter in a specified financial year. (2) The application: (a) must be in the approved form; and (b) must specify the employer, the quarter and the financial year; and (c) must be made on or before the day that is 60 days before the first day of the quarter. Issuing of certificate (3) The Commissioner may issue the employer shortfall exemption certificate if the Commissioner is satisfied that: (a) if the certificate is not issued, the person is likely to have excess concessional contributions (within the meaning of the Income Tax Assessment Act 1997) for the financial year (whether or not issuing the certificate would prevent that result); and (b) if the certificate is issued, at least one other employer of the person is likely to have an individual superannuation guarantee shortfall for the person for the quarter that: (i) is greater than nil; or (ii) would be greater than nil but for a reduction under section 22 or 23; and (c) it is appropriate in the circumstances to issue the certificate. (4) For the purposes of paragraph (3)(a), the Commissioner is to have regard to any other employer shortfall exemption certificate that has been issued, or is proposed to be issued, in relation to the person and a quarter in the financial year. (5) For the purposes of paragraph (3)(b), the Commissioner is to have regard to any other employer shortfall exemption certificate that has been issued, or is proposed to be issued, in relation to the person and the quarter. (6) For the purposes of paragraph (3)(c), the Commissioner may have regard to: (a) the effect that issuing the employer shortfall exemption certificate is likely to have on the person's concessional contributions (within the meaning of the Income Tax Assessment Act 1997) for the financial year; and (b) any other matter that the Commissioner considers relevant. (7) A person who is dissatisfied with a decision of the Commissioner under subsection (3) may object against the decision in the manner set out in Part IVC of the Taxation Administration Act 1953. (8) The Commissioner may not vary or revoke an employer shortfall exemption certificate. (9) An employer shortfall exemption certificate is not a legislative instrument. 19AC Employer shortfall exemption certificate—notice of decision (1) If the Commissioner issues an employer shortfall exemption certificate to a person under section 19AB, the Commissioner must give written notice of the decision to: (a) the person; and (b) the employer to which the certificate relates. (2) A notice under subsection (1) must identify the following: (a) the person; (b) the employer; (c) the quarter to which the certificate relates. (3) If the Commissioner decides not to issue an employer shortfall exemption certificate to a person under section 19AB, the Commissioner must give written notice of the decision to the person. (4) The Commissioner is taken to have refused to issue an employer shortfall exemption certificate to a person if the Commissioner does not give notice of the Commissioner's decision before the end of 60 days after the person made the application for the certificate. 19A Limit on shortfall increases arising from failure to comply with choice of fund requirements (1) Subject to subsections (2) and (3), if the total of the amounts worked out for an employee for a quarter under subsections 19(2A) and (2B) exceeds $500, the total is taken to be $500. (2) If: (a) the total (the previous amount) of the amounts worked out for an employee under subsections 19(2A) and (2B) for previous quarters within an employer's notice period for an employee does not exceed $500; and (b) the current quarter is within the same employer's notice period for the employee; and (c) the total of the amounts worked out under subsections 19(2A) and (2B) for the employee for the current quarter and the previous quarters within the employer's notice period for the employee exceeds $500; then, the total of the amounts worked out under subsections 19(2A) and (2B) for the employee for the current quarter is taken to be the amount by which $500 exceeds the previous amount. (3) If a quarter (the later quarter) in an employer's notice period for an employee follows a quarter within that notice period: (a) to which subsection (1) applied; or (b) to which paragraph (2)(c) applied; in respect of the employee, the total of the amounts worked out for the employee under subsections 19(2A) and (2B) for the later quarter is taken to be nil. (4) An employer's notice period for an employee: (a) begins on: (i) in the case of the first employer's notice period for the employee—the later of 1 July 2005 and the day on which the employee is first employed by the employer; or (ii) in any other case—when the immediately preceding employer's notice period for the employee ends; and (b) ends on the day the Commissioner gives the employer written notice that the employer's notice period for the employee has ended. 20 Defined benefit schemes—certain cases where members cannot choose another fund (1) This section applies to an employer in respect of an employee in respect of a defined benefit superannuation scheme for a quarter if the employee is a defined benefit member of the scheme and subsection (2), (3) or (3A) is satisfied. Scheme in surplus (2) This subsection is satisfied if: (a) the employee was a defined benefit member of the fund immediately before 1 July 2005 and has not ceased to be such a member since that time and before the start of the quarter; and (b) an actuary has provided a certificate in accordance with regulations under the Superannuation Industry (Supervision) Act 1993 stating that the employer is not required to make contributions for the quarter and there has been such a certificate covering all times since 1 July 2005; and (c) an actuary has provided a certificate stating that, in the actuary's opinion, at all times from 1 July 2005 until the end of the quarter, there is a high probability that the assets of the scheme are, and will be, equal to or greater than 110% of the greater of the scheme's liabilities in respect of vested benefits and the scheme's accrued actuarial liabilities. The certificate under paragraph (c) must have been provided no earlier than 15 months before the end of the quarter. Member has accrued maximum benefit (3) This subsection is satisfied if, after the start of the quarter, the defined benefit that has accrued to the employee will not increase other than: (a) as a result of increases in the employee's salary or remuneration; or (b) by reference to accruals of investment earnings; or (c) by reference to indexation based on, or calculated by reference to, a relevant price index or wages index; or (d) in any other way prescribed for the purposes of this paragraph. Member's benefit not affected (3A) This subsection is satisfied if the employee would be entitled, on the employee's retirement, resignation or retrenchment, to the same amount of benefit from the defined benefit superannuation scheme, whether or not the employee had contributions: (a) for the quarter; and (b) made by the employer for the benefit of the employee; to a fund (within the meaning of Part 3A) other than the defined benefit superannuation scheme. Meaning of scheme's accrued actuarial liabilities and scheme's liabilities in respect of vested benefits (4) In this section: scheme's accrued actuarial liabilities, at a particular time, means the total value, as certified by an actuary, of the future benefit entitlements of members of the scheme in respect of membership up to that time based on assumptions about future economic conditions and the future of matters affecting membership of the scheme, being assumptions made in accordance with applicable professional actuarial standards (if any). scheme's liabilities in respect of vested benefits, at a particular time, means the total value of the benefits payable from the scheme to which the members of the scheme would be entitled if they all voluntarily terminated their service with their employers at that time. 21 Guidelines for reducing an increase in an individual superannuation guarantee shortfall (1) The Commissioner must, by legislative instrument, make guidelines that the Commissioner must have regard to when deciding whether or not to make a decision under subsection 19(2E). Note: Subsection 19(2E) allows the Commissioner to reduce (including to nil) the amount of an increase in an individual superannuation guarantee shortfall under subsection 19(2A) or (2B). (2) The Commissioner must, by legislative instrument, make guidelines that the Commissioner must have regard to when deciding whether or not to make a decision under subsection 19(2F). Note: Subsection 19(2F) allows the Commissioner to reduce (including to nil) the amount of an individual superannuation guarantee shortfall when a fund that has been notified as the stapled fund for an employee is unable to accept contributions. 22 Reduction of charge percentage where contribution made to defined benefit superannuation scheme (1) This section applies only in relation to defined benefit superannuation schemes. (2) If: (a) a benefit certificate in relation to one or more complying superannuation schemes has effect for the whole or part of a quarter; and (b) a scheme in relation to which the certificate has effect is operating for the benefit of a person as an employee of an employer; and (c) the certificate specifies a figure as the notional employer contribution rate in relation to a class of employees (being a class that includes the employee referred to in paragraph (b)) as members of the scheme or schemes (as the case may be); the charge percentage for the employer, as specified in subsection 19(2), in respect of an employee in the class for the quarter, is reduced, in addition to any other such reduction made under this section or section 23, by the amount worked out using the formula: where: A is the figure referred to in paragraph (c). B is: (A) 1; or (B) if, in relation to the quarter, the employment period is greater than the scheme membership period or the certificate period—either the fraction that represents the scheme membership period as a proportion of the employment period or the fraction that represents the certificate period as a proportion of the employment period or, if one fraction is smaller than the other, the smaller fraction. (3) For the purposes of subsection (2): the certificate period means the period, or the aggregate of the periods, in the quarter for which the benefit certificate has effect in relation to the scheme. the employmen