ASFA Action 9 June 2020

Issue 758, 9 June 2020 

In this issue: 

• COVID-19 Coronavirus: early release of super – APRA data 

• COVID-19 Coronavirus: JobKeeper – Superannuation Guarantee regulations 

• ATO superannuation guidelines 

 

COVID-19 Coronavirus: early release of super – APRA data 

APRA has made its sixth weekly publication of industry-level data from its early release initiative data collection. 

The data shows that, from inception of the early release initiative (20 April) to 31 May: 

• payments totalling $13.5 billion had been made, with an average of $7,473 per payment 

• 96 million applications had been received and 1.81 million applications had been paid 

• Funds had taken 3.3 business days on average to pay an application 

• 95 per cent of applications were paid within five business days. 

APRA has also published the fifth tranche of fund-level statistics from its early release data collection, revealing the number and value of the payments processed by each fund, as well as the time taken to make payments. 

 

 

COVID-19 Coronavirus: JobKeeper – Superannuation Guarantee regulations 

The Government has made regulations addressing the Superannuation Guarantee (SG) implications where payments are made under the JobKeeper scheme. 

As reported in ASFA Action issues 749, 748 and 746, JobKeeper is a wage subsidy program that forms part of the Government’s COVID-19 economic support package. Under the program, the Government will provide a wage subsidy of up to $1,500 per fortnight for eligible employees of businesses that meet prescribed criteria regarding a reduction in revenue since 1 March. 

The Government has now made the Superannuation Guarantee (Administration) Amendment (Jobkeeper Payment) Regulations 2020 to ensure that employers are not subject to additional SG obligations as a result of their participation or anticipated participation in the JobKeeper scheme. 

In particular, the regulations provide that amounts of salary or wages that do not relate to the performance of work, and are only paid to an employee to satisfy the wage condition for receiving JobKeeper payment, are excluded salary or wages for SG purposes. The effect is that these amounts are excluded from the calculations of an employer’s SG shortfall and the minimum superannuation contribution an employer is required to make in respect of an employee to avoid a SG charge liability. 

The regulations commenced on 3 June. 

 

 

ATO superannuation guidelines 

The ATO has published two new Practical Compliance Guidelines for superannuation. 

• PCG 2020/5 Applying the non-arm’s length income provisions to ‘non arm’s length expenditure’ – ATO compliance approach for complying superannuation entities 

This Guideline extends for the 2020–21 income year the ATO’s transitional compliance approach for a complying superannuation entity concerning the application of the amendments to section 295-550 of the Income Tax Assessment Act 1997 where a superannuation entity incurs certain non-arm’s length expenditure (or where expenditure is not incurred) in gaining or producing ordinary or statutory income. 

• PCG 2020/6 Timing of income tax deductions for superannuation contributions made through the Small Business Superannuation Clearing House – ATO compliance approach 

This Guideline describes circumstances in which the ATO will not apply compliance resources to determine which income year an employer is entitled to claim income tax deductions for super contributions made through the Small Business Superannuation Clearing House to a superannuation fund or retirement savings account. 

 

 

ASFA REGULATORY WATCHLIST

ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations

and other regulatory announcements relevant to superannuation.