Superannuation – averaged calculation

The Superannuation Guarantee (Administration) Act 1992 (Cth), s 19 provides that employers are required to pay superannuation benefits at a rate of 9.5% from 1 July 2014 until the year starting on 1 July 2021, and thereafter as follows:

(i) For the year starting on 1 July 2021 10%;

(ii) For the year starting on 1 July 2022 10.5%;

(iii) For the year starting on 1 July 2023 11%;

(iv) For the year starting on 1 July 2024 11.5%;

(v) For the year starting on 1 July 2025 12%.

In Martin v Andrews & Anor [2016] QSC 020 Justice McMeekin averaged the superannuation for 16 years at 10.15% and noted the change in legislation since the decision of Heywood v Commercial Electrical Pty Ltd [2013] QCA 270 at [56] per Muir JA.

The averaging calculation is done on the basis of calculating a deferred period – using an example of $100 loss per week and by reference to earlier rates, it is as follows:

YEAR OF LOSS RATE 5% MULTIPLIER LOSS
1 9% 51 $459.00
2 9.25% 48 (99-51) $444.00
3 9.5% 47 (146-99) $446.50
4 10% 44 (190-146) $440.00
5 10.5% 42 (232 -190) $441.00
6 11% 39 (271 -232) $429.00
7 11.5% 38 (309 – 271) $437.00
8 12% 37 (346 – 309) $444.00
9 12% 34 (380 – 346) $408.00
10 12% 33 (413 -380) $396.00
Total loss $4,344.50

Accordingly, the loss of superannuation of $4,344.50 can be averaged by dividing it by the total lost income ($100 x multiplier 413 = $41,300) and converting it into a percentage:

$4,344.50/$41,300.00 x 100/1 = $10.5193704%

David Cormack – Brisbane Barrister & Mediator

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