New South Wales Consolidated Acts

SUPERANNUATION ACT 1916 - SECT 12C

12C Deduction factors in relation to part-time employment

(1) In this section:
"part-time employee" means:

(a) a person appointed to a part-time position and certified to STC by the person’s employer to have a salary ratio of less than one, or

(b) a person appointed to a full-time position and on part-time leave without pay, and certified to STC by the person’s employer to have a salary ratio of less than one, who has made an election, that is in force under this section, to be treated as a part-time employee.

"salary ratio" of a person means the ratio of the salary of the person while employed on a part-time basis to the salary certified by the employer of the person to be the salary which would be paid to the person if employed on a full-time basis.

(1A) A person who is appointed to a full-time position and who commences a period of part-time leave without pay may elect to be treated as a part-time employee for the purposes of this section.

(2) Where a contributor who is not a part-time employee becomes a part-time employee or a contributor who is a part-time employee becomes a part-time employee in a position in relation to which the salary ratio is different from that of the former position, STC shall, on and from the day on which the contributor becomes a part-time employee, or the salary ratio changes, apply under section 12A, in relation to the contributor, in addition to such other deduction factors (if any) as STC is required to apply in relation to the contributor, a deduction factor equal to the figure calculated in accordance with the following formula:

"D" is the deduction factor.
"PA" is the number of years, if any, (including any fractional part of a year calculated on a daily basis) by which the day precedes the known or estimated date on which the period of part-time employment is to cease.
"SR" is the salary ratio (expressed as a fraction) in relation to the position.

(2A) For the purposes of item “PA” in subsection (2), the known or estimated date on which part-time employment is to cease is:

(a) in the case of a contributor on part-time leave without pay-the date on which the period of leave approved for the contributor is to cease, or

(b) in any other case-the date certified in writing by the contributor’s employer to STC for the purposes of this subsection.

(3) Where a contributor who is a part-time employee ceases to be a part-time employee or the salary ratio of the employee changes, STC must, on and from the day the contributor ceases to be a part-time employee or the salary ratio changes, apply under section 12A in relation to the contributor:

(a) instead of the deduction factor required under subsection (2) to be applied, and on and from the day the person commenced to be a part-time employee or to be employed in a position having the former salary ratio,

(b) in addition to such other deduction factors (if any) as STC is required to apply in relation to the contributor,

a deduction factor equal to the figure which would have been calculated in accordance with subsection (2) if the figure attributed to the symbol PA were the number of years, if any, (including any fractional part of a year calculated on a daily basis) of the period during which the contributor was employed as a part-time employee or employed in a position having the salary ratio of the former position.

(3A) However, subsection (3) does not apply in respect of a part-time employee who has made an election under subsection (1A), and whose salary ratio decreases, unless the employee elects that subsection (3) is to apply in respect of that changed salary ratio.

(4) STC must apply under section 12A, in relation to a contributor who is employed for less than 10 hours a week for a single period of more than 2 years, a deduction factor equal to the length of that part of the period that the contributor is so employed that exceeds 2 years and ends on the date on which the contributor attains the maturity age.

(5) The deduction factor applied under subsection (4) is to be expressed in terms of years and include any fractional part of a year calculated on a daily basis.

(6) The deduction factor applied under subsection (4) is to be applied on and from the end of 2 years after the commencement of the period of employment and is in addition to any other deduction factor that STC is required to apply in relation to the contributor.

(7) Subsections (1)-(3) do not apply in respect of a contributor during any period in which STC is required to apply a deduction factor under subsection (4).

(8) However, subsection (3) applies to a contributor who, at the end of the period, commences to be employed for more than 10 hours a week in the same way as it applies to any other employee whose salary ratio changes.