Applying Maximum Earnings Limits

Legislation provides an earnings ceiling that limits the amount an employer is required to contribute. This ceiling is indexed each year and as of July 1, 2009 was 40,170.00 AUD per quarter. Employers do not have to apply the limit, and they can continue to contribute for the employee's super.

The following table shows the reduced amount payable in the third month because the quarterly limit is reached in that month. The SG contribution is based on 9 percent in this example.

Month	Earnings	SG Calc'd On	Cumulative Amount / Month	SG Contribution
January	10,000	10,000	10,000	900
February	20,000	20,000	30,000	1800
March	10,000	5,240 (35,240 – 30,000)	35,240	471.60

This limit check is part of the SGCMAN deduction calculation. Variables determine whether the check occurs and the maximum limit. If the check occurs, the system verifies the employee's quarter-to-date gross earnings against the quarterly limit.