Superannuation Accounting and DEST Recoveries

13.2

Introduction

Section 20 of the Higher Education Funding Act (HEFA) 1988 provides for supplementary superannuation payments. Operating grant funding includes provision for the cost of superannuation contributions based on the cost structure of SSAU, State Emerging Superannuation and TESS, ie. 14% and 3% respectively.

Funding for this has been built into the operating grant, and where the costs of relevant emerging cost superannuation schemes exceed the provision, the Commonwealth reimburse the additional costs.

Supplementation is also provided for the costs incurred by institutions in relation to compliance with the Superannuation Guarantee legislation — from 1996 the provision will be included in the operating grant.

Procedure

13.2.1 In January of each year data will be gathered in respect of:

• South Australian — old pension scheme;
• South Australian — new lump sum scheme;
• Superannuation Guarantee,

to facilitate calculation of superannuation supplementation due under HEFA 1988 in respect of the preceding year.

13.2.2 The value of actual employer contributions made on behalf of employees will be determined and compared to the amount included in the operating grant.

13.2.3 Any shortfall in the provision within the operating grant will be the subject of a claim which will be submitted to DEST.