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9.4 Employer Benefit or Employee Benefit?

Last amended 
15 August 2017

The Commonwealth funded portion of superannuation benefits is called the ‘employer benefit’ and is considered in incapacity payment calculations.

Any part of the superannuation benefit that is attributable to a person's own contributions, the ‘employee benefit’, must be disregarded in calculations i.e. ancillary benefits.

Under the SRCA the employer benefit is added to the notional super contribution (the ‘SC’ amount) under S20, 21 and S21A.  See section 6.6.6 for further information on the SC amount.

Under the MRCA the portion of a person’s superannuation pension or lump sum that is ‘employer benefit’ is used as the “person’s superannuation pension amount” or “person’s superannuation lump sum amount” in calculations under S116A – 116E and S134 -136.