Earnings re-defined for Superannuation Guarantee payments
The Australian Tax Office has published a Superannuation Guarantee Ruling which changes the definition of "Ordinary Time Earnings" (OTE) used to calculate employers Superannuation Guarantee obligations.
Under the ruling, OTE means all earnings from "ordinary hours of work". Salary and wages paid in the "ordinary hours of work" do not extend to overtime payments, according to the ruling.
The ruling also maintains that all types of bonuses are now to be included in OTE other than:
- a bonus that is solely referable to work done in overtime hours; and
- some sign-on bonuses.
Payments in lieu of notice on termination of employment were also now included within the meaning of OTE.
Superannuation Guarantee Ruling SGR 2009
Contact A Grade Tax Accountants Penrith on (02) 4731-1405 for all your specific taxation needs.
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