What constitutes Ordinary Times Earnings for Superannuation
Payments to an employee in relation to … | Salary or wages? |
OTE? |
Awards and agreements | ||
Overtime hours – award stipulates ordinary hours to be worked and employee works additional hours for which they are paid overtime rates | Yes | No |
Overtime hours – agreement prevailing over award | Yes | No |
Agreement supplanting award removes distinction between ordinary hours and other hours | Yes | Yes |
No ordinary hours of work stipulated | Yes | Yes |
Casual employee – shift-loadings – overtime payments |
Yes Yes |
Yes No |
Casual employee whose hours are paid at overtime rates due to a ‘bandwidth’ clause | Yes | No |
Piece-rates – no ordinary hours of work stipulated | Yes | Yes |
Overtime component of earnings based on ‘hourly driving rate’ formula stipulated in award | Yes | No |
Allowances | ||
Allowance by way of unconditional extra payment | Yes | Yes |
Expense allowance expected to be fully expended | No | No |
Danger allowance | Yes | Yes |
Retention allowance | Yes | Yes |
Hourly on-call allowance in relation to ordinary hours of work for doctors | Yes | Yes |
Payment of expenses | ||
Reimbursement | No | No |
Petty cash | No | No |
Reimbursement of travel costs | No | No |
Payments for unfair dismissal | No | No |
Workers’ compensation – returned to work – not working |
Yes No |
Yes No |
Leave payments | ||
Annual leave, sick leave or long service leave | Yes | Yes |
Parental leave – maternity, paternity and adoption leave | No* | No |
Ancillary leave – eg jury duty, defence forces reserves leave | No* | No |
Termination payments | ||
Termination payments – in lieu of notice – for unused annual leave, sick leave or long service leave |
Yes Yes |
Yes No |
Bonuses | ||
Performance bonus | Yes | Yes |
Bonus labelled as ex gratia but in respect of ordinary hours of work | Yes | Yes |
Christmas bonus | Yes | Yes |
Bonus in respect of overtime only | Yes | No |
Source- Australian Taxation Office
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