Superannuation Guarantee Ruling SGR 2009/2 - Update to OTE

Date
18/09/2017
Issue

There seems to be some outdated exclusions as to what is included as OTE

1. Make-up payments for Jury Service are not included in OTE for SG purposes, disadvantaging employees when they are compulsorily attending Jury service

(Para 37. An employee may receive 'top-up payments', such as those made while serving on jury duty or with defence reserve forces, that make up some or all of the difference between any amount the employee is receiving for performing such service and the ordinary time rate of pay he or she would earn if not performing such service. Top-up payments of this kind are not OTE as they are excluded from being 'salary or wages' in the SGAA by Regulation 7AD of the SGAR: see paragraph 59B of this Ruling.

2. Exclusions under paragraph 57A:

a. salary or wages of less than $450 paid to an employee in a month.

This disadvantages the lower paid workers, potentially increasing the need for government support in their 'golden' years.

b. salary or wages paid to a part-time employee who is under 18 years of age

The effect of compounding is well known. Early start to savings will reduce the drain on the public purse.

With the prevalence of payroll software adn the recent introduction of SuperStream, the administrative burden of making the payments has been greatly reduced.

3. Paid Parental Leave and other ancillary leave (34. However, payments made while a worker is on paid parental leave or other kinds of ancillary leave are not OTE as these types of leave payments are excluded from being 'salary or wages' in the SGAA by Regulation 7AD of the Superannuation Guarantee (Administration) Regulations 1993 (SGAR): see paragraph 59B of this Ruling. )

For equity purposes, especially in the case of employees taking military leave, or who are emergency service volunteers (e.g. SES, fire brigades), they are being penalised for giving their time to the community.

Link to SGR 2009/2 http://law.ato.gov.au/atolaw/view.htm?Docid=SGR/SGR20092/NAT/ATO/00001

http://law.ato.gov.au/atolaw/view.htm?Docid=SGR/SGR20092/NAT/ATO/00001 

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