Super Guarantee OTE definition changes
Changes have been made to the Superannuation Guarantee (Administration) Act 1992 (Cwlth) (SGR 2009/2). Those changes took affect from 1 July 2009 and provide a slightly modified version of the ordinary time earnings (OTE).
OTE is defined as earnings in respect of ordinary hours of work other than earnings consisting of a lump sum payment of any of the following kinds made to the employee on the termination of his or her employment.
With the changes the following aspects are affected:
- Bonuses are now considered OTE and are included when calculating the Superannuation Guarantee payable
- Overtime, even if regular, outside ordinary work hours is generally not included in OTE.
For more information about the Superannuation Guarantee OTE and how it will affect your employees talk to your ARW Chartered Accountant .