Article by Richard Ottley and Myles Engelen
A recent ruling made by the Commissioner of Taxation on the
Superannuation Guarantee directs attention to an area of law that
for some employers, largely slips under the radar. The Commissioner
in his recent ruling, has expanded the definition of 'ordinary
time earnings' (OTE), meaning employers will
be obliged to contribute superannuation on an increased number of
payment types made to employees.
What is the significance of the Superannuation Guarantee Ruling
2009/2?
From 1 July 2009, employers will (in addition to previous
requirements), need, amongst other things, to include payments made
in lieu of notice and certain ex-gratia bonuses, when
assessing their employees' accumulations of OTE. Their
employees' accumulation of OTE in any given quarter, will
inform an employer's obligations to make superannuation
contributions (for example in the 08- 09 financial year employers
were required to contribute super based on
