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ARTICLE · 15 SEPTEMBER 2021

It Depends – Ordinary time earnings

Cooper Grace Ward
Cooper Grace Ward
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Cooper Grace Ward

Cooper Grace Ward

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This edition discusses employers' obligations to contribute compulsory super and the concept of ordinary time earnings.

AustraliaTax
Fletch Heinemann
Fletch Heinemann
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Video transcript

Welcome to today's edition of It Depends. Today we're talking about employers' obligations to contribute compulsory superannuation and, in particular, the concept of ordinary time earnings.

What is the relevance of ordinary time earnings?

The super guarantee legislation deals with two concepts, salary and wages, and then ordinary time earnings. So, the super guarantee charge is paid to the ATO and it's assessed based on salary or wages. But if an employer makes contributions equal to currently 10% of an employee's ordinary time earnings, then there's no obligation to pay the super guarantee charge. So, that's why we've got the importance of figuring out the concept of ordinary time earnings so, that employers can then make sure that their contributions for their employee's superannuation, at least equal to 10% of that amount.

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Cooper Grace Ward is a leading Australian law firm based in Brisbane.

This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please contact Cooper Grace Ward Lawyers.

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