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louisem(Dynamo)Dynamo
3 May 2022

If you don't need to pay super on Company paid Parental leave as it is a company policy why do you need to pay it on purchased leave which is also a company policy?

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1,713 views
1 replies

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Most helpful replyATO Certified Response

BlakeATO(Community Support)Community Support
ATO Certified Response5 May 2022

Hi @louisem


Super isn't payable on parental leave according to legislation, not individual company policy. Under SGR 2009/2, parental leave isn't an ordinary time earning, so super doesn't apply to it.


But super is payable on purchased leave given that it's salary and wages "put away" to be paid later while the employee takes leave. It's already earned income as their normal salary and wages, and then held in a "savings" system. So super is still payable on that because it's part of their normal salary, just "saved" for when they want to take extra holidays.

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Most helpful replyATO Certified Response

BlakeATO(Community Support)Community Support
ATO Certified Response5 May 2022

Hi @louisem


Super isn't payable on parental leave according to legislation, not individual company policy. Under SGR 2009/2, parental leave isn't an ordinary time earning, so super doesn't apply to it.


But super is payable on purchased leave given that it's salary and wages "put away" to be paid later while the employee takes leave. It's already earned income as their normal salary and wages, and then held in a "savings" system. So super is still payable on that because it's part of their normal salary, just "saved" for when they want to take extra holidays.

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