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MSparrow(Newbie)Newbie
5 July 2023

We provide a company income protection policy where the employees can elect in and have the premiums deducted from their pay. If they make a claim and it is approved the insurer pays the income protection payments to us as the employer and we then pay it to the employee.


Are we, the employer supposed to pay Super guarantee on top of the income protection amount that we have on-paid to the employee if they have not returned to work like Workers compensation works? Or are we to pay it on any payments when they have returned to work on restricted duties or is it paid on all of the payments?


Is it also exempt like Workers compensation payments for Payroll Tax in WA?

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4 replies
3,624 views
4 replies

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AriATO(Community Support)Community Support
10 July 2023

Hi @MSparrow


We've found income protection payments are similar to workers compensation. If the employee actually performs work or is required to attend work then superannuation guarantee applies.

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AriATO(Community Support)Community Support
7 July 2023

Hi @MSparrow


We'll find out from our super area if super applies to the income protection payments. Payroll tax is looked after by your state government, so you can check with them if its exempt.

Most helpful reply

AriATO(Community Support)Community Support
10 July 2023

Hi @MSparrow


We've found income protection payments are similar to workers compensation. If the employee actually performs work or is required to attend work then superannuation guarantee applies.

MSparrow(Newbie)Newbie
19 July 2023

Can you please confirm if it is the employer or the insurer who is required to pay the Super if the employee has returned to some form of work? The insurer transfers the amount payable that is compensating wages to us as the employer and we pass it onto the employee.



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Is super guarantee payable on income protection insurance payments made on behalf of insurer? | ATO Community