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Nicole_102938(Newbie)Newbie
27 Nov 2023

In regards to TD 2023/3 the ATO has clearly split out three brackets, in tables 6 through 8,

based on the "employee’s annual salary".


My first question is that "annual salary" gross or net of superannuation?


We have several employees who would fall in different brackets dependant on that answer.


Secondly, is Superannuation to be calculated on travel allowances?

and if so, would it be:

  • the total amount of the travel allowance; or
  • the portion travel allowances in excess of the "reasonable amounts"


https://www.ato.gov.au/law/view/pdf/pbr/td2023-003.pdf

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CaroATO(Community Support)Community Support
12 Dec 2023

Hi @Nicole_102938,


SG isn't paid on annual salary, it's paid on the gross amount of OTE.


There're times an allowance is and isn't considered OTE. If the expense allowance is expected to be used in full, then it isn't OTE. When an allowance is given to an employee for them to spend on what they like or isn't a predetermined amount to offset the travel then, it is OTE.


If the travel allowance is OTE, SG will need to be paid on the full amount.


Let's say the money was for reimbursement of travel expenses, in this scenario it won't form part of OTE.

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ATO Certified Response
CaroATO(Community Support)Community Support
ATO Certified Response28 Nov 2023

Hi @Nicole_102938,


Super guarantee, (SG) is paid on what's called ordinary time earnings, (OTE). If an employer misses or makes a late SG payment, they use salary and wages that include overtime payments when working out the super guarantee charge, (SGC)


OTE is the gross amount an employee receives. When we look at if allowances form part of OTE, it depends on a few factors. Have a look under allowances on the OTE link for further information.

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TD 2023/3: Annual Salary Definition and Impact on Superannuation | ATO Community