Extra pay for working on RDO

 Author: PayrollDeanne(Taxicorn)Taxicorn

15 July 2024

Hiya @Reggie10 👋

Thanks for providing the Award. The reason I wanted to know was to understand the purpose and circumstances of the payment, as that is the only way to correctly classify the payment for tax, super and reporting.

In MA000046 Air Pilots Award 2020 Clause 15.8(f), it states:

(f)          An employee who is a pilot will not be required to work on a rostered duty-free day. In the event of unforeseen circumstances an employer may request a pilot to work on a rostered duty-free day. If a pilot agrees to work:

(i)          a substitute duty-free day will be arranged within a month of the day worked; and

(ii)        the pilot will receive an additional amount of $128.07 per day worked.

My assessment:

• The employee was to have an RDO
• The RDO was mutually agreed to change to another day
• This makes the day that was formerly a day off, just more ordinary hours worked
• The additional amount is like a penalty during their ordinary hours of work
• It is taxable as per salary and wages
• It is ordinary time earnings and therefore SG is payable
• It is reported in STP2 as Gross

Deanne