Employers provide service award payment to recognise employees' long-term commitment at the workplace. Will this type of payment considered Ordinary Time Earnings?
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Below is a list of payments and whether they are considered OTE.
List of payments that are ordinary time earnings | Australian Taxation Office
A performance bonus counts as OTE
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Below is a list of payments and whether they are considered OTE.
List of payments that are ordinary time earnings | Australian Taxation Office
A performance bonus counts as OTE
Thanks for the response. I have read this list before and still not 100% sure whether the service awards really fall under the definition of performance bonus. When I looked at the definition & guidance on the performance bonus definition, it has some conditions applied to performance bonus, such as achievement exceeding expectations, not subject to poor behaviours etc.
Whilst this service award payment we give to employees are purely based on their length of service without any of performance conditions.
https://www.apsc.gov.au/circulars-guidance-and-advice/performance-bonus-guidance
It would be so helpful to get more guidance on this. Thanks so much!
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