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Vadermills(Initiate)Initiate
12 Jan 2026

Where employees are salaried and paid on a fortnightly basis there is a fluctuation in the number of pay cycles (and therefore OTE) that fall within a given MSCB quarter. So when an employees salary is close to the MSCB cap (e.g. $245,000 per annum) they hit the cap in quarters with 7 fortnights but do not hit the cap in quarters with 6 fortnights.


Is this the correct treatment for the 2026 financial year or is there an obligation to increase contibutions to meet annual salary amounts?



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125 views
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PayrollDeanne(Taxicorn)Taxicorn
12 Jan 2026

G'day@JVader 👋


Yes, that is how it works with quarters: some will have 7 fortnights and some will have 6.


The requirement of the quarterly MCB is regardless of the frequency of pays. The OTE is determined at the payday, therefore, the capping of those near that amount may be impacted for some quarters and not others, as per the ATO guidance.


Deanne

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