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Newbie

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Hi 

 

I just like to clarify that when we calculate the OTE for super, should we deduct the salary sacrifice amount from the base pay or not?

 

Suppose, My Gross salary is $4,000.00 and I do $200.00 salary sacrifice for my car lease. My taxable gross is $3,800.00, should my employer calculate the SGC on $4,000.00 or $3,800.00?

 

Regards

Yatin

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Most helpful response

Devotee

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Hi @Yatin 

 

Referring to your example above, it appears the "salary sacrifice" you mentioned is actually "salary packaging", which is generally considered a fringe benefit which is separate from salary and wages, 

 

Ordinary Time Earnings does not include fringe benefit. Therefore, SG will not be calculated including fringe benefit payable to the individual. 

 

If in doubt, you may ish to seek professional tax advice for clarification.

 

Hope this helps.

R

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Most helpful response

Devotee

Replies 1

Hi @Yatin 

 

Referring to your example above, it appears the "salary sacrifice" you mentioned is actually "salary packaging", which is generally considered a fringe benefit which is separate from salary and wages, 

 

Ordinary Time Earnings does not include fringe benefit. Therefore, SG will not be calculated including fringe benefit payable to the individual. 

 

If in doubt, you may ish to seek professional tax advice for clarification.

 

Hope this helps.

R

Newbie

Replies 0

Thanks Azhai