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Does employer need to pay superannuation gurantee contribution for rental allowance?

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Hi,

 

1) I am employed on a full time basis on a yearly salary in rural victoria. I received a rental allowance which is taxable from my employer to help with the cost of rent as part of my contract.

 

2) I read on the ATO website that employer usually need to pay superannuation gurantee contributions on most allowance as it is part of ordinary time earnings?

 

3) Do employer need to pay superannuation gurantee contributions on rental allowance?

 

 

Thanks.

 

 

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ATO Certified

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Hi Ahrong_77,

 

From your description, it sounds like the allowance is one that is expected to be fully expended and therefore neither Salary or Wages, or OTE.  You may also want to check your employment contract; enterprise agreement; or industry award to see whether it is covered there.

 

The ATO has a webpage discussing OTE at:

https://www.ato.gov.au/Business/Super-for-employers/How-much-to-pay/checklist--salary-or-wages-and-o...

 

There is also the ATO SG Ruling SGR 2009/2 which explains OTE and Salary or Wages in more detail:

https://www.ato.gov.au/law/view/document?docid=SGR/SGR20092/NAT/ATO/00001

 

Steve

1 REPLY 1
Highlighted

Best answer

ATO Certified

Initiate

Replies 0

Hi Ahrong_77,

 

From your description, it sounds like the allowance is one that is expected to be fully expended and therefore neither Salary or Wages, or OTE.  You may also want to check your employment contract; enterprise agreement; or industry award to see whether it is covered there.

 

The ATO has a webpage discussing OTE at:

https://www.ato.gov.au/Business/Super-for-employers/How-much-to-pay/checklist--salary-or-wages-and-o...

 

There is also the ATO SG Ruling SGR 2009/2 which explains OTE and Salary or Wages in more detail:

https://www.ato.gov.au/law/view/document?docid=SGR/SGR20092/NAT/ATO/00001

 

Steve