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Is employer obligated to pay super on portable long service leave payment made by a portable scheme

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Dear community,

I work in payroll department for a large corporation. Wr have employees working in cleaning and construction industries and they are covered by various portable long service leave schemes.

Those employees normally claim payments of long service leave from appropriate schemme.

Are we, as the employer required to pay superannuation on those payments?

How should the super amount be calculated?

Thank you.

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ATO Community Support

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Hiya @allaboutpayroll.

 

Long service leave payouts that are paid from a workers entitlement fund do not attract a superannuation amount. As the employer is not making any payments, they are not liable for any superannuation and because there is no employer/employee relationship, the fund isn't liable either. 

 

This was an ATO interpretive decision made ATO ID 2005/33 which is available for you to have a look over in our law library.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hiya @allaboutpayroll.

 

Long service leave payouts that are paid from a workers entitlement fund do not attract a superannuation amount. As the employer is not making any payments, they are not liable for any superannuation and because there is no employer/employee relationship, the fund isn't liable either. 

 

This was an ATO interpretive decision made ATO ID 2005/33 which is available for you to have a look over in our law library.