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SG on purchased leave?

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I'm new

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Hi, can someone confirm whether Super Guarantee is payable on purchased leave. If my Gross PAYG income is $100K and my employer allows me to purchase leave (get additional holidays) my gross annual income will drop by the amount of $ equivalent for the leave taken. Is SG payable on the original income of $100k or the reduced amount?

I cannot see anywhere references to this sort of arrangement as a Salary Sacrifice. I am not receiving a financial benefit of any sort, just getting more time off for which I am not paid.

Look forward to hearing your thoughts and any references.

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Devotee

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The SG amounts would be based on your reduced salary.  For example, if purchasing four weeks of additional leave meant that your total salary paid reduced from $100,000 to around $92,300, SG would be payable on a maximum of $92,300.

 

The only time that SG might be payable on an amount higher than your received salary is when you salary sacrifice super contributions.

 

Whilst the above relates to SG obligations, you should also check your employment agreement as it might allow for a more generous outcome.

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Most helpful response

Devotee

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The SG amounts would be based on your reduced salary.  For example, if purchasing four weeks of additional leave meant that your total salary paid reduced from $100,000 to around $92,300, SG would be payable on a maximum of $92,300.

 

The only time that SG might be payable on an amount higher than your received salary is when you salary sacrifice super contributions.

 

Whilst the above relates to SG obligations, you should also check your employment agreement as it might allow for a more generous outcome.

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Devotee

Replies 0

They pay you SG on the reduced amount.

 

However when they pay out the annual leave, it should be treated as OTE (at least last time I checked) and so net, it's the same.