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Super on LSL Cashed out

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Newbie

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De employers need to pay superannuation on LSL Entitlements that are cashed out whilst the employee remains employed, ie. is not a termination.  Is this payment considered to be OTE or not.

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Community Support

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Hi @Trevor,

 

Welcome to the Community.

 

Check out our response to a similar question over on the post Hi, my question is re Super guarantee - is it paid on Long Service Leave.

 

Let us know if you have any further questions.

 

Thanks, NicM.

 

 

2 REPLIES 2
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Best answer

Community Support

Replies 0

Hi @Trevor,

 

Welcome to the Community.

 

Check out our response to a similar question over on the post Hi, my question is re Super guarantee - is it paid on Long Service Leave.

 

Let us know if you have any further questions.

 

Thanks, NicM.

 

 

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Devotee

Replies 0

Hi @Trevor

 

The answer to this question is made clear in the Superannuation Guarantee Ruling 2009/2. The short answer is yes.

 

I've provided an excerpt to the relevant paragraphs (239 - 240) below.

 

Payments for unused long service leave entitlements while still employed
239.  An employer may pay long service leave entitlements as a lump sum in lieu of leave to an employee whilst they remain in that same employment.

 

240. Although unused long service leave paid as a lump sum on termination is specifically excluded from OTE by its definition in subsection 6(1), if a payment for unused long service leave occurs while the employee remains employed, this amount is paid in connection with the employee’s ordinary hours in the same way as any other long service leave payment. Therefore, the payment of unused long service leave entitlements while still employed is included in OTE.

 

Hope this helps.