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Re: Super payments on Commission

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Newbie

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HI

 

I am considering going onto Debit/Credit Commission within Real Estate industry. When is the super contribution calculated, on Gross Commission or after the split.

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ATO Certified

Devotee

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 Hi @Lgodbold

 

Welcome to the ATO Community!

 

Ordinary time earnings (OTE) are generally what you (the employee) earns for your ordinary hours of work. These earnings are what the employer is required to pay super on once the earnings are paid to you. Generally speaking, eligible employees will be paid the 9.5% Super Guarantee Contribution rate on gross salary and wages, however there may be further obligations under a statute, an industrial award or an agreement with the employer (so be sure to check these details with your employer). If the ordinary hours of work are not specified or agreed, the ordinary hours of work will be the hours actually worked (which includes commissions).

 

If you'd like to read the SGR ruling, refer to paragraph references 28-29 and 274- 278 here.

 

Hope this helps, and goodluck with the new role.

 

(Note - I'm an ATO employee here voluntarily).

2 REPLIES 2
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Best answer

ATO Certified

Devotee

Replies 1

 Hi @Lgodbold

 

Welcome to the ATO Community!

 

Ordinary time earnings (OTE) are generally what you (the employee) earns for your ordinary hours of work. These earnings are what the employer is required to pay super on once the earnings are paid to you. Generally speaking, eligible employees will be paid the 9.5% Super Guarantee Contribution rate on gross salary and wages, however there may be further obligations under a statute, an industrial award or an agreement with the employer (so be sure to check these details with your employer). If the ordinary hours of work are not specified or agreed, the ordinary hours of work will be the hours actually worked (which includes commissions).

 

If you'd like to read the SGR ruling, refer to paragraph references 28-29 and 274- 278 here.

 

Hope this helps, and goodluck with the new role.

 

(Note - I'm an ATO employee here voluntarily).

Newbie

Replies 0

Thanks for reply. It clears up part of my question.

Part 2 is if we are on Dr/Cr commission system where wages are paid back, is super component on initial wage paid back as well?
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