Announcements
What's the right super fund for you? Although super may not be on the top of your list now, keeping track of your super can help maximise your savings for when you retire. Try out the new YourSuper comparison tool and choose a super fund that meets your needs. Still got questions about super? Ask the Community

ATO Community

is super payable on a housing contribution allowance when it's part of a salary package?

Newbie

Views 572

Replies 3

is super payable on a housing contribution allowance when it's part of a salary package? It is reimbursement for an expense but it's also part of the package

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Community Moderator

Replies 0

Hi @chellelancaster

 

Thanks for your post.

 

When employers work out how much super guarantee (SG) to pay, they need to calculate it at 9.5% of their employee's ordinary time earnings (OTE). You can find out more about SG and how much to pay on our website.

 

OTE is usually the amount an employee is paid for their ordinary hours of work and also includes things like commissions, shift loadings and some allowances, but not allowances. We have a checklist that you can look at that will help you identify the common payments that are OTE as well as those that aren't.

 

You will see that an expense allowance that is expected to be fully expended is not OTE. In turn, SG isn't required on that payment.

 

It is important to note that the above information reflects the employer's minimum obligations. The employer should also check the applicable award, agreement or contract as well as the super fund rules to ensure that there are no additional super requirements.

 

Hope this helps.

3 REPLIES 3

Most helpful response

Community Moderator

Replies 0

Hi @chellelancaster

 

Thanks for your post.

 

When employers work out how much super guarantee (SG) to pay, they need to calculate it at 9.5% of their employee's ordinary time earnings (OTE). You can find out more about SG and how much to pay on our website.

 

OTE is usually the amount an employee is paid for their ordinary hours of work and also includes things like commissions, shift loadings and some allowances, but not allowances. We have a checklist that you can look at that will help you identify the common payments that are OTE as well as those that aren't.

 

You will see that an expense allowance that is expected to be fully expended is not OTE. In turn, SG isn't required on that payment.

 

It is important to note that the above information reflects the employer's minimum obligations. The employer should also check the applicable award, agreement or contract as well as the super fund rules to ensure that there are no additional super requirements.

 

Hope this helps.

Newbie

Replies 0

Hi so was this allowance considered in salary package no super and no fbt?

ATO Community Support

Replies 0

Hi @RG_Work

 

An expense allowance expected to be fully expended and also reimbursements are not considered OTE therefore no SG is required.

 

When an employer reimburses an employee for expenses they incurred then this is known as an Expense fringe benefit.

 

See the Fringe benefits tax guide on our website.

 

Ari