PSIER News 008/2009
New Circular C2/09 on Superannuation and Ordinary Time Earnings
Circular C2/09 ‘Superannuation and Ordinary Time Earnings’ has been issued by the Public Sector Industrial and Employee Relations Division.
The circular details the changes to ordinary time earnings as a result of the Australian Tax Office (ATO) issuing a Superannuation Guarantee Ruling SGR 2009/2 and an addendum SGR 2009/2A1 to take effect from 1 July 2009. This ruling explains the meaning of ordinary time earnings (OTE) which is relevant for the purpose of calculating the minimum level of superannuation support required for individual employees. These rulings replace Superannuation Rulings SGR 94/4 and SGR 94/5
ATO Ruling SGR 2009/2 and addendum SGR 2009/2A1 has replaced the previous interpretation of the following:
Payment in Lieu of Notice
If an employer terminates an employee immediately and pays the equivalent of the notice period (in lieu of notice) then this amount is considered OTE. Although the employee did not perform duties to receive payment in lieu of notice the payment was made in respect of ordinary hours of work the employee would have performed except for the immediate termination of employment.
Bonuses
Additional earnings received as a reward for good performance and other like bonus payments are OTE in most cases. If a bonus is at least partly referable to results achieved in ordinary hours of work then it is OTE.
Since this PSIER News merely summarises the main areas of change, it is recommended that you read the new circular. The new circular will be on the PSIER website at http://www.psier.qld.gov.au/circular/index.shtml.
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Article: |
008/2009 |
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Issued: |
17 August 2009 |
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Telephone: |
3225 2350 |
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Fax: |
3229 5943 |
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Email: |
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Internet: |
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