Superannuation Guarantee - Earnings Base & Ordinary Time Earnings
As of 1 July 2008, employers must include bonuses, commissions and allowances (see table below for exclusions) in a worker’s income for the purpose of calculating the 9% superannuation contribution to make on their behalf, generally it does not include overtime. An employer must use ordinary time earnings as defined in the super guarantee law to calculate super guarantee contributions for employees.
Checklist for Salary or Wages and Ordinary Time Earnings
| Payment type | Salary or wages | Ordinary time earnings |
| Expense allowance that is paid with the expectation that it will be fully expended in producing income (for example, car allowance paid to real estate agents) | No | No |
| Allowances paid (other than a reimbursement of expenses or expense allowance) | Yes | Yes |
| Reimbursement of expenses (for example travel costs) | No | No |
| Bonuses that don’t relate to specific performance criteria (for example Christmas bonuses) | Yes | No |
| Other bonuses | Yes | Yes |
| Commission | Yes | Yes |
| Over-award payments | Yes | Yes |
| Shift loading | Yes | Yes |
| Overtime | Yes | No |
| Casual loading | Yes | Yes |
| Benefits subject to fringe benefits tax (FBT) | No | No |
| Workers compensation payments, including top-up payments where no work is performed | No | No |
| Workers compensation payments, including top-up payments, paid by the employer, where work is performed | Yes | Yes |
| Top-up payments (for example when serving on jury duty or with reserve forces) | Yes | No |
| Payments when on maternity or paternity leave | Yes | No |
| Pay for annual holiday leave taken | Yes | Yes |
| Government wage subsidies (for example Wage Subsidy Scheme allowance) | Yes | Yes |
| Annual leave loading | Yes | No |
| Pay for sick leave taken | Yes | Yes |
| Pay for long service leave taken | Yes | Yes |
| Accrued annual leave, long service leave and sick leave paid as a lump sum on termination | Yes | No |
| Payments in lieu of notice | Yes | No |
| Redundancy payments | Yes | No |
| Other payments paid by an employer on termination of employment | Yes | No |
| Director’s fees | Yes | Yes |
| Payments for performance in, or provision of services relating to entertainment, sport, promotions, films, discs, tapes, TV, or radio | Yes | Yes |
| The labour portion of payments to contractors who are employees for super guarantee purposes | Yes | Yes |
| Payment type | Salary or wages | Ordinary time earnings |
| Dividends | No | No |
| Partnership and trust distributions | No | No |
| Payments for entering into a restraint of trade agreement | No | No |
| Payments for domestic or private work under 30 hours per week | No | No |
