Checklist: salary or wages and ordinary time earnings | Australian Taxation Office

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Checklist: Salary or wages and ordinary

time earnings
The tables in this checklist will help you identify what payments are considered
salary or wages and whether they are considered part of ordinary time
earnings (OTE) for super guarantee purposes. The list is not exhaustive and is
for general guidance only. The payment-type tables are:
Awards and agreements
Allowances
Expenses
Leave
Termination payments
Bonuses

Awards and agreements

Payment

Overtime hours award stipulates ordinary

hours to be worked and employee works
additional hours for which they are paid
overtime rates

Salary or
wages

Ordinary time
earnings
(OTE)

Yes

No

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Checklist: salary or wages and ordinary time earnings | Australian Taxation Office

Overtime hours agreement prevails over

award

Yes

No

Agreement supplanting award removes

distinction between ordinary hours and
other hours

Yes all
hours
worked

Yes all hours

worked

No ordinary hours of work stipulated

Yes all
hours
worked

Yes all hours

worked

Yes
Yes

Yes
No

Casual employee whose hours are paid at

overtime rates due to a 'bandwidth' clause

Yes

No

Piece-rates no ordinary hours of work

stipulated

Yes

Yes

Overtime component of earnings based on

hourly-driving-rate method stipulated in
award

Yes

No

Casual employee:
shift loadings
overtime payments

Allowances
Salary or
wages

Ordinary time
earnings (OTE)

Allowance by way of unconditional

extra payment

Yes

Yes

Expense allowance expected to be

fully expended

No

No

Payment

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Checklist: salary or wages and ordinary time earnings | Australian Taxation Office

Danger allowance

Yes

Yes

Retention allowance

Yes

Yes

Hourly on-call allowance in relation to

ordinary hours of work for doctors

Yes

Yes

Expenses

Payment

Salary or
wages

Ordinary time earnings

(OTE)

Reimbursement

No

No

Petty cash

No

No

Reimbursement of travel
costs

No

No

Payments for unfair

dismissal

No

No

Yes
No

Yes
No

Workers' compensation:
returned to work
not working

Leave

Payment

Salary or
wages

Ordinary time
earnings (OTE)

Annual leave

Yes

Yes

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Checklist: salary or wages and ordinary time earnings | Australian Taxation Office

Parental leave eg, maternity leave,

paternity leave, adoption leave

No

No

Ancillary leave eg jury duty,

defence reserve service

No

No.

Termination payments

Payment
Termination
payments:
in lieu of notice

Salary or
wages

Ordinary time earnings

(OTE)

Yes
Yes

Yes
No

unused annual
leave

Bonuses

Payment

Salary or
wages

Ordinary time
earnings (OTE)

Performance bonus

Yes

Yes

Bonus labelled as ex-gratia but in

respect of ordinary hours of work

Yes

Yes

Christmas bonus

Yes

Yes

Bonus in respect of overtime only

Yes

No

Last modified: 01 Jun 2015

QC 33860

https://www.ato.gov.au/Business/Super-for-employers/How-much-to-pay/Checklist--s... 19/10/2015

Checklist: salary or wages and ordinary time earnings | Australian Taxation Office

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