What payments are included in the SG regime ?

Back to News
SMSF & Superannuation

super-guarantee

A QUICK OVERVIEW

Basically SG payments are made on Ordinary Time Earnings (OTE) – just what is included in OTE can be a bit of a mystery.

OTE is defined in s6 SGAA to include:

•    the total of earnings in respect of ordinary hours of work
•    over‐award payments, shift‐loading and commissions

OTE specifically excludes:

•    payments in lieu of unusual sick leave
•    unused annual leave payments and unused long service leave payments
•    On Call allowances

Further

OTE is capped at the maximum contribution base ‐ $51,620 each quarter for the FY2017

  • For FY2017 the maximum SG of 9.5% applies to OTE of $206,480 (however the rule is applied to each separate quarter – so if you are over one quarter and under the next there is no claw back of unpaid SG on amounts paid in excess during the previous quarter(s))
  • From 1 July 2017 the concessional contribution (CC) cap reduces to $25,000
  • OTE of $263,158 x 9.5% = $25,000

There are also some more tricky situations particularly where a bonus or expense is paid the following table demonstrates some of those issues.
payment schedule

 

 

 

 

 

 

 

 

 

Also worth noting is that it is not possible to contract out of SG, in fact the rules will capture a contractor as an employee based on a number of other factors.  The following Table will give some guidance of some but not all circumstances that need to be considered.

employee-vs-contractor

 

 

 

 

 

 

 

 

 

 

And finally the following gives a timeline to the current and future SG rates.

1 July 2016 to 30 June 2021                          9.5%

1 July 2021 to 30 June 2022                          10.0%

1 July 2022 to 30 June 2023                          10.5%

1 July 2023 to 30 June 2024                          11.0%

1 July 2024 to 30 June 2025                          11.5%

1 July 2025 to 30 June 2026 onwards       12.0%


To find more information about Super Guarantee check out the the ATO website .  They also have a SG contributions calculator 

For assistance with managing your SMSF or any questions you may have about Super guarantees, give us a call.

Liz Gibbs

 

 

 

 

Liz Gibbs – SMSF Manager

Optima Partners offers support to all businesses. Whatever your requirements

For more information on how Optima Partners’ services can help your business, contact the team at info@optimapartners.com.au for a consultation.

Latest News

Cash flow crunch: SIC, GIC and super guarantee increase
Small and medium businesses could be facing a cash flow crunch in the wake of...
Planning for EOFY 2024-25
With the end of the 2024-25 financial year in sight, the time has come again...
2025 Federal Election: Key tax changes under Labor’s second term
The Australian Labor Party has declared victory in the 2025 Federal Election, establishing a second...
Sustainability reporting: ASIC urges SMEs to brace for impact
The Australian Securities and Investments Commission (ASIC) has reminded small and medium entities to be...
Key Dates: May 2025
15 May: Lodge 2024 tax returns for all entities that did not need to lodge...
Understanding business structures: tax, liability and asset protection
Your chosen business structure has massive implications for your tax liability, asset protection and cost....
New GST reporting rules for small businesses
The Australian Taxation Office (ATO) recently announced that over 3,500 small businesses will be moved...
Optima Partners to host 4th annual Perth Car Club meet
Optima Partners is proud to host Perth Car Club’s fourth annual anniversary meet-up at our...
Key Dates: April 2025
21 April: Lodgement and payment of March 2025 monthly business activity statement 21 April:...
Selling your business: Best practices
Selling your business is a major decision and a milestone in your career. Whether you’re...