Call us: (08) 6267 2200
reception@optimapartners.com.au
  • PAY MY INVOICE
Optima PartnersOptima PartnersOptima PartnersOptima Partners
  • Home
  • About Us
    • Meet The Team
    • Testimonials
  • Our Services
    • Business Advisory
    • Taxation Services
    • Self Managed Superannuation
    • Bookkeeping Services
    • Corporate Secretarial Services
  • Latest News
  • Contact Us

What payments are included in the SG regime ?

    Home Blog What payments are included in the SG regime ?
    NextPrevious

    What payments are included in the SG regime ?

    By admin | Blog, SMSF & Superannuation | 0 comment | 7 November, 2016 |

    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

    SMSF, Super Guarantees

    Leave a Comment

    Cancel reply

    Your email address will not be published. Required fields are marked *

    NextPrevious

    Optima Partners is an energetic and innovative accounting, taxation and business advisory firm with offices in Osborne Park, Guildford and Fremantle.

    To discover how we help businesses across Perth please drop us a line today.

    Tel: (08) 6267 2200

    Email: reception@optimapartners.com.au

    Osborne Park Office

    Suite 3, 128 Main Street,
    Osborne Park,
    WA 6017

    Office Hours:
    Weekdays 8:00am – 5:00pm

    Postal Address

    Locked Bag 5000,
    Osborne Park,
    WA 6917

    Guildford Office

    143 James Street,
    Guildford,
    WA 6055

    Office Hours:
    Weekdays 8:30am – 5:00pm

    Fremantle Office

    Level 1, 72 Marine Terrace,
    Fremantle,
    WA 6160

    Please call for appointment

    Copyright 2021 The Small Business Lounge | All Rights Reserved
    • Home
    • About Us
      • Meet The Team
      • Testimonials
    • Our Services
      • Business Advisory
      • Taxation Services
      • Self Managed Superannuation
      • Bookkeeping Services
      • Corporate Secretarial Services
    • Latest News
    • Contact Us
    Optima Partners