An employer needs to pay the 10% superannuation guarantee on ordinary time earnings from 1 July 2021. Below is a detailed listing of all possible payments.
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 |
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 |
The profit you have made on the sale of a rental property (or shares) is added onto your other income (such as your salary bank account interest) and taxed at your marginal tax rate. Remember, if you have held the property for more than 12 months, the ATO give you a 50% discount on the profit you need to declare as income.
We use Xero, MYOB and Quickbooks, but prefer Xero. There are many different subscriptions available with Xero. We can help you set up the one that's right for you.
There are three factors you should consider when deciding on setting up a SMSF. Firstly, you really need around $200,000 in super to justify the fees and time involved in managing an SMSF. You could also justify an SMSF if you wanted to invest in an asset not normally available through a retail/industry fund, such as commercial property for your business or shares in an unlisted company. Finally, you might want to exercise full control over your superannuation funds, and an SMSF allows you to do that.
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