NEWS ALERT - ANNUAL LEAVE & SUPERANNUATION
Recently the ATO announced its revised position and approach to Superannuation obligations on annual leave loading. In essence the ATO has now declared that unless the annual leave loading is demonstrably referable to a notional loss of opportunity to work overtime for an employee, it will be deemed Ordinary Time Earnings (OTE) and therefore attract Superannuation.
What does this mean?
Underpayment of Superannuation is treated very seriously by the ATO and therefore to avoid being issued with penalties Employers who are currently not paying Superannuation on annual leave loading need to review and consider how they are currently paying their staff to determine whether or not they are meeting their Superannuation obligations.
Need Assistance ?
SWS is currently assisting a number of Employers on this important issue, if you need any assistance please contact our one of our workplace relations team members on 07 46915046 or firstname.lastname@example.org.