Note: From 1 July 2008, employers must use ordinary time earnings (OTE) as defined in superannuation guarantee law to calculate the minimum superannuation guarantee contributions for their eligible employees. Ordinary time earnings are generally what employees earn for their ordinary hours of work.
An employee's ordinary hours of work may be stated in a statute, an industrial award or an agreement with the employer. If the ordinary hours of work are not specified or agreed, the ordinary hours of work will be the hours actually worked (not including overtime) and any hours of paid leave.
As a result, some employers will have to increase the level of contributions they make for some of their employees from 1 July 2008.
The minimum amount that SG contributions are calculated on for employees includes the following types of payments:.
Salary or wages not including overtime (however if an employee has agreed to work a certain number of hours, those hours are the employee’s ordinary hours of work)
Allowances (other than a reimbursement of expenses)
Christmas bonuses (From 1 July 2009 only)
Payments in lieu of notice (From 1 July 2009 only)
Workers compensation payments, including top-up payments, paid by the employer, where work is performed
Pay for annual holiday leave taken
Government (wage) subsidies (eg Wage Subsidy Scheme Allowance)
Pay for sick leave taken
Pay for long service leave taken
Payments for performance in, or provision of services relating to entertainment, sport promotions, films, discs, tapes, TV or radio.
Payments to a contractor who is taken to be an employee under the Superannuation Guarantee (Administration) Act 1992
Salary or wages paid to former employees
The following types of payments are not included in the minimum amount that SG contributions are calculated on:
Reimbursement of expenses (eg travel costs)
Benefits subject to fringe benefits tax
Workers compensation payments (including top-up payments) where no work is performed
Payments when on jury duty, defence forces reserves leave or emergency services leave
Parental leave payments (includes maternity, paternity and adoption leave)
Annual leave loading
Accrued annual leave, long service leave and sick leave paid as a lump sum on termination
Other payments paid by an employer on termination of employment
Partnership and trust distributions
Payments for entering into a restraint of trade agreement
Payments for domestic or private work (not as part of a business) 30 hours or less per week
Read more at: http://calculators.ato.gov.au/scripts/net/SGCalculatorWeb/help/Amount.aspx?ms=Businesses