On 12 March 2019, the Australian Taxation Office  issued a note regarding its view as to whether annual leave loading attracts Superannuation Guarantee contributions. This depends on whether leave loading is ordinary time earnings.

There is a commonly held view that annual leave loading is not Ordinary Time Earnings because its initial purpose was to compensate for the lost opportunity to work overtime when annual leave is taken. Don’t go the blanket ruling, make sure you find out !

Our Subject Matter Experts can ensure you are fully compliant!