Did you know that a flat rate car allowance may or may not attract superannuation, depending on the reason the car allowance is paid?
Payroll needs to understand if the allowance is fully expended before determining the superannuation treatment.
For support on all aspects of payroll, join APA today.
27.03.2026
Does Super Apply to This Payment? Understanding OTE in Practice
Paying superannuation for employees may seem straightforward, yet it continues to be one of the most common sources of payroll error in Australia. Super must be calculated on an employee’s Ordinary Time Earnings (OTE) and determining what forms part of ...
News
18.07.2025
Seven common mistakes when managing allowances and deductions
Confusing allowances with reimbursements Coding a genuine reimbursement (for example, an expense paid on behalf of the employee) as a taxable allowance, or vice versa, distorts PAYG withholding, superannuation, payroll tax and STP reporting. Relying on ...
News
06.04.2014
Superannuation and Ordinary Time Earnings
Employers often ask us whether they need to pay superannuation on payments on certain allowances or payments. Under SGR 2009/2, superannuation is payable on ordinary time earnings. Therefore for each payment you will need to determine whether it is ...
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