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1 Under subsection 6(1) of the Superannuation Guarantee (Administration) Act 1992 (SGAA), does the allowance form part of ordinary time earnings (OTE) used by the employer to calculate the minimum level of superannuation guarantee (SG) support required for their employees?

No. Question 2 Will an SG shortfall and a resultant SGC liability occur, if the employer does not include the allowance as part of OTE? Answer No. This advice applies for the following period: Year ended 30 June 2017 to year ending 30 June 2025 The arrangement commences on: 1 July 2016

The employer has an enterprise agreement in place. Various allowances are payable under the agreement.

Superannuation Guarantee (Administration) Act 1992 subsection 6(1) Superannuation Guarantee (Administration) Act 1992 paragraph 11(1)(d) Superannuation Guarantee (Administration) Act 1992 section 16 Superannuation Guarantee (Administration) Act 1992 section 33 Fringe Benefits Tax Assessment Act 1986 subsection 60A(1) Fringe Benefits Tax Assessment Act 1986 subsection 61(1) Fringe Benefits Tax Assessment Act 1986 subsection 61 (1AA) Fringe Benefits Tax Assessment Act 1986 subsection 61(2) Fringe Benefits Tax Assessment Act 1986 section 140 Fringe Benefits Tax Assessment Act 1986 subsection 143(1) Application of the law Question 1 Summary The allowance will not form part of OTE. SG scheme The SG scheme penalises employers who do not provide a prescribed minimum level of superannuation suppor