Issue
Do meal allowances form part of Ordinary time earnings (OTE) of employees for superannuation guarantee purposes?
Decision
Yes. The meal allowance is an allowance which forms part of the OTE of the employee, as discussed in the Superannuation Guarantee Ruling SGR 94/4.
Facts
The employer operates in the transport industry. Drivers who are employed by the employer are paid a 'meal allowance' if the driver is away from home for a particular period which may also include overnight absences. The employer contends that the 'meal allowance' does not form part of the OTE of the employees.
Reasons for Decision
The main issue is whether the payment is an allowance or a reimbursement. The Commissioner has considered what forms part of OTE in Superannuation Guarantee Ruling SGR 94/4. In Superannuation Guarantee Ruling SGR 94/4 the Commissioner states that allowances forms part of OTE and reimbursements do not form part of OTE; and the meaning of allowance and reimbursement is also discussed.
The meal allowance in this case would continue to be paid to the driver, even if they had brought prepared food and drink from home. The amount cannot be regarded as a reimbursement, as ultimately the driver has no obligation to spend the money to purchase meals or refund any surplus part of the amount received.