Super change July 2008
Designed to make the system fairer for everyone

Superannuation Guarantee (SG) law makes it compulsory for just about every working Australian to have at least 9% of their pay going into super.

From 1 July 2008 all employers must use Ordinary Time Earnings (OTE), as defined in the super guarantee law, to calculate 9% SG contributions. This change has been made to ensure all employees are treated the same for super guarantee purposes, making the system fairer for everyone.

Ordinary Time Earnings are generally what employees earn for their ordinary hours of work. OTE includes over-award payments, commissions, shift allowances, and paid leave. It does not include overtime.

More super

For many members the change will mean more money going into super. For example, under the new law from 1 July 2008 bonuses and commissions must be counted as earnings for super purposes, whereas they aren’t currently. Exactly how the change affects you will depend on how your employer currently calculates super, and their pay and superannuation policy and conditions.

TIP
watch out for information about this change from your employer between now and 1 July 2008.