Employer groups have welcomed this week's ATO ruling that employers are not required to pay superannuation contributions on overtime earnings.
The ruling reverses a decision made two years ago that super was payable on regular overtime earnings in many circumstances, which would have cost employers more than $1 billion annually, the Australian Industry Group says.
The SGR 2009/2 ruling, according to AiG chief executive Heather Ridout, reflects the "original intent of the superannuation guarantee legislation.
"All amounts of earnings in respect of employment are in respect of the employee's ordinary hours of work unless they are remuneration for working overtime hours, or are otherwise referable only to overtime or to other hours that are not ordinary hours of work," the ruling says.
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