22 Jan 13 Super guarantee for long distance drivers
The ATO has published a factsheet entitled "Super guarantee for long distance drivers". It states that since 1 July 2008, the minimum amount of super an employer needs to pay by law has been based on their employee's ordinary time earnings (OTE).
The ATO believes that some employers in the transport industry may not be calculating OTE correctly, especially if they are basing their calculations on advice the ATO gave in 1995. That advice was based on the law at the time and expressed the view that:
- ordinary hours of work were effectively capped at 40 hours per week
- if a driver was paid on a cents per kilometre basis, OTE could simply be calculated using the weekly award rate of pay.
The factsheet states that the 1995 advice is no longer correct under the current law and employers can no longer rely on it.