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Michelle  S.
Michelle S.
Sydney, NSW

Can an employer deduct superannuation payments from commissions?

6 years ago


Hi Michelle

Employers are required to pay you superannuation (a minimum of 9.50%) for the work you do during ordinary hours, which includes commission. Superannuation should also be paid for any other scheme where there are bonuses that relate to specific performance criteria. Shift loading, certain bonuses and allowances are also caught under the Superannuation Guarantee legislation for super payments.

Hope that helps.

Hi Michelle

I agree with Anthony. The employer must deduct super from commission payments unless you fit into a exemption such as working overseas.

Some more info is here. https://www.ato.gov.au/Business/Super-for-employers/Working-out-if-you-have-to-pay-super/


Hi Michelle,
Thank you for your question.
Boring lingo - employers have to use ordinary time earnings, simply, this means what employees earn for their ordinary hours of work.
Yes, employers should pay at least the minimum 9.5% superannuation guarantee contributions on commissions earned. Normally, this would be deducted from your commissions unless you have the agreement from your employee to have it paid on top of your commissions.
Just so you are aware, the maximum salary that your employer is required to pay for Superannuation Guarantee Contributions (9.5%) is $51,620 per quarter or $206,280 per annum. So it may be a good opportunity to understand your incentives within your employment contract.
Happy to chat if you have any further Questions.
Kind Regards,
Andrew Debono (02) 9251 5558

4 years ago

this is confusing? same say deduct, some say on top of commission.
I have to pay a rep $5000 in commission so...
I deduct the 9.5% amount and pay him the balance with 9.5% going to his super fund
Do i pay the 9.5% ontop of the $5000??

4 years ago

What do I do when sometimes they deduct sometimes on top and no work agreement is in place and it has never been discussed?

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