• Personal
  • Employers
  • Advisers
  • Calculators & forms
  • News Hub
  • Contact us
QSuper QSuper
  • Products
    • Why QSuper
    • Investment options
    • Fees
    • Financial advice
    • Compare us
    • Insurance
    • Account types
      • Accumulation account
      • Retirement Income account
      • Transition to Retirement Income account
      Why QSuper?

      #1 fund for weathering market ups and downs3

      More reasons to join
  • Super
    • Grow your super
      • Salary sacrifice
      • Super co-contribution
      • Voluntary contributions
      • Spouse contributions
      • Contribution caps
      • Tax deductions
    • Consolidate your super
    • Find your lost super
    • Changing jobs
    • Nominate beneficiaries
    • Early access
    • Seminars
  • Retirement
    • Why retire with QSuper
    • How much super do you need to retire
    • Retirement planning
      • Make your super last in retirement
      • The Age Pension and Super
    • Retirement Income account
    • Access your super
      • When can you access your super
      • Withdraw your super
    • Transition to retirement strategy
    • Seminars
      Award winning

      SuperRatings' Pension of the Year three years in a row4

      Find out more
  • Investments
    • Investment options
      • Lifetime
      • Moderate
      • Balanced
      • Socially Responsible
      • Aggressive
      • Cash
      • Diversified Bonds
      • Australian Shares
      • International Shares
      • Self Invest
    • Performance
      • Overview
      • Graphs
      • Unit prices
    • Compare options
    • Change your investment options
  • Insurance
    • Insurance options
      • Income protection
      • Total & permanent disability cover
      • Death cover
    • How much insurance cover do you need
    • Change or cancel your insurance
    • Make an insurance claim
  • Advice
  • Calculators & forms
  • News Hub
  • Contact us
Join
  • Call
Join Log In - Open navigation
Member Online

Forgot username?
Forgot password?
Register
 
Upcoming outage

Due to required maintenance, QSuper Member Online will be unavailable from 9pm Friday, 22nd January to 9am Saturday, 23rd January 2021. We apologise for any inconvenience caused.

Navigation

QSuper
  • Personal
  • Employers
  • Advisers
  • Search
  • Join Log In
  • Products Expand
    • Why QSuper
    • Investment options
    • Insurance
    • Fees
    • Financial advice
    • Account types Expand
      • Accumulation account
      • Retirement Income account
      • Transition to Retirement Income account
    • Compare us
  • Super Expand
    • Consolidate your super
    • Grow your super Expand
      • Salary sacrifice
      • Super co-contribution
      • Voluntary contributions
      • Spouse contributions
      • Contribution caps
      • Tax deductions
    • Find your lost super
    • Changing jobs
    • Nominate beneficiaries
    • Early access
    • Seminars
  • Retirement Expand
    • Why retire with QSuper
    • How much super do you need to retire
    • Retirement planning Expand
      • Make your super last in retirement
      • The Age Pension and Super
    • Access your super Expand
      • When can you access your super
      • Withdraw your super
    • Transition to retirement strategy
    • Retirement Income account
    • Seminars
  • Investments Expand
    • Performance Expand
      • Overview
      • Graphs
      • Unit prices
    • Investment options Expand
      • Lifetime
      • Moderate
      • Balanced
      • Socially Responsible
      • Aggressive
      • Cash
      • Diversified Bonds
      • Australian Shares
      • International Shares
      • Self Invest
    • Compare options
    • Change your investment options
  • Insurance Expand
    • Insurance options Expand
      • Income protection
      • Total & permanent disability cover
      • Death cover
    • How much insurance cover do you need
    • Change or cancel your insurance
    • Make an insurance claim
  • Advice
  • Your account Expand
    • Online Advice
    • Super Expand
      • Consolidate
      • Investments
      • Add to super
      • Insurance
      • Account history & statements
    • Profile Expand
      • Security and Authorities
      • Employer
      • Employer
      • Personal details
      • Beneficiaries
    • Self Invest
  • Calculators & forms Expand
    • Superannuation & Retirement Calculators Expand
      • Retirement planning
      • Insurance
      • Maximise your super
      • Savings
      • Investing
    • Forms Expand
      • All
      • Claims and withdrawals
      • Deposits and contributions
      • Insurance
      • Investments
      • Transfers
      • Other forms
    • Publications Expand
      • PDS
      • Guides
      • Annual reports
      • Factsheets
      • Other publications
  • News Hub Expand
    • Category Expand
      • News
      • Superannuation
      • Retirement
      • Finances
      • Investments
      • Career
      • Wellbeing
      • Employer
  • Contact us Expand
    • Email QSuper
    • Language assistance
    • Browser support
    • Formal enquiries and complaints
    • FAQs – Frequently Asked Questions
    • QSuper Member Centres

News Hub

All Articles News Superannuation Retirement Finances Investments Career Wellbeing
News Hub Finances

Is super paid on bonuses?

Superannuation Finance
19 November 2020 5 min read

Does your employer have to pay super on any bonuses you earn? It’s an important question for eligible employees who work in sales or have performance targets set by their employers, because a significant part of their pay may be comprised of bonuses.

employees clapping

The answer, for the most part is, yes, but there is a situation in which employers are not required to pay super on bonuses.

It is important to note, however, that some employers, including the Queensland Government, have different contribution arrangements and, in those cases, employer obligations may differ from those outlined here.

Bonuses can be paid for a range of reasons, usually at the discretion of your employer, but they can also be an integral part of an employment contract. Some common ways to earn bonuses include:

  • Meeting performance or sales benchmarks;
  • As an incentive to stay with an employer (retention bonus);
  • As an enticement to start working for an employer (sign-on bonus);
  • As an end-of-year reward (annual or Christmas bonus).

Was the bonus earned during ‘normal’ work hours?

Whether your employer is required to pay super on the money you receive as a bonus depends on whether you have earned the bonus during your normal hours of work.

Under the terms of Australia’s Superannuation Guarantee, employers must pay a minimum 9.5% of an employee’s ordinary time earnings (OTE) into their nominated superannuation account. Employers can choose to pay more if they wish.

OTE means the money you would earn during your designated work hours. That includes things such as leave loading, shift allowances, back pay, commissions, and bonuses.1

So, if you have earned your bonus because of the work you have done during those regular hours, your employer must also pay a minimum of 9.5% of that amount into your designated super fund.

An exception to the payment of super on bonuses

However, the same does not apply if you are being paid a bonus for work you have done wholly during overtime hours.

Employers are not required to pay super on any overtime worked. It follows, then, that your employer is not required to pay super on a bonus that has been earned from work done during that overtime.2

A super strategy

Bonuses, even if they are earned during overtime hours, present an opportunity to grow your super balance.

While bonuses calculated on sales targets or revenue numbers can sometimes be anticipated to form a large part of a person’s pay, other bonuses (Christmas bonus, sign-on bonus) may offer the opportunity to boost your retirement fund.

Money earned from an anticipated bonus could possibly allow you to salary sacrifice, some of your regular income, which can be a tax-effective way of saving for the future.

This means paying money into your super from your before-tax salary, which has the additional benefit of reducing the amount of income tax you pay.

Another option is to make after-tax voluntary contributions to your super account. Also known as non-concessional or personal contributions, these after-tax payments can be made up until the age of 75 – although after age 67 there are some restrictions and conditions that apply. See our Personal Contributions Guide for more information.

Even small amounts paid regularly into super this way can have an impact on your retirement balance when it comes time to wind down your working life. It is important to be aware that there are some limits to how much you can contribute to your super fund each year (known as contribution caps). If you go above these limits, you may pay extra tax.

Other strategies for growing your super can be found here.

communication

Support for your super and retirement

Professional financial advice on your QSuper account at no additional cost.*

Find out more


1. Australian Tax Office, https://www.ato.gov.au/business/super-for-employers/how-much-to-pay/checklist--salary-or-wages-and-ordinary-time-earnings/, accessed 15 October, 2020.
2. https://www.ato.gov.au/business/super-for-employers/how-much-to-pay/checklist--salary-or-wages-and-ordinary-time-earnings/#allowances, accessed 10 August 2020.
* QInvest Limited (ABN 35 063 511 580, AFSL 238274) is a separate legal entity responsible for the financial services it provides. The administration fee covers the provision of advice about your QSuper Accumulation and/or Income account, when you receive personal advice from QInvest. Eligibility conditions and advice fees may apply. Refer to the Financial Services Guide for more information.

Related Content
Overtime work Is super paid on overtime?
08 Oct 5 MIN READ

If you regularly work overtime, it’s important to understand what that means for your super.

Read more
Superannuation
IF YOU ENJOYED THIS ARTICLE, YOU MIGHT ALSO LIKE...
Overtime work Is super paid on overtime?
08 Oct 5 MIN READ

If you regularly work overtime, it’s important to understand what that means for your super.

Read more
Superannuation
manager at desk Will scheduled Super Guarantee rate rises go ahead
27 Aug 5 MIN READ

Arguments for and against increasing the rate of compulsory super contributions are making headlines. What does it mean for you?

Read more
News Superannuation
young woman at home doing finances on laptop How to rebuild a $10,000 early super withdrawal
01 Jun 5 MIN READ

Recover your early super withdrawal.

Read more
Finance News Superannuation
young couple standing in front of a house Can I use my super for a house deposit?
12 Feb 5 MIN READ

Did you know you could potentially use your super to buy your first home?

Read more
Finance Superannuation
All Articles News Superannuation Retirement Finances Investments Career Wellbeing
  • Our products
    • Why QSuper?
    • Investment options
    • Fees
    • Insurance
    • Financial advice
  • Super & retirement
    • How much do you need?
    • Grow your super
    • Consolidate
    • Changing jobs
    • Seminars
    • Access your super
  • Investments
    • Performance
    • Unit prices
    • Graphs
    • Compare options
  • Calculators & Forms
    • Calculators
    • Forms
    • Publications
  • Contact us
    • 1300 360 750
      Mon-Fri   8.00am to 6.00pm AEST
  • About us
  • Careers
  • Sitemap
  • Privacy
  • Security
  • Disclaimer
  • Terms and conditions
  • Disclosure
© QSuper Board
2020 awards
Facebook Twitter LinkedIn YouTube