Regulation 2.57A — Meaning of earnings

2.57A Meaning of earnings

(1) A person’s earnings include:

(a) the person’s wages; and

(b) amounts applied or dealt with in any way on the person’s behalf or as the person directs; and

(c) the agreed money value of non-monetary benefits.

(2) However, an employee’s earnings do not include the following:

(a) payments the amount of which cannot be determined in advance;

(b) reimbursements;

(c) contributions to a superannuation fund to the extent that they are contributions to which subregulation (4) applies. Note: Some examples of payments covered by paragraph (a) are commissions, incentive-based payments and bonuses, and overtime (unless the overtime is guaranteed).

(3) Non-monetary benefits are benefits other than an entitlement to a payment of money:

(a) to which the employee is entitled in return for the performance of work; and

(b) for which a reasonable money value has been agreed by the employee and the employer.

(4) This subregulation applies to contributions that the employer makes to a superannuation fund to the extent that 1 or more of the following applies:

(a) the employer would have been liable to pay a superannuation guarantee charge under the Superannuation Guarantee Charge Act 1992 in relation to the person if the amounts had not been so contributed;

(b) the employer is required to contribute to the fund for the employee’s benefit in relation to a defined benefit interest (within the meaning of section 291-175 of the Income Tax Assessment Act 1997) of the employee;

(c) the employer is required to contribute to the fund for the employee’s benefit under a law of the Commonwealth, or of a State or a Territory.

Note: This definition is based on the definition of earnings in section 332 of the Fair Work Act 2009.

Division 2.12—Classes of sponsor