04/09/2026
💰 Here's a payroll question that catches a lot of businesses out...
If an employee receives an allowance, does super apply?
The answer is: it depends.
Many employers assume all allowances attract super, while others assume none do. Both can lead to compliance issues.
The key question is why the allowance is being paid and whether it forms part of an employee's Ordinary Time Earnings.
I've seen payroll audits where the biggest super exposure wasn't in pay rates or classifications. It was sitting quietly in the allowance codes.
✅ Worth checking before it becomes a costly remediation project.
When was the last time you reviewed your allowance setup?
Allowances are often one of the most overlooked payroll compliance risks is much smaller and often easy to miss.
