Leave Loading (OTE)

Sharlyce Reed

Oct 25, 2023

700

🎯 Payments for Leave Loading (OTE) are now disaggregated as per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Leave Loading (OTE) is now reported separately under Paid Leave Type Code = O.

🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.

Leave Loading (OTE) is applicable when the Payee is being paid for their absence from work and the payment is not linked to the lost opportunity to work overtime.

For example, under the Banking, Finance and Insurance Award 2020 [MA000019], a Payee is entitled to Annual Leave Loading of 17.50% when the Payee is taking a period of Annual Leave.

Leave Loading (OTE) uses a portion of the Rate Per Hour set in the Payee Master File (17.50%) and Leave Entitlements are not applicable. Payments with this pay type are considered to be W1 (Total of Salary, Wages & other payments), Taxable and Ordinary Time Earnings (OTE).