Superannuation on overtime is the line hosts most often query on a labour hire rate card, because the overtime columns show zero super while a Saturday column carrying the same dollar pay rate shows several dollars. The cause is a rule, not an error: the ATO says overtime payments are not ordinary time earnings, provided the employee's ordinary hours of work are clearly identified in an award or agreement.
From 1 July 2026 the super guarantee is worked out on qualifying earnings under Payday Super, and the minimum is 12% of them. That change did not alter the overtime rule, since the ATO says overtime payments are not qualifying earnings either. This guide shows what the rule does to the numbers, using a Storeworker grade 1 casual under the Storage Services and Wholesale Award as the example. For the rest of the cost build, see our guide to labour cost per hour.
What counts and what does not
The ATO's guidance on qualifying earnings keeps the ordinary time earnings test that applied before Payday Super. Payments for ordinary hours of work count, and so do casual loading and shift penalties, including public holiday penalties. Overtime does not. The ATO lists as excluded overtime payments for hours beyond the employee's ordinary hours, outside the agreed number of hours, or outside the spread of ordinary hours, along with call back allowances and cashed-out time off in lieu.
The exclusion depends on the ordinary hours being clearly identified. The ATO states that if overtime amounts cannot be distinctly identified, all the hours actually worked are treated as ordinary hours in the award or agreement, and so they are qualifying earnings.
Why a rate card shows zero super in the overtime columns
Under the Storage Services and Wholesale Award, overtime is payable for all time worked in excess of or outside the ordinary hours the award sets (clause 21.1(a)). Casual overtime is 175% of the fulltime rate for the first two hours and 225% after (clause 21.1(d)). Because that time is overtime, a provider that calculates super correctly pays none on it, and a rate card that builds up cost column by column shows a zero in the overtime columns.
That is the rule working, not a gap in the quote. A rate card that shows 12% super in every column, overtime included, may be overstating the on-cost, unless an agreement or contract says the provider will pay super on all hours.
Worked example: the same pay rate, different super
For a Storeworker grade 1 casual on commencement from 1 July 2026, the pay guide rates and the 12% super work out like this:
- Weekday ordinary hour: pay $33.85, super $4.06
- Saturday ordinary hour by agreement: pay $47.39, super $5.69
- Overtime, Monday to Saturday, first 2 hours: pay $47.39, super $0.00
- Overtime, after 2 hours: pay $60.93, super $0.00
- Public holiday ordinary hour: pay $74.47, super $8.94
The Saturday hour and the first overtime hours pay the same $47.39, yet $5.69 of super sits on one and none on the other. The difference is the classification of the hour, not the dollar amount. That is also why a host who moves work from a Saturday ordinary shift into weekday overtime changes the on-cost even when the pay rate looks the same.
Why the ordinary hours definition decides the outcome
Whether an hour is ordinary or overtime depends on how the award defines ordinary hours, so the roster matters as much as the pay guide. Under the Storage Services and Wholesale Award, day workers' ordinary hours are up to 38 a week averaged over four weeks, worked between 7.00 am and 5.30 pm Monday to Friday (clause 13.1). That span can move an hour forward or back by agreement (clause 13.2), and ordinary days can include Saturday and Sunday by agreement between the employer and the majority of employees, or between the employer and the individual employee (clause 13.1(e)).
That agreement is why the pay guide labels the weekend rates as 'agreement to work ordinary hours'. Where the agreement exists, a Saturday hour is ordinary and carries super. Where weekend or after-hours work falls outside the agreed ordinary hours, it is overtime and does not. Ask the provider to show which of the two a quote has assumed, because the same $47.39 hour can sit in either column.
What it does to a week's cost
Take a casual who works 38 ordinary weekday hours and four hours of overtime, two at $47.39 and two at $60.93. The ordinary hours pay $1,286.30 and carry $154.36 of super. The overtime pays $216.64 and carries none. Total pay is $1,502.94, so super is about 10.3% of it, not 12%.
Payroll tax is different: it is charged on all wages, so the overtime hours still carry it. Our payroll tax guide shows the state rates, and our guide to seasonal staffing cost strategy compares overtime with extra headcount when the on-cost lines differ.
What Payday Super changes for hosts
Payday Super changes timing, not the overtime rule. From 1 July 2026 super contributions must be received by the employee's fund no more than 7 business days after payday, unless a longer period applies. In a standard on-hire arrangement the labour hire provider is the employer and pays the super, and the provider builds the cost into its charge rate. Confirm that in your agreement and ask the provider to show the super line column by column.
Questions to ask about super on a quote
- Is super shown column by column, with zero in the overtime columns?
- How are ordinary hours defined for the roster, and where is that written down?
- Does the quote assume any super on overtime by agreement, and if so, why?
- Is super calculated on casual loading and shift penalties?
Related Resources
- ATO qualifying earnings and ordinary time earnings
- Storage Services and Wholesale Award text
- labour cost per hour for blue collar roles
- how the 25% casual loading is applied
- Storage Services and Wholesale Award pay rates
- seasonal staffing cost strategy
- how to compare labour hire quotes
Common Questions About Superannuation on Overtime
1. Do you have to pay super on overtime?
Generally no. The ATO says overtime payments are not ordinary time earnings, and so not qualifying earnings, provided the employee's ordinary hours of work are clearly identified in an award or agreement.
2. Is super paid on casual loading?
Yes. The ATO lists casual loading as ordinary time earnings, so it counts when super is calculated.
3. Do weekend and public holiday penalties attract super?
Yes when the hours are ordinary hours. The ATO lists shift penalties, including public holiday penalties, as ordinary time earnings. Weekend and public holiday time that is overtime is treated as overtime.
4. What happens if overtime cannot be identified?
The ATO says all the hours worked are then treated as ordinary hours in the award or agreement, and they count as qualifying earnings for super.
5. Who pays super on an on-hired worker?
In a standard on-hire arrangement the labour hire provider is the employer, so the provider pays the super and includes the cost in its charge rate. Check this in your agreement with the provider.
Zero Super on Overtime Is Right When Ordinary Hours Are Clear
A zero in the overtime column is the expected result when the roster defines ordinary hours and a provider calculates super correctly. A flat 12% in every column deserves a question, and so does an overtime line that cannot be separated from ordinary time. Ask for the super line column by column and for the written definition of ordinary hours. Chandler Personnel provides Melbourne labour hire and permanent recruitment, and you can send your roster details through the request staff form.
