I have managed to negotiate a percentage of 50% billings, but my practice is taking super out of that percentage. Is this allowed?
The NTCER outlines your minimum employment terms and conditions
Still have questions?
It depends on what is stated in your employment agreement.
If your employment agreement states that the percentage of gross billings is “50% inclusive of superannuation” then, as the superannuation rate is currently 10.5%, your salary is actually 45.25% of billings with 4.75% billings paid into your superannuation fund. (This is slightly above the NTCER minimum, which is 44.79% billings as salary and 4.70% billings is the super contribution.)
However, if your agreement states that the percentage of gross billings is “50% plus superannuation” or “50% exclusive of superannuation”, then the superannuation contribution should not be deducted from your 50% billings rather 5.25% (i.e. 10.5% of 50%) of your total billings is paid into your superannuation fund on top of the 50% of your billings which forms your salary.