Casual Loading (OTE) Explained (System Default Pay Rate)

Sharlyce Reed

Nov 16, 2024

1844

🎯 The reporting of payments for Casual Loading (OTE) has not changed per the Australian Taxation Office Single Touch Payroll Phase 1 guidance. Casual Loading (OTE) continues to be reported under Gross.

🎯 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.

Casual Loading (OTE) is applicable when the Payees Employment Status is Casual. This Pay Type is used in conjunction with Ordinary Time Pay Rates per the Fair Work Ombudsman Pay Slips guidance.

For example, under the;

General Retail Industry Award 2020 [MA000004]. The Payee is entitled to be paid 25% of the minimum hourly rate for being employed as Casual.
Clerks—Private Sector Award 2020 [MA000002]. The Payee is entitled to be paid 25% of the minimum hourly rate for being employed as Casual.

Casual Loading (OTE) uses a portion of the Rate Per Hour set in the Payee Master File (25.00%) 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).