Changes to superannuation for NT medical officers

10-Aug-2020 ASMOF has recently been involved in a dispute with the Northern Territory Government regarding their actions in recouping superannuation payments to members which they alleged were overpayments.

It has been a longstanding practice in the NT to calculate medical officers’ superannuation on total salary, even in circumstances where the medical officer’s annual salary was in excess of the statutory cap on ordinary time earnings (“OTE”).

Late last year the Government claimed that super contributions that had been paid in excess of the OTE cap had been paid in error. In some cases, ongoing super payments to ASMOF members were withheld by the Government as a way of recouping these monies.

ASMOF’s lawyers wrote a strongly worded letter to the NT Government disputing the recoup of members’ superannuation monies.

In late May we were advised that the Government had reversed its decision to apply the quarterly OTE cap to existing employment contracts for medical officers. Whilst this was a win for the current cohort of medical officers in the NT, the Government decided that any new contracts offered will explicitly have the quarterly OTE cap applied.

The OTE cap for 2020/21 is $57,090 per quarter, which is equivalent to $228,360 a year.

ASMOF advises any members who are considering employment in the Northern Territory to be aware of these less favourable superannuation entitlements.