That was a question from one of Tasplan's Participating Employers and a question that we had not covered in our Employer Super Checklist.

Superannuation Guarantee contributions are only payable on Ordinary Time Earnings (OTE) and Tax Office ruling SGR 2009/2 states -
Redundancy Payments are not salary or wages for SGAA purposes and thus are not OTE:

The Ruling goes on to say -
Redundancy payments made on termination of employment are not a reward for services rendered by an employee, even if part of the payment is calculated by reference to the employee's period of service with the employer. They are payments to compensate the employee for the loss of their job; not a reward for their services.

The bottom line is that Superannuation Guarantee contributions are not payable on redundancy payments.  

If you don’t have a copy of the Checklist and would like one please email me.