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  • Unpaid super for contractors

    If you’re a contractor who is paid wholly or principally for your labour, you’re considered an employee for SG purposes and entitled to employer super contributions under the same rules as other employees.

    If you’re entitled to have super contributions made for you and your employer doesn’t pay the amount because they incorrectly classified you as not being an employee, we will generally take compliance action against your employer.

    However, we may decide not to get involved with what the parties have understood to be the case, nor allocate resources to take compliance action, when:

    • both parties have in the past had a mutual understanding of the nature of their working relationship
    • you presented yourself as a contractor – for example, if you’ve been claiming large business deductions or claimed the entrepreneur’s tax offset.

    If you consider yourself to be an employee, you should first review your prior personal tax returns to determine if you’ve claimed business income and deductions.

    Note: Penalties for false or misleading statements may apply if you deliberately misrepresented the information supplied in your tax returns.

    If your employer deliberately misclassified you as a contractor, and you haven’t been presenting yourself as a contractor, we will take compliance action against your employer for prior unpaid super contributions.

    See also:

      Last modified: 22 Oct 2020QC 19274