• Unpaid super for contractors

    If you’re a contractor 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 required 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’re a contractor engaged wholly or principally for your labour and entitled to employer super contributions, we will take a ‘go forward’ approach and not direct resources to compliance action to pursue super contributions for past periods.

    If you consider yourself to be an employee, you should first review your prior personal income tax returns 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 income 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: 26 Apr 2017QC 19274