Contractor vs Employee: When Do You Still Have to Pay Super?

Many businesses think:

“They have an ABN and invoice us, so no super required.”

Unfortunately, that’s often wrong.

Under super laws, some contractors are still treated as employees.

When super IS required

If the contract is:
👉 mainly for their labour

Then super is usually payable.

Examples:
✔ individual consultant
✔ personal services contractor
✔ tradesperson paid for time

Even with an ABN.

When super usually NOT required

✘ company or trust invoices
✘ supplies own materials/equipment
✘ can subcontract freely
✘ running genuine business

Why this matters

If super should have been paid:

• back payments

• penalties

• interest

• audits

Costs add up fast.

Tip for businesses

Before engaging contractors:
✔ review contract wording
✔ check labour vs materials
✔ confirm structure
✔ get advice

Prevention is cheaper than fixing mistakes later.