Superannuation for freelancers
MEAA has prepared this guide about how superannuation works if you are a freelancer.
Superannuation is payable to contractors who are “deemed” workers in accordance with the Superannuation Guarantee (Administration) Act 1992.
You are a deemed worker if you are employed mainly for your labour, and are therefore an employee for superannuation guarantee purposes. This is regardless of whether or not you are quoting an ABN.
Superannuation contributions must be made for individuals if:
• An individual is employed under a verbal or written contract that is wholly or principally for their labour – more than half the dollar value of the contract must be for their labour;
• An individual is paid for their personal labour and skills, which may include physical labour, mental effort or artistic effort – and not to achieve a particular result;
• An individual is engaged to perform the contract work personally – they must not delegate.
The minimum superannuation that is payable to freelancers is 9.5% of a worker’s ordinary time earnings.
In order to meet their super obligations, an employer must pay the minimum superannuation guarantee contribution to the freelancer’s nominated super fund each quarter. This obligation is not met if the employer decides to pay an additional 9.5% wages on top of a freelancer’s usual pay.
A worker needs to earn a minimum of $450 in a calendar month from the same employer to be eligible for superannuation payments.
If you have questions, contact MEAA Member Central on 1300 65 65 13 or firstname.lastname@example.org