Marcus Uniforms

Super contributions for contractors

At Cbus we do all we can to help employers understand their superannuation responsibilities. An area that some employers are confused about is who to pay super contributions for, particularly when using contractors.

Who do you pay super for?

Generally, you must pay super for an employee if you pay them $450 or more (before tax) in salary or wages in a month and they are:

• 18 years or over or

• under 18 years old and work at least 30 hours per week.

It doesn’t matter whether the employee is full time, part time or casual.

Are contractors entitled to SG contributions?

Although contractors may not be your direct employees, you may be required to make super contributions for some contractors. This is because some contractors may be considered an ‘employee’ under SG legislation and entitled to super.

You must pay super contributions for contractors if you pay them under a contract that is wholly or principally for their labour and you pay them for hours worked, rather than to achieve a result.

These super payments are required even if the contractor quotes an Australian Business Number (ABN).

How much super do you need to pay?

The amount of super you’re required to pay your employees is determined by the SG legislation and the industrial instrument that covers your employees, such as an Enterprise Bargaining Agreement (EBA) or an Award.

Under SG legislation, the current contribution rate payable is 9.5 percent of ordinary time earnings (OTE) for employees and 9.5 per cent of the labour component in the contract for contractors.

However, an industrial instrument may provide your employees with a different rate. The industrial instrument may provide a higher contribution rate, a different definition of OTE or additional circumstances in which employees are entitled to SG.

You should first check the industrial instrument that applies at the site where your employees are working and compare it to the rate payable under the SG legislation. Generally, the higher rate will apply.

For more information about your SG obligations visit the Australian Taxation Office’s website at

When are super contributions due?

The timetable in the SG legislation requires payment within 28 days of the end of each quarter of the calendar year.

However, a condition of joining Cbus as a contributing employer is that you make contributions for your employees at the end of each month.

This is sanctioned in the Cbus Trust Deed, the legal document setting out the rules, terms and conditions of the fund and its operation.

What happens if your payments are late?

It’s important you meet your commitment as a Cbus employer and make your payments on time.

Late payments can affect your employee’s entitlements and benefits in Cbus – such as their insurance cover.

More information

If you require any assistance or need to talk to us about this matter please contact our Service Centre on 1300 361 784.

Read the relevant Cbus Product Disclosure Statement to decide whether Cbus is right for you. Contact 1300 361 784 or visit for a copy.

Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262.



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