Hi,
I have an Independent Contractor who will be eligible for Superannuation Contributions. Would like to check based on the Invoices (which includes GST) that Contractor is receiving the salary. On what basis of the superannuation of 12% should be contributed? To include GST or exclude of GST for the superannuation contribution?
Thank you!
Hi @lsyvon,
You exclude GST when calculating superannuation contributions for your independent contractor. Super is calculated on the labour component of the contract, and GST isn't included in this calculation.
When working out how much super to pay, the minimum amount is the super guarantee percentage of the worker's ordinary time earnings. This is the labour component of the contract. You don't include GST in this calculation.
For example, if your contractor invoices $1,120 including GST for their labour, you'd first exclude the GST to get the GST-exclusive amount of $1,018.18. You'd then calculate the 12% super contribution on this GST-exclusive labour amount.
You also don't include any contract payments that are for materials and equipment, or overtime for which the worker was paid overtime rates.
You can use our super guarantee contributions calculator to work out the correct amounts. Make sure you're paying super on time, in full and to the correct fund each quarter to avoid the super guarantee charge.
Hi Jay
Thank you for your response. One last query, as this contractor is paid almost weekly. The works that hes doing, example between 1-7 Mar, but the invoice due date is on example 23 Apr, where salary will be paid to this ee by 23rd Apr. Could i based on 23 Apr as a basis of the superannuation contribution period? Which falls in another quarter? or i should based on the actual working period to determine the superannuation pay period?
Seeking yr advise here.
Hello @Isyvon,
For payments made to contractors prior to 1 July 2026, super payments will relate to the quarter in which the relevant invoice is paid (which may differ to the quarter in which the relevant work was carried out).
However, with the introduction of Payday Super from 1 July 2026, super for contractors will be due within 7 days of paying their invoice. There was a similar post that may be helpful for you.
10 Apr 2025 · 4 min read time
8 June 2023 · 2 min read time
28 Aug 2025 · 5 min read time
68 views
3 replies