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Jackbel(Initiate)Registered Tax Professional
10 Nov 2023

Good Afternoon.


I called the ATO this afternoon and was put through to the Superannuation section. I was looking for guidance on a situation, and even she wasn't confident in what she was saying. This is really hard!


I follow this link......https://www.ato.gov.au/business/employee-or-contractor/difference-between-employees-and-contractors/


But.......not all Sole Traders Fit into the Contractor Column.

Businesses don't want additional costs, I get the whole SG and planning for the future.


Question - to be considered a Contractor and therefore NO SG - does that Sole Trader/Contractor have to fit ALL the criteria in the above link? eg in the situation of a trainer for a sport team.

Control - They chose their hours to train each week (Contractor)

Integration - I'm sure they're furthering their own business, why wouldn't you. (Contractor)

Mode of Remuneration - Fixed fee of $2k a month for work every M/T/W 6-9pm (Contractor)

Ability to subcontract/delegate - they can but they don't (?????)

Tools and Equipment - there are None.

Risk - injury is covered by the Sports Club (?????)

Goodwill - ST benefits (Contractor)


In the above situation, can I count them as a Contractor and therefore NO SG.


Thanks, Belinda


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567 views
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Deb_ATO(Community Support)Community Support
13 Nov 2023

Hi @Jackbel


It depends. Have a think about if you pay contractors mainly for their labour. If you do, they're employees for SG purposes.


You can find more info on our website about Super for contractors here.

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Superannuation Guarantee for Sole Traders | ATO Community