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bedge9(Initiate)Initiate
8 Aug 2024

Hi ATO community,


I am a locum doctor, working exclusively in public hospitals. However I am paid through locum hire agencies - who also take an additional cut for providing the labour. I have worked for two, one of them pays me super and the other doesn't. My understanding is that as my work is primarily paid for on an hourly basis, and due to my labour - I should be entitled to superannuation, but that because the labour hire company is involved it is not the responsibility of the hospital, but that of the labour hire company to pay this. If I have been paid in the past for work, would I be entitled to superannuation on top of this? In their advertisements the labour hire company occasionally specifies 'this rate is inclusive of super' but then they do not actually separate out or pay super - the implication is we are required to manage it ourselves - is this something they can do?


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yzhong818(Enthusiast)Enthusiast
8 Aug 2024

Hi @bedge9

As your description, you are independent contractor and are an employee of labor hiring company for superannuation guarantee (SG purpose).


The recruitment advertisement specifies "the rates inclusive super" wasn't correct expression on taxable income. The minimum super rates currently is 11.5% on your taxable income for 2024 and you will pay 15% tax on super. if the rates inclusive super, all your taxable income will be taxed on the individual tax rates as solo trader. As your said you are a doctor, you definitely will pay more than 15% tax which means you need to pay more tax on super part.

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Most helpful reply

yzhong818(Enthusiast)Enthusiast
8 Aug 2024

Hi @bedge9

As your description, you are independent contractor and are an employee of labor hiring company for superannuation guarantee (SG purpose).


The recruitment advertisement specifies "the rates inclusive super" wasn't correct expression on taxable income. The minimum super rates currently is 11.5% on your taxable income for 2024 and you will pay 15% tax on super. if the rates inclusive super, all your taxable income will be taxed on the individual tax rates as solo trader. As your said you are a doctor, you definitely will pay more than 15% tax which means you need to pay more tax on super part.

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Super for Sole Traders working through labour hire companies | ATO Community