Superannuation Guarantee Charge

The AAT has upheld superannuation guarantee charge default assessments against a partnership for failing to make minimum superannuation contributions for an independent contractor operating within its business.

After considering the factors that indicate the existence of an employee/employer relationship, the Tribunal held that the contractor was an employee.

Indicators that suggest an employee/employer relationship exists include:

• the level of control between an individual and the other party;
• the mode of remuneration;
• the provision for annual leave; and
• the right to suspend or dismiss an individual by the other party.

NOTE: The classification of an individual as an employee or as an independent contractor is not based on the legal terms used in a contract. All of the facts and circumstances of the particular situation must be considered.

NOTE: An individual engaged for their labour can be deemed to be an employee for superannuation guarantee purposes even where the individual is a contractor.