Superannuation and Deemed Contractors
The Australian Tax Office’s attitude to independent contractors who are not employees but who are deemed to be employees for superannuation guarantee purposes (eg those who work under a contract wholly or principally for their labour) is simple – they are entitled to superannuation. This means, you the employer can be required at some time or a later date after termination to pay the contractors superannuation even though they had an ABN and contracted to you. There are risk minimisation strategies you can explore – there is a price to pay for non compliance and taking a punt if caught!