The ATO has recently issued a ‘Contractor stapled super fund request form’. This means that employers or their authorised representatives can use this form to request a stapled super fund for a contractor to pay their super guarantee contributions. In this regard, the ATO acknowledges that under Single Touch Payroll (STP) phase 1, contractors are not included in STP pay events which means employers will not have an employment relationship with them in their systems.
The ATO provides two online tests to help determine if someone is an employee or contractor for superannuation purposes. They provide guidance as to both taxation and superannuation entitlements.
You cannot contract out of your responsibility to pay a contractor superannuation. You cannot draft a contract with terms that remove this entitlement.
To access the ATO form, click here.