According to the Federal Budget for 2021, the government wants to keep the anticipated rise in the super guarantee rate from 9.5 percent to 10% on July 1, 2021.
Super Guarantee Contributions Eligibility
As an employer, if your employee earns $450 or more (pre-tax) each month, you are required to pay you SG contributions. Following announcements made in the Federal Government’s 2021 Budget, the $450 threshold is expected to be eliminated from 1 July 2022.
Contractors who carry out work personally (rather than through a company or trust), may also need to be paid the SG if the service they provide is based on time, rather than an outcome. According to the ATO, contractors who are paid mainly for their labour may be considered employees for super guarantee purposes, provided that:
They are paid under a verbal or written contract that is predominantly for their labour (more than half the dollar value of the contract is for labour);
They are paid for their personal labour and skills such as physical labour, artistry or mental effort; and
They perform the work personally and don’t delegate it.
If you run a self-employed business as a sole trader or in a partnership, you generally are not required to make SG payments for yourself.
The Australian Taxation Office (ATO) provides an online tool that assists in determining if you are eligible for SG contributions – https://www.ato.gov.au/calculators-and-tools/am-i-entitled-to-super/