Superannuation Guarantee Calculator

An ABN does not decide it — the contract does

Under section 12(3) of the Superannuation Guarantee (Administration) Act 1992, a person working under a contract that is wholly or principally for their personal labour is an employee for superannuation purposes, whether or not they hold an ABN.

This catches medical practices constantly. A GP engaged under a service arrangement, working set sessions, using the practice's rooms, equipment, reception and billing systems, and seeing the practice's patients is very likely an employee for super purposes whatever the contract calls them.

The test is not what the contract says the parties are. It is what the arrangement actually looks like: whose patients, whose equipment, whose hours, and whether the person is in business on their own account or working in yours.

Only the labour component counts

Where super does apply to a contractor, it is calculated on the labour portion of the contract, not the whole amount invoiced. If the contract bundles rooms, equipment, nursing support and billing services, only the part that is payment for personal work counts as ordinary time earnings.

Practices frequently overpay by running super across an entire facility fee. If the agreement separately identifies the components, use them. If it does not, you need a defensible apportionment — this is worth raising with your accountant before it is raised with you.

The contribution base cap

Super is only required on ordinary time earnings up to the maximum contribution base, which is set per quarter. Earnings above that ceiling do not attract super.

For high-earning practitioners this materially reduces the amount owed, and it is the difference between a correct calculation and a significant overpayment. The cap is indexed, so it changes between years — check the figure for the year you are calculating.

Paying late costs more than paying

Underpaid or late super attracts the super guarantee charge, which is calculated on the shortfall plus interest and an administration fee, and is not deductible. The effective cost of getting this wrong is considerably higher than the contribution itself.

If this calculator shows a shortfall, treat it as urgent rather than as a rounding difference.

What this calculator does not do

It does not determine whether a particular arrangement creates an employment relationship — that is a question about the whole arrangement, and it is the one most likely to be disputed.

It applies a flat rate across the year and does not handle mid-year rate changes or quarterly timing differences.

Where a contractor cohort is large enough that the answer represents real money, get the classification reviewed properly. A retrospective assessment across several practitioners is a much larger problem than the cost of advice.