Superannuation for Contractors

If you are engaged as a casual labour-hire employee of a recruitment company and paid through PayMe, yes. Superannuation is not something you have to invoice for or chase — it is processed with your pay each cycle.

Contract roles in Australia are usually quoted as an all-in rate: one hourly or daily figure that has to cover your wage, your super and the cost of being paid. PayMe's fee comes off that figure first, and what remains is split into a taxable wage plus the superannuation guarantee that sits on top of it.

Super is calculated at the current 12% Super Guarantee rate in accordance with the applicable Payday Super qualifying earnings rules. It is paid at the same time you are paid rather than held back to a quarterly deadline, and contributions generally reach your fund within 7 business days — although processing times can vary between funds and clearing houses.

Each payslip shows the superannuation amount for that pay as its own line, so you can reconcile what has been paid against what appears in your fund.

Yes. You nominate your fund during onboarding using the standard superannuation choice form, submitted electronically through the PayMe payroll software. If you already have a fund from a previous job, you can keep using it rather than opening another account and splitting your balance across two sets of fees.

If you change funds later, you update your choice through the payroll software and PayMe directs future contributions to the new fund.

Yes. On top of the compulsory 12%, you can salary sacrifice additional superannuation from your pre-tax pay. Because the sacrificed amount is applied before PAYG withholding is calculated, it reduces the wage you are taxed on for that pay and moves that money into your fund instead of your bank account.

Contractors often use this while they are on a strong contract rate, then dial it back between placements. PayMe sets it up through the super salary sacrifice deduction agreement in the Contractor Portal, and you can change the amount as your circumstances change.

The concessional contributions cap applies to you as an individual, not to each employer separately. If you have worked for more than one employer in a financial year — common when contracts change — the compulsory contributions from all of them count towards the same cap, and so does any extra you sacrifice.

Going over the cap can create an unexpected tax outcome, so it is worth keeping an eye on the year-to-date total in your fund, especially if you started the year on a different arrangement or are sacrificing a large amount.