Liability for an Independent Contractor’s Superannuation
A recent decision of the Federal Court of Australia has found that in some circumstances, an independent contractor can be entitled to superannuation contributions from business which they are completing work for.
Dr Moffet was a dentist who was engaged by Dental Corporation as an independent contractor.
The Federal Court ultimately found that Dr Moffet had been engaged as an independent contractor and was not an employee or worker as defined within the Fair Work Act 2009 (Cth) or the Long Service Leave Act 1955 (NSW).
However, the Federal Court held that the agreement entered into between Dr Moffett and Dental Corporation was “wholly or principally for the labour” which fell within the scope of the Superannuation Guarantee (Administration) Act 1992 (Cth). Accordingly, Dental Corporation had breached its obligations in not paying Dr Moffet’s superannuation entitlement and was ordered to attend to payments of these entitlements.
If you have concerns that you may not be meeting your Superannuation obligations or believe that your Employer may not be paying your contributions correctly, please contact our Workplace Team to discuss further.