The rules relating to Superannuation Guarantee are tightening on
a number of fronts. As well as the cases before the courts in
recent months – most examining what it means to be an
"employee" – the Government announced in the
recent Commonwealth Budget that it intends to change the rules in
relation to the Superannuation Guarantee
("SG") in order to crack down on phoenix
activity.
Contractor or Employee?
Many businesses employ skilled operators to do a particular job
for a short period. If the contract to perform this work is with an
individual rather than a company, how can the business be sure that
it will not be open to a claim for Superannuation Guarantee amounts
at a later date? This makes it essential for employers to know
whether the person they have just hired is an "employee"
for Superannuation Guarantee purposes (and therefore subject to the
additional 9% in compulsory superannuation) or whether they are in
fact a "contractor".
