When must a tradie pay super for a contractor?

The test as the ATO words it

The ATO page (last updated 2 September 2026) says to make super contributions if you pay a contractor under a verbal or written contract that is mainly for their labour (more than half the dollar value is for labour), for their personal labour and skills (payment does not depend on achieving a specified result), and to perform the contract work (work cannot be delegated to someone else).

Assess the personal-labour, result and delegation conditions together. Do not decide from the ABN or an invoice alone. Separately check whether the person is already an employee under the ATO's employee rules; the labour-contractor rule is an additional route to a super obligation.

Sources[1][2]

ATO examples compared

These summarise the ATO's own examples.

Sources[1]

Labour, materials and paying it

If a contract covers labour and non-labour items, the ATO says to detail the value of each separately. If you do not, you can use reasonable market value, and you must keep records showing how you worked out the labour part. From 1 July 2026 the ATO says labour-related payments, including overtime, count, and materials, equipment, other non-labour items and GST do not.

Paying an extra amount directly to the contractor on top of their pay does not count as super. Contributions must go to the right fund on time. The ATO says to offer eligible contractors a choice of fund within 28 days of their start date, and if you believe someone is a contractor you can choose to pay super to avoid the super guarantee charge.

Sources[1][2]

Assess, record, review

This record is a recommended workflow, not a ruling. Complete it when you engage someone, and again when the arrangement changes.

CONTRACTOR SUPER ASSESSMENT RECORD
Contractor: [name]   Date: [DD/MM/YYYY]   Assessed by: [name]
Structure: [ ] individual   [ ] company   [ ] trust   [ ] partnership   ABN: [ ]
Contract date and description: [ ]

IF A COMPANY, TRUST OR PARTNERSHIP: record who the contract is with and that the people doing the work are engaged by them. Note: [ ]

IF AN INDIVIDUAL
1. Is more than half the contract's dollar value for labour? Labour: $[ ]   Non-labour (materials, equipment): $[ ]
   How split worked out (contract line items or reasonable market value): [ ]
2. Are they paid for their personal labour and skills, or to achieve a specified result? [ ]
3. Must they do the work themselves, or can it be delegated? [ ]
4. Labourer, trades assistant, apprentice or trainee? [yes/no]

OUTCOME
Super appears payable: [yes/no/unsure, ask ATO or adviser]
Fund choice offered on: [DD/MM/YYYY]   Fund details: [ ]
Evidence kept (contract, invoices, split calculation): [ ]
Next review date: [DD/MM/YYYY]

Sources[1][2]

Common questions

Am I an employee or subcontractor?

For super, someone invoicing as an independent contractor can still be treated as an employee. Check the ATO personal-labour, result and delegation conditions as well as the ordinary employee rules. Employment-law status is a separate assessment.[1][2]