If you pay contractors mainly for their labour, they are employees for superannuation guarantee (SG) purposes and you may need to pay super to a fund for them.

Do Labour hire companies have to pay superannuation?

If you hired your worker through a labour hire or on-hire) firm and pay that firm for the work undertaken in your business, your business has a contract with the labour hire firm and they are responsible for pay as you go (PAYG) withholding, super and fringe benefits tax obligations.

How is Super calculated for contractors?

If your contractors are employees, for the purposes of the SG, you must provide the minimum level of super contributions. The minimum super amount you have to pay is 9.5% of each eligible employee's earnings base. Your contribution should be calculated only on the labour component of the contract.