As handling and paying superannuation is new for some of my clients, I’ve researched and put this information together to simplify the process. There is a video embedded below showing the entire process in just five minutes! I’ve tried to make this as simple as I can. Please note, I am not a financial advisor nor an accountant – this information is based on my own research. This isn’t legal advice!

As of July 2017, the Australian Government changed laws which adjusted employers obligations in regards to freelance contractors and superannuation guarantees. Since this change, freelancers may be owed superannuation on top of their rate if paid $450 or more per calendar month.

As of 1st of July 2024, the superannuation guarantee is now 11.5% . All quotes and invoices from myself will include Superannuation on top of the agreed rate. Super is only paid on labor, not on equipment and room hire. The superannuation guarantee rate will change over time – from the 1st July 2025 onwards the rate will be 12%.

How do I pay you the super, Rob?

If your business / production company is already registered for “Single Touch Payroll”, please use the details provided on my invoice to complete the superannuation payment using your accounting software.

Otherwise, if you’re a sole trader (like myself!) or a small business (with 19 or fewer employees or an annual turnover of less than $10 million) you’ll likely want to use The Australian Government “Small Business Superannuation Clearing House” (SBSCH). It’s a service for paying superannuation, made for small businesses and sole traders. Here’s a video I’ve edited showing how to pay super using SBSCH in just five minutes:

Can I just pay you the super and you handle it, Rob?

I would love to offer this, however this is against the law. It must be paid by the employer / client directly into a superannuation fund using an authorised super payment tool, such as SBSCH (shown above), or a Slipstream compliant service. The good news is that after you set the process up as seen above, it’s very simple the next time around.

What if I don’t pay the Super?

Paying Superannuation isn’t optional. If the super hasn’t been paid, the invoice isn’t considered paid. The ATO is policing this with fines for both employees and freelance contractors to ensure compliance. I’ll send friendly reminders if I notice Super has not been paid, however, I do greatly appreciate not needing to chase people up. You can pay the super at any time within the financial quarter, although I find it’s much easier to pay the super when you’re handling the invoice so everything is done and dusted at once.

Can I get more information?

Absolutely! The ATO has a tool to check if you should be paying (as an employer) or requesting (as a employee/contractor/freelancer) superannuation: https://www.ato.gov.au/Calculators-and-tools/Employee-or-contractor/.

Additionally, Creative Plus Business has links to some fantastic resources that are worth reading: https://www.creativeplusbusiness.com/resources/money/

This may be foreign new territory to some clients. Please get in touch if you have questions and I’ll do my best to answer them, although as I am a small business myself and not an accountant, it may be a good idea to seek advice from a finance expert for trickier questions.

All the best,

– Rob.

Please read this, it’s important:

This information is general in nature and does not take into account your personal financial situation. It is for educational purposes only and does not constitute formal financial advice. You should always seek personal financial advice that is tailored to your specific needs. I am a freelance creative professional, not a financial expert. I’m merely sharing the information I have discovered on how to pay super, as it was admittedly a headache to research on my own, and I want to make it as easy as possible for the next person to learn how to handle Super and get on with their lives!