Home Building Tips for Builders in NSW
Do I have to pay Super for my Subbie?

You have a carpenter who wants to contract with you as contractor.  You draw up a contract that makes it clear that the carpenter is a contractor.  But do you have to make Superannuation Contributions for this person?

Generally speaking, the answer is no if your contract is with a corporation (i.e proprietary limited company) that is supplying the services of the worker.  However, if the contract is with the individual directly (i.e sole trader), it becomes a bit more difficult.

The fact that the carpenter has an ABN and invoices you for his or her services is irrelevant - instead, the first question you need to ask yourself is whether the person is technically an employee under the law.  If yes, then you will have to make Superannuation Contributions.

Remember though, if the relationship is one of employment, you cannot change that fact by merely having the written contract state that the person is a contractor.

The following factors might point to a contractor relationship:

• The person operates an independent business.
  
  
• Payment under the contract is conditional upon satisfactory completion of work (i.e based on work performed rather that time worked).
  
  
• The worker has their own insurance and indemnity policies.
  
  
• The worker provides their own tools and equipment and pays all business expenses

Even if your worker is not technically an employee under the law, you might still have to make Superannuation Contributions if your contract with them is wholly or principally for their labour (instead of labour and goods).  Your contract with the worker will not be wholly or principally for their labour if one or both of the following applies:

• The contract allows the worker to engage someone else to perform the contracted services, even if this right to delegate the work is not actually exercised.
  
  
• The contract provides for payment of a fixed sum on satisfactory completion of the project, as opposed to an amount paid by reference to hours worked.

That fee can be calculated according to an estimate of the time and labour cost that is necessary to complete the project.

UPCOMING CPD SEMINARS All of our CPD Seminars are now 6 hours in length and allow you to claim 12 CPD Points in one day, and builders will have six (6) different CPD Seminars to choose from.

To REGISTER for a CPD Seminar, complete the attached Registration Form or visit www.homebuildingonline.com.au

Online CPD Courses

We have 4 NEW Online CPD Courses to choose from – a total of 24 Online CPD Courses that are now available for builders in NSW.

Listed below are our available Online CPD Courses – click on an Online CPD Course to view further information about that Course:

1. Liability of Building Professionals - NEW
   
2. Construction Management Tips - NEW
   
3. Safety Hazards On Site (Part A) - NEW
   
4. Safety Hazards On Site (Part B) - NEW
   
5. Project Management
   
6. Preparing Business Documents
   
7. Financial Management
   
8. Going Green with Building Sustainability
   
9. Builder’s Summary of the Home Building Act
   
10. Security of Payment Laws 
    
11. Do It Yourself Debt Recovery
    
12. Tendering Tips in Home Building 
    
13. Home Building Contracts in NSW 
    
14. Dealing with Sub-Contractors      
    
15. Running a Small Building Business 
    
16. Tax Summary for Small Business
    
17. Tips on Playing the Building Game 
    
18. Basics of the Employment Relationship            
    
19. Basic Contract Law            
    
20. Fair Work Laws – A Summary 
    
21. Handling Home Building Disputes 
    
22. Understanding Workers Compensation 
    
23. Builder’s Guide to OHS 
    
24. Bullying on the Building Site

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