Employee vs Contractor and Superannuation for yoga teachers

19 Dec 2016

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There appears to be confusion on the matter of superannuation payments to yoga instructors or teachers. Please follow this link to access the information sheet that explains the difference between and an employee and a contractor. Essentially yoga instructors or teachers are considered labour contractors and as such are eligible for superannuation payments by their employers. This is the case even if the yoga instructor or teacher quotes and Australian Business Number (ABN).
An employer must make superannuation payments for yoga instructors or teachers if they pay them:
  • under a verbal or written contract that is wholly or principally for their labour – that is, more than half the dollar value of the contract is for their labour
  •  for their personal labour and skills – which may include physical labour, mental effort or artistic effort – and not to achieve a result
  • to perform the contract, work personally – that is, they must not delegate.

If the contract is with someone other than the person who’ll actually provide the labour – for example, with a company, trust or a partnership – the employer does not pay the yoga instructor or teacher super.
Employers and yoga teachers or instructors can use the following tools made available by the ATO:
The payment of super to eligible yoga teachers and instructors is a legal obligation by employers. Please contact the ATO or the Fairworks Ombudsman if you are unsure about your entitlements or obligations.

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