Yes—according to the Australian Taxation Office (ATO), in guidance updated 17 December 2024, a worker labelled as an independent contractor is deemed to be an employee for superannuation purposes in one stated circumstance: performing work wholly or principally of a domestic nature for more than 30 hours per week. In that circumstance, superannuation must be paid, but the domestic-work rule is not the only possible route to a superannuation obligation.
figures checked 1 October 2026
What does the over-30-hour domestic-work rule actually say?
The ATO’s stated test has three connected elements:
| Element | What the ATO states |
|---|---|
| Nature of the work | The work must be wholly or principally of a domestic nature. |
| Hours | The worker must perform it for more than 30 hours per week. |
| Superannuation result | This is a stated circumstance in which the contractor is deemed to be an employee for superannuation purposes and superannuation must be paid. |
The wording is more than 30 hours per week, not 30 hours or more. For a domestic cleaning engagement, both the nature of the work and the stated hours condition matter.
The cited ATO guidance gives the threshold but does not explain how variable weekly hours should be allocated or averaged. If the cleaning schedule is unclear, check the current regulator guidance or obtain advice about the specific arrangement.
Does the “independent contractor” label decide the outcome?
No. The ATO says a label such as “independent contractor” will not determine or be relevant to how the relationship is characterised.
The assessment instead considers whether the worker serves in the business as its representative or provides services to further the worker’s own business. The ATO’s guidance, discussing the High Court decisions in CFMMEU v Personnel Contracting and ZG Operations v Jamsek, says the relationship is determined by the totality of the contractual legal rights and obligations between the parties.
A contract may be:
- written;
- wholly oral; or
- a hybrid of written terms, oral terms and terms implied from conduct.
Conduct may also vary the agreed contractual terms. A practical starting point is to compare the business’s essential activities with the legal rights and obligations granted to the cleaner under the working arrangement.
Are there other contractor circumstances that require superannuation?
Yes. Alongside wholly or principally domestic work for more than 30 hours per week, the ATO lists other circumstances in which superannuation must be paid to contractors deemed to be employees for superannuation purposes, including:
- work under a contract that is wholly or principally for the worker’s labour;
- work by a sportsperson, artist or entertainer paid to perform, present or participate in music, a play, dance, entertainment, sport, display, a promotional activity or a similar activity;
- services provided in connection with those performances, presentations or activities; and
- services related to making a film, tape, disc, television or radio broadcast.
These are other stated circumstances, rather than extra conditions that must be combined with the domestic-work rule.
The ATO also says apprentices, trainees, labourers and trades assistants are always treated as employees. A business hiring apprentices or trainees must meet the same tax and superannuation obligations as it does for other employees.
Separately, a business that believes a worker is an independent contractor can choose to pay superannuation to avoid liability for the superannuation guarantee charge. That payment option does not itself determine the worker’s classification.
How do contractual rights affect employee or contractor status?
The ATO says the old multifactorial test is no longer used. However, familiar features can still help identify the legal rights and obligations in the contract. They are not a checklist, and no single feature is determinative.
| Feature | May point toward employee status | May point toward independent contractor status |
|---|---|---|
| Control | The business has a legal right to control how, where and when the worker performs the work. | The worker can choose how, where and when the work is done, subject to reasonable direction. |
| Integration | The worker serves in the business and must act as its representative. | The worker provides services and performs work to further their own business. |
| Remuneration | Payment is for time worked, a price per item or activity, or a commission. | The worker is generally contracted to achieve a specific result, paid on completion, often for a fixed fee. |
| Delegation | The contract does not permit delegation or subcontracting and requires personal performance. | The contract gives a genuine right to delegate or subcontract that can legally be exercised. |
| Tools and equipment | The business provides all or most equipment, tools and assets, or pays an allowance or reimbursement when the worker supplies them. | The worker provides all or most tools and assets without an allowance or reimbursement. |
| Risk | The worker bears little or no risk, while the business bears the commercial risk of injury or defects. | The worker bears the commercial risk of costs arising from injury or defects. |
| Goodwill | The hiring business benefits from goodwill generated by the worker’s work. | The worker’s business, rather than the hiring business, benefits from that goodwill. |
Day-to-day conduct cannot simply replace the agreed terms. Under the ATO’s stated approach, conduct and work practices are irrelevant unless they are sufficient to vary the contractual terms.
What if the cleaner works through a company or labour-hire firm?
The identity of the contracting party matters. The ATO says companies, trusts and partnerships are always treated as contractors, while an employee must be a natural person.
If a cleaning business contracts with a company, trust or partnership:
- that entity is the contracting party for tax and superannuation purposes;
- the people doing the work may be its directors, partners or employees; and
- they are not employees of the hiring business.
A different arrangement applies when work is engaged through a labour-hire firm and the hiring business pays that firm for the work performed in its business. The ATO says the business contracts with the labour-hire firm rather than the worker, and the firm is responsible for pay as you go withholding, superannuation and fringe benefits tax obligations for that worker.
Labour-hire firms may also be called on-hire firms, recruitment services or group training organisations.
What should a cleaning business check before treating the cleaner as a contractor?
- Identify the contracting party: Check whether the agreement is with an individual cleaner, a cleaning company or another entity.
- Review the actual terms: Consider written terms, oral terms and terms implied from conduct.
- Compare the business with the contract: Compare the cleaning business’s essential activities with the cleaner’s contractual legal rights and obligations.
- Check the classification features: Review control, integration, payment, delegation, equipment, risk and goodwill without treating any one feature as decisive.
- Check the superannuation rules: Determine whether a stated circumstance applies, including work wholly or principally of a domestic nature for more than 30 hours per week.
The ATO says a business is responsible for correctly classifying its worker for tax and superannuation purposes and may face penalties for an incorrect decision.
This is general information, not financial or legal advice. Check the current Australian Taxation Office regulator page and the relevant insurance policy’s PDS for the current position and what the policy covers.
Sources
- Australian Taxation Office — Difference between employees and independent contractors
- CFMMEU v Personnel Contracting and ZG Operations v Jamsek, discussed in the Australian Taxation Office guidance
FAQ
Does exactly 30 hours a week meet the domestic cleaning rule?
No. This particular stated circumstance says more than 30 hours per week. Exactly 30 hours does not meet that domestic-work item, although another superannuation circumstance or the general classification rules may still apply.
Is a signed contractor agreement enough if it says “independent contractor”?
No. The signature and label alone do not decide the outcome. The legal rights and obligations in the working arrangement must be assessed.
Can a domestic cleaner working fewer hours still have a superannuation obligation?
Yes. The domestic-work and hours item is only one stated circumstance. Work under a contract wholly or principally for the worker’s labour is another circumstance identified by the ATO.
Does choosing to pay super prove the worker was an employee?
No. The ATO says a business may choose to pay super to a worker it believes is an independent contractor to avoid superannuation guarantee charge liability. The voluntary payment does not by itself settle the classification.
Partner links. Using them costs you nothing extra and may earn us a commission.