Superannuation for Locum Doctors in Australia: What You Actually Need to Know

[10 min read | Locum Pay & Rates | May 2026]

TL;DR: Superannuation for locum doctors in Australia can be complex. While many operate as sole traders and assume super is their responsibility, hospitals may owe super under certain conditions. The Superannuation Guarantee rate is now 12%, and changes like Payday Super will affect payment frequency. State differences in quoting rates also matter. For more details, see ATO guidelines.

What is the current Super Guarantee rate?

The Superannuation Guarantee (SG) rate is a critical component of locum doctor finances in Australia. As of 1 July 2025, the SG rate stands at 12% of ordinary time earnings. This marks the completion of a gradual increase from 9.5% in 2020-21. The rate is set to remain at 12% in the foreseeable future.

For the 2025-26 financial year, the maximum super contribution base is A$62,500 per quarter. This means the maximum SG contribution any single employer must pay is A$7,500 per quarter. It's essential to note that the concessional contributions cap is A$30,000 per year. Exceeding this cap results in additional tax on the excess amount.

Do hospitals owe you super as a locum?

The question of whether hospitals owe super to locum doctors is contentious. Many locums work as sole traders under an ABN, invoicing hospitals for their services. In this setup, hospitals typically do not pay super. However, the ATO's stance complicates this assumption.

According to Section 12(3) of the Superannuation Guarantee (Administration) Act 1992, if a contract is "wholly or principally for the labour of the person," the individual is considered an employee for super purposes. This means that many locum doctors, whose contracts are primarily for labour, may be owed super by hospitals.

Despite this, most hospitals and agencies circumvent the obligation by offering higher hourly rates that implicitly include a super component. However, the ATO clarifies that paying an additional amount equivalent to the SG rate does not satisfy the super contribution requirement unless it is directly paid into a super fund. For clarity, seek advice from a medical accountant.

If you are a sole trader, do you have to pay yourself super?

Operating as a sole trader with an ABN, which is common among locum doctors, means you are not required to pay yourself super. The ATO states that sole traders do not have to make super guarantee contributions for themselves. However, you can choose to make personal contributions and claim a tax deduction for them until age 75.

Many locum doctors opt not to contribute to super during their locum years, which can be problematic if prolonged. For instance, a locum earning A$250,000 annually and not contributing to super for five years misses out on approximately A$150,000 in contributions, excluding investment returns. Treat super like a business expense by setting aside 12% of your gross income monthly.

Are there state-by-state differences in how super is quoted?

Locum doctors need to be aware of state differences in how super is quoted in locum rates. In Victoria and Queensland, super is usually included in the quoted rates. For example, a A$150/hr rate in Victoria translates to approximately A$134/hr in cash and A$16/hr in super.

In contrast, New South Wales often quotes rates exclusive of super. Thus, a A$150/hr rate in NSW genuinely means A$150 cash, with super contributions on top. When comparing offers, a NSW rate is worth about 12% more in real terms than a similar rate in Queensland. Always confirm whether the quoted rate includes super before accepting an offer.

What is Payday Super and how will it affect locum doctors?

Starting 1 July 2026, the introduction of Payday Super will require employers to pay super contributions with every pay run instead of quarterly. This change is significant for Australia's super system, ensuring contributions are made within seven business days of each pay run.

The compliance penalties for late payments are severe, including daily compounding interest and penalties up to 50% on outstanding amounts. For locum doctors, the impact varies based on their employment arrangement. Those treated as employees (PAYG) will notice more frequent super payments. Sole trader contractors are not directly affected, but regular personal contributions remain crucial.

Locums working across multiple employers should consult with a medical accountant regarding the Maximum Contribution Base and the potential need for a Super Guarantee exemption certificate.

What does this mean for locum doctors in Victoria?

For locum doctors in Victoria, understanding superannuation obligations is crucial. The state's practice of including super in quoted rates means that doctors must be diligent in verifying whether their compensation meets their financial goals. The introduction of Payday Super will also influence how quickly super contributions are received.

Victoria's healthcare system often treats locums as independent contractors, meaning super is not automatically paid. Locum doctors should consider setting aside a portion of their earnings for super contributions. Consulting with a financial advisor familiar with Victorian regulations can provide tailored advice.