health
April 1, 2026
6 min read
Superannuation for Locum Doctors in Australia: What You Actually Need to Know
Superannuation is the most misunderstood part of locum doctor finances in Australia. Most locums operate as sole traders under an ABN, and the common assumption is that super is entirely your problem. The reality is more complicated -- and the rules are changing in 2026. Here is what you need to know, with actual numbers.
As of 1 July 2025, the Superannuation Guarantee (SG) rate is 12 per cent of ordinary time earnings. This completes the legislated increase that has risen from 9.5 per cent in 2020-21 through 10, 10.5, 11, 11.5, and now 12 per cent. It will stay at 12 per cent going forward.
For the 2025-26 financial year, the maximum super contribution base is $62,500 per quarter. This means the maximum SG contribution any single employer must pay for you is $7,500 per quarter ($62,500 x 12 per cent).
The concessional contributions cap (total pre-tax contributions including employer SG and salary sacrifice) is $30,000 per year for 2025-26. If you exceed this, you will pay extra tax on the excess.
This is where it gets contentious. Most locum doctors work under an ABN as sole traders. The hospital or agency pays you an hourly rate, you invoice them, and you are treated as an independent contractor. Under this arrangement, the hospital does not pay your super.
But the ATO's position is not that simple. Section 12(3) of the Superannuation Guarantee (Administration) Act 1992 says that if a person works under a contract that is "wholly or principally for the labour of the person," that person is an employee for super purposes -- regardless of what the contract says.
For most locum doctors, the contract is entirely for your labour. You are not supplying equipment, you are not subcontracting, and you are not delivering a defined result. You are turning up and working shifts. Under a strict reading of s12(3), many hospitals arguably owe super to their locum contractors.
In practice, most hospitals and agencies avoid this by paying a higher hourly rate that is understood to include a component for super. But as the ATO itself notes: "Paying an additional amount equal to the SG rate to the independent contractor on top of their usual pay does not count as a super contribution." To satisfy the obligation, the payment must go directly into your super fund.
This is an area of genuine legal ambiguity. If you are concerned, get specific advice from a medical accountant.
If you operate as a sole trader with an ABN -- which is the most common structure for locum doctors -- the ATO is clear: you do not have to pay super guarantee for yourself. You can choose to make personal super contributions, and most people can claim a tax deduction for those contributions until age 75.
This means that in practice, many locum doctors simply do not contribute to super at all during their locum years. That is legal, but it is also a problem if it goes on for years. A locum earning $250,000 per year who puts nothing into super for five years is missing out on approximately $150,000 in contributions (plus investment returns) that would have been made under a standard employment arrangement.
The practical advice: treat super like a business expense. Set aside 12 per cent of your gross income each month and transfer it to your super fund. Automate it if possible.
This catches a lot of doctors off guard when comparing locum rates across states:
Victoria: Super is usually INCLUDED in quoted locum rates. A $150/hr rate in Victoria means roughly $134/hr cash plus $16/hr super.
Queensland: Rates are generally inclusive of super. Same principle as Victoria.
NSW: Super is often paid ON TOP of the quoted rate. A $150/hr rate in NSW genuinely means $150 cash, plus super contributions.
If you are comparing a $150/hr NSW offer against a $150/hr QLD offer, the NSW offer is worth approximately 12 per cent more in real terms. Always ask whether the quoted rate is super-inclusive or super-exclusive before accepting.
From 1 July 2026, employers will be required to pay super with every pay run, not quarterly. This is called Payday Super, and it is the most significant change to Australia's super system since the SG was introduced.
Under the current rules, employers can pay super quarterly -- meaning a contribution earned in July might not land in your fund until October. From 1 July 2026, super must be paid within seven business days of each pay run.
The compliance penalties are steep: late payments will attract daily compounding interest, an administration uplift of up to 60 per cent, and penalties of up to 50 per cent on outstanding amounts.
For locum doctors, the practical impact depends on your arrangement:
If you work through a hospital that treats you as an employee (PAYG), you will see super arriving more frequently and consistently.
If you are a sole trader contractor, the change does not directly affect you (since no one owes you SG anyway). But it is one more reason to be disciplined about making your own contributions regularly.
If you work across multiple employers simultaneously, speak with a medical accountant about the Maximum Contribution Base ($62,500 per quarter) and whether a Super Guarantee exemption certificate is appropriate.
1. Open a super fund before you start locuming. If you do not have one from previous employment, choose a low-fee industry fund. AustralianSuper, HESTA (health industry specific), and Aware Super are popular choices among doctors.
2. Set aside 12 per cent of every invoice in a separate account and transfer it to your super fund monthly. Do not wait until EOFY.
3. If you earn over $75,000 per year from locum work (likely), you must register for GST and lodge quarterly BAS returns. Factor this into your cash flow planning alongside super.
4. Consider salary sacrificing into super if you also hold a part-time permanent position. The concessional contributions cap of $30,000 applies across all sources combined.
5. Keep records of every super contribution you make. You will need these when claiming tax deductions at lodgement time.
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