(Cth) Extend the Superannuation Guarantee to Gig Workers

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Author: Mieke Crighton, Zehra Yamac, Emmaby Barton Grace & Helene Opsahl | Publish date: 13/5/2026

• P: In Australia, gig workers who work for digital platforms do not have the express right to compulsory superannuation as an ‘employee.’

• S: The Minister for Financial Services should amend Section 12 of the Superannuation Guarantee (Administration) Act 1992 (Cth) to include ‘employee-like workers’ under the definition of ‘employee(s)’ who are eligible for compulsory superannuation.

• E: Health Employees Superannuation Trust Australia (HESTA): ‘Expressly include the superannuation guarantee as a minimum standard available to workers in “employee-like” arrangements … such as those in the gig economy.’

Problem Identification: 

Section 12 of the Superannuation Guarantee (Administration) Act 1992 (Cth) (the Act) sets out the definition of ‘employee(s)’ who are guaranteed superannuation contributions from their employer. However, ‘employee-like’ workers are still not guaranteed superannuation under the Act.

Therefore, it is known that gig workers who work through digital platforms are not guaranteed superannuation. According to HESTA, this means that ‘workers are … foregoing superannuation on the income they earn while performing like for like duties as someone deemed an “employee”, but without equivalent workplace rights.’

Context: 

Employee-like workers refer to ‘individuals who are performing “services contracts” for “digital labour platform” operators’, including gig workers. 

A gig worker refers to ‘someone who typically engages in short-term, flexible work arrangements, which are often facilitated through digital platforms or apps.’ Jobwatch stated that some ‘typical examples include transportation, food delivery’, and ‘pet-sitting or babysitting apps.’ In 2025, it was estimated that there were over 250,000 gig workers in Australia.

The Superannuation Guarantee (SG) refers to the obligation employers have ‘to pay super contributions of 12% of an employee's … earnings’.

Arguments:

The Ethics Centre (TEC), an independent social justice-oriented charity, stated that ‘gig workers risk falling well short of the super they should have accrued during their working life, bringing about longer term concerns around financial security.’ A 2021 Senate Select Committee report, referencing think-tank Per Capita, stated that ‘insecure work, underemployment and lower incomes affect not only immediate earnings but also lifetime earnings, with the associated loss of superannuation’. HESTA stated that ‘an average care worker undertaking gig economy work for three years would be $10,800 worse off at retirement. This increases to $17,500 when working in the gig economy for five years.’ Bernie Dean, former CEO of Industry Super Australia, stated that ‘“being a gig worker should not mean you miss out on the opportunity to save for a decent nest-egg at retirement”’.

Frontier Software (FS) stated that ‘gig workers face the dual burden of managing their own superannuation contributions’ compared to ‘traditional employment relationships.’ FS further noted that ‘gig workers must navigate complex superannuation rules, manage irregular income streams, and make voluntary contributions’ by themselves, as they do not have access to ‘the automatic payroll deduction systems available to traditional employees.’ Industrial Relations VIC reported that ATO data estimates ‘only around a quarter of gig economy workers would make contributions to their superannuation accounts.’ Australian Fabians, an independent think-tank, explained that these workers are often ‘trying to financially survive in the present and do not have the luxury of saving money.’ 

The Association of Superannuation Funds Australia (ASFA)  stated that gig workers are ‘disproportionately represented’ by vulnerable groups, such as ‘low-income, female workers, and workers with a [Culturally and Linguistically Diverse] background’. Further, the Actuaries Institute stated that in 2020, gig workers were ‘3.3 times more likely to be students, and 2.9 times more likely to be formerly unemployed’ compared to the average Australian. HESTA also stated that this exclusion ‘negatively impact[s] the retirement outcomes of workers in the [female-dominated] care economy’, which is ‘already impacted by … gendered occupational segregation’. According to TEC, these workers ‘can [also] struggle to get a foothold onto the career ladder in Australia – sometimes due to language or cultural setbacks.’ ASFA further noted that this raises ‘equity concerns’.

Advice/Solution Identification:

HESTA called for the SG to be extended to workers in ‘employee-like’ arrangements. HESTA stated that this could ‘provide a legal framework that protects those working in “employee-like” forms of work’ from exploitation.

Precedent:

There is international precedent for extending superannuation to gig workers. In Singapore, gig workers are entitled to mandatory retirement contributions. 

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Public Support: 

1. Health Employees Superannuation Trust Australia (HESTA)

Broad support:

2. Association of Superannuation Funds Australia (ASFA) - Recommended adding a new ‘dependent contractor’ category within the legislative framework for the Superannuation Guarantee.

3. Industry Super Australia - Recommended that the superannuation guarantee be extended to gig workers, but did not specify the legal pathway.

4. Transport Workers' Union of Australia (TWU) - Recommended minimum standards for gig workers to include company-funded superannuation.

5. Australian Fabians - Recommended transitioning to a universal age pension to reduce inequalities for workers, including those in the gig economy.

This list reflects publicly stated positions and should not necessarily be taken as endorsement of this specific brief.

News Coverage:

• Financial Review - “Industry funds push for gig workers to get paid super”. This article examined Industry Super Australia's report calling for the extension of the superannuation guarantee to gig workers. By: David Marin-Guzman | 10 April 2023 - Read the article here.

• ABC - “AUDIO: Industry fund says GIG workers missing millions in super”. This interview with former Industry Super Australia CEO Bernie Dean examined the impact of gig workers missing out on the superannuation guarantee on both individuals and the Australian economy. By: Glen Bartholomew | 11 April 2023 - Listen to the recording here.

• ABC - “Gig economy workers can take on employers under new laws allowing the 'right to disconnect'”. This article examined the ‘closing loopholes’ legislation, which ensures gig workers the right to minimum standards at work. By: Nassim Khadem and Samuel Yang | 9 February 2024 - Read the article here.

• The Guardian - “‘Amazon effect’: can Labor’s industrial relations reforms protect workers in the gig economy?” This article examined whether recent reforms for gig workers go far enough to provide sufficient protection for individuals. By: Jordyn Beazley | 13 September 2023 - Read the article here.

Where to go to learn more: 

1. (2023) Employee-like forms of work – Consultation paper | HESTA - This submission outlined proposals for the Fair Work Commission concerning enforceable minimum standards for workers such as those in the gig economy, including a recommendation to extend the superannuation guarantee to gig workers. Read the full submission here.  

2. (2021) Senate Select Committee on Job Security – First interim report: on-demand platform work in Australia | Australian Government - This report analysed the equity of platform workers' rights, including being exempt from the superannuation guarantee. Read the full report here.

3. (2020) Victorian Government Submission to the Commonwealth Government’s Review of the Retirement Income System | Victorian Government - This submission assessed the performance of Australia’s retirement income system, including an examination of the superannuation balances of gig workers. Read the full submission here.

4. Superannuation Guarantee (Administration) Act 1992 (Cth) - Read the full Act here.

Human Perspective: 

Zoe is a migrant living in Melbourne. For almost 5 years, she worked as a food delivery driver for an online platform to support herself while studying. Every day, she worked similar hours and did similar tasks to those in traditional employment situations, such as collecting orders, delivering them on time and maintaining customer ratings. However, unlike those workers, Zoe was not considered an ‘employee’, but rather an ‘employee-like worker’. This meant that despite her consistent work, she did not receive superannuation from her employer. While technically having the option to voluntarily make contributions to her fund, the process was difficult and confusing, and she was more focused on paying her rent and daily expenses, which seemed to keep increasing. Without automatic payroll deductions or employer contributions, saving for retirement became something she casually postponed. Over time, Zoe realised the impact this was having on her future. One day, she compared herself to those working in traditional employment situations and realised she was missing out on thousands of dollars in superannuation each year. If she continued with gig work, the loss would compound significantly. Zoe tried to look for traditional employment in her area, but her visa wouldn’t allow full-time work, and it was next to impossible to even secure an interview for part-time or casual work. She was forced to continue to work without the same safeguards as other employees, having to bear the full responsibility of managing her future savings.

To protect the anonymity of those involved, this is a fictionalised account drawn from an amalgamation of real-life stories, experiences and testimonials gathered during the research process for this brief. Any resemblance to actual individuals is purely coincidental.

Conflict of interest/acknowledgment statement: 

N/A

Support 

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Disclaimers

Please review all FORE disclaimers here.

Reference list: 

Actuaries Institute. (2020, December). The Rise of the Gig Economy and its Impact on the Australian Workforce [Green paper]. https://content.actuaries.asn.au/resources/resource-ce6yyqn64sx3-2093352434-55012

Association of Superannuation Funds Australia. (2025, November 17). Trust, Superannuation and a multicultural Australia. https://www.superannuation.asn.au/wp-content/uploads/2025/11/CALD_group_in_super_explainer_finf.pdf

Australian Chamber of Commerce and Industry. (2024, August). Employee-Like Workers – Business Guide. https://acci.com.au/Common/Uploaded%20files/Smart%20Suite/Smart%20Library/a28a3645-1adf-496c-b0e5-ca00de6c893e/4531-ACCI-guides_Employee-Like-WEB-1.pdf

Fair Work Ombudsman. (n.d). Employee-like workers. Australian Government. https://www.fairwork.gov.au/find-help-for/independent-contractors/regulated-workers/employee-like-workers

Fair Work Ombudsman. (n.d). Tax and Superannuation. Australian Government. https://www.fairwork.gov.au/pay-and-wages/tax-and-superannuation

Frontier Software. (2025, August). The Gig Economy Super Trap: When Workers Aren’t Employees [White paper]. https://au.frontiersoftware.com/whitepapers/gig-economy-super-trap-when-workers-arent-employees

Health Employees Superannuation Trust Australia. (2023, May). Employee-Like Forms of Work – Consultation Paper. https://www.hesta.com.au/content/dam/hesta/Documents/Employee-like-forms-of-work-and-stronger-protections-for-independent-contractors%20-%20May%202023.pdf 

Hendy, N. (2024, April). The super loophole being exploited by the gig economy. The Ethics Centre. https://ethics.org.au/the-super-loophole-being-exploited-by-the-gig-economy/

Industrial Relations Victoria. (2020, February). Victorian Government Submission to the Commonwealth Government’s Review of the Retirement Income System. Victorian Government. https://treasury.gov.au/sites/default/files/2020-02/industrialrelationsvictoria100220.pdf

JobWatch. (n.d). Gig workers. https://jobwatch.org.au/resource/gig-workers/

McMahon, A. (2020, April 29). The Problems With Superannuation. Australian Fabians. https://www.fabians.org.au/the_problems_with_superannuation

Medina, A. F. (2025, January 27). Singapore’s Platform Workers Bill: Transforming the Gig Economy in 2025. ASEAN Briefing. https://www.aseanbriefing.com/news/singapores-platform-workers-bill-transforming-the-gig-economy-in-2025/

Myer, R. (2023, April 20). Super for gig workers would deliver big retirement gains. The New Daily. https://www.thenewdaily.com.au/finance/superannuation/2023/04/20/extending-super-to-gig-workers

Peninsula. (2025, March 12). New laws for unfair deactivation and termination of regulated workers. https://peninsulagrouplimited.com.au/resources/blog/new-laws-for-gig-workers

Superannuation Guarantee (Administration) Act 1992 (Cth). https://www.legislation.gov.au/C2004A04402/2026-03-27/2026-03-27/text/original/epub/OEBPS/document_1/document_1.html

The Senate Select Committee on Job Security. (2021, June). First interim report: on-demand platform work in Australia. Australian Government. https://parlinfo.aph.gov.au/parlInfo/download/committees/reportsen/024635/toc_pdf/Firstinterimreporton-demandplatformworkinAustralia.pdf;fileType=application%2Fpdf

Thompson, K., & Sivashanmugan, S. (2025, January 28). What is a “gig worker”? Australian Business Lawyers & Advisors. https://ablawyers.com.au/resources/articles-downloads/what-is-a-gig-worker