Should yoga teachers receive Superannuation? Is this their legal right and point of view, both as contractual employees and as Yoga studio employees?

In many social media forums, I have read many yoga teachers fret and fume that their yoga studios do not offer this benefit.

Whether this issue depends entirely on your employer or the legal aspect, there is a clause that yoga teachers should get superannuation in Australia.

As yoga teachers are considered labour contractors and work for that job, their employers consider them eligible for superannuation payments. This is the case even if the yoga teacher quotes an Australian Business Number (ABN).

Here is what you should know.

Should Yoga Teachers Receive Superannuation

According to the ATO (Australian Taxation Office), all employees are eligible for a super guarantee. It doesn’t matter if the employee is:

• Full-time, part-time or casual
• Receiving a super pension or annuity while working (this includes employees on the transition to retirement)
• Temporary residents, such as a backpacker
• Company director
• Family members working in your business.

The eligibility for superannuation depends on the employment status of the yoga teachers.

Under Australian law, employers are generally required to pay superannuation for employees who earn more than $450 in a calendar month and are over 18 years old.

So, in the context of yoga teachers, whether a teacher is classified as a full-time employee or works as an independent contractor will make him or her eligible for superannuation.

This means if you are a regular employee, the yoga studio must give you the benefit.

On the other hand, if you are hired for a contractual job or you have your own yoga services, you will not get any superannuation.

Tax Tips for Yoga Teachers

How does this happen? Employers contribute to employee earnings by a sum or percentage, and that funds for superannuation.

What about Independent Contractors?

For Independent Contractors, the law says the following:

If your yoga studio owner hires you as an independent contractor and pays you in a verbal or written contract for your labour, for the employee’s personal labour and skills and if the employee himself performs that contract work and that is not assigned to some other person.

The difference between employees and independent contractors is that employees work in and are part of your business, whereas independent contractors run their own businesses and use your studio to do so.

When do yoga teachers retire

Should Studio Pay Superannuation to Teachers?

Yoga studios that abide by the law know that they have employees working full time to pay teachers superannuation.

For some reasons few yoga studios do not pay which if reported can be charged with serious fine.

Many yoga studios use the Superannuation Clearing House, which they can access through their tax department portal.

A superannuation clearing house is an electronic gateway that allows you to make all your super contributions for all your employees in one single payment. Using a clearing house is a SuperStream-compliant way to pay super contributions.

You’re eligible to use the Small Business Superannuation Clearing House (clearing house) service if your business has either:

• 19 or fewer employees, or
• An annual aggregated turnover of less than $10 million.

This means the studios don’t need to use the accountant.

Many studios pay it quarterly. Note rate is currently 10% and will go up annually by .5% until it gets to 12%

Paying super makes your yoga teachers feel valued, and it is also legally the right thing to do.

Studio owners are required to pay superannuation, and if they don’t, they are subject to a Superannuation Charge fine.

What if you are not paid superannuation?

Paying super to eligible yoga teachers and instructors is an employer’s legal obligation.

You can raise a complaint with the ATO. They will listen to you and will help you.

To lodge your complaint, you can phone:

• On 1800 199 010 between 8:00 am and 6:00 pm, Monday to Friday (local time), except on national public holidays
• If you find it hard to hear or speak to phone users, contact the National Relay Service (NRS) on 13 36 77.

You can also complain online by filling out the complaint form, but it may take longer to process as they may need to speak to you to confirm your identity before taking action to resolve your complaint.    

Or write to the Australian Taxation Office, PO Box 1271 ALBURY  NSW  2640

Your complaint will be resolved within 15 to 30 days.

If you are not paid super, then the yoga studio will be charged and fined.

Points to remember

• You should see what type of employee you are or if you are on a contract.
• As a yoga teacher, you should communicate with your studio owner about it and better to express your queries and ask to clear any doubts.
• Many yoga teachers believe that this should be discussed with full transparency and honesty between the employer and teachers.
• You will not be offered super if you have completed a Statement by a Supplier not quoting an ABN stating your activity is a hobby; you are under 18 and earn less than $450 per month from the studio.
• Also, you will not get superannuation if you have set up a yoga business in a company structure and the company invoices the studio for your yoga classes.
• You won’t get any super benefit if the studio has engaged you through an agreement with a labour-hire form and you are paid under a Community Development Employment Program.
• If you are eligible and not getting superannuation, you can knock on the doors of the Australian Taxation Office.
• As a yoga studio owner your legal obligation is to pay super to your yoga teachers.

Major Insights

Yoga teachers receive superannuation in Australia according to their employment status. You must be 18 or older and earn $450 in a month.

When you sign with any yoga studio employer, you should clarify your doubts and questions about whether they offer super.

You are not entitled to this benefit if you are employed by a contract other than the person who’ll actually provide the labour, such as a company, trust, or partnership.

FAQs