Self Employed

A Self-Employed Worker is:

Am I required to register?

What is my contribution rate?

How do I pay?

How is my entitlement calculated?

What happens if I stop being self-employed?

Do I have to pay GST?

A Self-Employed Worker is:

  • A person that carries on Construction Work;
  • Prior to becoming a self-employed worker, was an employee with active service recorded by TasBuild;
  • A person that operates as a Sole Trader, Partnership, Trust or a Company provided they do not receive a wage or salary subject to PAYG; and
  • A person that may or may not employ other people.

This definition is in relation to TasBuild’s requirements to be eligible for the scheme.

Am I required to register?

Self-employed workers, with active employer service recorded in Tasmania with TasBuild, can choose to register and contribute into the scheme on their own behalf.  In these circumstances the worker is able to add to their service record to accrue an entitlement. The self employed person registers with TasBuild and makes contributions.

Please contact us if you require any further information.

What is my contribution rate?

TasBuild will set a rate at which a self-employed worker can contribute into the scheme. The contribution rate will be reviewed annually.

The contribution rates for the current financial year are:

  • $160.00 per quarter; this rate is based on a weekly wage of $740.00.
  • $190.00 per quarter, this rate is based on a weekly wage of $875.00.
  • $250.00 per quarter, this rate is based on a weekly wage of $1,100.00.

How do I pay?

Self-employed workers will receive an invoice for the amount selected at the end of each quarter. Upon receipt of your payment, your service record will be credited with the applicable number of working days in that quarter, 65-66 days.

How is my entitlement calculated?

When the self-employed worker has reached the 10 year service requirement the account will be paid out with a single lump sum payment inclusive of interest on the self-employed contributions and closed. The employed service account will also be paid out and closed. At this point the self-employed worker account cannot be reactivated or a new one created.

Interest will be applied to the contributions that the self-employed worker pays into the scheme on their own behalf. The interest rate is set at the first of each month being 75% of the rolling one-year investment portfolio net of fees return to the end of the previous month. The interest is calculated daily and added to the self-employed account at the end of each month.

What happens if I stop being self-employed?

If you cannot continue for whatever reason, and have not yet qualified for an entitlement payment, you will be eligible for a refund of the contributions you have paid in on your own behalf. No interest will be applied if you have not qualified for an entitlement payment. If you opt for a refund of contributions prior to qualifying for an entitlement, you will not be able to contribute again for those periods for which a refund was obtained.

Do I have to pay GST?

Self-employed contributions are not subject to Goods & Services Tax (GST). Contributions made are not tax deductible by the self-employed worker as it is voluntary for the worker to contribute into the scheme and not compulsory under legislation*.

*Current taxation advice from TasBuild’s legal advisor and consistent with interstate schemes is that no tax is to be deducted from the self-employed component of the entitlement. The interest earned on contributions you have made for yourself is classed as assessable income and will show as such on your PAYG summary..
This is general information only. TasBuild recommends you seek financial advice.