Since the introduction of the PayDay Super reforms on 1 July 2026, the ER Department has seen a noticeable increase in enquiries about members’ obligations to pay superannuation to performers, such as DJs, bands and other entertainers.
While the recent changes have brought superannuation obligations into sharper focus, it’s important to remember that the requirement to pay superannuation to eligible performers isn’t new. These obligations have been in place since 2022.
With that in mind, this article provides a timely refresher on when superannuation must be paid to performers and what members need to be aware of to remain compliant.
The Legislative Framework
When it comes to superannuation, the definition of “employee” is broader than many businesses realise. The Superannuation Guarantee (Administration) Act 1992 (Cth) extends superannuation obligations beyond traditional employment relationships.
Under the Act, a person may be treated as an employee for superannuation purposes where they perform work under a contract that is wholly or principally for their labour.
For those working in the entertainment industry, section 12(8) is particularly significant. It provides that an individual may be regarded as an employee for superannuation purposes if they are paid to:
· perform or present music, dance, entertainment, sport, display or promotional activities;
· participate in the performance or presentation of those activities;
· provide services necessary for those activities to take place; or
· provide services in connection with filming, recording or broadcasting.
The reach of these provisions is extensive. Depending on the circumstances, superannuation obligations may arise for a broad range of workers, including singers, instrumentalists, DJs, band members, comedians, presenters, entertainers, sound engineers, audio technicians and lighting technicians.
When Is Superannuation Guarantee Payable?
For businesses engaging performers, one of the most common misconceptions is that superannuation is only payable where there is a traditional employment relationship. In fact, where an employer engages and pays an individual musician, DJ, band member or other performer directly, Superannuation Guarantee (SG) contributions will generally be payable.
Importantly, this obligation can apply regardless of whether the individual:
· performs professionally or only occasionally;
· has an Australian Business Number (ABN);
· submits invoices for their services;
· is engaged for a single event or one-off performance; or
· describes themselves as an independent contractor or sole trader.
In other words, the way the parties describe the arrangement does not determine whether the SG contribution is payable. Instead, the legislation looks to the nature of the engagement and the work being performed.
Businesses should also be aware that, from 1 July 2022, the former $450 monthly earnings threshold was abolished. As a result, eligible workers may be entitled to SG contributions regardless of how little they earn in a month.
Engagement Through an Entity, Trust or Agency
The way a performer is engaged can have a significant impact on whether SG obligations arise.
Where a performer is genuinely engaged and paid through a separate legal entity, such as a talent agency, company, partnership, trust (or trustee), or another business structure, the employer will generally not be required to make SG contributions for the individual performer.
This is because SG obligations typically apply to payments made directly to natural persons who provide their services in their individual capacity. Where the contractual relationship and payment arrangements are instead with a separate business entity, the obligation to make SG contributions will generally not extend to the underlying performer.
However, the substance of the arrangement is important. Businesses should ensure that the entity or agency arrangement reflects a genuine commercial relationship, rather than simply being a structure used to avoid superannuation obligations.
The following example illustrates how these principles may apply in practice.
Hiring a Band as Individuals
Harbour Hotel Pty Ltd engages the Sunset Sounds band to perform at its venue every Friday night for one month.
The band consists of Alex, Ben and Chloe, who regularly perform together at similar venues. They are engaged under an oral agreement, and Harbour Hotel Pty Ltd pays each band member $300 for each Friday night performance.
In this situation, Harbour Hotel Pty Ltd is making payments directly to Alex, Ben and Chloe as individuals for providing musical performances.
Because the payments are made to the individual performers, Harbour Hotel Pty Ltd will generally be required to make SG contributions for each band member into their nominated superannuation fund.
Hiring a Band Through a Company
The facts are the same, except Alex, Ben and Chloe operate their band through a company, Sunset Sounds Pty Ltd.
When Harbour Hotel Pty Ltd engages the band, Alex, Ben and Chloe advise that all engagements are conducted through Sunset Sounds Pty Ltd, and the company receives payment for the performances.
In this case, Harbour Hotel Pty Ltd is paying the company rather than the individual performers. As a result, Harbour Hotel Pty Ltd will generally not be required to make SG contributions on behalf of Alex, Ben or Chloe.
However, Sunset Sounds Pty Ltd may have its own obligations to make superannuation contributions for the individuals depending on the nature of their working arrangements with the company.
This example highlights the importance of understanding who is actually being engaged and paid. The use of a genuine business structure can affect SG obligations, but it does not remove the need for the relevant entity to consider its own superannuation responsibilities.
Common Superannuation Questions When Hiring Performers
Below are some of the most common questions the Employment Relations Department has received regarding superannuation obligations when engaging performers.
Paying a lead performer doesn’t always mean paying the whole band
If a venue or business pays only the lead performer, and that lead performer is genuinely responsible for paying the other members of the act, SG contributions will generally only be payable for the lead performer.
However, the arrangement behind the payment matters. If the employer has agreed—whether in writing or verbally—to pay each performer individually, SG obligations may arise for every performer. For example, where a venue has an oral agreement to pay each band member directly, each individual may be entitled to SG contributions.
An ABN doesn’t automatically remove super obligations
Many performers operate as sole traders and invoice clients using an Australian Business Number (ABN). While this is common practice, it does not automatically mean superannuation isn’t payable.
For SG purposes, a performer engaged as an individual or sole trader may still be treated as an employee. Simply issuing an invoice with an ABN does not, on its own, remove an employer’s obligation to make SG contributions.
Using a booking agent can change who is responsible
When performers are genuinely engaged through a booking or talent agency, the business hiring the entertainment will generally not be responsible for paying SG contributions directly to the performer. This is because payment is made to the agency, which is responsible for its own employment obligations.
That said, businesses should ensure these arrangements are genuine. The Australian Taxation Office (ATO) may closely examine arrangements that appear to have been established primarily to avoid superannuation obligations. Using an intermediary should reflect the true commercial relationship, not simply provide a way to sidestep SG requirements.
Further Assistance
If members have any questions about the contents of this article, please contact the QHA’s ER Department calling 07 3221 6999 or emailing er@qha.org.au.