Superannuation Compliance & How Surreal Supports It
Superannuation Compliance & How Surreal Supports It
Cheat Sheet
- Superannuation must be paid for sole traders who are hired for performances, and adjacent services (Superannuation Guarantee Act 1992, Section 12(8))
- Venues or agents as the engager of these sole traders, are responsible to make the contribution directly themselves to the superannuation fund of the sole trader
- ⚠️ Common misconceptions ⚠️
- *The venue and agent can pay a total fee to the sole trader, and the sole trader can contribute to their super fund themselves
- **The sole trader needs to earn a certain amount before I have to pay super
- *The contribution cannot be made by the sole trader themselves, as was previously thought by many
- **Before 1 July 2022, you did not have to pay super guarantee for a worker earning less than $450 a month. You now have to pay super regardless of their earnings.
- From 1 July 2026, Payday Super will come into effect, requiring more regular super contributions to the funds of sole traders
- Relevant pieces of legislation are written out for you below (refer to below sections)
Why This Matters
Superannuation must be paid for sole traders who are hired for performances, and adjacent services.
Under the Superannuation Guarantee (Administration) Act 1992, if someone is paid mainly for their performance or labour, specifically for the purposes of Superannuation - they are considered employees (for the purposes of Superannuation), and Superannuation must be paid and contributed to the employee’s fund, even if they’re a contractor.
This means that venues or agents, need to elect themselves as the party who will contribute superannuation (’contributing party’).
Specifically - the contributing party is responsible to make the contribution themselves directly to the sole trader’s superannuation fund as they would with any other employee. The contribution cannot be made by the entertainer/supplier themselves.
Previously, for those that were aware of Superannuation needing to be paid, the commonly accepted understanding was that the contributing party could pay an all-inclusive fee (of taxes, super etc.) to the sole trader, and that entertainer/supplier would be responsible for their own superannuation contributions and obligations, using their own ABN for those contributions. This has since been clarified and is in contradiction of the legislation (for Superannuation only).
For the avoidance of doubt - contributing parties (venue(s) or agent(s)), cannot pay a total fee to a sole trader entertainer that is inclusive of Superannuation, and expect or require that the entertainer contribute their own Superannuation.
Further, starting 1 July 2026, **Payday Superannuation payments** are required for sole traders, meaning “employers will be required to pay their employees’ super at the same time as their salary and wages”. These contributions must be received by the sole trader’s superannuation fund within 7 calendar days of payday (day of fee payment). (Source - The Treasury, AU Govt)
At Surreal, we're committed to building a compliant and transparent booking system that protects both businesses and entertainers, so we’re supporting same day Superannuation contributions from the second quarter of our Superannuation feature - 1 Oct 2025, 9 months earlier than the Payday Super requirements.
Earnings amount is not relevant
There is a misconception in the market about certain thresholds needing to be met before a sole trader needed to be paid Superannuation.
“Before 1 July 2022, you did not have to pay super guarantee for a worker earning less than $450 a month. You now have to pay super regardless of their earnings.” (Source - ATO)
Are rates inclusive or exclusive of Superannuation?
Surreal is unable to advise on whether rates are to be inclusive or exclusive of Superannuation.
See more here [link this to below page]
Are rates inclusive or exclusive of Superannuation?
What the Legislation states
According to Section 12(8) of the Superannuation Guarantee Act, performers and entertainers—even as sole traders—are considered employees for Superannuation purposes if they’re paid to “perform, participate in performance or presentation of any music, play, dance, and entertainment”… or provide services in connection with the activity. This means Super is required to be paid.
👉 Learn more:
- ATO – Super for Independent Contractors
- ATO – Super for Sole Traders and Partnerships
- ATO - Earnings amount is not relevant
- Section 12(8) – AustLII Legislation
- ATO - Taxation Ruling 2023/4 - Specifically referring to Entertainers. Refer to:
- Appendix 2 - Meaning of employee under section 12 of the SGAA
- Paragraphs 117 - 130
- The Treasury (Australian Government) Payday Super Fact Sheet
Important bits:
(Source: ATO Tax Ruling 2023/4)
- Under paragraph 12(8)(a), an entertainer, artist, musician, sportsperson et cetera. who is paid to perform, present or to participate in the performance or presentation of any music, play, dance, entertainment, sport, display or promotional activity or any similar activity involving the exercise of intellectual, artistic, musical, physical or other personal skills is an employee under the SGAA of the person liable to make the payment.
Scope includes those providing services in connection with an activity (Paragraphs 127 - 130):
- The scope of subsection 12(8) is further extended by paragraph 12(8)(b). This paragraph states a person who is paid to provide services in connection with an activity referred to in paragraph 12(8)(a) is an employee of the person liable to make the payment.
- Paragraph 12(8)(b) does not require a person to actively participate in a performance, presentation, or other activity described within paragraph 12(8)(a) to be defined as an employee; rather, the paragraph specifies that the person will be an employee if they provide a service in connection with the activity.
(Source: ATO - Taxation Ruling 2023/4 - Specifically referring to Entertainers)
Taxation Ruling TR 2023/4 clarifies that:
“a person who is paid to perform or present, or to participate in the performance or presentation of, any music, play, dance, entertainment ... or any similar activity involving the exercise of intellectual, artistic, musical ... skills is an employee of the person liable to make the payment” (Paragraph 12(8)(a))
This means that even if a musician operates under a sole trader ABN, if they are paid to perform or participate in a gig, the payer must treat them as an employee for SG and make super contributions on their behalf.
- Payers (e.g. venues, festivals, or solo contractors engaging performers) are legally required to pay Super contributions for performers treated as employees under this provision.
How Surreal Helps You Stay Compliant
For gigs from 1 July 2025 and beyond, Surreal supports Superannuation contributions for contributing parties who are paying sole traders.
The Superannuation suite is available as an opt-in feature for venues, venue groups and agents who wish to minimise the work associated with fulfilling any obligations with no extra effort (and at no extra cost for those who join before 31 July 2025).
For Superannuation-eligible gigs, once a payment is received by Surreal, we’ll send out the Super contribution portion to the entertainer’s elected super fund. This will occur quarterly for the first quarter of FY26, and then on the same day from the second quarter of FY26.
This also means that you will automatically comply with the upcoming Payday Superannuation measures which come into effect on 1 July 2026 (a year in advance).
This is material for any business who is approached by the ATO, as it will be able to provide evidence that it has used it’s best efforts to comply with the laws once the business was made aware of it’s obligations, and in addition - chose to implement practices to ensure compliance in anticipation of the government’s upcoming measures.
This combination of proactive practices by your business is intended to demonstrate a consistent commitment to, and pattern of doing the right thing having established as pattern of reasonable and best efforts to meet employment obligations, helping to build goodwill with the ATO.
How It Works (COMING SOON)
Please check this out here for how Superannuation works on Surreal.
Important Note
Venues and groups on Surreal will elect whether they are making Superannuation contributions to sole traders for:
- All gigs at your venue(s), or
- Direct bookings only (no agent involved)
- No bookings
- Please seek your own legal advice on how to structure this
What if both parties elect themselves as the contributing party?
In the event that both the Venue & Agent elect themselves as the employer, the agent will be nominated as the employer. This decision has been made due to:
- there being no risk increase for the venue or group
- it potentially reflecting contractual arrangements between the agency and the entertainer, which could already clearly indicate employment between the parties
What happens if neither party elect themselves as the contributing party?
If neither venue or agent elect themselves as the contributing party for bookings with sole traders, then no Superannuation will be paid into the sole trader’s Super fund. In this situation, the full fee will be paid to the sole trader’s bank account.
If you have questions or want help setting this up, reach out to your Surreal Account Manager or visit your profile settings to get started.
Resources:
Headline
- ATO - Taxation Ruling 2023/4 - Specifically referring to Entertainers
- Appendix 2 - Meaning of employee under section 12 of the SGAA
- Paragraphs 117 - 130
ATO
- Super for Sole Traders and Partnerships
- Super for Independent Contractors
- Employee or Independent Contractor (ATO guide)
- Superannuation Guarantee Eligibility Decision Tool
Legislation (Australian Government)
- Superannuation Guarantee (Administration) Act 1992 – Section 12(8) https://www.legislation.gov.au/Details/C2023C00267
Other Sources
- ATO Community Forum: Contractors in Entertainment Industry
- PwC Australia: 25 August 2023 - Superannuation Guarantee obligations for workers in the entertainment or sports industry
- Gadens: 4 July 2024 - New draft ruling: Who is an employee, according to the ATO
- PwC Australia: 16 July 2024 - Whats Emerging: ATO Draft Guidance on Extended definition of “employee” for Superannuation Guarantee
- The Practice: 29 Apr 2025 - Changes to super guarantee rules