Super obligations for certain payments
Individuals engaged in certain activities are eligible for super guarantee. If you engage one of these eligible individuals, you must work out contributions using at least the super guarantee rate. If you do not pay enough super guarantee on time, and to the right fund for each eligible individual, you will be liable to pay a tax called the super guarantee charge.
You will have to pay super guarantee on payments you make to an individual to undertake any of the following activities (unless an exception applies):
- playing sport, performing or presenting music, dance or entertainment, undertaking promotional activities, or an activity involving similar skills (performers)
- providing services that are required for the above activities to occur (required support services for the performance)
- filming or recording any television or radio broadcast, or providing services that are required for that filming or recording to occur (filming or broadcasting).
You calculate super guarantee on the component of the invoice that relates to their work.
Performers
If you pay an individual to perform or present, or to participate in the performance or presentation of, any of the activities listed in the table below (performance categories), that individual will be considered to be your employee for superannuation purposes. As your employee, you will have to pay super guarantee on payments you make to the individual (unless an exception applies).
|
Performance categories |
Examples of individuals performing, presenting or participating in the relevant activity (this is not an exhaustive list) |
|---|---|
|
Music |
Singers, instrumentalists, member of a band, DJs |
|
Play |
Actors |
|
Dance |
Dancers (principal/backup/ensemble) |
|
Entertainment |
Stand-up comedians, magicians, party performers (including children's performers such as face painters), film and television actors, television presenters, hosts and guests, circus performers |
|
Sport |
Athletes (amateur or professional), fitness, Pilates and yoga instructors who physically demonstrate the movements |
|
Display or promotional activity |
Fashion models, social media influencers |
|
An activity similar to those listed above involving the exercise of intellectual, artistic, musical, physical or other personal skills |
Guest speakers at events, Esports competitors, live streamers, live art demonstrators (e.g. painting in front of an audience), fitness, Pilates and yoga instructors who physically demonstrate the movements |
It is the entity who makes the payment who will have the obligation to pay super.
It does not matter that the individual:
- is not a professional
- has an ABN
- issues invoices
- is engaged on a one‑off basis
- refers to themselves as an independent contractor.
An individual's performance, presentation or participation only needs to fall into one performance category, but they may fall into several categories. For example, an actor who is paid to act in a theatre production is considered to be paid to perform a play and paid to perform entertainment.
To meet their super guarantee obligations, payers should make enquiries with those that they engage to properly understand who they are paying and what they are paying them for.
Example 1: Engaging a fashion model
Gabrielle is a fashion model. She is engaged by fashion labels and businesses to wear and model their clothing at fashion shows, and for magazine and television ads.
Gabrielle operates under an ABN and invoices for her services.
These entities engage Gabrielle to perform in a promotional activity or display. As such, each business will have to pay super to Gabrielle's nominated super fund.
End of exampleExample 2: Hiring a Pilates instructor
Jason is a mat Pilates instructor who works as a sole trader.
Jason is engaged by multiple corporate businesses in the Melbourne CBD to run Pilates sessions at their offices for their staff members' wellbeing. Jason physically demonstrates the Pilates movements as part of his sessions.
These engagements are irregular for each respective business, with no guarantee of future engagement. Jason will invoice each business $250 for conducting a one hour session.
Pilates, if not a sport, is an activity similar to sport involving the physical and other skills of Jason as instructor. As such, each business will have to pay super to Jason's nominated super fund.
End of exampleExample 3: Engaging a social media influencer
Paul is an avid 4WD enthusiast with a prominent social media profile. Offroading HQ Pty Ltd is a large 4WD accessory retailer looking for new ways to promote its business.
Offroading HQ Pty Ltd reaches out to Paul to enquire whether he would be willing to promote their products on his social media.
They agree that Paul will promote Offroading HQ’s products on his social media with 2 posts a week, in exchange for $500 for each post.
Paul is being paid to present in promotional activities. Offroading HQ Pty Ltd will have to pay super to Paul's nominated super fund.
End of exampleRequired support services for the performance
If you pay an individual to provide a service that is required for one of the above performance categories to occur, that individual will be considered to be your employee for superannuation purposes. As your employee, you will have to pay super guarantee on payments you make to the individual (unless an exception applies). The required service the individual provides may be provided before, during, or after the relevant performance category.
|
Performance categories |
Examples of individuals providing services that are required for the performance to occur (this is not exhaustive list) |
|---|---|
|
Music |
Sound engineers, audio technicians, repetiteurs/accompanists, conductors |
|
Play |
Stagehands, sound and lighting technicians, directors, vocal and dialect coaches, dramaturgs, intimacy coordinators |
|
Dance |
Choreographers |
|
Entertainment |
Commissioned script writers, film editors, film crew that are required for the performance to occur |
|
Sport |
Referees, timekeepers, mandated first aid individuals at live sporting events |
|
Display or promotional activity |
Sound, audio or lighting technicians
|
|
An activity similar to those listed above involving the exercise of intellectual, artistic, musical, physical or other personal skills |
Live streaming moderator
|
Example 4: Hiring a lighting technician
Stacey is a lighting technician for large scale events. Stacey is occasionally engaged by music festival promoters to provide stage lighting services for artists' performances at these festivals.
Stacey is paid by the music festival promotors to provide a service that is required for the music performance and entertainment event to occur.
The music festival promoter will have to pay super to Stacey's nominated super fund.
End of exampleFilming or broadcasting
An individual will be considered to be your employee for superannuation purposes if you pay them to perform services:
- in the making of a film, tape or disc
- in recording content for online streaming
- in any television or radio broadcast
- required for that filming, recording or broadcasting to occur.
As your employee, you will have to pay super guarantee on payments you make to the individual (unless an exception applies).
Example 5: Hiring a camera operator
Gavin is a professional videographer. Gavin is engaged by various clients to attend and film events such as sporting matches and concerts.
Gavin charges a fixed fee agreed upfront with his clients, which covers his time at the event as well as the post-production and associated tasks.
These clients pay Gavin to make a film and to provide services in making that film. As such, each client will have to pay super to Gavin's nominated super fund.
End of exampleFor more information, see:
- Taxation Ruling TR 2023/4 Income tax and superannuation guarantee: who is an employee?
- Superannuation Guarantee Ruling SGR 2009/1 Superannuation guarantee: payments made to sportspersons.
Exceptions
You will not have super guarantee obligations in relation to payments you make to a company, trust or partnership. This is because super guarantee obligations only arise in relation to payments you make to natural persons entering into arrangements in their individual capacity.
You will not have super guarantee obligations in relation to payments you make to an individual if:
- you engage them under an arrangement that is wholly or principally domestic or private in nature, and
- the individual is paid for less than 30 hours of work per week.
You will not have super guarantee obligations in relation to payments to individuals that are under 18 years old who work for you for less than 30 hours a week.
Example 6: Hiring a band - as individuals
Renee’s Hotel Pty Ltd engages the Rocking Stones band to play at their venue every Friday night for a month for their patrons.
The Rocking Stones band is made up of Joel, Ted and Jasmine and they play together as a band at similar venues.
The members of the Rocking Stones are engaged under an oral contract. Lee’s Hotel pays each member of the band $300 for each Friday night performance.
Renee’s Hotel Pty Ltd’s payments to the Rocking Stones are payments to persons to perform music.
As Renee's Hotel Pty Ltd is liable to pay Joel, Ted and Jasmine individually, Renee's Hotel Pty Ltd will have to pay super to each of their nominated super funds.
End of exampleExample 7: Hiring a band - as a company
The facts are the same as Example 6, except Joel, Ted and Jasmine operate the band as a company, the Rocking Stones Pty Ltd.
When Renee's Hotel Pty Ltd engaged the band, they let Renee's Hotel Pty Ltd know that they operate as the Rocking Stones Pty Ltd.
Renee's Hotel Pty Ltd will not have to pay super on behalf of any member of the band as the Rocking Stones Pty Ltd is a company. The Rocking Stones Pty Ltd, however, may have to pay super on behalf of Joel, Ted and Jasmine.
End of exampleExample 8: Hiring a band - for a wedding
James and Hayley are getting married and have engaged the Rocking Stones band to perform at their wedding reception. James and Hayley come to an oral agreement with the Rocking Stones that they will pay $2,000 for the performance.
As James and Hayley’s wedding is something that is private and domestic in nature and will require the Rocking Stones to perform for less than 30 hours a week, James and Hayley will not have to pay super on behalf of any members of the Rocking Stones.
End of exampleHow to pay super
Refer to How to pay super for how to pay super to any persons you engage who perform the relevant activities.