ALMBC leads emergency national forum on Superannuation.

Monday 20 July 6pm AEST 
(4pm WA, 5.30pm SA & NT)

The ALMBC has been working for many months to help our members prepare for the new Superannuation requirements, however many businesses and organisations have still been taken by surprise.

Tell us your super story here

The ALMBC is hosting a Q&A session to allow anyone in the industry to ask the questions impacting them.

Hosted by the ALMBC Treasurer and award winning accountant Kylie Thompson from Sorrento Strategic.

1. Click on each item below to go direct to the right location in the video / audio
2. download a searchable transcript
3. Watch the whole session below
4. Download the presentation on the link below

Meeting Purpose

Clarify superannuation obligations for the live music industry.

Key Takeaways

• The Law is Not New: Super obligations for live performers have existed since 1992. The recent confusion stems from two events: the removal of the $450/month threshold in July 2022 and the introduction of “payday super” on July 1, 2026.
• Sole Traders are the Problem: The law treats sole traders as “employees for super purposes,” making the payer responsible for their super. This creates significant administrative burden and financial risk for venues and festivals.
• Entity Structure is the Solution: Bands can avoid this by forming a partnership, company, or trust. The entity itself then becomes responsible for its members’ super, removing the payer’s obligation.
• Advocacy is Underway: The ALMBC is collecting real-world examples to inform a submission to the ATO’s draft ruling on tripartite arrangements, aiming to secure practical exemptions and clarifications for the industry.

Topics

The Regulatory Landscape

• Superannuation Guarantee Act (1992): The original law that defines live performers as “employees for super purposes.”
• $450/Month Threshold Removed (July 2022): This change made super payable on the first dollar earned, ending a de facto exemption for many low-earning musicians and bringing the law into effect.
• “Payday Super” Introduced (July 1, 2026): Requires super to be paid on the same day as wages, increasing compliance pressure and bringing the issue to a head.
• ATO Draft Ruling (June 2026): Clarifies responsibility in tripartite arrangements (venue → agent → artist) but does not change the core law. The Tax Institute is preparing a submission.
• Creative Workplaces Website: Updated with superannuation guidance and real-life examples, serving as a key resource.

The Sole Trader Problem

• Payer’s Obligation: The party paying a sole trader for a performance is legally responsible for their 12% super.
• Band Leader Dilemma: A band leader invoicing under their sole trader ABN receives the full super payment. They then must pay their band members’ super from their own pocket, as the payer’s obligation is only to the invoicing ABN.
• Administrative Burden: This system creates a massive administrative load for venues and festivals, especially volunteer-run organisations, who must onboard and manage super for dozens of individual sole traders.
• Financial Risk: Many venues and festivals operate on thin margins. The added cost of super, plus potential WorkCover and payroll tax implications, threatens their viability.

Potential Solutions & Workarounds

• Change Entity Structure: A partnership, company, or trust removes the payer’s super obligation. The entity itself becomes responsible for its members’ super.
  • Partnership: Simple but carries joint and several liability, making it unsuitable for casual collaborations.
  • Company/Trust: More complex and costly to establish and maintain.
• Invoice Split: Invoice for labor and equipment hire separately. Super is only payable on the labor component.
• Ticket Sales: If an artist collects ticket sales directly, the venue has no super obligation. The artist then pays super to any subcontractors.
• Hobby Form (Statement by a Supplier): A potential exemption for hobbyists. The ALMBC will seek a private ruling from the ATO to get a definitive answer.
• Hotgiggity Platform: A software solution that automates super payments for multiple band members, reducing administrative burden for venues and festivals.

Next Steps

• ALMBC: Submit a response to the ATO’s draft ruling by July 31, using real-world examples to advocate for practical solutions.
• Attendees:
  • Submit personal stories and data via the ALMBC web form to inform the submission.
  • Consult a professional accountant for advice on specific situations.
  • Review resources on the Creative Workplaces website.

Also, please have a look at our June Pay Day Super Session video, downloadable presentation & more.

Further Links: