Superannuation Contributions For Contracted Performing Artists

In accordance with the Australian Taxation Office’s mandatory Superannuation Guarantee (Administration) Act 1992 (Cth) (the Act) (see extract below) if you are a performing artist/s (solo, duo, band etc) invoicing Fairplay Entertainment Pty Ltd under a sole trader / individual ABN business structure then our company is obligated to allocate 12% super guarantee contributions on all booking fees to the registered individuals nominated super fund. This does not apply to acts invoicing under a registered company, trust or partnership ABN, as they are exempt.

All invoices are checked for their status via https://abr.business.gov.au/ at the time of processing act payments by our accounts team. Super is paid quarterly.

Please remember! There are no financial gains for Fairplay for following Australian Taxation Office guidelines and it has come at a substantial cost to our business in both time and wages to ensure this is implemented correctly.

We appreciate your understanding in this matter and welcome any questions you may have.

Frequently Asked Questions

I’m an independent contractor, don’t I pay my own super?

If you’re a live music contractor paid for your labour, you’re considered an employee for super purposes and entitled to super guarantee contributions by your employer (that’s us) under the same rules as employees.

Additionally, The Australian Taxation Office has applied special rules to contractors / sole traders who are musicians and entertainers when it comes to superannuation that doesn’t apply to other types of industries.

This is to ensure contracting performers are self-contributing to superannuation.

You can read more info here: https://www.legislation.gov.au/Details/C2017C00230 (Part 2, Section 12, Paragraph 8). See the below extract:

Extract:

What if we are a duo/trio or band?

If you are in a duo, trio or band and you are invoicing under an individual/soletrader ABN entity and your invoices are coming directly from just one member of the group (under their personal ABN), as explained above we are obligated to deduct superannuation from the performance fee and pay into that person’s individual superannuation account.

HOWEVER, if your duo, trio or band is registered as a partnership or company and invoices under this, no superannuation obligation will arise and it’s business as usual – with no deductions to your fee.

If you do decide to apply for an ABN as a partnership, you can do so via the following link:https://www.business.gov.au/registrations/register-for-an-australian-business-number-ab

DISCLAIMER: Please note that Fairplay Entertainment is not providing you with advice regarding the appropriate structure for your business, and all artists should seek advice from their accountant/solicitor before commencing a partnership/company to ensure the operating structure is appropriate for their personal circumstances.

Can our act members invoice Fairplay separately?

While we understand that each act has different circumstances, it is our company policy that we only accept one invoice per booking. Why? All individual invoices are subject to super payments and it is simply not feasible time-wise for our team to process individual super contributions for every member for every act. This would add substantial labour costs to our business that is not feasible.

Other agencies aren’t doing this, why is Fairplay?

There are heavy penalties for businesses not paying superannuation contributions when obligated by ATO.

We cannot speak for other agencies in our industry. We are acting on behalf of the directive from both the Australian Taxation Office and professional advice our accountants to ensure we are looking out for both our artists and our business interests.

My accountant said this does not apply to my individual circumstances

We strongly recommend you seek further advice from the Australian Taxation Office by calling 13 10 20 between 8am and 6pm, Monday to Friday, to speak to a tax officer or speak with a qualified accountant. Ensure you mention the relevant extract from the Superannuation Guarantee (Administration) Act 1992, section 12, paragraph 8 which prescribes that performing artists are specifically considered employees for superannuation guarantee purposes (https://www.legislation.gov.au/Details/C2017C00230).

What form do I need to supply?

You can either submit your super info via our online super choice form OR download the Australian Taxation Office Superannuation Standard Choice Form fill it out and email it back to us via admin@fairplayentertainment.com.au OR take a photo of the completed form and send to us if you do not have a scanner.

If you haven’t provided your preferred fund information, and a super contribution is due, Fairplay Entertainment is required by law to make the payment for you into our nominated fund by the due date.

Tax invoices must include certain information. Please ensure all invoices are provided with your current ABN, postal address and the gig date and venue. You can see the standard requirements for an invoice on the ATO website. https://www.ato.gov.au/business/gst/Tax-invoices/

What happens if I don’t provide a nominated super fund?

If you do not exercise your right to choose a superannuation fund, your contribution will be paid into a preferred fund nominated by Fairplay Entertainment. More information can be obtained from the ATO website. We also reserve the right to not book you if you do not comply with the law. Again, there are heavy penalties for businesses not paying superannuation contributions when obligated.

If we use our default fund to contribute your super to you will receive a welcome pack in the mail outlining all your new fund account details.

Is there an age minimum or limit?

From 1 July 2013, there is no upper age limit for making super guarantee contributions. This means we may need to make super guarantee payments for eligible employees, however old the performing artist is.

Disclaimer

The information on this page is general. It does not constitute and should be not relied on as, legal advice. Fairplay Entertainment Pty Ltd recommends seeking advice from a qualified accountant and/or solicitor on issues affecting you. While Fairplay Entertainment Pty Ltd tries to ensure that the content of this information sheet is accurate, adequate or complete, it does not represent or warrant its accuracy, adequacy or completeness. Fairplay Entertainment Pty Ltd is not responsible for any loss suffered as a result of or in relation to the use of this information.