Hi everyone,
I’m hoping to get some clarity around the new superannuation requirements for musicians, particularly in situations where a bandleader manages an act that isn’t set up as a formal business or partnership.
Here’s my situation:
- I run a 5-piece band with around 10 rotating musicians. At any given gig, 5 will play, and the line-up changes depending on availability.
- I handle all the bookings and invoice venues under my ABN.
- For example, a venue pays $1,250 + GST per gig. I split that evenly between the 5 players ($250 each).
- We are not a company or a partnership — just sole traders working together.
The challenge is that some venues are now saying:
- The agreed band fee already includes superannuation, so they will not pay an extra 12% on top.
- As the contracting party, I am personally responsible for all super payments — not just my own, but also those of the musicians I pay from the gig fee.
This creates several problems:
- Unfunded liability: I would need to pay super for everyone out of a fixed fee, with no additional money provided by the venue.
- Equity issues: Super contributions should follow each individual performer. Instead, venues sometimes propose paying the super into my account only, which isn’t fair or workable.
- Practical barriers: With rotating line-ups, setting up a formal partnership or company isn’t practical. I’m simply managing the logistics of the band, not running a business in the traditional sense.
While I absolutely support the principle of musicians being paid super, the way these rules are being applied seems to place an unreasonable burden on bandleaders.
My questions are:
- Shouldn’t venues be paying 12% on top of the agreed fee, rather than saying it’s “included” in the fee?
- In a rotating band situation, how can super be fairly managed without forcing the bandleader to absorb the liability?
- Is there any official guidance from the ATO that addresses this very common type of arrangement in the music industry?
Any advice or clarification would be hugely appreciated — I know a lot of other musicians are grappling with the same questions.
Thanks,