Did you realise that almost one-third of Australian workers are missing out on some or all of their superannuation entitlements?
The ATO has identified a number of industries who are short-changing worker’s super payments including the construction, hospitality and cleaning industries. And, as you might expect, it’s small and medium-sized businesses who are most likely to be guilty of this practice.
In the live performance industry, there has been some uncertainty over whether independent contractors are entitled to super. The long and the short of it is this – YES they are.
It doesn’t matter whether live entertainment industry staff are employees OR independent contractors with an ABN, they should be paid super at the rate of 9.5% of their earnings – assuming they are 18 yo or over and earn a minimum of $450/month.
Here’s the nitty gritty. Section 12(8) of the relevant super legislation extends the requirement to make super contributions for independent contractors working in the Live Entertainment Industry if they are:
- a person who is paid to perform or 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 of the person liable to make the payment; or
- a person who is paid to provide services in connection with an activity referred to above.
So, if this provision applies to you, or a member of your team, there is a legislative entitlement to superannuation. And there are big fines if you don’t comply.
If you are an employer and have any doubt about whether you are paying the correct amount of super, or you are not sure what to do, please give us a call immediately.
If you are a live entertainment employee/contractor and believe you are not being paid proper super, firstly speak to your employer. If you have no satisfaction from this approach, call the ATO on 13 10 20 or head to the ATO website.
So let’s NOT allow the music or live entertainment industry join the industry ‘naughties’ who have been named and shamed by the ATO.