Entertainment & Arts Law · Employee vs Contractor & Fair Work
Superannuation for musicians and freelance crew.
The superannuation guarantee is 12% from 1 July 2025, and it can be owed to a musician or freelance crew member even where the paperwork calls them a contractor.
By Aaron Kernaghan · Brady & Associates Lawyers · 13 September 2026
This article is for informational purposes and general commentary only. It does not constitute legal advice and does not create a solicitor-client relationship.
Superannuation is compulsory retirement saving that an engager must pay on top of wages for eligible workers. From 1 July 2025, the superannuation guarantee rate is 12 per cent of ordinary time earnings. For performers and crew, the trap is that superannuation can be owed even to people engaged as independent contractors.
Under section 12(3) of the Superannuation Guarantee (Administration) Act 1992 (Cth), a person engaged under a contract that is wholly or principally for their labour is treated as an employee for superannuation. Many musicians and freelance crew are paid for their personal labour, so a producer, venue or band leader who treats them as contractors may still owe 12 per cent superannuation on top of the fee.
Who is entitled to superannuation?
Employees are entitled to the superannuation guarantee. The old rule that excluded workers earning under 450 dollars a month was removed from 1 July 2022, so that threshold no longer applies. Special rules can affect workers under 18. The safest assumption is that most people doing paid work for your business are entitled, unless a clear exception applies.
The contractor trap: paid for labour
A contract that is wholly or principally for a person's labour brings the contractor within the superannuation net, even where they hold an ABN and call themselves a contractor. A solo musician engaged to play, or a freelance operator engaged to run a desk, is usually engaged for their personal labour. If the payment is for the person's own work rather than for a result produced by a business with its own staff and equipment, section 12(3) is likely to apply.
When it may not apply
Where you engage a genuine business rather than an individual's labour, for example a company that supplies a crew and equipment for a fixed price, superannuation is generally not owed to that business's workers by you. The line turns on whether you are buying labour or buying a result from a separate business. It is a question of substance, decided on the facts.
What happens if you do not pay
Unpaid superannuation does not simply go away. The engager becomes liable for the superannuation guarantee charge, which includes the shortfall, interest and an administration component, and it is not tax deductible. The Australian Taxation Office can pursue it, and directors can be personally liable through director penalty notices. Backdated superannuation across a season or a touring party can be a large and unexpected bill.
Practical steps
Work out, before the engagement, whether each person is an employee, a labour-only contractor, or a genuine external business, and budget superannuation where it is owed. Collect fund details, pay on time each quarter, and keep records. When in doubt, the Australian Taxation Office has a superannuation guarantee eligibility tool, and specific advice is cheaper than a backdated charge.
Frequently asked.
Do I owe super to a contractor musician?
Often yes. Under section 12(3) of the Superannuation Guarantee (Administration) Act 1992 (Cth), a person engaged under a contract wholly or principally for their labour is treated as an employee for superannuation, even if they are a contractor for other purposes.
What is the superannuation rate now?
From 1 July 2025 the superannuation guarantee rate is 12 per cent of ordinary time earnings. This is the final scheduled increase.
Is there still a 450 dollar a month minimum?
No. The 450 dollar per month threshold was removed from 1 July 2022, so it no longer limits eligibility.
What if I engage a company rather than a person?
Where you genuinely engage a separate business that supplies its own labour and equipment for a result, you generally do not owe superannuation to that business's workers. The question is whether you are buying labour or buying a result.
What are the consequences of not paying super?
The superannuation guarantee charge applies, which includes the shortfall, interest and an administration fee, is not tax deductible, and can be pursued by the ATO, with possible personal liability for directors.
If you are a performer, producer, venue, or independent practitioner and this raises a question about your own situation, Aaron Kernaghan and the team at Brady & Associates Lawyers can give you tailored guidance. Call 0421 717 019 or contact the firm.
This article is for informational purposes and general commentary only. It does not constitute legal advice and does not create a solicitor-client relationship. It reflects the law in Australia as at 13 September 2026, with a focus on Commonwealth law and New South Wales and ACT practice. The law changes and applies differently to every set of facts. Written by Aaron Kernaghan, Brady & Associates Lawyers.