Superannuation and Paid Roles

Super guarantee (SG) is a contribution employers are required to pay to an employees nominated superannuation fund which is compulsory.

SG is calculated and applied to ordinary time earnings which can include commission, holiday loading and certain allowances. There is no minimum threshold for when SG is applied. The current rate for SG is 12%.

When does it apply?

 An employer is required to pay super guarantee in the following circumstances:

• Employee is 18 years or older
• Employee is under 18 but working more than 30 hours a week
• Contractors if they are being paid principally for labour

This is general guidance only — individual circumstances may differ.

There are some circumstances when running a show where contractors could be required to have superannuation paid for them.

A common misconception is that having an ABN or issuing an invoice automatically removes the obligation to pay superannuation.

For superannuation purposes, the focus is generally on:

• what the person is being engaged to do, and
• whether the payment is mainly for that person’s labour, skill or performance.

If a person is engaged mainly for their personal labour, skills or services, superannuation obligations may apply — even where they invoice or operate as a sole trader.

Generally, if an individual is operating under their own ABN as a sole trader and 50% or more of their contract is for labour, then their payment would be relevant for superannuation purposes.

Contractors operating through a partnership, trust or company would not be liable for SG purposes.

Example 1

A cooking demonstrator invoices your society $500 and provides an invoice under their sole trader ABN.

The invoice is based on the hours and time they are required for and the demonstrator will be using the shows ingredients and equipment.

Because the society is paying primarily for that person’s personal skills and presentation, superannuation obligations may still apply, even though the person invoiced the society.

Example 2

A cooking demonstrator invoices your society $500 and issues you an invoice under their ABN as a sole trader.

The invoice is for $200 towards the demonstrator’s time and $300 for the provision of ingredients and equipment provided.

Because this is not primarily for a person’s personal skills and labour, the superannuation obligations would not apply.

Roles Secretaries & Treasurers should consider

Superannuation may apply to contractors and roles such as:

Performers & entertainers

MCs, announcers & commentators

Judges or officials receiving payment

Demonstrators & presenters

Paid event crew or helpers

Sole traders engaged personally

Roles where super is less likely to apply

Superannuation is generally less likely to apply when:

• Contractor is a company, trust or partnership
• The contract is for a defined outcome rather than personal labour
• The business can provide any suitable worker rather than a specific individual  

What role does not usually attract superannuation

Superannuation guarantee only applies when there is financial compensation.  Some roles therefore will not attract superannuation obligations.

✔ Genuine volunteers
✔ Unpaid judges or officials
✔ Reimbursement-only arrangements (where no labour fee is paid)

Super cannot simply be absorbed into a fee

Where superannuation applies:

• the required super contribution must be separately calculated; and
• the super contribution must be paid into the individual’s nominated super fund.

Simply paying a higher fee without correctly remitting superannuation may not meet compliance obligations.

What’s changing from 1 July 2026 – Payday Super

The Federal Government has announced Payday Super reforms proposed to commence from 1 July 2026.

Under these new changes:

• mandatory superannuation payments will need to be paid at the same time as wages or payments are made;
• superannuation payments required to be received by employee superannuation fund within 7 business days;
• superannuation guarantee will now be calculated as 12% of an employee’s qualified earnings;
• the ATO superannuation clearing house will cease to exist; and
• superannuation liability must be reported via Single Touch Payroll on pay day

 

Organisations will need to review payroll, bookkeeping and payment processes to ensure they are compliant and ready for these changes.

There are new penalties being imposed and enforced under these new changes. Failure to comply can result in:

• Interest being applied to unpaid superannuation, compounded daily
• Administrative uplift, that can amount to up to 60% of the unpaid superannuation account

A simple check before paying an invoice

Ask:

1. Are we paying an individual person rather than a company, trust or partnership?
2. Are we paying mainly for that person’s labour, skill or services?
3. Does the work need to be performed personally by that individual?

If the answer is “yes” to all three questions, superannuation obligations may need to be considered.

Practical steps for Secretaries & Treasurers

✔ Identify paid roles early in event planning
✔ Allow for possible superannuation costs in event budgets
✔ Request super fund details where appropriate
✔ Review contractor arrangements
✔ Review payroll processes before Payday Super commences

Many contractor arrangements can be considered a grey area or may not be clearly identifiable. If you are unsure about a particular arrangement, seek advice from your accountant, bookkeeper or taxation adviser.

Further Information

• Australian Taxation Office – Super for Independent Contractors
• Australian Taxation Office – Work out if you have to pay super
• Creative Workplaces Australia – Superannuation for Independent Contractors

Disclaimer: This fact sheet provides general information only and does not constitute legal, accounting or taxation advice. Individual circumstances differ and Show Societies should seek professional advice where required.