SetGo.pro is here to protect artists — with structure, not fear.

Introduction

There’s been a wave of conversation in the music industry lately about superannuation — especially whether venues are required to pay it to performers who work as sole traders.

Understandably, many artists, agents, and venues are asking:

• “Do venues really have to pay super to every sole trader musician?”

• “Isn’t that only for employees?”

• “What about contractors who invoice with an ABN?”

• “Is this just scaremongering?”

At SetGo.pro, our role is to cut through the confusion and help performers thrive as professionals. We’re not here to scare anyone — we’re here to protect artists with clarity, structure, and compliance.

If you’re a live performer who wants to stay bookable, stay compliant, and stay independent, this article is for you.

Many Artists Aren’t Aware — But the ATO Confirms It

In our work with performers, agents, and venues across the country, we consistently see sole trader artists who are unaware that venues are legally required to pay superannuation on top of their fee.

This isn’t a grey area.

The Australian Taxation Office (ATO) has confirmed — both in writing and through its latest public ruling — that under section 12(8) of the Superannuation Guarantee (Administration) Act 1992, if a sole trader is engaged to perform, and the engagement is principally for their personal labour, the venue must pay super.

Even artists who invoice with an ABN, are registered for GST, or have signed a contract that says “no super” are still likely to trigger superannuation obligations if they are being paid to perform personally.

This is not about administrative detail — it’s about the substance of the arrangement.

The ATO’s most recent guidance is found in TR 2023/4DC1 (Taxation Ruling 2023/4 Draft Consolidation 1), which supersedes the now-withdrawn SGR 2005/1.

The reality is: many artists aren’t receiving the super they’re legally entitled to — and many venues are unintentionally exposed to legal risk.

By helping artists move to company structures, SetGo.pro ensures clarity, compliance, and control for everyone involved.

The Bottom Line — Up Front

If a venue pays you as an individual — and your engagement is principally for your personal performance — the venue is likely required by law to pay superannuation on top of your fee.

This is based on:

• Section 12(8) of the Superannuation Guarantee (Administration) Act 1992

• ATO Taxation Ruling TR 2023/4DC1 (December 2023)

• Independent legal and tax advice issued to industry stakeholders in July 2025

The only reliable way to avoid this super obligation being triggered for the venue is for the artist to operate through a company — where your Pty Ltd entity is engaged, and you are employed by your own company.

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The Legal Framework – Explained Simply

Section 12(8) of the SGAA 1992 states that if a person is paid under a contract that is wholly or principally for their labour, they are deemed to be an employee for superannuation purposes. This definition applies even where the person is:

• Holding an ABN

• Invoicing for a “show” or “result”

• Referred to as a contractor

• Not a common law employee

The provision exists specifically to cover industries like entertainment, sports and events — where contractors are often engaged for short-term or one-off work.

This was reinforced in TR 2023/4DC1, which replaced the previous ATO ruling SGR 2005/1 (withdrawn in June 2024). Paragraph 122 of TR 2023/4DC1 makes it absolutely clear:

“A musician who is paid to perform at a venue under a contract with that venue is an employee of the venue under subsection 12(8).”

This means that even if a performer is described as an independent contractor, and even if the contract is structured as “results-based,” super must be paid if the person is being paid for their personal effort and cannot delegate the work.

Clarifying the “Results-Based Contract” Confusion

Some artists or venues have asked whether calling a contract “results-based” means super doesn’t apply.

It’s important to understand that the “results-based” exemption in section 12(3) of the SGAA applies to general contractors — but section 12(8) is a separate and more specific rule that overrides it for entertainers and performers.

The ATO has confirmed that entertainers engaged to perform — even under a so-called “results-based” contract — are still likely to fall under section 12(8), meaning super must be paid.

In other words: it’s not about what the contract says — it’s about who performs, how they perform, and whether the payment is for their labour.

Common Claims — Addressed and Verified

Here are the most common industry assumptions — and the correct legal interpretations based on the SGAA and ATO rulings.

“Musicians are like electricians — paid for a result.”
This analogy doesn’t hold. Electricians can usually subcontract their work, choose the time of the job, and provide a tangible outcome. Musicians typically must appear personally, perform at a fixed time and place, and cannot delegate the job. This means they are engaged for labour — which triggers super under section 12(8).

“If I use an ABN and invoice properly, SG doesn’t apply.”
False. The ATO has repeatedly confirmed that having an ABN, invoicing, or being GST registered does not exempt a performer from super. The SG obligation is based on the substance of the contract, not its paperwork or business registration.

“I agreed with the venue not to receive super.”
Invalid. Superannuation is a statutory entitlement, not a negotiable contract term. You cannot “opt out” of it, and a private agreement does not remove the venue’s obligation under federal law.

“My contract is for a result, not labour, so I’m exempt.”
Not necessarily. Even if your contract is worded as a deliverable or result, if what you’re actually doing is performing personally (and you can’t delegate it), then it’s still a labour-based contract. The ATO applies a “substance over form” test and has clarified this in TR 2023/4DC1.

“This is a scare campaign by accountants.”
No — this obligation has existed in law since the 1990s. What’s changed is increased ATO compliance activity, data-matching via Single Touch Payroll, and the introduction of Payday Super, which becomes mandatory from 1 July 2026. Under these new rules, venues will be required to pay super at the time of payment, not quarterly — making non-compliance far more visible and enforceable.

The Risk for Venues

If a venue fails to meet its super obligations under section 12(8), it can face:

• The Superannuation Guarantee Charge (SGC)

• 10% interest on the unpaid amounts

• $20 per person per quarter in admin fees

• Up to 200% in penalties

• Director penalties (personal liability)

• No statute of limitations for ATO enforcement

Many venues are now taking a cautious approach and only booking performers who operate through a company, trust, or agency. This shifts the SG obligation away from the venue and avoids future compliance risk.

What Can Artists Do to Stay in Control?

Here’s the good news: you have options.

The most reliable way to protect your independence, remain bookable, and take control of your compliance is to operate through your own company.

When you perform via a Pty Ltd company:

• The venue is contracting with a business, not an individual

• You are not treated as an SG employee under section 12(8)

• You manage your own superannuation obligations as a director or employee of your company

• You gain access to better professional tools and structures

This is not just about super. Structuring through a company also provides:

• Access to the 25% corporate tax rate

• Ability to retain earnings in the company

• Income splitting opportunities where applicable

• Access to industry grants, insurance, and legal protections

• Greater credibility with agents, festivals, and funders

How SetGo.pro Helps

We don’t just explain the law — we help you put the right structure in place.

At SetGo.pro, we assist artists by:

• Registering Pty Ltd companies, correctly and efficiently

• Setting up Xero, tailored to creatives

• Managing super, payroll, BAS, and company tax

• Advising on contract formats that align with ATO expectations

• Helping you stay compliant without losing your creative edge

We support artists of all types — DJs, bands, producers, solo acts, and touring musicians — to keep their careers on track.

Our Message to Artists

This is not about limiting creativity, adding admin overheads or turning musicians into corporations.

It’s about:

• Staying legally compliant

• Securing bookings

• Protecting venues from unnecessary risk

• Helping you build a career with long-term stability

The industry is evolving. Artists who adapt will thrive.

Ready to Take Control?

Don’t wait until venues stop booking sole traders.

Set up your music company today with SetGo.pro and protect your artistic freedom — with structure, not fear.

Visit SetGo.pro to get started.

References:

1. Superannuation Guarantee (Administration) Act 1992, Section 12(8):
   Defines an individual as an “employee” for SG purposes if paid under a contract wholly or principally for their labour, regardless of their business status.
   Reference: SGAA 1992, s.12(8)
2. ATO Taxation Ruling TR 2023/4DC1, Paragraph 122:
   “A musician who is paid to perform at a venue under a contract with that venue is an employee of the venue under subsection 12(8).”
   Reference: TR 2023/4DC1, para 122
3. TR 2023/4DC1 – Substance Over Form Principle:
   “The characterisation of the contract by the parties is not determinative. Whether a contract is wholly or principally for labour is a question of fact.”
   Reference: TR 2023/4DC1, paras 13, 19, 108–110
4. Withdrawn Ruling SGR 2005/1:
   Previously provided similar guidance specific to entertainers. Now replaced and expanded upon in TR 2023/4DC1.
   Reference: SGR 2005/1 (Withdrawn 28 June 2024)
5. ATO clarification on company/trust/partnership exclusions:
   “Super is not payable if the performer is engaged through a company, trust or partnership.”
   Reference: ATO correspondence to industry (August 2025)
6. ‘Results-based’ contracts and section 12(3):
   This exception applies to general contractors, not entertainers under s.12(8).
   Reference: SGAA s.12(3); ATO interpretation confirmed via TR 2023/4DC1 and ATO email (Aug 2025)
7. SG obligations apply despite ABN or GST registration:
   The ATO confirms these attributes do not override super obligations under section 12(8).
   Reference: TR 2023/4DC1, paras 14, 119
8. Super obligations cannot be waived by agreement:
   Private agreements or contract clauses attempting to “exclude” super are invalid. SG obligations are statutory and cannot be waived.
   Reference: SGAA 1992, s.32; TR 2023/4DC1, para 128
9. ATO Best Practice for Venues (Super Clearing House):
   “Pay super to the performer’s nominated fund or via the Small Business Superannuation Clearing House. Keep clear records.”
   Reference: ATO correspondence to industry (Aug 2025)
10. Payday Super effective from 1 July 2026:
    Mandatory real-time SG contributions on pay day will increase visibility and enforcement.
    Reference: Australian Treasury, ‘Payday Super reform announcement’, Budget 2023–24; Treasury Laws Amendment (Modernising Business Communications) Bill 2024