By Jeremiah Siemianow, CEO and co-founder of Surreal.
Recent clarifications to superannuation law have blindsided Australia’s entertainment industry. What was once standard practice – paying entertainers “all-inclusive” fees while assuming they’d handle their own super as contractors – turns out to be legally unsound.
The first deadline for FY26 superannuation compliance for venues and agents is fast approaching, and an entire industry finds itself scrambling to understand obligations that were never clearly communicated.
How did we get here?
A mix of industry complacency and government communication failure, if we’re being honest. For decades, we collectively thought superannuation wasn’t built for live entertainment, and frankly, the government’s silence seemed to suggest they didn’t have a problem with how we were doing things.
When recent broader legislative clarifications shifted to treat more arrangements as employment rather than contracting, no one told us it applied to us. Would we have wanted to listen? Who knows. But the reality is sobering: the days of “all-inclusive fees” for many arrangements are over, and superannuation obligations aren’t disappearing – they’re unavoidable and becoming more entrenched.
The industry-wide confusion
The confusion runs deep. Even licensing bodies, hotel associations, and music organisations that we rely on were caught off guard. This wasn’t mailed out, broadcast, or discussed with licence holders. How does a federal compliance requirement become such a massive knowledge gap, leaving so many exposed to penalties they never saw coming?
Naturally, there’s uproar everywhere. Agents worry about where the additional 12 per cent comes from, artists fear less money in their pocket today, and venues – who aren’t the cash-printing machines they’re often assumed to be – may face another cost they can’t easily pass on. The whole industry suddenly finds itself buried under a mountain of admin just to keep up.
The dangerous misinformation game
Now, with FY26 contribution deadlines looming, businesses are being forced into snap decisions to avoid heavy penalties. And it’s getting dangerous out there. Misinformation is spreading rapidly, with some players either misquoting the rules to wide audiences or ignoring them altogether. One blog in particular – since taken down but still damaging – appeared to deliberately rewrite clauses of the law, dressing them up with emotive language to rally entertainers. I’d have been all for it, provided the information was correct. It wasn’t. The result of this sort of behaviour is heightened risk of ATO intervention, and if that happens, the headlines won’t be kind when we’re dealing with employment law violations.
What’s actually changed?
Ironically, not much in terms of the actual law. What changed was a series of events that suddenly put the entertainment industry under the spotlight.
The wake-up calls
A 2022 High Court case questioning contractor superannuation obligations got people’s attention. Then in December 2023, the ATO released updated ruling TR 2023/4, clarifying their interpretation of “who is an employee” – particularly for anyone engaged “wholly or principally for labour” and in that ruling, we finally noticed ourselves listed.
Combined with upcoming Payday Super (July 2026) and the earlier removal of the $450 monthly threshold, our industry suddenly found itself under the microscope for the first time in decades.
The result? We finally looked under the hood – properly at obligations that had been flying under the radar. Unlike decades past, we now have easy access to information that was once buried in legal documents most of us would never have seen. The confusion was widespread and unintentional – even PwC has commented on how widespread this issue is – but now that clarity has emerged, the obligations can’t be ignored.
Where everyone’s getting caught out
To be fair, none of this is simple. It’s easy to see how misunderstandings arise when seemingly conflicting legislation sits side by side. On one hand, engaging parties (mainly venues and agents) are required to make super contributions for sole traders who meet the criteria. On the other, sole trader provisions talk about discretionary contributions. No wonder people are scratching their heads.
Entertainers are getting caught reading only sole trader provisions, wondering why they suddenly don’t have a choice. Agents are either trying to protect themselves and their acts or relying on what they’ve always known. Many venues are still confused about the threshold changes, and let’s be real – excluding the lawyers in our space, very few of us have the trained eye to spot legislative nuances or the time to monitor regulatory shifts. If industry bodies (who often work alongside government) had no idea, how could pub owners, agents, bookers, and entertainers?
Where the government failed us
This is where the government dropped the ball. They should have asked themselves one crucial question: how do we get this message out? Back then, and more recently with the clarifications. How can businesses do the “right thing” if they don’t know what that is? How can we expect compliance when no one knew it was required?
The industry set its standards decades ago, paying entertainers all-inclusive fees and assuming sole traders handled super like any other business expense. It made sense at the time – “they’re contractors”. But that foundation has crumbled, and now we’re all scrambling to rebuild on solid ground.
The reality check
So here we are. A perfect storm is brewing, and the only way through is to batten down the hatches and rely on what we know to be certain. Trust only proven facts. Don’t take anyone’s word for it – read the rules yourself and get proper legal advice. Then put processes in place that protect you and keep you compliant.
As an industry, we can try to fight it. I’m seeing some attempt exactly that. But history shows it’s a battle we don’t win – just ask anyone who fought GST or mandatory insurance requirements. Meanwhile, the law is in effect and has been for a while. From what we’re told, we’re being watched. Is resistance worth potentially losing your business over?
The businesses finding their footing have turned to Surreal. Our clients range from the country’s largest venue groups and most recognisable hospitality brands to corner pub operators, from national talent agencies to DJs managing small crews – and they’ve all found confidence in our integrated superannuation solution. Through a clearing house that streamlines super contributions and a comprehensive invoicing and payments system managing performance and agency fees, they maintain full control while ensuring compliance. They know compliance isn’t optional, but they’ve discovered the admin burden can be alleviated.
The optimist’s view
There are nights I lie awake contemplating a bleak future where regulators show no flexibility and fail to acknowledge their own part in how we got here. But the optimist in me believes common sense will prevail. After all, you can’t set a precedent that cripples entire hospitality and entertainment industries and undermines the very income this legislation was designed to protect. Can you?
The path forward
So where to from here? We need to band together, demonstrate we’re doing what we can, and move forward collectively. No one wants to deal with this, but the only way through is together – with a clear understanding of what the law requires from each of us.
This isn’t going away. In fact, it becomes even more complex with Payday Super arriving in July 2026, when the admin burden grows further and contributions must be made with invoice paid rather than quarterly.
Let’s draw a line in the sand. We know what needs to be done now. Artists may need to reframe their thinking about sacrificing “today money” for “later money” – a transition every industry eventually faces. Venues and agents may need to adjust rates if there’s pushback, but artists must also accept that flexibility has limits. Above all, make crystal clear who is responsible for paying super in each arrangement.
If that responsibility falls to you, put processes in place that remove the admin burden and the stress of waiting for a knock on the door from the taxman.
At the end of the day, this isn’t about blame. It’s about moving forward, for the good of the industry and everyone in it. The storm has arrived, but we can weather it – if we face it together with clear heads, because compliance doesn’t have to mean chaos.
Want help with your super obligations? Email jeremiah@surreal.live and we’ll share the essential resources – direct ATO and government links covering the legislation and recent court rulings. Plus, we’ll walk you through strategies we use to help our clients stay compliant and avoid penalties.