Superannuation compliance & how Hot Giggity supports it

TL;DR (Cheat sheet)

• Who must be paid super? Sole-trader performers and sole-trader crew providing services connected to a performance are treated as employees for SG purposes, even if they invoice with an ABN. AustLII

• Who pays? The payer of record (usually the venue or agent; sometimes the act owner if they pay players) must contribute directly to the worker’s super fund—not the worker. Australian Taxation Office

• No minimum earnings test: The old $450/month threshold was removed from 1 July 2022—you must pay super regardless of monthly earnings (age rules still apply). Australian Taxation Office

• Current SG rate: 12% applies to sole trader payments. Australian Taxation Office

• Payday Super (from 1 July 2026): Employers will need to pay super on payday, with contributions arriving at the fund within 7 calendar days of paying wages. (Design is announced; see the ATO and Treasury for details.) Australian Taxation Office

• Multi-player acts, no extra admin: One booking, the act owner sets the gig fee splits; Hot Giggity routes each player’s invoice to the hirer, so the hirer pays each sole-trader player and their super directly. The act owner doesn’t need to process players’ super.

Why this matters in live entertainment

Under the Superannuation Guarantee (Administration) Act 1992 s 12(8) and the ATO’s TR 2023/4, anyone paid to perform, present or participate in entertainment—or to provide services in connection with that activity—is an employee for SG. That captures DJs, musicians, singers, techs and similar sole traders. AustLII

It also means contractors who are mainly paid for their labour can be SG-eligible even with an ABN. Australian Taxation Office

Who pays whom (and how Hot Giggity models it)

Hot Giggity determines the “contributing party” from the booking’s funds-flow:

• Venue → Act Owner (default)
  Venue is payer of record. If the Act Owner pays sole-trader players separately, the Act Owner is the contributing party for those players.

• Venue → Players (+ Act Owner fee)
  Venue pays players directly; Venue is the contributing party for SG on sole-trader players.

• Agent-orchestrated
  If the Agent pays the talent, the Agent is the contributing party. If the Venue pays, the Venue is the contributing party.

• Multi-player acts, simplified: Act Owners set fee splits once; Hot Giggity auto-generates and routes each player invoice to the hirer, so super is distributed per player by the hirer (no separate player bookings required, and Act Owners don’t have to run players’ super).

In all cases, the contributing party must remit SG directly to the worker’s fund. Paying a “super-inclusive” lump sum to the worker and asking them to contribute themselves does not satisfy SG law. Australian Taxation Office

Entity types & when SG usually applies

• Sole trader (individual): Usually SG applies when paid to perform or provide connected services. AustLII

• Company / Trust / Partnership (as the supplier): Paying these non-individual entities generally doesn’t trigger SG for that invoice (different rules may apply to the entity’s own staff). See TR 2023/4 for treatment when you engage non-individual entities. Australian Taxation Office

Hobbyists / “statement by a supplier”: A Statement by a Supplier can be used where a genuine hobbyist has no ABN, but this is a tax/withholding form it doesn’t settle SG eligibility. If in doubt, use the ATO’s SG eligibility tool. (The ATO doesn’t publish a bright-line “hobbyist” SG exemption.) Australian Taxation Office

Rates & timing

• Rate: 12% of ordinary time earnings (OTE) for payments. Australian Taxation Office

• Quarterly due dates (current rules): super must be received by the fund by 28 Oct, 28 Jan, 28 Apr, 28 Jul. Payments are only “paid” when the fund receives them (allow time for clearing houses). Australian Taxation Office

• From 1 July 2026 (Payday Super): contributions must arrive in the fund within 7 days of payday. Treasury

Inclusive vs exclusive of super (and what to calculate on)

Hot Giggity supports either:

• Super on top (exclusive) — add 12% to the agreed base; or

• Super included (inclusive) — back-solve the contribution inside a fixed total.

SG is calculated on OTE (the labour component for ordinary hours). Non-labour items (e.g., equipment hire, some reimbursements) are generally not OTE.  Australian Taxation Office

How Hot Giggity helps (Phase 1 “Super-Ready”)

Available now:

• Entity type & super fund capture for every payee (sole trader / company / partnership / trust; fund + member details).

• Real-time SG calculation on the booking sheet for all sole-trader artists, using the correct rate based on the inclusive or exclusive setting outlined above

• Invoice engine adds clear Superannuation line-items and explanations (with optional “super on top” or “super included” fee logic).

• Compliance prompts: we flag artists with missing fund details before processing booking.

• Multi-player acts, no extra admin: Act Owner sets the gig fee splits; Hot Giggity routes each player’s invoice to the hirer, so the hirer pays each sole-trader player and their super directly. The Act Owner doesn’t need to process players’ super.

Xero Payroll AU (quick summary)

• People & funds auto-setup: We create/maintain a Xero Payroll person for each SG-eligible sole trader and attach their super fund + member details (using EmploymentBasis = “LabourHire” where appropriate).

• Right period, right calc: We export labour (OTE) per booking using the gig date (not the invoice date), apply the correct SG rate by payment date, and honour your fee logic (super on top or included/back-solved).

• Draft pay run, ready to post: Earnings + SG land in a draft pay run grouped by person/period—you review and Post in Xero.

• Pay via Xero Auto Super: Approve the Auto Super batch in Xero; Xero will direct-debit your bank and remit contributions through its SuperStream clearing house. Process ahead of due dates—super counts as paid only when the fund receives it.

MYOB Super integration coming soon. 

Payments & clearing (Phase 2 – electronic payments - coming soon)

• Hot Giggity doesn’t hold the money: Payments are processed through the hirer’s or agent’s own connected payment account—not by Hot Giggity.

• One payment in, all payouts out: The hirer (or agent) takes a single payment and then triggers payouts to artists/players; the super portion for each eligible sole trader is sent in the same flow.

• Agent-led flow: Agents can receive the full amount, keep their commission automatically, and release artist payouts + super contributions from their dashboard.

• Built-in compliance: If any SG-eligible payee is missing fund details, we block the payment run until it’s fixed.

• Bookkeeping kept tidy: We push clean payables and references to your accounts for easy reconciliation.

• Until Phase 2 is live: Keep paying super via Xero Auto Super (recommended) or the SBSCH/your fund’s clearing house.

FAQs

Do I have to pay super to a sole-trader who invoices me?
If they’re being paid mainly for their labour (including performing or connected services), yes—treat them as an employee for SG. Australian Taxation Office

Can I just add “super” to the invoice and let the performer pay it?
No. The contributing party must remit to the fund. Paying it to the worker doesn’t meet your SG obligation. Australian Taxation Office

What about partnerships, companies or trusts?
Paying a non-individual entity is typically outside SG for that supply (the entity handles its own staff). See TR 2023/4 for the treatment when you engage non-individual entities. Australian Taxation Office

What if I’m late?
You must lodge and pay the SGC (shortfall + 10% nominal interest + admin fee). It’s not deductible. Australian Taxation Office

Where can I double-check eligibility?
Use the ATO’s SG eligibility tool. Australian Taxation Office

Disclaimer

This article is general information only. Always seek your own advice for your circumstances.

Useful references

• SG rate & timing (12% from 1 July 2025; rate applies by payment date): ATO. Australian Taxation Office

• Who is an employee (entertainers & connected services): SGAA s 12(8); ATO TR 2023/4. AustLII

• Independent contractors mainly paid for labour: ATO. Australian Taxation Office

• Quarterly due dates & “paid when received by the fund”: ATO. Australian Taxation Office

• Payday Super (from 1 July 2026): Treasury factsheet; ATO overview. Treasury