Musicians voice concerns over Payday Super

New regulations mandating that employers pay superannuation alongside wages have prompted a counterintuitive response in the live music sector. The Media, Entertainment & Arts Alliance reports that some businesses are attempting to bypass the new “Payday Super” requirements by shifting the financial burden directly onto the musicians they hire.

Employers recently became required to pay super contributions at the same time as salaries and fees, replacing the previous quarterly schedule. While the government intended these reforms to boost compliance, the union suggests they have instead exposed a persistent reluctance to pay entitlements in the entertainment industry.

A recent survey conducted by the union indicates that 59 per cent of its musician members still do not receive super payments. This figure highlights a significant gap between legal standards and actual practice for freelance performers, even before the new payment timing rules took effect.

Cost Shifting Emerges

MEAA chief executive Erin Madeley stated that instead of rectifying non-compliance, some businesses are innovating to avoid costs. “For decades, many musicians have missed out on superannuation they were legally entitled to receive,” Madeley said. “Instead of fixing that problem, we’re hearing reports of some businesses looking for new ways to avoid their obligations altogether.”

Pushing these costs onto performers effectively turns a legally mandated employer contribution into a negotiated deduction from the artist’s gross fee. For a worker calculating their net income against rising living expenses, the immediate necessity of securing the gig often outweighs the theoretical benefit of future retirement savings, creating pressure to accept illegal terms.

Reports indicate that performers are being asked to accept lower fees to cover the superannuation costs themselves. Alternatively, engagers are suggesting that musicians restructure their work, perhaps by incorporating or changing invoicing methods, so that the employer no longer holds responsibility for the contributions.

“Some musicians are being told to absorb the cost of superannuation into fees that are already too low, effectively reducing their take-home income,” Madeley noted. “Others are being encouraged to incorporate or change their business structures in ways that shift obligations away from the engager.”

Impact on Working Musicians

Professional musician and MEAA member Chloe Williamson confirmed that requests to absorb costs are becoming frequent. “Music is my work, not a hobby, but too often we’re treated as though basic workplace entitlements are optional,” she stated.

Williamson described specific instances where employment offers were conditional on the artist footing the bill for their own benefits. “I’ve seen musicians offered work where the engager says they’ll only proceed if the artist absorbs the superannuation cost,” she said. “In practice, that means taking a pay cut to fund an entitlement that should already be provided.”

She also noted that performers are being pressured into administrative gymnastics to facilitate avoidance. “Others are being told to set up companies or invoice in different ways so the engager doesn’t have to deal with super,” Williamson added. “Through our union we are pushing back, demanding that all work is paid, that a minimum fee is paid and that there is no undercutting.”

According to the union, these arrangements is leaving musicians carrying additional financial risk. Many performers are currently dealing with insecure employment and modest incomes, making it difficult to absorb these unexpected expenses while maintaining their livelihood.

Madeley emphasized that musicians should not have to sacrifice workplace rights to secure employment. “Musicians deserve the same workplace rights and retirement security as any other Australian worker,” she said. “No one should have to choose between getting the gig and getting their entitlements.”

The MEAA stated it plans to continue working with industry stakeholders while advocating for stronger enforcement of existing laws. “We are calling on [the] government to talk with us so we can ensure musicians are protected and fairly paid for their work,” Madeley concluded.