Real-World Scenarios Business Owners Need to Know

Case Study: The Gym Instructor

Let’s say a gym hires a sole trader instructor under an ABN. They wear the gym’s uniform, use the gym’s booking system, and are trained in-house. While the contract states they’re an “independent contractor,” they’re paid per class and session.

In reality?
The ATO would likely deem this instructor an employee for SG purposes.
The gym would be liable for backpaying SG contributions, possibly going back years—with no fixed time limit.

Case Study: Festival Performers

A music festival pays a solo artist directly for a performance. The artist operates as a sole trader and hires backup musicians.

• • The festival is responsible for SG contributions for the solo artist.
  • The solo artist, in turn, is responsible for SG for the band members—if they’re paid for their labour and don’t work through a company or trust.

These layers of liability can quickly stack up—making it essential to understand who you’re really responsible for.

Know Your SG Obligations or Risk Penalties

Not only can the ATO recover unpaid SG going back several years, but directors can be held personally liable under the director penalty regime.

Whether you’re running a gym, venue, creative agency, or hospitality business, it’s vital to:

• • Assess worker arrangements (contractors, performers, instructors)
  • Review contracts—labelling someone a contractor doesn’t automatically exempt you
  • Seek advice or request a private ruling from the ATO if unclear
  • Consider an independent SG compliance review

Uncertain about your SG obligations? Don’t leave it to chance.

At Aero Accounting Group, we help business owners like you avoid costly superannuation pitfalls with clear advice, risk assessments, and proactive planning. Whether you’re engaging performers, contractors, or instructors, we’ll help you understand your obligations—and make sure you’re covered.

Book a consultation today and gain peace of mind that your SG responsibilities are under control.