ATO Reclassification of Contractors
Definition
Common in arts: hiring assistants for labour without super; ATO deems employees, demands retrospective 12% super + interest/fees.
Key Findings
- Financial Impact: Back-paid 12% super (e.g., AUD 12,000 on AUD 100,000 labour) + admin fees + interest (logic: typical 20-50% extra on principal)
- Frequency: Per ATO audit or private ruling
- Root Cause: Misunderstanding contractor vs employee for super; arrangements pierced by ATO (e.g., single-person entities)
Why This Matters
The Pitch: Performing Arts firms in Australia 🇦🇺 risk AUD 1,000s in back super + penalties from ATO audits on contractor arrangements. Automation flags super-eligible payments preemptively.
Affected Stakeholders
Producers hiring performers, Artists with studio assistants
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Superannuation Guarantee Shortfall Penalties
Non-Deductible Super Contributions
SAG-AFTRA Strike Production Delays
Increased Pension Contributions
Fair Work Award Non-Compliance Risks
Delayed Donor Pledge Payments
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