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Australian musicians fear new super laws will kill live music industry

From ABC Australia · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • New Australian superannuation laws require anyone hiring a musician to pay 12% superannuation within seven days.
  • Musicians fear these rules will kill live music projects due to increased costs and administrative burdens.
  • The Newcastle Hunter Jazz Festival and Inverloch Jazz Festival have been canceled as a direct result of these new regulations.

New payday superannuation laws in Australia are facing strong criticism from the live music industry, with musicians and festival organizers warning they could lead to the demise of live music performances.

Effective July 1, employers hiring musicians must now pay a 12% superannuation contribution within seven days. Previously, contributions could be made quarterly if the performer held an Australian Business Number (ABN). Andy Firth, a renowned jazz musician with a 40-year career, expressed deep concern that the new regulations will make projects, recordings, and stage productions financially unviable.

This will effectively kill a lot of projects, musical projects, recording, all sorts of stage productions. It will kill it just because of the extra cost involved.

โ€” Andy FirthDescribing the potential economic impact of the new superannuation laws on musicians and projects.

"This will kill it just because of the extra cost involved," Firth stated. He highlighted the administrative burden, noting, "We're not trained to do these advanced types of calculations and paperwork." Firth believes venues may opt for streaming music over live performances due to the added complexity and expense, calling the changes "another massive kick in the guts for musicians."

We're not trained to do these advanced types of calculations and paperwork. We will have to do that if we employ any of our fellow musicians or bands. This is just another massive kick in the guts for musicians, and venues may just decide that it's easier to play streaming music.

โ€” Andy FirthExplaining the administrative difficulties and financial strain caused by the new regulations.

The impact is already evident, with the 36-year-old Newcastle Hunter Jazz Festival canceling its upcoming event. Festival president Murray Scoble cited the impossibility of obtaining bank and superannuation details for hundreds of musicians within the strict seven-day timeframe. Similarly, the Inverloch Jazz Festival in regional Victoria has also been canceled, with a notice on its website directly attributing the decision to the new superannuation laws.

The Australian Live Music Business Council (ALMBC) described the rules as a "huge issue" for an industry still recovering from the COVID-19 pandemic, calling the implications "very distressing."

Trying to get that done for 300, 330 musicians in seven days after the festival would have been impossible. This has really rocked us.

โ€” Murray ScobleExplaining why the Newcastle Hunter Jazz Festival had to be canceled.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.