Super threat to live music forces quick step by jazz club

Recent changes to superannuation rules are having broader implications than first expected, now impacting payments to entertainers and sending shockwaves through volunteer-run music clubs.

Catching many by surprise, the changes introduced on 1 July require not-for-profit organisations such as the Illawarra Jazz Club (IJC) to cover the super costs of the band leaders they book for their weekly concerts.

The changes were announced to club members on Saturday, midway through the IJC’s weekly event at Collegians in the city. The club’s president, Shelley Rae King, told the crowd they’d only recently discovered an ”unexpected change” that would affect how live music is supported in the region.

In a statement to members, Shelley said: “On 27 June, a local musician contacted the club with a concern, that from 1 July, new federal superannuation rules would require super contributions for all performers engaged by the club, to be paid within seven days of the date that the band is paid for their performance.

“Initially, the club believed the rules wouldn’t apply, given its status as a volunteer-run, non-profit association with no employees. But after seeking independent professional advice, the IJC learned that the law treats musicians and entertainers differently from other contractors.”

Shelley told Saturday’s big audience the news came as a shock to the club. “At one point I was going to resign, thinking I can’t do this. But now I’m feeling much better.”

“The key factor is who the club actually contracts with. The IJC engages bands through their band leaders, not individual musicians. This means the club is responsible only for paying superannuation to the band leader. The band leader, in turn, is responsible for paying superannuation to each musician they hire for the performance.”

The IJC committee held an emergency meeting on Saturday morning to address the issue.

'Atrocious' situation

“We felt the situation was atrocious. We couldn’t stand by and watch a band leader having to pay 12% to every musician who plays for the IJC,” Shelley said.

“To meet these legal requirements, the committee of the IJC will now increase each performance fee paid to bands by 12%, so that the IJC can pay the band leader’s super component and in turn, the band leader will be provided with the funds to pay the super contributions to their musicians.

“From 1 August, the entry fee for the IJC’s weekly jazz sessions will rise from $10 to $15 to help cover the increased cost of supporting live music under the new rules. The jazz club will have to incur administrative processing fees and other costs associated with this new process.

“We feel this is the fairest thing to do. I couldn’t have a conscience knowing that just a band leader is getting superannuation. So if a band is getting $1000 for a performance, it’s an extra $120.”

Nationwide impact

Shelley said the changes are already having an impact across Australia. ”For example, the Newcastle Hunter Jazz Club recently made the difficult decision to cancel its upcoming festival, scheduled for the end of August. With more than 50 bands and hundreds of musicians involved, the club was not in a position to administer the required superannuation payments and therefore cancelled the 2026 festival.”

Shelley says the implications could be much wider. “I’ve been in touch with Canberra, Sydney, Newcastle and the Central Coast and they’re all looking pretty dire. The difference is that we have weekly jazz, so we had to make our decision quickly.

“This could also affect sports clubs, local dance clubs and theatre groups.”

Shelley wanted to reassure members and local jazz lovers that, other than the $5 increase in the door entry fee, nothing else will change for regular concert goers.

“While the changes introduce new administrative challenges, the IJC is co didn’t that musicians, band leaders and volunteers can work together to ensure the continuation of a vibrant live jazz community that has thrived in Wollongong for decades. The music will continue.”

Upon hearing the news at Saturday’s gig, the lead singer of Liza Ohlback and the Mercy Train thanked the IJC committee for the decision it's made.

“You’ve been very kind,” Liza said. ”I’ve never made much money from performing. It’s been a struggle. Some venues have been good, and some aren’t.” As for the complicated changes to superannuation? “These days you have to be a lawyer and an accountant to work out what’s happening.”

On the IJC’s Facebook page, members have praised the club for taking swift action.

“Great to see the IJC is working hard to meet its obligations so positively and constructively” – Paul Sun

“My hat goes off to you! If Illawarra Jazz Club is prepare to bite the bullet, try to understand how to honour super payments to musicians and crew, and move forward, then there is hope for us all”! – Cathy Kirkpatrick

The IJC’s weekly jazz concerts are held downstairs at Collegians every Saturday from 2-5pm.