Super Guarantee Rules Catch Up With Gyms

STAFFORD, Australia - April 14, 2025 - PRLog -- The superannuation guarantee rules are broad and, in some circumstances, extend beyond the definition of common law employees to some directors, contractors, entertainers, sports persons and other workers.

Employers need to pay compulsory superannuation guarantee (SG) to those considered employees under the definition in the SG rules. But, the SG definition of an employee is broad and just how far this definition extends has sparked debate of late about the rights of gym instructors and others not typically considered employees.

Is a gym instructor an employee?

A gym instructor may be captured under the definition of a deemed employee under the SG rules. Whether the gym is liable to pay the instructor SG really depends on the facts of the individual arrangement.

Let's look at the example of a gym instructor operating as a sole trader under an ABN.

*There is a contract between the instructor and the gym stating that the instructor is an independent contractor and is responsible for their own SG payments and other employment obligations.

*The instructor is paid per class, and per training session with clients, covering their time and labour.

*The instructor utilises the equipment of the gym and its scheduling system.

*The instructor wears the uniform of the gym.

*The instructor is trained by the gym in how to deliver the services of the gym.

Employee? Most likely because the ATO places a heavy significance on whether an individual is working to build their own business or someone else's. If the instructor "works under a contract that is wholly or principally for the labour of the person" then this also brings them into the SG net.

For more specific information suited to your business, please speak with one of our experienced accountants, based in Stafford, Queensland. Visit https://mcfillin.com.au/ to learn more.