Confusion surrounds gyms and superannuation contributions for group fitness instructors

Changes to employees’ superannuation requirements introduced last year appear to be causing confusion among a number of fitness operators who hire group fitness instructors as independent contractors.

Group fitness instructors are generally entitled to superannuation contributions from their employers, regardless of whether they are classified as employees or contractors (the current mandatory superannuation contribution rate being 11.5% of an individual's earnings).

Australasian Leisure Management is aware of instances where contracted instructors who are required to follow a roster, submit invoices, wear uniforms and comply with company policy, are still being classed as ‘independent’ by operators, some of whom are claiming that superannuation payments are included in what they pay instructors.

The Australian Taxation Office (ATO) stipulates that if a fitness instructor works under a contract primarily for their labour, they may be deemed an employee for superannuation purposes, even if they hold an Australian Business Number (ABN).

This means employers are obligated to make superannuation contributions on their behalf.

According to Group Fitness Help, the ATO is raising unpaid superannuation debts against Crunch Fitness Australia, Derrimut 24:7 Gym and Virgin Active Australia.

Group Fitness Help also advise that Fitness Cartel Australia owes 18 months of retroactive payments to instructors.

If you have more information on this issue, email: leisure@ausleisure.com.au

Click here for information from the ATO on superannuation for independent contractors.

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