The curtain has fallen on the 37th Newcastle and Hunter Jazz Festival with organisers blaming "unmanageable" red tape triggered by recent changes to federal superannuation laws.
In an online statement, Newcastle Hunter Jazz Club president Murray Scoble said mandatory changes to the superannuation guarantee, which came into effect July 1, had created insurmountable paperwork and communication challenges.
"We are very aware of the intense disappointment this will cause among our loyal jazz festival event attendees, a disappointment felt by all of the committee," Mr Scoble said.
"Thank you for your understanding during this difficult and devastating time for our club."
The introduction of Payday Super means employers must pay superannuation contributions at the same time they pay their employees' wages.
Under the new rules, volunteers would be expected to track super payments for numerous individual performers and bands and pay up within seven business days.
Previously, super contributions could be made at least every three months.
The same issue has folded the 32nd annual Inverloch Jazz Festival in Victoria, sparking concerns the new super laws could cause the collapse of more community-run events.
The Newcastle and Hunter Jazz Festival committee has called a special meeting on August 30 to discuss future concerts, and to elect a committee for future management of the club after the president and treasurer resigned.
Federal Member for Newcastle Sharon Claydon said that as soon as the concerns were raised with her, she brought them to the attention of the Assistant Treasurer and Minister for Financial Services Daniel Mulino and Minister for the Arts Tony Burke.
"I understand the disappointment felt by the volunteers and supporters of the Newcastle Jazz Club, which has been a valued part of our community for almost four decades," Ms Claydon said.
"Community organisations should not be left to navigate complex challenges on their own."
Ms Claydon said while superannuation obligations must be met, she wanted community and creative organisations to be given the support, guidance and assistance they needed to comply with the law.
"Artists, musicians and creatives, like all workers, deserve to be paid superannuation," she said.
"We will continue to work with artists and communities to ensure they have the support they need during these changes."
The Newcastle Herald contacted Mr Burke for comment.
Mr Mulino said Payday Super is important to ensure Australians don't miss out on super.
"The design of Payday Super includes arrangements for workers not on traditional payroll systems, such as the workers at festivals like these, which allow an extended timeframe to set up contributions," Mr Mulino said.
The Newcastle and Hunter Jazz Festival attracts audiences from across Australia and New Zealand, and before its cancellation had billed multiple bands, providing 55 hours of music across three days at City Hall in August.
Media, Entertainment and Arts Alliance (MEAA) director of musicians Paul Davies said the union recognised that volunteer-run organisations and community festivals might face different challenges to commercial operators.
"However, unless musicians and other workers have explicitly decided to volunteer their services, which is often the case in community not-for-profit and fundraising events, they must receive their lawful entitlements, including superannuation," Mr Davies said.
"While the responsibility for ensuring superannuation is paid could differ depending on the contracting arrangement, the reality is that in more cases than not, musicians are currently not receiving superannuation when they play gigs."
Mr Davies said the MEAA was not consulted by the ATO on recent advice or draft rulings.
"Regardless of who is liable to pay superannuation, at a base level, the fees charged to the venue should be high enough to ensure all workers are paid fairly, which includes being paid the minimum fee and additionally superannuation," he said.
An Australian Taxation Office (ATO) spokeswoman said Payday Super did not change whether super must be paid or by whom, just its timing.
"We have been encouraging businesses who are required to pay super to contractors and others who are not traditional employees to ensure they have good processes in place to get the required information from those contractors in advance," she said.
"The super guarantee law provides that people paid to perform or present music or entertainment are entitled to super. This is not a new obligation and existed in the quarterly system."
The spokeswoman said the ATO would take a "risk-based" approach to compliance, and would not focus on employers who tried to pay on payday or fix errors quickly.
