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The AAT has held that "tandem master parachutists" were employees of the taxpayer for the purposes of the Superannuation Guarantee (Administration) Act 1992 (SGAA) and the taxpayer was therefore liable to charge imposed by the s 5 of the Superannuation Guarantee Charge Act 1992.

The taxpayer was paid for providing facilities that enabled people to make video recorded or unrecorded tandem parachute jumps. In the course of these activities the taxpayer paid, among others, tandem master parachutists. Tandem masters were trained and appropriately licenced or certified parachutists to whom the taxpayer’s customers were harnessed for a parachute controlled descent. They were responsible for packing parachutes, for operating the parachute equipment to control the parachute descents and for making video recordings of the descents. Tandem masters were paid an amount per jump, and additional amounts for packing the parachutes used and for making video recordings.

The AAT held that the tandem masters were employees as the term is ordinarily understood. However, it that was not correct, the tandem masters were deemed to be employees by s 12(3) of the SGAA, as they worked under a contract that was wholly or principally for their labour. Finally, s 12(8)(a) SGAA was also satisfied, as providing an activity that gives amusement or enjoyment can be accepted as provision of entertainment. That was also sufficient for the tandem masters to be deemed employees.

General Aviation Maintenance Pty Ltd and FCT [2012] AATA 120 (28 February 2012).


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