Bookkeeping & Payroll for Fitness & Wellness Businesses

Most fitness and wellness employees are covered by the Fitness Industry Award 2020 (MA000094), which applies to businesses operating gyms, fitness centres, studios, pools, indoor sports venues, martial arts and dance centres, and similar operations. It sets minimum rates by classification, casual loading, weekend and public holiday penalties, overtime, allowances, and leave on top of the National Employment Standards. Some clinical or allied-health roles may instead fall under a health-sector award depending on the work performed, so check the coverage clauses for any role you're unsure about rather than assuming the Fitness Award applies to everyone.

Sometimes, but it depends on the substance of the arrangement, not the label or the fact they have an ABN. A genuine contractor typically runs their own business, services multiple clients, sets their own hours and rates, supplies their own equipment, and carries their own risk—for example, a trainer who rents space and bills their own clients. A trainer who works the hours you set, takes the clients you assign, and is integrated into your operation looks like an employee regardless of any contract. Misclassification can lead to super guarantee charges, PAYG liability, and back-pay claims. When the line is unclear, get advice before engaging someone as a contractor.

Money received in advance for services you'll deliver later is unearned (deferred) revenue—a liability—until the service is provided. If a member pays for 12 months upfront, you generally recognise roughly one-twelfth of that fee as income each month as access is delivered; a 10-class pack is recognised as classes are used or as the pack expires. Treating the full payment as income on day one overstates profit and hides an obligation to deliver. Proper deferred-revenue bookkeeping gives you an honest monthly performance picture and a clear view of how much you still owe in services.

Under the Fitness Industry Award 2020, overtime from Monday to Saturday is generally paid at 150% of the minimum hourly rate for the first two hours and 200% after that, with work on Sundays, rostered days off, and public holidays attracting higher loadings. Weekend ordinary hours and public holidays also carry penalty rates that vary by the employee's classification and employment type. Casuals receive a loading in addition to the base rate. Because these figures are set in the award and indexed over time, always confirm the current rates that apply to your employees' classification before running payroll.

Generally yes. Under current rules, superannuation guarantee is payable on ordinary time earnings for eligible employees regardless of how few hours they work—the longstanding monthly earnings threshold was removed, so even small amounts of casual work usually attract super. Contributions are calculated as a percentage of ordinary time earnings and must be paid by the quarterly due dates, or you risk the super guarantee charge. Genuine contractors are different, though some contractors paid mainly for their labour are still treated as employees for super purposes. Check each instructor's status rather than assuming casual or 'ABN' means no super.

Most fitness memberships, class fees, and retail products such as apparel and supplements are taxable supplies on which you charge GST and claim credits on related purchases, provided you're registered for GST. Certain health-related services can have different treatment, and not everything you sell will be taxed the same way. The practical risk is applying one blanket treatment across a busy point of sale and getting your BAS wrong. The cleaner approach is to map each revenue line to its correct GST treatment once, set your systems up accordingly, and reconcile regularly so quarter-end is straightforward.

Seasonality is one of the defining financial features of fitness and wellness, and the answer is a forward view rather than month-to-month reaction. By forecasting expected revenue against fixed commitments—rent, wages, equipment finance—across the year, you can see a winter dip coming and build a buffer during the busy season to cover it. Recognising prepaid memberships correctly also stops a January cash surge from being mistaken for sustainable profit. The aim is to make predictable swings genuinely predictable so you're funding the quiet months on purpose, not scrambling when they arrive.

For employees you must keep records of hours worked, rates and penalties applied, amounts paid, leave accrued and taken, and superannuation contributions—generally for seven years for Fair Work purposes. For contractors, keep their ABN, invoices, payment records, the nature of the work, and any written agreement that supports a genuine contracting relationship. Good records protect you if an instructor's status or pay is ever questioned, and they make BAS, super, and year-end far simpler. Relying on memory or scattered messages is where most small studios get caught out.