Summary of Good Practice Recommendations

Professional artists have a responsibility to:

• register for an ABN and GST if their business income is above $75,000 (an exemption applies to First Nations artists in remote communities) 

• determine if they are a professional artist for tax purposes before claiming tax deductions for their arts practice

• withhold tax (PAYG) and report and pay it to the ATO if they are receiving income through their ABN

• pay tax on all their assessable income, including paid employment, sales, commissions, grants, prizes, honorariums, sponsorships, artist fees, licensing fees, consultancies and in-kind support

Professional artists have a right to:

• remain unregistered for an ABN or GST if their business income is below $75,000

• register for an ABN but remain unregistered for GST if their business income is below $75,000

• claim tax deductions for all their expenses including materials, equipment, tools, rent, on-costs, insurance, vehicles and travel

• offset or defer eligible losses

• average the taxable income from their arts business over five years, if eligible

• write-off the cost of eligible assets according to the write-off threshold rules

Employers hiring artists as employees have a responsibility to:

• withhold tax (PAYG) and report and pay it to the ATO

• pay fringe benefits tax if applicable

• meet payroll tax obligations