The recent federal budget agreement includes a proposed change to the tax treatment of remuneration for creative performances. If this proposal becomes reality, it could have a direct impact on the income of thousands of performing artists and creative professionals.

Although the final texts of the agreement have not yet been made public, PlayRight is calling for clarity on the impact of these proposals. Together with other organisations in the cultural sector, we are already warning of the possible negative consequences.

What is at stake?

The point of discussion is the possible abolition of the flat-rate professional expense deduction that currently applies to income from creative performances. If this deduction were to disappear completely, it would mean a significantly lower net remuneration for many performing artists. This at a time when the sector is already under financial pressure.

This income is not wage optimisation or a tax trick; it is remuneration for the work that artists and performers do. Abolishing this deduction ignores the economic reality of creative work and could disproportionately affect smaller and emerging creators in particular.

Major impact on the majority of creators

For the vast majority of artists who receive relatively limited remuneration each year, the current flat-rate deduction is often the only way to ensure a liveable income. The mandatory switch to actual costs may be practically unfeasible for them and could significantly reduce their net income.

That is why PlayRight, together with fellow organisations in the sector, is calling for clear guarantees that this tax option will be retained for remuneration arising from creative performances and neighbouring rights.

Contrary to the promised support for the cultural sector

Such a measure would be in stark contrast to previous policy promises to support the cultural sector and strengthen the position of cultural creators. Instead of creating certainty, it would increase financial uncertainty for performing artists.

Creative professionals are not only creators of valuable cultural content, they are also entrepreneurs who contribute to the cultural and economic wealth of our country. Weakening their financial position without any clear benefit to society seems counterproductive.