Money

The test

The ATO asks whether you aim to make a profit, play regularly, and keep it organised with records, a separate bank account and a name.

A hobby

You don't declare hobby income. You can't claim losses or get an ABN.

Not sure

A tax agent can tell you, or you can ask the ATO for a private ruling.

Source: ATO, are you in business?.

Cost

Free from the Australian Business Register. The number usually comes straight away.

Who

Anyone running a business. Employees can't get one for their work as an employee.

After

Lodge a tax return each year, and update your details within 28 days of any change.

Source: Australian Business Register, applying for an ABN.

Must register

Within 21 days of your turnover reaching $75,000 a year. Turnover is everything you earn from music before costs.

Below that

Registering is optional. Once registered, you stay registered for at least twelve months.

Invoices

Add GST only if you're registered.

Source: ATO, registering for GST.

Declare what you're paid for music.

Plus the 2% Medicare levy. Source: ATO, tax rates for Australian residents.

Records

Keep them for five years. Digital copies are fine.

Averaging

Performers and composers can spread tax across good and lean years once their professional income passes $2,500 in a year.

Losses

A loss from music can come off your other income when that other income is under $40,000 for the year.

Instalments

Once your tax bill passes $1,000 a year, the ATO may ask you to pay quarterly.

Source: ATO, non-commercial losses for professional arts.

With an ABN these are business expenses. Keep a record of everything you claim.

• Gear costing $300 or less, in the year you buy it
• Dearer gear, spread over its working life
• Repairs to instruments and gear
• Travel between gigs on the same day, and driving with bulky gear
• Rooms and meals on overnight tours
• Lessons and coaching for skills you already use
• Costumes and stage makeup
• Agent and manager commissions, and union fees
• The work share of your phone and internet

• Everyday clothes, even if you only wear them on stage
• Auditions

Source: ATO, performing artists: income and work-related deductions.

On the invoice

The word invoice, your name and ABN, an invoice number, the date, what you did and the price, who it's for, and how to pay you. Call it a tax invoice only if you're registered for GST.

Terms

Put your payment terms on it, such as 7 or 14 days.

No ABN

The venue must hold back 47% of any fee over $75 and send it to the ATO. You get it back as a credit when you lodge your tax return.

No hold-back

If you're under 18 and paid $350 or less a week, if you're paid through an agent who gives the venue an ABN, or if music is a hobby for you and you give the venue the ATO's Statement by a supplier form.

Super

A venue that pays you to perform owes you 12% super, even if you have an ABN, send an invoice or play once. From 1 July 2026 it must reach your fund within seven business days.

No super

When the venue pays a company, a trust or a band set up as a partnership.

Minimum fee

Musicians Australia sets $250 a musician for a gig of three hours or less.

Source: ATO, super for performers.

1. Check what was agreed, and send a reminder.
2. Send a letter of demand.
3. Ask the Australian Small Business and Family Enterprise Ombudsman for free help on 1300 650 460.
4. Claim in the Small Claims Division of the NSW Local Court, for amounts up to $20,000. Filing costs $179 for a person.

The Fair Work Ombudsman helps employees only. It can't chase a fee for a musician working as a contractor.

Source: Local Court of NSW, civil claims.