Tax Reform Advocacy Toolkit
A guide to help artists and arts workers engage with MPs about how and why tax reform is needed.
NSW Government’s Art of Tax Reform Summit in 2025 brought together artists, arts organisations, arts advocates, philanthropists, tax policy experts, and local, state and federal government representatives to shape practical reforms that will feed directly into the next National Cultural Policy. Photo courtesy NSW Department of Creative Industries Tourism Hospitality and Sport.
NAVA has advocated for tax reform for artists for more than 30 years. Artists often have low and irregular incomes, earn money from other jobs, and receive one-off grants, prizes or commissions. A single payment can push an artist into a higher tax bracket, trigger HECS/HELP repayments or GST registration, while a grant may be treated as income even when the money is spent delivering the funded project.
Many tax rules and processes were not designed with these working patterns in mind. The result can be unexpected tax bills and other obligations, even when an artist has earned very little from their practice overall. NAVA is seeking changes to the rules where they disadvantage artists, as well as clearer information and simpler processes so artists can understand their obligations before they receive a grant, prize or other significant payment.
NAVA has been working with artists, tax experts and government on reforms that could address some of these problems. In 2025, more than a third of submissions to the NSW Government’s Art of Tax Reform consultation came from the visual arts. NAVA’s tax survey also gave artists an opportunity to describe how tax affects their work and income. Tax reform was again included in NAVA’s submission for the next National Cultural Policy earlier this year. NAVA is also responding to recent changes to capital gains tax (CGT), which commence on 1 July 2027 and could affect the buying and selling of Australian art.
NAVA is raising these issues with government, but MPs also need to hear directly from artists and arts workers in their electorates. Local MPs can raise these issues with Ministers, within their parties and in Parliament. When MPs across the country hear similar concerns from artists in their electorates, it helps demonstrate that these are broader problems that need to be addressed through tax reform.
NAVA can provide research, evidence and policy recommendations, while artists and arts workers can explain what the rules mean for their work and income. MPs can raise these concerns while reforms are being considered and, when legislation comes before Parliament, through debate and voting.
This toolkit explains the changes NAVA is seeking and provides information to help you contact your local MP, share your experience and ask them to raise these issues.
The Art of Tax Reform
In 2025, NAVA made a detailed submission to the NSW Government’s Art of Tax Reform consultation, outlining practical reforms to support the visual arts. The submission identifies structural issues that keep artists in precarity and proposes solutions to ease financial pressures on artists and the sector.
What NAVA is asking for
Art prizes and grants
Most art prizes, grants and fellowships are treated as taxable income. For an artist with an otherwise low or irregular income, receiving a large payment in one year can result in additional income tax and HECS/HELP repayments and may also affect GST obligations.
NAVA is calling for art prizes, grants and fellowships to be exempt from income tax.
If this has affected you: tell your MP what you received, what it was for and what happened at tax time.
Non-Commercial Loss (NCL) rules
Many artists earn income from other work alongside their practice. The Non-Commercial Loss rules can prevent an artist from offsetting a loss from their arts business against income from other work.
One of the tests uses a $40,000 threshold for income from other sources. That threshold has not increased since 2000. NAVA is calling for professional artists who meet the ATO’s requirements for carrying on a business to be exempt from the Non-Commercial Loss rules, or significantly increase the threshold.
If this has affected you: explain what other work you do to support your practice.
GST on income spikes and studio rent
A large commission, grant or unusually strong year of sales can take an artist over the GST registration threshold even when their usual income is much lower.
NAVA is calling for the GST threshold to take account of artists’ income over several years, rather than a single year. NAVA is also calling for GST relief on studio rent for artists whose income is below the GST threshold.
If this has affected you: tell your MP what caused you to cross the threshold and what GST registration meant for your practice.
HECS/HELP
Compulsory HECS/HELP repayments are calculated using annual income. A grant, prize, commission or strong year of sales can therefore increase an artist’s repayment even when their income falls again the following year.
NAVA is calling for HECS/HELP repayments to take account of income averaged over more than one year for artists with irregular incomes.
If this has affected you: tell your MP about a year when your income increased temporarily, what happened to your HECS/HELP repayment and what your income looked like the following year.
Income averaging
Income averaging already allows eligible artists to calculate tax on their professional income by reference to income earned over several years. Many artists do not know it is available.
In NAVA’s 2025 tax survey, 67% of respondents said they had never heard of income averaging.
NAVA is calling for clearer information about income averaging for artists, including through MyTax and information provided to accountants.
If this has affected you: tell your MP whether you knew income averaging was available, how you found out about it, or whether you have had difficulty getting clear information or advice about using it.
Capital gains tax
Capital gains tax (CGT) can apply when someone buys an artwork and later sells it for more than they paid. At present, an individual who has owned an artwork for at least 12 months can generally reduce the capital gain that is taxed by 50%. The Government is changing these rules from 1 July 2027.
NAVA is concerned that the changes could make people more cautious about buying and holding Australian art. They could also prompt people who were already considering selling artworks to sell before the new rules begin. If a large number of artworks enter the secondary market at the same time, this could put downward pressure on prices. Reduced demand for Australian art could also affect sales of new work by living artists.
NAVA is calling for the sale of privately owned artworks should be exempt from CGT, and the CGT threshold for collectibles to increase from $500 to $10,000 and increase over time.
If this affects you: tell your MP about the importance of people buying and collecting your work, and any concerns you have heard from collectors, clients or galleries about the new CGT rules.
Deductions and residencies
NAVA is seeking changes to the deductions available to artists, including expenses associated with residencies, home-based studios and Indigenous Cultural and Intellectual Property (ICIP). Artists should be able to claim living costs associated with undertaking a residency away from home, and appropriate costs for home-based studios, including where there is not a separate room used exclusively as a studio. First Nations artists should also be able to claim costs associated with meeting ICIP responsibilities, such as travel to Country or time spent consulting with Elders.
If this has affected you: tell your MP about costs you have incurred while undertaking a residency away from home, or working from a home-based studio that you have not been able to claim as a deduction.
Contact your MP
Write to your local MP: Use the Australian Electoral Commission’s Find My Electorate
What are their values and motivations? Watch or read their First Speeches in Parliament
What about my state’s senators? Look them up and read their First Speeches
How do I talk up our local arts scene? Use Creative Australia’s Electorate Profiles
Meeting your MP
What to know, what to ask, what to do afterwards
A face-to-face meeting with your MP is one of the most effective ways to advocate for better tax settings for artists. Politicians listen closely when issues are raised by people from their own communities, especially when it’s backed by clear examples and respectful conversations.
Whether you meet at their office, invite them to your studio, or speak at your exhibition opening, this section helps you prepare.
Before the meeting
Find your MP
- Use the AEC “Find My Electorate” tool to locate your local MP and check their contact details.
Learn a little about them
- Read or watch their First Speech in Parliament (often gives insight into their values)
- Check how they’ve voted on relevant issues (They Vote For You)
- Look at Creative Australia’s Electorate Profiles to see how many people in their area are artists or involved in the arts.
Request a meeting
Call or email their electorate office. Introduce yourself, state your suburb and why you’re getting in touch. Let them know you’d like to speak about how current tax rules are affecting artists in their electorate, and propose a few times. You can also invite them to your exhibition or studio for a tour and informal discussion.
Plan what you’ll say
- Use the talking points in this toolkit
- Share your own story or experience with tax settings
- Practice being clear and concise (aim for 15–20 minutes max)
- Prepare one or two specific actions you’d like them to take (e.g. “Can you write to the Treasurer about this?” or “Will you raise this with your party’s arts spokesperson?”)
During the meeting
Be respectful and stay on message
- Start by thanking them for their time
- Introduce yourself and your practice. Briefly explain your connection to the community and arts sector
- Use plain language. Assume they’re not familiar with the arts sector or how tax rules impact artists
- Focus on the real-world impact (e.g. “A $20K grant cost me $6K in tax”)
- Emphasise that parts of the current system treats irregular incomes the same as salaried jobs, and that’s the problem
Ask for something specific
Examples:
- Will you raise this with the Treasurer/Minister for the Arts?
- Will you support these reforms if they’re debated in Parliament?
- Will you write to your party’s finance spokesperson about this?
- Will you talk to other artists or arts organisations to learn more?
Take notes if needed. You’re allowed to say, “I’ll follow up with more information on that.”
After the meeting
Send a thank-you note or email
- Thank them again for their time
- Restate what you discussed and what actions they agreed to consider
- Attach a short summary or link to NAVA’s tax reform webpage if helpful
Let NAVA know how it went
Sharing feedback helps us track who’s been contacted and where momentum is building. Email us at nava@visualarts.net.au
Stay in touch
If the MP was supportive, keep them updated with exhibitions, media stories, or developments. If they are unsure, follow up with new data or examples in a few months.
Letter template
(Adapt this to your voice, practice, and experience.)
[Your Name]
[Your Address]
[Your Email]
[Your Phone Number]
[Date]
[Name of MP or Senator]
[Electorate or Office Name]
[Parliament House or Electorate Office Address]
Subject: Tax reform for artists – support needed
Dear [Name of MP],
I am writing to you as one of your constituents and as a [visual artist / craft practitioner / designer / arts worker] based in [your suburb or town]. I am part of the local creative community and a Member of the National Association for the Visual Arts (NAVA), Australia’s peak body for the visual arts, craft and design sector.
I’m writing because some of the tax rules that apply to artists have a direct impact on my work and income, and I would like you to understand what that means for artists working in your electorate. As my local MP, I want you to know how these rules affect people working in the arts in your electorate, particularly as tax reforms are considered by government and Parliament.
[Tell them about your experience. For example: How do you earn your income? Has a grant, prize, commission or strong year of sales affected your tax, GST or HECS/HELP repayments? Have the Non-Commercial Loss rules affected you? Are you concerned about how changes to capital gains tax could affect people buying Australian art?]
In my case, [briefly explain what happened and what it meant for your income, work or practice].
NAVA is seeking a number of changes, including:
- making art prizes, grants and fellowships tax-free
- exempting professional artists from the Non-Commercial Loss rules where they meet the ATO’s requirements for carrying on a business, or significantly increase the threshold
- changing GST rules so a single high-income year does not create ongoing obligations for artists whose income is usually below the threshold
- changing HECS/HELP repayments to better account for irregular income
- improving awareness and access to income averaging
- exempting the sale of privately owned artworks from capital gains tax and increasing the $500 CGT threshold for collectibles to $10,000
- improving deductions available to artists, including expenses associated with residencies and home-based studios.
I would appreciate you raising these issues with the Treasurer and the Minister for the Arts, and taking the impact on artists and arts workers into account when tax reforms are discussed or come before Parliament.
I would be happy to meet with you to talk about my experience and the work of artists in [electorate/community]. I can meet at your electorate office or invite you to visit my [studio / exhibition / organisation].
Thank you for considering these issues.
Sincerley,
[Your Name]
