Tax reform for artists: Submissions close 10 August
Help shape tax policies for artists and ensure the sector’s voice is heard at the upcoming Art of Tax Reform Summit and in the next National Cultural Policy.
For more than two decades, NAVA has fought for more equitable tax policies for artists, securing wins like the Australian Tax Office’s TR 2005/1: carrying on business as a professional artist ruling, which recognises the unique nature of artists’ work. Now, we have a key opportunity to push for further reforms that reflect the realities of visual arts work and practice.
The NSW Government’s Art of Tax Reform discussion will inform the next National Cultural Policy to better support artists and arts workers. Complete the survey or make a submission by Sunday 10 August.
NAVA’s key recommendations
To guide your submission, here are some of the key reforms NAVA is advocating for:
1. Tax exemptions for art prize money, fellowships and govt grants
- Exempt arts prizes, fellowships and government grants from taxable income (mirroring Prime Minister’s Literary Awards), recognising them as irregular income supporting creative development.
2. Exempt artists from Non-Commercial Loss (NCL) rules
- Exempt artists from NCL if they meet the ATO’s "in business" test under TR 2005/1. Current income caps and asset tests are arbitrary and don’t reflect how creative practices operate.
3. Improve access to income averaging
- Develop clear, plain-language resources and case studies for artists and their accountants.
- Improve MyTax functionality to prompt artists about income averaging eligibility and automate calculations.
- Expand outreach to artists and tax professionals to increase the number of artists who can benefit.
4. Update expense treatment for artists
- Continue and boost the instant asset write-off scheme to support investment in tools, materials and artworks.
- Allow living cost deductions for residencies (up to 12 months), recognising them as legitimate professional activities eligible for R&D offsets.
5. Introduce exhibition tax relief for museums and galleries
- Develop an Australian version of the UK’s Exhibition Tax Relief to offset production and display costs for public-benefit exhibitions.
6. Strengthen tax settings for giving and donations
- Maintain and expand the Cultural Gifts Program.
- Allow deductible gift recipient (DGR) eligibility for more arts organisations.
- Ensure ATO has or can access cultural expertise to assess DGR applications from organisations promoting the visual arts and other specialised areas.
- Fix rules preventing artists from claiming tax deductions when donating their own work to fundraising events.
7. Fix property tax settings to support creative space access
- Offer property tax relief for landlords leasing or donating space to artists, galleries, or creative enterprises at below-market rates.
- Provide lease subsidies for small galleries, pop-up spaces, and craft/design studios.
- Offer tax credits or deductions for property owners converting unused spaces into artist studios, live/work spaces, or exhibition venues.
- Streamline planning approvals to encourage local councils and property owners to repurpose empty buildings for creative use (e.g., temporary galleries, studios, or performance spaces).
- Introduce vacancy taxes to unlock underutilised property for creative and cultural purposes.
8. Reduce the GST burden on low-income artists
- Offer flexible GST threshold for artists: Allow artists to opt into GST only when earnings consistently exceed the threshold (e.g., over two consecutive years).
- Exempt original artwork sales and studio leases (below threshold) from GST.
9. Introduce levies to support the arts
- Implement levies on gambling revenues (lotteries, casinos, etc.) to establish funds for the subsidy of services to the visual arts.
- Impose levies on AI suppliers to remunerate creators for training data and Intellectual Property (IP) use.
How to add your voice
Have grants or prizes been unfairly taxed? Has the $40k Non-Commercial Loss rule impacted you? Your story strengthens the case for change.
Share your experience by completing the survey or making a detailed submission. Feel free to use NAVA’s recommendations or highlight other issues affecting your work or practice.
NAVA is also gathering case studies to strengthen our advocacy. If you’ve faced tax challenges, email us at nava@visualarts.net.au.
This is a rare chance to influence real change. Let’s ensure the tax system works better for artists and arts workers.
Image credit
Amy Prcevich, ‘Workaround’ 2024. Installation view at Bus Projects. Photo by Astrid Mulder.
ID: A gallery space with white walls and checkered flooring. A video of a meeting plays on a wall-mounted screen with headphones. Through a doorway, wooden beams are wedged across the frame, and a black fabric form rests on a pallet inside a small, industrial-looking room.
