Taxation guidelines for professional artists

The following media statement was released by Tamara Winikof, Executive Director, National Association for the Visual Arts on 17 January 2005

Artists make friends with the tax man

"All Australian artists, performers, writers, composers and choreographers should be celebrating today" said Tamara Winikoff, Executive Director of the National Association for the Visual Arts (NAVA) which has spearheaded a campaign for artists to get equal recognition by the Australian Tax Office (ATO).

"Finally, after 8 years of lobbying effort, the ATO has produced clear guidelines in relation to income tax entitlements, which distinguish between professional artists and those who are simply making art for their own enjoyment." Winikoff said. "The ruling is not only of interest in Australia, but is being regarded as a benchmark internationally".

"For artists working in all mediums, the ATO's Public Taxation Ruling: carrying on business as a professional artist (TR 2005/1), is a giant leap towards a new kind of status, one which acknowledges that the arts is an industry with its own legitimate character and purpose. This Ruling recognises that the intentions of people working professionally in the arts are to be regarded with the same respect as any other form of business enterprise", she continued.

NAVA worked with a dedicated pro bono legal team of tax experts, Judy Sullivan, Senior Associate and Jill Savage, from Mallesons Stephen Jaques and arts lawyer Delia Browne, previously director of the Arts Law Centre of Australia, for what must be some kind of record of dedication to task.

During the long campaign, the whole arts sector was united in its efforts to secure the ruling, and joined together at key moments in negotiations. They gratefully acknowledge the contribution of the Arts Minister Rod Kemp, the Department of Communication, Information Technology and the Arts (DCITA) and the Australia Council who were all were very supportive of the need for this benchmark indicator.

But the arts sector knows that the job is not finished yet. The Non-commercial Losses (Division 35) legislation will need to be changed so as to remove the other barriers to some artists being able to exercise this right. This currently is being examined through a post implementation review by the Board of Taxation.

For media comment contact:
Tamara Winikof
Executive Director
National Association for the Visual Arts
Telephone: 02 93681900