NSW government commits to the ‘art of tax reform’

As tax reform continues to be front of mind for the accounting industry, policy experts and members of the arts and culture sector are calling for holistic tax reform to help the industry flourish.

The NSW government revealed it would commit to boosting Australia’s creative industries by pushing the Commonwealth for changes in the tax system, as NSW was the “hotspot” for most of the contributions to the $122.3 billion industry.

In September, the state government planned to hold the Art of Tax Reform Summit, which would aim to bring economics and tax policy experts and artists together to produce recommendations for the next National Cultural Policy, due in 2028.

John Graham, NSW Minister for Arts, Music and Night-Time Economy, said the summit would look for ways to address the creative industry’s hurdles through tax reform.

“It is time to talk tax. In September we are bringing tax policy experts together with leaders from across the arts, culture and creative industries, as well as philanthropy and the commercial sector to develop a suite of tax reform initiatives to present to the Commonwealth as they develop the next national cultural policy,” he said.

“Two of the biggest levers governments have to support the arts and creative sectors are regulatory change and funding. If tax boffins and creatives can agree on something then our nation should take notice.”

According to the government, the upcoming summit would aim to incorporate and produce strategies for tax reform, including a live theatre tax offset, tax rebates for live music and a review of prize money tax settings.

The plea for tax reform to alleviate pressure on the arts came after last year’s Artists as Workers report, which found that a professional artist’s gross income was around $54,500, which included $16,000 from non-arts sources.

This income was compared to that of “managers” and “professionals” at $107,400 and $98,700, reflecting poorly on the creative industry.

The NSW government said it invited submissions for the summit after it invested nearly $1.4 billion into the arts and creative industries in its recent release of the state budget.

Courtney Houssos, NSW Minister for Finance, said the upcoming art and tax summit was a unique opportunity to modernise how creativity was supported through the tax system.

“The NSW government is committed to building a more inclusive and innovative economy. That means recognising the value of creative labour and policy settings that support it,” she said.

“NSW’s creative industries are vital to our cultural identity and economic prosperity. That’s why we’re working closely with the sector to support tax policies that reflect the realities of creative work so that talent can flourish across NSW.”