The NSW Government’s Art of Tax Reform consultation has sparked broad support across the arts sector, with key reforms now tabled following over 300 submissions. The discussion, aimed at modernising how artists are taxed, includes proposals such as exempting grants, awards, and fellowships from income tax and reforming the Non-Commercial Loss (NCL) rules, which penalise artists earning secondary income over $40,000. A full overview can be read in the discussion paper.
Other proposals include averaging GST thresholds to avoid punishing artists for one-off income spikes and creating new deductions for work-related expenses like home studios, childcare, and cultural travel for First Nations artists. Creative Australia’s submission supports reforms that improve sustainability, affordability of cultural spaces, and sector growth. Their guiding principles emphasise simplicity, incentivisation, and public value. The reform package has also been explored in detail by ArtsHub.
As the sector awaits the outcomes of the September summit, many hope the proposals will move beyond consultation to implementation. More details and updates can be found on the Have Your Say portal, which continues to engage artists, organisations and the public in shaping a more equitable tax system for creatives.
Photo: Garry Trinh, courtesy of NAVA.