Taxation
General
By law Symphony Australia needs to withhold income tax (PAYG tax) from the gross fee negotiated in the artist's contract and remit this tax to the Australian Tax Office (ATO). In order to fall under Australian Non-Resident Tax Rates, international artists need to have a Tax File Number (TFN) and an Australian Business Number (ABN). Both numbers are unique numbers issued by the ATO to individuals and organisations for identification and record keeping purposes.
Without a TFN and ABN, Symphony Australia must withhold 48.5% tax from payments we make to artists.
| Taxable income | Tax on this income | |
| $0 - $25,000 | 29c for each $1 | |
| $25,001 - $75,000 | $7,250 + 30c for each $1 > $25,000 | |
| $75,001 - $150,000 | $22,250 + 40c for each $1 > $75,000 | |
| Over $150,001 | $52,250 + 45c for each $1 > $150,00 |
The Company tax rate is 30c in each $1 and is exempt from superannuation contributions.
If you do not have a TFN or ABN, Symphony Australia can apply on your behalf. You will need to complete an Authority to Act form and send it to us together with a copy of your passport photo page. Please note that we will need to apply for the TFN first, and that this is only possible once you will have entered the country and your passport will have been scanned by the Department of Immigration.
Please be aware that ABN applications take 28 days to process and artists are required to have an ABN prior to their fee payments.
For more information on payments to foreign residents please see the ATO's page on "International Tax Essentials"
Ways to reduce your tax rate
Before arrival: - Foreign Resident Withholding Variation
Under the Australian Taxation Administration Act it is possible to apply for a variation of your tax rate. The main purpose of varying the rate of withholding is to ensure that the amounts withheld during the income year best reflect your end-of-year tax liability. Variations are issued at the discretion of the Australian Tax Office.
You will need to apply before your arrival in Australia,and Symphony Australia can only vary your tax rate once we have received a written notification from the ATO.
For further information please see the ATO Website : 2007 PAYG foreign resident withholding variation(FRWV) application
After payment: - Lodging a tax return
In order to help reduce your Australian tax liability, you can lodge a tax return at the end of the financial year and claim various work-related expenses. Please note that unless you have incurred tax deductable expenses during your stay in Australia, it is unlikely you will receive a tax refund from the ATO.
The legal obligation to lodge a tax return rests with the artist. By completing the form"Appointment of Tax Agent" you can either nominate your own Australian tax agent, or you can elect WHK Greenwoods, an accounting firm based in Sydney,which specialises in entertainers and non-resident tax issues. The tax agentc ompletes and submits the artist's Australian tax return to the ATO.
We advise artists to keep all receipts to substantiate expenditure in Australia. Unsubstantiated expenditure cannot be claimed on the tax return.
Only work-related expenses incurred during the contract period can be claimed. Holiday expenses incurred during any extended free time of your contract are not allowable deductions by the Australian Taxation Office (ATO).
Goods And Services Tax (Gst)
If an artist's earnings exceed AUD 50,000 in one year, the artist or authorised signatory will be required to sign a GST Division 83 Reverse Charge Agreement with Symphony Australia. Once this is form is signed, the artist is not required to register for GST, and Symphony Australia will reverse charge the GST on the services provided and account to the ATO on the artist's behalf.