Taxation 

General

The Australian tax year goes from 1 July to 30 June. 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 companies for identification and record keeping purposes.

The Non-Resident Company Tax Rate is 30c in each $1 and companies are exempt from superannuation contributions.

If you do not have an Individual 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.

Company TFN and ABN applications require specialized knowledge about the company and the Australian tax system, and Symphony Australia is therefore not able to apply for a TFN and ABN for an artist's company.  Applications can be made electronically on the Australian Business Register website under http://www.abr.gov.au/ABR_BC/. Alternatively, contact details for an Australian tax accountant who specializes in foreign-resident entertainers are provided at the end of this section.

Please be aware that applications take up to 28 days to process and artists are required to have a TFN and ABN prior to their fee payments. Otherwise Symphony Australia must withhold 46.5% tax from payments we make to artists.

For more information on payments to foreign residents please see the ATO's website at http://www.ato.gov.au/ 

 

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 2009 PAYG foreign resident withholding variation(FRWV) application form .


After payment: - Lodging a tax return

Under Australian law you are required to lodge a tax return for your Australian-source income.  Australia's tax system works on self-assessment.  This means that taxpayers must show all their assessable income and claim only the deductions and offsets to which they are entitled to on their annual income tax return.

The legal obligation to lodge a tax return rests with the artist.  When a taxpayer signs their return, they are taking responsibility for the claims they are making.  The ATO assumes the taxpayer has completed their tax return in good faith.  If a taxpayer becomes aware that their tax return is incorrect they must contact the ATO as soon as possible to correct the error.  Even if a registered tax agent helps a taxpayer prepare their tax return, the taxpayer is legally responsible for the accuracy of the information.

Various work-related expenses incurred immediately prior to the tour and during the tour can be claimed.  Such expenses include:

 

We advise artists to keep all receipts to substantiate expenditure in Australia.  Unsubstantiated expenditure cannot be claimed on the tax return.  Holiday expenses incurred during any extended free time of your contract are not allowable deductions by the ATO.

Goods And Services Tax (Gst)

If an artist's earnings exceed AUD 75,000 in one financial year, the artist or authorised signatory will be required to sign a GST Division 83 Reverse Charge Agreement with Symphony Australia. Once this 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.

 

Please note neither Symphony Australia nor the orchestras are registered tax agents and cannot advise on your personal tax matters.  Any information given here is general and does not take into account your personal situation.  

If you would like advice on your taxation and superannuation matters or help in lodging a FRWV or a tax return, below are contact details of an Australian tax accounting firm based in Sydney which specializes in non-resident entertainers.  The tax accountant's fee is also a tax-deductible expense.

Robert Finkiotis                                       
Finikiotis & Father                                             
Suite 703, Harley Place                           
251 Oxford Street
Bondi Junction NSW 2022
Australia
Phone: +61 2 9389 8844 
Fax: -   +61 2 9387 3632
Email:   Finikiotis@bigpond.com