Key Takeaways

Professional artists who earn less than $75,000 can choose whether or not they wish to register for an ABN and GST. If you choose to register for GST, you must have an ABN. Registration for ABN and GST is compulsory if you earn more than $75,000 from your practice. 

If you have an ABN you can claim tax deductions for eligible expenses. If you’re registered for GST you must charge GST, and you can claim GST back on your eligible purchases. When deciding whether to register, you should consider the administrative requirements in terms of time and resources, as well as the financial implications. 

All the arts income of professional artists is tax assessable, including earned income, prizes and in-kind support. Artists with an ABN can claim tax deductions for eligible expenses and offset eligible losses, but cannot claim the full cost of donated works.

Professional artists are eligible for special income averaging and depreciation conditions and should speak with a professional tax accountant for personalised advice.