The end of financial year is upon us, which means tax time!

The Australian Tax Office (ATO) has put together a comprehensive guide for individuals in the performing arts, outlining:

•  income and allowances to declare
• tax deductible expenses
• record keeping requirements.

We recommend you take the time to read it so that you can make the most of your financial circumstances this tax time.

Examples of tax-Deductible expenses

• Interstate travel expenses for arts projects, if these were not covered or reimbursed.
• Cost of training to maintain existing skills or to acquire or improve related skills.
• Phone, data and internet costs for the work-related use of your own phone or electronic devices.
• Union and professional association fees 
• Working from home expenses, as long as you follow the ATO’s guidelines.

Examples of expenses you may be able to claim

• You can claim a deduction for the cost of theatre tickets if the show has content directly related to your current work. You can’t claim the cost of tickets for shows you attend for general interest, entertainment or other private purposes.
• You generally can’t claim gym and fitness expenses. However, you may be able to claim this in very limited circumstances, where your role requires an extremely high level of fitness. Eg. trapeze artists working in Circus.

Examples of expenses you cannot claim

• Unfortunately, you can’t claim a deduction for the cost of child care (including school holidays and before and after school care) when you’re working. (As with access costs, TNA recommends you factor this into project budgets where possible, or request this be reimbursed when contracted on a project-basis.)
• You can’t claim a deduction for the cost of any entertainment, fundraising or social functions. This applies even if they are compulsory, non-compulsory or you discuss work matters at the event.

Full A – Z list of expenses can be found in the ATO’s Guide.

We recommend that you seek the expert advice of an accountant if you need to discuss your specific circumstances.

Self-Contributions to Superannuation

Indies should be paid superannuation in most if not all circumstances where they are paid a fee, as the income threshold no longer exists. If you are paid as an independent contractor mainly for your labour, you are an employee for superannuation guarantee purposes and are entitled to super.

While you may be paid superannuation, there are benefits to making self-contributions.

In addition to boosting your super by adding your own personal contributions, you may also be able to claim a tax deduction on self-contributions or receive a government co-contribution of up to $500.

An accountant will be able to advise you on the optimal amount to contribute, and whether to claim the tax deduction or government co-contribution.