Tax deductions for performing artists.

This article is for informational purposes and general commentary only. It does not constitute legal advice and does not create a solicitor-client relationship.

A performing artist can claim deductions for expenses incurred in earning their performance income. The governing rule is the general deduction provision, section 8-1 of the Income Tax Assessment Act 1997 (Cth): an expense is deductible if it is incurred in gaining or producing assessable income, and is not private, domestic or capital in nature. The Australian Taxation Office applies this to performers through specific guidance.

Two themes run through every claim. First, there must be a real connection between the expense and earning income as a performer, not just a general link to the profession. Second, you must have records to prove the expense and the connection. A genuine expense with no record is often a lost deduction. This note explains the principles; it is general commentary, not tax advice, and your accountant or the ATO can apply it to your circumstances.

The general test

To be deductible, an expense must be incurred in the course of earning your assessable income and must not be private or capital. Where an expense is partly work-related and partly private, only the work-related portion is deductible, and you need a reasonable basis to apportion it, such as a diary of work use for a phone or car.

Common deductions for performers

Expenses that performers commonly claim, where they meet the test, include agent and manager commissions, union and professional association fees such as membership of the Media, Entertainment and Arts Alliance, coaching and lessons to maintain existing skills, research directly related to current work, and the depreciation of instruments and equipment used to earn income. Travel between separate work locations, and some costs of touring, can also qualify.

Costumes, wardrobe and grooming

This is an area the ATO watches closely. The cost of conventional clothing is generally not deductible, even if you only wear it to perform. Costumes and occupation-specific clothing that are not suitable for everyday wear can be deductible, as can their upkeep. Stage make-up and hairdressing required for a specific performance can be deductible, while ordinary grooming is private. The line is between what the role requires on stage and what is simply personal.

Self-education and new skills

Self-education is deductible where it maintains or improves the skills you use to earn your current income, or is likely to increase that income. It is generally not deductible where it is designed to get you into a new field or occupation. A working actor taking an advanced acting course usually satisfies the test; a person studying to enter the industry for the first time usually does not.

Home studio, phone and equipment

Where you use part of your home to rehearse or run your performance business, a portion of certain running costs can be deductible, on a reasonable basis. Phone and internet used for work can be claimed to the extent of the work use, again with a reasonable method of apportionment. Equipment that costs more than the instant write-off threshold is usually depreciated over its effective life rather than claimed in full in one year.

Records and substantiation

The deduction stands or falls on the records. Keep receipts, invoices and a diary where use is mixed, such as car and phone. The substantiation rules require written evidence for work expenses above the ATO's threshold, and specific rules apply to car and travel claims. Good records through the year turn genuine expenses into claimable deductions and protect you if the ATO asks.

Structure and personal services income

How you are set up affects your tax. Many performers operate as sole traders. Where income is mainly a reward for your personal skills, the personal services income rules can limit certain deductions and can attribute income earned through a company or trust back to you. This is one reason to get structure and tax advice rather than assume a company will reduce your tax.

Frequently asked.

Can a performer claim clothing as a tax deduction?

Conventional clothing is generally not deductible, even if only worn to perform. Costumes and occupation-specific clothing not suitable for everyday wear can be deductible, along with their upkeep.

Are acting or singing lessons deductible?

Coaching and lessons that maintain or improve the skills you use in your current work are generally deductible. Study to enter the industry for the first time, or to move into a new field, generally is not.

Can I claim my agent's commission?

Yes, where it relates to earning your performance income. Agent and manager commissions are a common and legitimate deduction for working performers.

Do I need receipts for everything?

You need written evidence for work expenses above the ATO's threshold, and records to apportion mixed-use costs such as phone and car. A genuine expense with no record is often a lost deduction.

Is stage make-up deductible?

Stage make-up and hairdressing required for a specific performance can be deductible. Ordinary personal grooming is private and is not.

If you are a performer, producer, venue, or independent practitioner and this raises a question about your own situation, Aaron Kernaghan and the team at Brady & Associates Lawyers can give you tailored guidance. Call 0421 717 019 or contact the firm.

This article is for informational purposes and general commentary only. It does not constitute legal advice and does not create a solicitor-client relationship. It reflects the law in Australia as at 13 September 2026, with a focus on Commonwealth law and New South Wales and ACT practice. The law changes and applies differently to every set of facts. Written by Aaron Kernaghan, Brady & Associates Lawyers.

← Back to Entertainment & Arts Law