Major push for the key change that led to record audiences in London’s West End
West End-style tax incentives to boost Australian theater and live music will be a “priority” for NSW as state governments across the country make the case for major federal arts tax reform.
After appointing the Queensland Coalition government, NSW now claims it has the support of five other states and two territories to change the country’s tax system and help Australia’s struggling cultural sector.
NSW Treasury is detailing and modeling a shortlist of five priority reforms to take to a meeting of state culture ministers in February and pursue them with the Albanian government.
These incentives include eliminating taxes on arts and music awards and expanding existing screen and digital games tax incentives to include theater and live music.
Both ideas emerged from September’s historic arts tax meeting, held at the Sydney Opera House and attended by arts ministers from NSW, Victoria, South Australia and Western Australia.
In his opening statement on Friday, NSW Arts Minister John Graham said extending the tax relief scheme to live theater and music venues would deliver “high impact” benefits. Changes to the UK’s tax relief scheme coming into effect in 2021 It was set for record-breaking West End audiences in 2023 and 2024, but the Australian version will likely be limited to majority-owned Australian organizations and local stories.
“The aim will be to structure this in a way that offsets will encourage new Australian work, thereby creating and protecting more Australian intellectual property and talent,” Graham told industry leaders at the Sydney Committee event. “This isn’t just about supporting Australian stories; it’s about protecting and enhancing opportunities for stories to be developed in Australia and ensuring Australian creators and companies own the production of these new works.”
NSW has predicted it will seek support from other states to support proposals that would allow artists to reduce more of their losses from “casual gig” income and increase the scope of items arts workers can deduct from their income.
Expanding tax concessions on fringe benefits could offer more competitive pay packages and benefits for arts workers, helping an industry known for lower wages, persistent financial insecurity and erratic income patterns. On the philanthropic front, NSW has adopted a proposal to increase the minimum annual distribution from philanthropic foundations to charities and arts organizations in a bid to expand the funding pool. Currently, 5 percent is distributed, but foundations generate investment returns of almost double that each year.
Federal Arts Minister Tony Burke has said the government will consider tax cuts when its national cultural policy Revive is reviewed next year.
Victoria and NSW embraced tax reform as arts funding allocations remained flat or declined in real terms since peaking in the first year of the COVID pandemic.
Massive arts infrastructure programs are also weighing heavily on both states’ budgets, including NSW’s $1.4 billion Powerhouse Museum project and the $1.7 billion overhaul of the Melbourne Arts Precinct, which includes the renovation of the State Theater in Victoria.
Modeling prepared for Live Performance Australia, the live arts and entertainment industry’s peak body, suggests a 40 per cent tax cut that reduces pre-production costs would support the creation of more than 4,000 new jobs and add almost half a billion dollars in industry value through 168 new theater productions across the commercial and not-for-profit sectors.
“We are pleased that ministers from across Australia have recognized the proposal as a high-impact measure that will encourage further and new investment in live performance by commercial and not-for-profit producers,” LPA president Richard Evans said. “Production stimulation is a proven model that works on our screens and in our digital games, and internationally.”
“This means more jobs for Australian creators, more economic activity driven by arts and cultural activity in our regions and cities, and more opportunities for Australians to create and share stories for audiences in our community.”
Start your day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
