Agents, payments and tax

A little help for a newbie please. When paid by say, Channel Seven, the payment goes directly to the agent. (correct?) The agent then takes the fee (usually 10 percent) and pays the remainder to the performer. Is tax paid at this point.... or is there no tax paid until the yearly income tax return? and how does this work with HECS repayments Thank you

It depends on whether you signed a form and gave it to your agent, agreeing for tax to be taken out of any income earned. If not, your accountant will treat you as a sole trader and they will assess your income over the year to see how much tax is taken out, if any. Your HECS repayment should come out of any tax return you are owed. Suggest going to the Tax Office website at www.ato.gov.au for further clarification.

Thanks for that (actually inquiring for my daughter) I think HECS payments only happen after earning a certain amount and then it's pro rata

You have to be a bit careful. An agent should insist on doing this one of two ways. Either you complete a tax declaration form including your Tax number and if you have other employment requesting basic tax to be deducted. Or you will have to obtain an ABN number and invoice the agent quoting that number. If you do that then it is important that you keep an amount approximating 10 - 15 percent of your ABN income for taxation purposes. (Unless you want a big tax bill.) Talk to an accountant (a real one not HR Block). Is that all there is? Well if that's all there is my friend, then let's keep dancing. www.tonymoore.id.au

Something that hasn't been mentioned is also contacting Arts Law Centre of Aus. They offer a free advice phone call and are trained in arts law and tax issues. They can help you and your daughter figure things out. Jellyfish shadow puppet for sale at Puppets in Melbourne