The Need For ABN

What is the real need for Individual Artists to have an ABN. I think I get the basics of it all, but the details are still a bit blurry round the edges.

GST is TOO confusing.

Jeff "Getting So Troubled" Watkins

Hi Jeff

Great to hear from you! How's the planning going?

Jeff Watkins wrote:
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> What is the real need for Individual Artists to have an ABN.

If you want qualified answers to these questions, you really need to attend the Australia Council's upcoming tax forum. Details are available here:



> I think I get the
> basics of it all, but the details are still a bit blurry round the edges.

you and 20 million others :)

> GST is TOO confusing.

That's the point.

Cheers
Grant

sheesh! just tell me if i'm beginning to sound like a cracked record on all this tax stuff... all this tax stuff... all this tax stuff...

Did anyone else spot the comments, reprinted in The West May 18, on the tax legislation due to be debated soon in Federal Parliament?

"If passed, anyone who works a day job to support his or her life as a practicing artist - and earns less than $20,000 a year from that art or fails to make a profit from it - will no longer be able to claim a tax deduction for materials used to support that vocation."

So, does anyone know a west australian actor that will actually be able to claim any tax deductions under this legislation?

Cheers
Grant

So you've sent off for an ABN, bought a new computer and a copy of some wizzbang accounting software. You've even invested in a couple of workshops and training sessions to bring yourself up to speed.

Sure it's been a costly exercise, but it's towards earning your livelihood and those types of investments are tax deductible... aren't they?

> "If passed, anyone who works a day job to support his or her life as
> a practicing artist - and earns less than $20,000 a year from that art
> or fails to make a profit from it - will no longer be able to claim a tax
> deduction for materials used to support that vocation."



Check it out.

Cheers
Grant

I agree it is tough on struggling artists. It should be noted however that:
a) the Tax Commissioner will still have a discretion to allow deductions against other income if it would be unreasonable not to in the circumstances; and
b) the proposal is not to cancel deductions but to postpone them until such time as income is generated from the activity in question in future years.

Perhaps the answer is for all aspiring artists to become part-time primary producers?

Hi Peter

The primary producers crack was spot on. I suspect you may have had your tongue firmly planted in your cheek in reporting this one too.

> It should be noted however that:
> ...
> b) the proposal is not to cancel deductions but to postpone them until such time as
> income is generated from the activity in question in future years.

It should be noted however? or noted also... as a further example of the deleterious effect this legislation will have on developing artists on low incomes.

It's a wonderful concession for people on high incomes looking to dabble in the arts and one day maybe earn something from it, but this concession will provide no immediate relief to artists struggling on part-time work and subsistence wages.

Cheers
Grant