Australia's Future Tax System Review (the Henry Review)

Submission to the AFTS Secretariate, The Treasury

Lynn Gailey and Richard Letts

May 1, 2009

The review is considering reforms to the taxation system. The MCA submission presents observations and recommendations on a number of matters affecting musicians and the music sector.

The submission notes that the music sector, regarded as a satellite account (i.e. including activities that are recorded by the ABS under non-music categories such as broadcasting) probably contributes around $7 billion per year to GDP. This is a substantial contribution and the sector warrants serious consideration.

On the other hand, musicians incomes are low and their contribution to the sector can be encouraged by equitable but sympathetic consideration under the tax system.

The MCA submission makes observations and proposals about

• Income tax averaging.
• Tax-deductibility of work-related expenses.
• Inconsistencies in rulings.
• Access to child care.
• The application of the New Start program.
• Superannuation.
• Status as employees or self-employed.
• Tax concessions for donation of musical instruments.

Read the submission