We’ve released a draft tax determination, Draft TD 2022/D3 Income tax: use of an individual’s fame by related entities, for consultation.
It will help individuals with fame understand potential tax implications when a related entity authorises the use of their fame to other entities for a fee.
The draft TD covers arrangements where:
- the individual with fame (for example, media personalities, professional sportspersons, entertainers, actors, artists and influencers) establishes and enters an agreement with a related entity (for example, a company or a family trust) to use their fame, and
- the related entity then authorises other entities to use the individual’s fame for a fee.
The ruling explains that income derived under the arrangement is the individual’s and not the related entity’s.
The final determination is expected to apply to income years before and after its date of issue, except where arrangements were entered into based on draft PCG 2017/D11 Tax treatment of payments for use and exploitation of a professional sportsperson’s ‘public fame’ or ‘image’ (withdrawn 24 August 2018).
This is our initial view. If the draft TD applies to you or you have clients who may be affected, we encourage you to read the draft and provide your feedback by 4 November.
You or your clients can also use this draft TD in the meantime to help you understand how this could apply to your circumstances.
Arrangements where an individual with fame establishes and enters an agreement with a related entity to use their fame.