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  • Promotional activity

    A promotional activity is where a person:

    • endorses or promotes goods or services
    • appears or participates in an advertisement.

    The following payments are also considered promotional activities and are subject to PAYG withholding:

    • Rollover payments - these payments are sometimes paid to performing artists where a producer wishes to use a promotional activity longer than originally contracted. You will need to withhold from the payment regardless of when the rollover payment is made.
    • Payments for auditions and voiceover subs - you must withhold tax from payments to the successful applicant. You do not withhold from payments to:
      • unsuccessful applicants as they have not participated in the final promotional activity
      • individuals who assist in the audition process, such as someone who reads a part to interact with the person auditioning. Their role is additional to the promotional activity, rather than one that is a central part of it.
       
    • Payments for wardrobe calls - you must withhold from payments for wardrobe calls made to a performing artist who has been engaged to perform in a promotional activity if the payments are made under a contract with the performing artist.

    Promotional activities are communicated through:

    • free-to-air and pay television (for example, infomercials and home shopping)
    • the internet
    • social media
    • cinema
    • outdoor advertising, such as billboards and television
    • brochures
    • digital media
    • radio
    • print media
    • corporate videos
    • 'in house' DVDs (if promoting goods and services)
    • sponsorship or personal appearances
    • point-of-sale material.
      Last modified: 14 Mar 2018QC 16528