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Tax determination on the use of an individual’s fame

Last updated 2 July 2023

We’ve published tax determination TD 2023/4 Income tax: use of an individual’s fame by related entities to help individuals understand the income tax implications of the use of their fame.

This TD applies to arrangements where an individual with fame establishes a related entity; for example, a family trust or company and enters into an agreement with that entity for the use of their name, image, likeness, identity, reputation and signature. The related entity then authorises other entities to use the individuals fame for a fee. The determination explains that income derived under the arrangement is the individual’s and not the related entities'.

Prior ATO guidance only applied to professional sportspeople, but the new determination applies to entertainers, actors, entrepreneurs, artists, influencers and professional sportspeople as well as other public figures.

In the TD, you will find:

  • a summary on what the determination is about
  • the ATO’sview on the matter (the ruling)
  • an example
  • date of effect of our compliance approach.

The TD applies to income years before and after its date of issue, except where the compliance approach applies. This applies to income derived before 1 July 2023 from arrangements which are consistent with the principles outlined in Draft Practical Compliance Guideline PCG 2017/D11 (withdrawn on 24 August 2018).

Those providing the use of their fame/image and affected by this TD should read it in full or seek advice on how it applies to their situation from a registered tax professional.