Amounts you do and don't include
You must include all the income you receive as a performing artist during the income year in your tax return, regardless of when you earn it, this includes:
- salary and wages, including cash or bonus payments
- allowances
- compensation and insurance payments – for example, payments made under an income protection insurance policy to replace salary and wages.
Don't include as income any reimbursements you receive.
Your income statement or payment summary will show all your salary, wages and allowances for the income year.
Example: bonus paid based on ticket sales
Ralf is cast as the lead role in a play. Ralf's employment contract has a clause which entitles him to a bonus if more than 50,000 tickets are sold over the period the play runs. The bonus is equal to 1% of the cost of each ticket in excess of 50,000 tickets sold.
During the period the play runs, 80,000 tickets are sold. Ralf receives a bonus of $15,000 that is shown on his income statement at the end of the relevant income year.
Ralf must include the $15,000 bonus as income in his tax return.
End of exampleAllowances
You must include all allowances your employer reports on your income statement or payment summary as income in your tax return.
An allowance is where your employer pays you an amount:
- to help you pay for a work expense – for example, sound equipment or costumes
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, working irregular hours
- for having special duties, skills or qualifications – for example, first aid qualifications.
Your employer may not include some allowances on your income statement or payment summary. Find out about declaring income and claiming deductions for Allowances not on your income statement.
Allowances not on your income statement or payment summary
If you receive an allowance from your employer, it does not automatically mean you can claim a deduction.
Your employer may not include some allowances on your income statement or payment summary, you will find these amounts on your payslip. You don't need to declare these allowances as income in your tax return, unless you're claiming a deduction. Examples include travel allowances and overtime meal allowances.
If you spend the allowance amount on deductible work expenses, you:
- don't include it as income in your tax return
- can't claim any deductions for the work expenses the allowance covers.
If you're not claiming a deduction, you don't need to keep any records of the amounts you spend.
If you spend your allowance on a deductible work-related expense, to claim a deduction you:
- must include the allowance as income in your tax return
- include a claim for the work expenses you incur in your tax return
- must have records of your expenses.
If you can claim a deduction, the amount of the deduction is not usually the same amount as the allowance you receive.
Allowances and claiming a deduction
The following table sets out allowances you may receive and when you can claim a deduction.
|
Reason for allowance |
Example of allowance type |
Deduction (Yes or No) |
|---|---|---|
|
Compensation for an aspect of your work that is unpleasant, special or dangerous or for industry peculiarities |
Height allowance Irregular working hours |
No These allowances don't help you pay for deductible work-related expenses |
|
An amount for certain expenses |
Meal allowance when you travel for work |
Yes If you incur deductible expenses |
|
An amount for special skills |
A first aid certificate |
Yes If you incur deductible expenses |
Example: allowance assessable, no deduction
Bessie is an acrobat. The show she is currently performing in requires her to carry out her act at heights over and above the average height acrobats generally perform at. Bessie's employer pays her an allowance for each show she performs at above average heights.
The allowance is shown on her income statement at the end of the income year.
Bessie must include the allowance as income in her tax return.
Bessie can't claim a deduction because she does not incur any deductible work-related expenses. The allowance compensates her for a dangerous aspect of her work. It is not to cover work-related expenses.
End of example
Example: allowance assessable, deduction allowed
Dennis is a musician employed by a theatre company. When he is required to travel away from his home overnight to perform in a show, his employer pays him an accommodation allowance, meals while travelling allowance and an incidental allowance.
The allowances Dennis receives are shown on his income statement at the end of the income year.
Dennis must include the allowances as income in his tax return.
Dennis can claim a deduction for the cost of accommodation, meals and incidental expenses he incurs while he is travelling overnight to perform his employment duties.
End of exampleSpecial professional income averaging
The income you earn as an employee performing artist (special professional) often changes significantly from income year to income year. To lessen the impact of these changes, special tax rates apply if your taxable professional income is above your average taxable professional income.
You are eligible for special professional income averaging if you:
- are an Australian resident at any time during the income year
- satisfy the first year requirements in either the current income year or an earlier income year.
The first year you are eligible for special professional income averaging (first year requirements) is the first income year during which the taxable professional income you earned as a resident special professional is more than $2,500. This is known as professional year 1.
Generally, your average taxable professional income for the current income year is the average of your taxable professional income for the last 4 income years.
You don't need to work out your tax payable with income averaging. We'll work it out from the amount you include in your tax return.
For more information, see Income averaging for special professionals 2025
Reimbursements
If your employer pays you the exact amount for expenses you incur (either before or after you incur them), the payment is a reimbursement.
A reimbursement is not an allowance.
If your employer reimburses you for expenses you incur:
- you don't include the reimbursement as income in your tax return
- you can't claim a deduction for them.
Example: Flights and transport to and from airport reimbursed
Tennille is employed as an actress. Her current job is based on the Gold Coast but some of the scenes for the show have to be filmed on location in North Queensland.
When Tennille travels to North Queensland to film scenes on location, she organises and pays for her own travel to and from the airport as well as her flights. The amount Tennille spends on these expenses is reimbursed by her employer.
Tennille doesn't need to include the cost of this reimbursement in her tax return as income.
Tennille can't claim a deduction for the cost of travelling to and from the airport or for her flights to North Queensland.
End of exampleFind out about performing artists: