Off the back of 2023’s Federal Budget, Meredith Fannin, founder and director of music and entertainment-focused accounting firm Darkwave, has shared reaction and commentary on what the budget means for music, artists and the creative industries more broadly.
Below are the statements from Fannin:
“In terms of arts funding, the government seems to be investing in larger big-budget productions by increasing the film location offset to 30% while increasing the QAPE threshold (Qualifying Australian Production Expenditure). There has been additional funding to Screen Australia for interactive games – an expanding and commercial industry.
“The expansion of funding for Public Lending Right (PLR) and Educational Lending Right (ELR) rights to include digital content is a welcome change. This comes in addition to the already announced Revive – National Cultural Policy and Location Incentive, which is the main focus in terms of access to government funds for artists and musicians.
“Funding for Australia’s Export Market Development Grants (EMDG) has been reduced, which may impact the ability of early to mid-career artists and creative businesses to claim overseas promotional tours. However, there is an expectation that the Revive funding package will provide similar grants to make up any shortfalls here.
See also: Budget 2023-24 roundup: Funding for ABC, SBS and AAP, Screen industry boost
“When it comes to changes to tax, there has been additional funding to the ATO for GST compliance, superannuation and personal tax compliance. Meanwhile, the low to middle tax offset has finished. There are also changes to the small business asset write-off threshold and the introduction of a small business energy incentive. Artists, whether operating as individuals or small businesses, will definitely need to make sure their accounting, document management and record keeping is in order.
“The previously announced introduction of payday super is one of the other main changes. This will ensure businesses cannot cashflow their business with employees’ super money, many small businesses will need to reassess their cash flow forecasts. Increased data matching via single touch payroll will be available, and will highlight those businesses that do not pay their super on time, we expect to see significant ATO audit activity in this area.
“One of the most important things that creatives should take away from this Budget is that now is the time to take control of their finances. The ATO’s compliance approach encourages artists to be attentive to their own finances. For those trading via entities, artists are their own company director, and as such it is their responsibility to ensure they are compliant with all relevant tax laws, including super, and to have an understanding of the flow of their money and finances.”
Also, this week Darkwave announced the launch of a new business management division, Darkwave Business Management, formed to help musicians, creators and creatives to grow their career and businesses.
–
Top image: Meredith Fannin and Andrew Elmore