Tax reform blueprint could transform $9B music industry
APRA AMCOS submits comprehensive tax reform package to NSW Government’s upcoming summit ahead of the Art of Tax Reform Summit in Sydney next month
The submission's centrepiece is an innovative 'AUSTRALIA LIVE' tax offset, combining live music incentives with theatre production rebates
APRA AMCOS has submitted a comprehensive tax reform package submission to the NSW Government's Tax Reform Summit for Creative Industries, outlining how smart tax policy could unlock massive economic potential while strengthening cultural sovereignty and boosting social connection through music.
The submission, given ahead of the Art of Tax Reform Summit in Sydney next month, presents evidence-based recommendations that would revitalise cultural life from regional towns to our largest cities while building Australia's global cultural influence.
APRA AMCOS CEO, Dean Ormston, said the submission shows how targeted tax reform could transform Australia's $8.78 billion music industry and get us closer to achieving the goal of becoming a net exporter of music.
"Our submission to the NSW Government presents a clear framework that recognises music and the broader creative industries as a vital economic sector that drives exports and educational outcomes across the country," says Ormston.
"With Australian music exports already contributing $975 million to our economy, this represents a moon-shot opportunity for Australia to lean in and become a net exporter of music while strengthening the cultural connections that bind communities together from regional centres to global stages."
The submission's centrepiece is an innovative 'AUSTRALIA LIVE' tax offset, combining live music incentives with theatre production rebates. Oxford Economics modelling cited in the submission shows the live music component alone could generate up to $920 million in Gross Value Added and create 10,800 jobs while boosting musician incomes by $294 million annually.
"Almost 80% of live music venues, nightclubs and promoters in our recent survey identified tax offset support as the most important long-term solution," adds Ormston.
"The live music ecosystem serves as the training ground for Australia's global musical exports, but we're still struggling to reach pre-pandemic venue numbers. This is about rebuilding a sustainable live music sector that nurtures emerging talent, supports established artists, and brings communities together through the power of live performance."
The submission recommends expanding R&D tax incentives to creative industries, elevating screen composers within Significant Australian Content guidelines, removing taxation inequities between arts and sporting prizes, and includes tax schemes to support the IP development part of the industry with record labels and publishers.
The submission also compiles the latest international thinking on emerging challenges from AI technology and local content obligations. Citing APRA AMCOS research showing 97% of members demand AI providers disclose when using copyrighted works as training data, with 23% of music creators' revenues predicted to be at risk by 2028, the submission argues these approaches are worth investigating as part of a whole of industry response.
"Creators face a reality of seeing their creations exploited by AI platforms without credit, consent or compensation," Ormston adds. "Our submission shows how smart tax policy has become essential for maintaining cultural sovereignty while supporting innovation in creative technologies."
The submission draws on international best practice from France, Italy, the US and the UK while tackling the specific challenges facing Australia's music industry, including digital platform cultural levies and AI compensation frameworks.
"We've been leading cross-sector advocacy on the potential of tax offsets in rebuilding a sustainable creative sector since commissioning our first economic research in this area in 2012," concludes Ormston. "The Australian Parliament's Live Music Inquiry released early this year made a tax offset for live music its first recommendation, validating years of advocacy from APRA AMCOS and our partners across the ecosystem.
"This is about ensuring Australian composers, songwriters and artists continue pushing new boundaries and kicking goals in a globally competitive environment while creating the cultural experiences that define who we are as a nation. Tax reform done right creates outcomes that help retain our creative talent, strengthen community connection through live music, and build the intellectual property wealth that projects our stories and values to the world."
Read the full submission (PDF 784kb)
