A new APRA AMCOS-commissioned study plans to inject more live music into more venues
The Australian music industry has long been calling on the government to give it the tax offsets allocated to the film industry. The cry became louder following two disturbing figures emerging post-COVID.
What you need to know:
- A new study by BIS Oxford Economics, commissioned by APRA AMCOS says a five per cent offset, for example, could boost the income of musicians by $205 million per year.
- Tax offsets for touring artists would be a suggested 50 per cent of travel expenses.
- It would also see a huge rise in venues starting to host live music.
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First, there’s been a 70 per cent reduction in the number of venue-based live music gigs in FY20-21 as a result of the COVID-19 pandemic, as compared to 2018-19. Secondly, one in seven venues owners currently believe they won’t host as many gigs as they did before the pandemic.
A new study by BIS Oxford Economics, commissioned by APRA AMCOS, dives deep into the figures to see the impact of tax offsets on venues, musicians, promoters, agents, and crews.
A five per cent offset, for example, could boost the income of musicians by $205 million per year and create 203,200 extra gigs. It would additionally create 7,400 direct and indirect jobs across entertainment, hospitality, and tourism and contribute $636 million a year to Gross Value Added. It would also see a huge rise in venues starting to host live music.
In the study, these non-live music venues were offered the choice of tax offset scenarios of $12,000, $24,000, and $48,000. 64 per cent of venues agreed that an offset of at least $12,000 would encourage them to hang up the “live music tonight!” sign outside their door. The $12,000 figure could lead to 16 gigs per year for each venue with a total of 150,000 additional gigs per year.
The report goes on: “Total revenues of non-live music venues are estimated to rise by $247m in the 12k tax offset scenario, this equates to approximately an additional $30,000/year per venue.”
The cost to the Government would range from $110 million to $440 million, depending of course on the scenario. The benefit to the Government in terms of contribution to tax revenue would range from $90 million to $140 million.
Tax offsets for touring artists would be a suggested 50 per cent of travel expenses – both transport (van/vehicle hire and airfares) and accommodation.
APRA AMCOS proposes that to be eligible for the scheme, an act should do at least 20 gigs a year (four in regional areas), spend up to $20,000 on travel, and have four singles under their belt. 200-300 of 10,000 artists will be eligible for tax offsets based under this proposed minimum criteria.
They would receive $20,000 to $30,000 each per year in offsets under the proposed model. The proposed tax offset would cost between $4 million to $9 million per year. It is estimated that the program would return between $4 and $9 million per annum to Australian touring artists. Indirect flow-on effect of this policy has not been estimated.
“The role that live music plays in the economic, social and cultural fabric of Australia cannot be overstated,” said APRA AMCOS chief executive Dean Ormston.
“A healthy live music scene in our cities, regional centres, and towns provides them with a competitive advantage and is the feeding ground for Australia’s fast growing musical exports.”
Ormston went on to say that the in the past 30 years, the playing field for the live sector had “radically altered” because of changes in the “regulatory, audience, and digital environment”. Growing noise conflicts and a stricter legal regulatory framework had slowed the development of new business models.
“That is why a tax offset to support the growth of live music would not only be a catalyst for the social and cultural development of live music it would also provide an injection of confidence across the tourism and hospitality economy,” Ormston explained. “Live music, whether it is at the local pub, club, concert venue, or festival, is the beating heart of Australia’s cultural life.
“This is not a bottomless offset and would be quantifiable in a direct return to taxpayers due to the finite number of potential venues.”
See the full report here.
