You've nailed the setlist, your band's sound is tighter than a snare drum, and the gigs are finally rolling in. Then boom – a venue asks for your ABN and a tax invoice, and you're standing there like you've forgotten the words to your own song. If you're scratching your head wondering what an ABN actually is, whether your band needs one, and how to get sorted without drowning in bureaucratic noise, you're in the right place.
The Australian music industry pulled in a massive $8.78 billion in revenue in 2023-24, but here's the reality check: 49% of working musicians earned less than $5,999 from their music in the 2023 financial year. Whether you're gigging at local pubs in Penrith or headlining festivals across Sydney, understanding ABNs for bands and music groups is essential to getting paid properly and keeping the tax office off your back.
Let's cut through the red tape and break down everything you need to know about ABNs, business structures, and the financial admin that comes with turning your musical passion into a legitimate business.
An Australian Business Number (ABN) is your band's unique 11-digit business identity – think of it as your musical fingerprint in Australia's regulatory system. Administered by the Australian Business Register, this free identifier connects your band to various government systems and enables you to operate legally when earning income from gigs, recordings, royalties, or merchandise sales.
Here's the deal: without an ABN, venues and booking agents are legally required to withhold tax at the highest marginal rate – a brutal 47% from your payment. If your band earns $1,000 for a gig but doesn't provide an ABN, you'll only pocket $530 instead of the full grand. That's nearly half your fee vanishing before it hits your bank account.
Beyond preventing this painful withholding scenario, an ABN enables your band to:
The application is completely free through the Australian Business Register, and there's genuinely no reason to delay getting one if you're serious about earning money from music.
Before you apply for an ABN, you need to choose how your band will legally operate. This isn't just paperwork for the sake of it – your business structure affects everything from tax obligations to who's personally liable if things go sideways. Let's break down your options.
| Structure | Best For | Setup Complexity | Tax Rate | Personal Liability | Ongoing Costs |
|---|---|---|---|---|---|
| Sole Trader | Solo artists or one lead member with session musicians | Very simple | Personal tax rate (up to 49%) | Unlimited – personal assets at risk | Minimal |
| Partnership | Bands sharing income and expenses equally | Simple | Personal tax rate per partner (up to 49%) | Unlimited – all partners liable | Low ($34-79 for business name) |
| Company | Established bands with growth plans seeking asset protection | Complex | 30% company tax rate | Limited liability | High ($1,500-5,000 setup + ongoing ASIC fees) |
| Trust | Bands wanting flexible income distribution and asset protection | Very complex | Distributed to beneficiaries at their rate | Depends on trustee structure | Very high |
If you're a solo artist or if one band member handles the business side while others work as sub-contractors, the sole trader structure might work. You register under your personal name, use your Tax File Number, and report income on your personal tax return.
The good: Dead simple to set up, minimal ongoing compliance, and you maintain complete control.
The bad: Zero separation between business and personal finances means your personal assets are on the line if someone sues the band. Plus, you'll hit higher personal tax rates as income grows – up to 49% at the top bracket compared to the 30% company rate.
This is the most common structure for bands where all members genuinely contribute and share profits. A partnership creates a distinct legal entity for your band and requires its own Tax File Number separate from individual members.
The good: Shares obligations between band members, enables income splitting for tax planning, creates a proper entity for the act, and keeps compliance relatively simple. It also minimises workers' compensation and superannuation requirements since partners aren't employees.
The bad: Still no asset protection – partners are jointly and individually liable for debts. If your bassist racks up debts on behalf of the band, all partners are on the hook. Changing band members also creates admin headaches requiring ATO updates.
Cost reality: You'll need to register your band name with ASIC for $34 (one year) or $79 (three years). Worth spending the extra for three years to avoid annual renewal hassles.
Companies offer limited liability protection and the attractive 30% tax rate, making them appealing for bands with serious commercial aspirations. However, they come with significant setup costs ($1,500-5,000) and ongoing compliance requirements including ASIC annual reviews, company tax returns, and mandatory superannuation on wages.
The bottom line: Unless your band is genuinely operating at a commercial level with substantial income, the complexity and cost usually outweigh the benefits. Most working musicians don't need this structure.
Not everyone automatically gets an ABN – you need to be "carrying on an enterprise" in Australia. The Australian Business Register looks for evidence that you're running a genuine business, not just jamming with mates on weekends.
Your band qualifies when it demonstrates business characteristics including:
If you haven't started earning yet, you'll need to show "commencement activities" such as:
You don't need all of these, but demonstrating several genuine business preparations proves you're serious about making this work commercially.
Once you've chosen your structure and confirmed you qualify, applying for an ABN is refreshingly straightforward. Here's the process:
For a band partnership, you'll need:
For a sole trader setup:
Head to the Australian Business Register (www.abr.gov.au) and complete the application. The entire process takes 15-20 minutes, approval is typically instant, and it costs absolutely nothing. Zero. Zilch. If anyone tries charging you for ABN registration, walk away – it's a scam.
Unless your band operates under the actual legal names of all partners (like "Smith Jones and Williams"), you'll need to register your band name with ASIC. This:
Pro tip: Before committing to a name, search ASIC's register, the TM Check database, and ATMOSS (IP Australia's trademark search) to avoid conflicts. Discovering another band owns the rights to your name after printing merchandise and building a following is a nightmare you can easily avoid.
Open a separate business bank account immediately. Mixing band income with personal finances creates tax-time chaos and makes splitting income between band members unnecessarily complicated. Most Australian banks offer business accounts with reasonable fees – shop around for one that suits your transaction volume.
Understanding ABNs for bands and music groups means grasping the tax obligations that come with them. The critical threshold to understand is $75,000 annual turnover – this is the GST registration point.
If your band earns less than $75,000 annually (and frankly, most do – 64% of working musicians earned $14,999 or less in 2023), GST registration is optional. You should:
You cannot claim GST credits on expenses, but you also avoid the quarterly Business Activity Statement (BAS) compliance burden.
Once your band hits the $75,000 threshold, GST registration becomes compulsory. This means:
Example: A venue pays your band $1,000 for a gig. If GST registered, you charge $1,100 ($1,000 + $100 GST). You keep the $1,000 and forward the $100 to the ATO. However, if you spent $550 (including $50 GST) on equipment that quarter, you can claim that $50 back, owing only $50 to the ATO.
Smart record keeping maximises your deductions. Bands can typically claim:
The key is keeping receipts and records for five years. Bank statements showing transactions aren't enough – you need the actual receipts proving what was purchased and why it relates to your music business.
Professional invoicing separates serious bands from hobbyists in venues' eyes. Every invoice must include specific elements to comply with Australian tax requirements and ensure you actually get paid.
Your business details:
Payer's details:
Performance details:
Your banking details:
GST declaration:
Send invoices as PDF documents (not in email bodies) with clear subject lines like "[Band Name, Gig Date, Invoice]". Issue them on the day of performance or immediately after. Check payment terms beforehand – some venues pay within seven days, others take 30+ days. Verify you're invoicing the correct entity (venue vs booking agent) to avoid delays.
Most importantly, keep copies of every invoice for your tax records. When the ATO asks you to prove income or deductions, these invoices are your evidence.
If your band performs original music, registering with APRA AMCOS is essential for collecting royalties when your songs are played, streamed, or performed. Here's where understanding ABNs for bands and music groups gets interesting.
When registering with APRA AMCOS, songwriters should provide an "Individual (Sole Trader)" ABN – not a partnership or company ABN. While not compulsory, providing your ABN prevents APRA from withholding 47% tax on royalty payments exceeding $500.
The math: A songwriter earning $1,000 in APRA royalties without an ABN receives only $530 after 47% withholding. With an ABN registered, they receive the full $1,000. That's $470 extra in your pocket every time royalties are paid.
If you're GST registered, notify APRA so they pay GST correctly on your royalties.
After helping countless musicians navigate these waters, certain mistakes pop up repeatedly. Avoid these to save yourself headaches:
Accidentally registering for GST when applying for your ABN. The online form includes a GST registration section – carefully skip this unless your turnover genuinely exceeds $75,000. GST registration creates quarterly reporting obligations you don't want unnecessarily.
Using one ABN for everything when you should have separate ones. If you're in multiple bands, each band partnership needs its own ABN. Your solo project can have a separate sole trader ABN. Mixing income streams under one ABN when structures differ creates tax complications.
Not separating business and personal finances. Get a dedicated business bank account. Mixing band money with personal funds makes tax time excruciating and complicates splitting income between band members.
Forgetting to notify the ATO of changes. When partners leave or join, business addresses change, or the band's activities shift, you must update your ABN details within 28 days. The ATO takes this seriously.
Skipping the band agreement. Many band disputes stem from unclear agreements about income splitting, equipment ownership, and what happens when members leave. A simple written agreement costs $500-2,000 and prevents legal fees of $300-600+ per hour when things go wrong.
Poor record keeping. Without proper receipts, invoices, and financial records, the ATO can disallow deductions or conduct audits. Track everything religiously or engage a bookkeeper who understands the music industry.
Let's be honest about what the numbers show. The Australian music industry is worth $8.78 billion, but that wealth isn't evenly distributed. The top 25% of artists earned 82% of total artist income, leaving the remaining 75% fighting for scraps. The median annual artist income sits at just $14,700, and only one in five musicians derives all their income from music.
Two in three working musicians take jobs outside the industry to survive. Sixty percent get paid less than $250 per gig despite spending 20+ hours per week preparing. Forty-two percent play unpaid gigs, and 82% don't receive superannuation for performances.
These aren't reasons to give up – they're reasons to get your business admin sorted properly. Every dollar you lose to withholding tax because you didn't have an ABN registered, every deduction you miss because you didn't keep receipts, every payment delayed because your invoice was incomplete – it all adds up in an industry where margins are already razor-thin.
Understanding ABNs for bands and music groups isn't about bureaucracy for bureaucracy's sake. It's about protecting the money you've earned, maximising what you can claim back, and building a sustainable music career in an industry that's incredibly rewarding but financially challenging.
Getting your ABN sorted is genuinely the easiest part of building a music career. The application is free, takes 15-20 minutes online, and approval is usually instant. Choose your structure thoughtfully – partnerships work for most bands, sole traders suit solo artists with session musicians, and companies make sense for established acts with significant commercial operations.
Once you've got your ABN, invoice professionally with all required details, keep meticulous records of income and expenses, separate business and personal finances, and consider engaging professional help when turnover exceeds $75,000 or complexity increases.
The Australian music landscape is tough, but musicians who treat their art as a legitimate business – with proper registration, compliant invoicing, and smart tax planning – set themselves up for longevity in an industry where sustainability is increasingly rare.
Your music deserves to be heard. Your financial admin deserves to be sorted. Get your ABN registered, nail your invoicing, track your expenses, and focus your energy on what you do best: creating music that moves people.
It depends on your structure. A sole trader technically operates under one ABN covering all activities, but this gets messy when splitting income between different projects. The cleaner approach: register separate partnerships (with separate ABNs) for each distinct band, and maintain a sole trader ABN for your individual work. Each business entity that shares income distribution should have its own ABN to prevent tax complications and enable clear expense tracking per project.
Not unless you genuinely expect to earn over $75,000 in annual turnover. Given that 64% of working musicians earned $14,999 or less in 2023, most bands operate well below this threshold. Avoid accidentally registering for GST during your ABN application – it creates quarterly reporting obligations (Business Activity Statements) you don't need. You can always register for GST later when turnover increases.
Venues and booking agents are legally required to withhold tax at 47% if you don't provide an ABN. If your band earns $1,000 for a gig without an ABN, you'll receive only $530 instead of the full amount. The withheld $470 goes to the ATO, and while you can claim it back when lodging your tax return, it creates severe cash flow problems. Getting an ABN is free and prevents this issue entirely.
Generally no, if you're structured as a partnership where all members share profit and loss equally. Partners aren't employees, so superannuation isn't required. However, if you're a sole trader or company hiring other musicians as employees (rather than genuine independent contractors with their own ABNs), superannuation becomes compulsory at 11% of wages. The ATO applies the '80/20 rule' – if someone works for one entity 80%+ of the time, they may be deemed an employee regardless of how you've labelled the relationship.
For bands earning under $75,000 with simple structures, you can probably manage yourself using accounting software like Xero or Rounded (which is music-specific). However, once you hit the GST threshold, operate through a company structure, or juggle multiple projects with complex income streams, professional accounting help becomes invaluable. The cost of an accountant familiar with music industry specifics is typically far less than the mistakes they prevent and the deductions they identify. Consider it an investment in your band's financial health rather than an unnecessary expense.
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