🎵 Getting Started in the Music Industry: An Accountant’s Perspective 🎵
As an accountant, I spend a lot of time working with creatives — and musicians are some of the most passionate people I meet.
What I see time and time again is this:
talented musicians struggling not because of their music, but because no one ever explained the business side in a way that made sense.
If you’re an Australian musician starting out, here are a few things I wish more people understood earlier:
Your Music Is a Business (Even If It Still Feels Like a Hobby)
The moment you start getting paid for gigs, releasing music, selling merch, or earning anything online, the ATO sees that activity as business income.
You don’t have to lose the joy or creativity — but treating it professionally from the start puts you in a much stronger position long term.
Separate Your Money Early
This is one of the first things I talk about with musician clients.
Having a separate bank account for your music income and expenses makes it far easier to:
Keep clean records
Understand whether you’re actually making money
Prepare tax returns or BAS
Avoid unnecessary stress if the ATO ever asks questions
It’s a small step that makes a big difference.
Know What You Can (and Can’t) Claim
Many musicians either miss deductions or claim things they shouldn’t.
Common expenses might include:
Instruments and equipment
Studio time and production costs
Software and subscriptions
Marketing, artwork, and videos
Travel related to gigs or rehearsals
The general rule is simple: expenses must be directly related to earning your music income. If something is partly personal, it needs to be treated carefully.
Don’t Get Caught Out by Tax or GST
I’ve seen too many musicians spend everything they earn — then panic when tax time comes around.
Depending on your situation, you may need to:
Register as a sole trader
Lodge business income in your tax return
Register for GST once turnover hits $75,000
Putting money aside from each payment you receive can save a lot of stress later.
Track All Your Income Streams
Streaming, gigs, merch, licensing, social media — each one might feel small on its own, but together they show you what’s working.
Good records help you make better decisions about where to focus your time and energy.
Be Careful With Contracts
If you’re offered a deal and the numbers don’t make sense, that’s a red flag.
Contracts affect how and when you’re paid — and who owns your work. If you don’t fully understand it, pause and get advice before signing.
At Mirams Accountants, we work with musicians and creatives to help them get that foundation right — so they can focus on making music, not stressing about tax and compliance.
