ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
MM Creative Business
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
Focusing on the way you think about your arts
practice vis a vis business, not just a “hobby”
What is a business?
 Why set up a business?
 Should I be in business?
 What will my business be?
These considerations need to be made in relation to my
art making,financial considerations and the obligations
required for establishing and running a business
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ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
So what is a business or in the case of arts
practice “professionalising” what I do?
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Making a decision to practice full time and give up my
day job or combining other work with more time spent on
arts practice
Setting up a “structure” that means that I can maximise
the tax advantages and make deductions for materials,
resources, rent etc (notwithstanding whether you are full
time or not)
Determining to take the plunge and putting my work out
there, both in terms of marketing and competing with
other artists
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
NAVA describes a professional artist as:
“The term professional is intended to indicate a
degree of training, experience or talent and a
manner of working that qualify artists to have
their work judged against the highest
professional standards of the relevant
occupation.”
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
If I am a hobbyist am I a professional?
 YES- you can be “professional” in your
approach as described by NAVA but you
mightn’t be taken that seriously by the art worldit’s all a matter of the “aims” your work
 Tony Tuckson a renowned Australian artist
always held down a full time job as a gallery
Director, but he was certainly a professionalhowever the tax dept would probably have
viewed his art making activity as a “hobby”.
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
What does this mean for other arts or
creative ventures?
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“Professional Standards” may not be judged by an
individual of a group but by the “market”
So in some cases judgement will be by the “market”
Issues of standards will be measured by the market in
terms of demand for the product/s
Some creative ventures will however try to balance
“standards” or try to balance their preferred work with
more commercially viable products
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
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What does the law (essentially the tax
office) say?
http://www.artslaw.com.au/articles/entry/ta
xation-of-professional-artists/
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
So what should I do?
Legal and tax fundamentals
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Becoming a legal entity, eg Registered
Business name, Forming a Private
Company, Partnership, Cooperative
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PAYG implications
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ABN requirements
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
AND……
GST requirements
 Intellectual Property/Copyright
Insurance- Professional and Public
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ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
In the case of a professional artist, actor,
musician this may also involve taking on
an agent or gallery which will be part of
the business mix. This has other
implications such as paying commission
on work acquired or work sold, as
opposed to a DIY approach
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
1.
2.
3.
Steps I need to take to “professionalise”
and set up a business remembering that
there are different models
Make a decision!
Do a budget- what will it cost me for the initial
set up and at least one year of operation
Get an ABN and in the first instance do not
apply for GST unless you plan to earn over
$75,000 from your art and other allied paying
jobs (ref case study)
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
4. Decide whether to use your name or a business
name, if you want to use another name this must
be registered in Victoria through consumer
affairs
5. Get a quote for various insurances, public
liability, professional indemnity, sickness
insurance- think about risk
6. Work out a marketing plan including the
development of a website and data base so you
tell the world that your art is for sale
7. Choose an appropriate portal to showcase your
work ( Own website, Facebook, Ebay, Etsy)
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
The beginnings of an on going and
sustainable life business
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A vision for my work (s), product, products
Preliminary budgeting to achieve immediate goals
Planning for the day to day management of your
business
Time out for longer term planning (you have to dedicate
time to work “on” your business not just arts practice
Maximising opportunities the internet offers through
social networking, linking and website optimisation
Thinking about product development
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
Can I be have a business and claim business
deductions as well as deductions for an agent or
gallery dealer?
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YES, you can but you still must show that you
have “set up” a home office or studio, that
relates to your business
If you don’t do this you may be considered just a
“casual contract employee”if you are spending
say most of your time teaching or working in
some other job or jobs.
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
National Association for the Visual Arts
http://www.visualarts.net.au/
business.gov.au (General Information about establishing a business)
http://www.business.gov.au/Pages/default.aspx
Grants for Business Development
http://www.business.gov.au/businesstopics/grantsandassistance/Pages/default.
aspx
Business Victoria
http://www.business.vic.gov.au/BUSVIC/LANDING/SEC01.html
Arts Law Centre of Australia
http://www.artslaw.com.au/articles/entry/taxation-of-professional-artists
ESTABLISHING MY ART or ARTS
PRACTICE AS A BUSINESS
Public Law Interest Clearing House
http://www.pilch.org.au/
Australian Tax Office
http://www.ato.gov.au/
Arts Victoria
http://www.arts.vic.gov.au/Home
Australia Council
http://www.australiacouncil.gov.au/
Business Mentors
http://www.sbms.org.au/
Skills for Growth
http://www.sbms.org.au/content/documents/Skills-for-growth factsheet_April09_3.pdf