The national live sector is applauding a proposal by the Tasmanian Liberal Government to test a 50% tax rebate for music venues to encourage them to put on more gigs.
The Tasmanian Live Music Excise Rebate Pilot is an Australian-first which will provide participating venues with half of their verified expenditure on live music, including acts and crew wages and associated costs like marketing and equipment hire.
“This initiative would support the hospitality industry and back Tasmania's live music scene,” said Acting Premier Bridget Archer.
"Tasmanians love live music and they love their local pub – this proposal is about supporting both.
"We want to see local venues rewarding for investing in musicians, creating local jobs and bringing communities together."
The Minister added: "This incentive means the more a venue invests in live music, the more support it will receive.
“More live music means more people through the door, more customers in town, more activity in our regions and more opportunities for local businesses. It means jobs for musicians, work for sound technicians and stronger local economies."
She will formally write to the Federal Government about the proposal, which she regards as “an innovative idea that brings together the arts, hospitality and tourism sectors.”
Music Tasmania lists 27 dedicated live music venues on its website.
National associations such as APRA AMCOS and the Australian Live Music Business Council (ALMBC) have applauded Tasmania’s move. Both have been lobbying federal, states and territory governments to adopt such an idea.
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Dean Ormston, CEO of APRA AMCOS, remarked, “This is a national first and Tasmania should be applauded for it. For the first time, a government in Australia has put a concrete live music rebate incentive on the table, one that rewards venues for investing in artists.”
A survey conducted by APRA AMCOS of 3,000 venues, nightclubs and promoters found that 70% contended that cost was keeping them from putting on gigs, and over 70% considered a rebate or a similar incentive as the single most important measure to get live music back on the stage.
The ALMBC responded to Tasmania’s proposal: “For the live music business community, the rebate model is one to watch. Tying support directly to what venues actually spend on musicians rewards the operators doing the heavy lifting.
“The proposal now sits with the federal government. If it gets up, it could offer a template for every state and territory.”
The association added, “The ALMBC supports more simple, workable answers such as this and is happy to play any role to support these kinds of initiatives.”
The Tasmanian Government’s 50% rebate far exceeds the 10% rate suggested by APRA AMCOS and ALMBC, and supporters like the Greens Party.
APRA AMCOS engaged BIS Oxford Economics to estimate the impact of a tax rebate on venues and artists.
Three tax offset scenarios for existing live music venues were modelled and consulted on 5%, 10%, and 20% of expenses.
60% of venues agreed an offset of at least 5% would encourage them to host more live music. These venues would host an average of 18 more gigs per creating a total of 52,000 extra gigs per year under the 5% scenario.
The 5% scenario saw a total rise in revenue of $235 million or $80,000 a year per venue. Cost to Government, depending on the scenario, ranged from $60 million to $230 million.
A combined venue offset (of 5% of expenses for current live music venues and $12,000 in expenses for those not currently hosting) would boost the incomes of musicians and artists by $205 million per year with an additional 203,200 gigs.
Administration
The timing of this financial lifeline to Tasmanian music venues couldn’t have been better.
Last week, as reported by The Music, seven venues were closed immediately when owners Pub Banc Group and Hotel Banc Group entered voluntary administration.
Of the seven, four were enthusiastic supporters of live music – Republic Bar, Cargo Bar, Jack Greene, and Post Street Social.
80 jobs went from the seven. Other venues responded with offers of help, reported The Daily Mercury.
The New Sydney Hotel posted: “We’re saddened that many of our friends in the Hobart hospitality scene have had very sudden and unfortunate news this morning. We will match any tips given to our staff this week and donated the total to assist those facing hardship.”
The Hobart Workers Club and Crowne Plaza Hobart offered free function rooms to patrons whose events had to be abruptly cancelled because of the closure.
On the weekend, the administrator allowed a number of the venues to open for final drinks.
This piece of content has been assisted by the Australian Government through Music Australia and Creative Australia, its arts funding and advisory body
