Every musician knows the new guitar is a tax deduction. It's the other forty things that slip through. The strings, the parking at the venue, the agent's cut, the union fees, the drive to Mount Gambier with a full backline in the car. Individually small. Added up over a year, real money.
The rules aren't actually that complicated. The hard part is having the receipts when you need them.
The quick answer
If you earn money from music in Australia, you can generally claim the costs you pay to earn that income. That includes instruments and gear, repairs and consumables, travel to gigs with bulky equipment, agent and manager fees, union fees, performance costumes, gear insurance, sheet music and promotion. You can't claim it if someone reimbursed you, if it's a private expense, or if you don't have a record of it.
First: are you an employee, a sole trader, or both?
This matters, because the rules differ in places.
- –Sole trader (you have an ABN and send invoices). This is most gigging musicians. Your music is a business, and you claim business deductions.
- –Employee (you get a payslip). Orchestra contracts, theatre seasons, cruise ships, some teaching gigs. The ATO has a dedicated guide for employee performing artists, and it covers you.
- –Both. Very common. Session work on an ABN, plus a casual teaching job or a show contract on payroll. You'll need to keep the two sets of income and expenses separate.
If you're not sure which you are, an accountant can sort it out in about five minutes.
The ATO's three golden rules
For anything you want to claim:
- –You spent the money yourself and weren't reimbursed.
- –It's directly related to earning your income.
- –You have a record to prove it (usually a receipt).
If something is used for both work and private life, like your phone or your car, you can only claim the work portion.
What musicians can usually claim
Instruments and equipment. Guitars, keys, drums, amps, PA, mics, pedals, in-ears, cases, stands, laptops and interfaces you use for work.
- –Employees: items costing $300 or less can generally be claimed in full. Anything over that is depreciated over its working life.
- –Sole traders: the $20,000 instant asset write-off is now permanent from 1 July 2026. Eligible small businesses can claim the full cost of each eligible asset under $20,000 in the year it's first used. Only the business-use portion counts.
Running costs and repairs. Strings, reeds, sticks, skins, valve oil, cables, batteries, setups, servicing and repairs. These are the small, constant costs that add up fastest and get forgotten most.
Car and travel. Driving to gigs with bulky gear is the classic musician deduction. Your normal commute usually isn't claimable, but carrying a drum kit or a backline that can't be left at the venue changes things.
The simplest method is cents per kilometre: 88 cents for 2025–26 and 91 cents for 2026–27, up to 5,000 work kilometres per car. Drive more than that and a logbook will usually get you more. We've written a whole post on tracking mileage for music gigs if you want the detail.
Touring counts too. Flights, accommodation and meals when you're away overnight for work are generally deductible, along with parking and tolls on the way to the gig.
Fees and memberships. Agent, manager and booking fees. Union membership (MEAA, for example). Professional association fees.
Stage clothes. Costumes and clothing that are distinctive to the performance, like a character costume or a band uniform. Not the black pants and black shirt you'd also wear to a funeral. Laundry and dry cleaning of claimable costumes count too.
Insurance. Insurance on your instruments and gear, and public liability insurance if a venue requires it.
Music, software and learning. Sheet music, charts, transcriptions, notation software, plugins and sample libraries you use for work. Lessons or coaching can be claimed if they keep up or improve the skills you're already earning money with.
Promotion. Your website, headshots, demo recordings, advertising, and printing for gigs you're promoting yourself.
Phone, internet and home practice space. The work-related portion of your phone and internet. If you run a home studio or practice space, some running costs may be claimable, but the rules are fiddly. Check the ATO's working-from-home guidance or ask your accountant.
The admin side. Your accountant or tax agent's fees, and software you use to run your music business. That includes apps like SessionsNV if you're a sole trader.
What you usually can't claim
- –Gym memberships and fitness costs, even if you're dancing every night
- –Everyday clothes, including the all-black gig uniform
- –Regular haircuts and grooming
- –Streaming subscriptions
- –Your normal commute when you're not carrying bulky gear
- –Anything the venue, band leader or employer paid you back for
- –Parking fines (sadly)
Where it actually falls apart: the receipts
Most musicians don't miss deductions because they don't know the rules. They miss them because the receipt for the $19 set of strings is a faded thermal slip at the bottom of a gig bag. The ATO can ask to see records for up to five years after you lodge, and "I definitely bought strings that year" isn't a record.
The fix is boring but it works: log each expense when it happens, not in June.
How SessionsNV helps
SessionsNV is a gig and invoicing app built by a working musician. The expense tracker is there so tax time is a report, not a weekend.
- –Log expenses as they happen. Add an expense from your phone in a few seconds, sort it into a category and snap the receipt on the spot. No shoebox.
- –Track your gear. The equipment tracker keeps your instruments and gear in one place, with serial numbers and insurance values. Useful for depreciation, and very useful if something goes missing on tour.
- –See where you stand. Profit and loss reports show what came in and what went out, all year.
- –Hand it to your accountant. Tax export gives you a PDF and CSV your accountant can actually use.
- –Mileage, done for you. On Studio, the mileage tracker logs your gig kilometres so you're not reconstructing them from your calendar in July.
- –Australian tax tools. Studio also adds GST, BAS, ABN and super tools, plus Xero and QuickBooks export.
- –Your data stays on your phone. No tracking, no ads, nothing sold.
The expense tracker comes with Pro, at $2.99 a month. The free version already gives you unlimited gigs, clients and invoices.
FAQ
Can musicians claim instruments on tax in Australia?
Yes, if you use them to earn income. Employees can generally claim items up to $300 in full and depreciate dearer ones. Sole traders can use the $20,000 instant asset write-off for each eligible item, business-use portion only.
Can I claim driving to gigs?
Usually yes if you're carrying bulky gear, like a kit or an amp that can't stay at the venue. For 2026–27 the cents per kilometre rate is 91 cents, capped at 5,000 km per car.
Can I claim my stage clothes?
Only if they're a costume or distinctive to the performance. Plain black clothes you could wear anywhere don't count.
Can I claim music lessons?
Yes, if they maintain or improve the skills you already earn money with.
Is my SessionsNV subscription tax deductible?
If you're a sole trader using it to run your music business, software like this is generally deductible. Check with your accountant.
How long do I need to keep receipts?
Generally five years from when you lodge your tax return. Digital copies are fine if they're clear and complete.
Before you lodge
This is general information, not tax advice. Everyone's situation is different, so check with a registered tax agent or the ATO before you lodge. Rates and thresholds are current as of November 2026.
SessionsNV is a gig management and invoicing app for working musicians on iPhone, iPad and Mac. Learn more at sessionsnv.com.au