If your Melbourne Fringe event is being paid to an international bank account, you are required to apply for a Foreign Resident Withholding Tax waiver. The good news? We can do a group application on your behalf to make the process as swift and simple as possible.

This is general information only, and participants are encouraged to seek personalised tax advice from a registered accountant.

What is Foreign Resident Withholding Tax?

By law Melbourne Fringe are required to withhold tax from payments made to foreign residents. Entertainers and performers are specifically mentioned in the law, and it applies to all fees and even the box office income you earn while here. Depending on your circumstances the rate is between 25% and 32%.

BUT it’s straightforward to get a waiver.

A variation of the withholding rate to 0% will be granted where the ATO are satisfied a performer or act will have either no, or little tax to pay in Australia.

If what each foreign resident is earning while in Australia is $10,000 or less per touring party member (including support staff), a variation to 0% will usually be granted. When applying for a variation on this basis you should provide details of the nature of the costs to be paid by the performers. There is no need to provide a detailed budget for the visit.

In some instances, variations are granted where the foreign performer's fees exceed $10,000. Each case is considered by the ATO on its merits. Where fees exceed $10,000 per touring party member (including support staff), you will be required to provide a detailed budget for the individual act in the waiver application.

What you need to do:

August onwards:

1. Melbourne Fringe will send you a form to fill out called the Foriegn Resident Withholding Variation form
2. It will be due Thursday 3rd September. Please submit your details by this deadline, you will need information about your:
   1. Touring Party Size
   2. Other engagements in Australia
   3. Projected income from activities in Australia
   4. Estimated deductions / project costs
3. It’s important you be honest in this form as it does have direct tax implications and will be provided to the ATO. Don’t try and hide any additional income, they know everything.
4. From there we submit a group application to the ATO, turnaround on decisions is usually 2-3 weeks.
5. We then let you know if you’ve been approved for a variation, and if so, proceed to settle your box office income to you as usual.
6. You will need to report your earned income as tax in your home country.

It’s quick, easy and free.