Entertainers and Australian Tax — Ricky Martin’s Tour Example

by | Sep 16, 2025 | Tax Law

Entertainers and Australian Tax — Ricky Martin’s Tour Example

When international superstars tour Australia, fans see sold-out arenas — but the Australian Taxation Office (ATO) also sees taxable income. This week we explore entertainers and tax, using Ricky Martin’s Australian concerts as a case study.

Estimating Ricky’s Earnings in Australia

While Ricky’s contracts are private, we can make assumptions to illustrate the tax position:

  • Concerts: 5 shows (Melbourne, Brisbane, Canberra, Sydney etc.)

  • Ticket sales: Average $150 × 12,000 seats ≈ $1.8m per show

  • Other income: Merch, sponsorship, media ≈ +15% ($270k per show)

  • Gross per show: ≈ $2.07m

  • Gross total (5 shows): ≈ $10.35m

  • Expenses (venues, staging, logistics, promoter share): ≈ 50%

  • Net income before tax: ≈ $5.175m

How Much Tax Australia Takes

Under Australia’s rules, non-resident entertainers are taxed on income sourced here. The promoter must withhold tax and remit to the ATO.

Non-resident individual rates (2025–26):

  • $0–135,000 → 30%

  • $135,001–190,000 → 37%

  • $190,001+ → 45%

Applying these rates to Ricky’s estimated net Australian income ($5.175m):

  • First $135,000 at 30% → $40,500

  • Next $55,000 at 37% → $20,350

  • Remainder ($4.985m) at 45% → $2.243m

  • Total Australian tax: ≈ $2.303m

So from $5.175m earned, Ricky would keep around $2.87m after Australian tax — before considering his obligations back home.

Why Australia Can Tax Foreign Entertainers

  1. Source principle: Australia taxes income earned here. A performance on Australian soil is Australian-sourced.

  2. Withholding rules: Promoters must withhold and pay the ATO directly. The ATO sets out detailed guidance on withholding from foreign resident entertainers.

  3. No residency escape: Even if the artist lives in Brazil or routes income via Cayman, the ATO still has jurisdiction over income from Australian shows.

What About Brazil (or Cayman)?

  • Brazil: If Ricky is tax resident in Brazil, he is taxed on worldwide income. His Australian income must also be declared there. Brazil may grant a foreign tax credit for the $2.303m already paid to the ATO — but this depends on Brazil’s rules and any treaty relief.

  • Cayman Islands: Using an offshore entity doesn’t bypass Australian law. The ATO looks at the actual performer and where the income is sourced. Brazil may also apply “look-through” or controlled foreign entity rules.

Key Takeaways

  • Foreign entertainers performing in Australia are taxed here, regardless of residency.

  • Promoters face strict withholding obligations.

  • Artists need to plan for deductions, entity structuring, and treaty relief to avoid double taxation.

  • Home jurisdictions like Brazil may also tax the income — credit for Australian tax depends on their rules.

For international artists, tax planning is as important as tour planning.

For a different but equally common scenario, see our recent blog on inherited property exceeding 2 hectares and CGT.