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
Source principle: Australia taxes income earned here. A performance on Australian soil is Australian-sourced.
Withholding rules: Promoters must withhold and pay the ATO directly. The ATO sets out detailed guidance on withholding from foreign resident entertainers.
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.