As a part of some severe measures from the Treasurer of Australia, Scott Morrison, the celebrities of Australia will have to follow some new rules regarding the rights to their images. To be sure of the fact that the stars in Australia are not avoiding the income-tax, these new regulations have been put into practice regarding their image rights.
The union budget for Australia was introduced by the Treasurer Scott Morrison on Tuesday. This central budget throws light on a new tax being termed as ‘Fame Tax’. As a part of this tax, the celebrities and the famous people who provide licensing for using their images to companies and other organizations, which in turn make commercial use of the images for publicity of their products or services, will have to pay tax, on the cash and non-monetary advantages received.
Notably, many stars and celebrities are actively licensing their image rights to organizations. Examples include Rebecca Judd, who has collaborated with Adairs and is running a well-off website. Another example is Carrie Bickmore, who has done licensing of her image rights to Garnier BB cream. Australian Cricket legend Shane Warne has also been the face of eBay Australia advertisements.
As per the current rules, the celebrities are allowed to carry out licensing of rights to their images to businesses, which in turn are capable of declaring loss on the investment made and hence, will be liable to be charged with only 30 percent tax on the profits by the government.
The budget states that this move will make sure that all of the gains made from commercial usage of a person’s reputation and image become part of the taxable income of that person. However, the budget also added that the money that will be raised from this move is not quantifiable.