Arts and recreation services industry

How businesses in this industry operate

Businesses in the arts and recreation industry run in different ways. Some make money from tickets, fees or memberships. Others get money from grants or government funding.

Some businesses work year‑round, while others operate seasonally or around events. Staffing levels and costs can change depending on schedules, audience numbers or opening times.

Demand and competition

Funding, laws, locations and how people spend their money affect demand and competition for many businesses in this industry. For example:

• creative and performing artists often compete for the same funding and grants
• in some places, many fitness businesses compete for the same members
• public opinion can affect demand for gambling activities.

Digital tools

Many businesses in this industry use digital tools to reach customers and manage day‑to‑day tasks. Digital tools can save time, but they can also introduce new risks like cyber threats.

Common tools include:

• online booking systems to sell tickets
• scheduling systems to manage class times or take bookings
• websites and social media to promote events or build a customer base
• point‑of‑sale systems at venues or events
• customer relationship management (CRM) systems to track members, audiences or supporters.

Risks and challenges

Businesses in this industry often rely on consumer spending habits, public interest or seasonal trends. These can change quickly and affect income and operations.

Common challenges include:

• rising costs for venues, equipment, events or staff
• managing public complaints, negative reviews or media attention
• meeting complex health and safety or licensing rules, especially for live events, physical activities or public spaces.

Knowing which business risks affect you can help you plan and make better business decisions.

Industry statistics

Data can help you understand how businesses in this industry perform and how your business compares.

You can:

• explore annual estimates of industry income, costs, profit and capital expenditure at the Australian Bureau of Statistics
• get the latest job market trends and insights at Jobs and Skills Australia
• find data on arts audiences, trends in arts and sport, and creative jobs and businesses at Creative Australia.

These are some of the main laws:

• Competition and fair trading laws are set out in the Competition and Consumer Act 2010.
• Rules about pricing, refunds, contracts and advertising are set out in Australian Consumer Law (ACL).
• The Privacy Act 1988 may apply if you collect personal details about customers or members, such as gym memberships.
• The Copyright Act 1968 sets rules for how businesses can use creative works, such as music, images and performances, without infringing copyright.
• Online and telephone gambling businesses must follow the Interactive Gambling Act 2001.
• Anti‑money laundering and counter‑terrorism financing laws apply to some gambling businesses.
• Some heritage, preservation and environmental activities come under Environment Protection and Biodiversity Conservation Act 1999.
• Animal health and plant health laws may apply to businesses that work with live animals or plants, such as zoos, wildlife parks or botanical gardens.

Also check the state, territory and local government laws where you operate to see which laws apply to your business.

Local councils and state or territory governments manage most licence and permits in this industry. What you need depends on your business type, location and the services you offer.

You may need a licence or permit to:

• use public land or roads for events, such as performances or festivals
• run a venue, such as a theatre, gym or racing track
• install or use amusement rides or equipment
• run sports or racing activities, such as competitions or training
• sell food or alcohol at a venue or event
• play music or other copyrighted material in public
• change heritage places or sites of cultural importance
• bring animals into or out of Australia, such as for zoos or aquariums.

All businesses have a duty of care under work health and safety (WHS) laws and must take reasonable steps to keep workers, customers and the public safe. This includes volunteers.

WHS hazards in this industry can include:

• noise, such as loud music or sound at live performances, venues or events
• physical injuries from lifting, carrying or moving equipment during setup and pack‑down
• slips, trips and falls, such as on wet surfaces in the change rooms of gyms and sports clubs
• violence and aggression towards front‑of‑house, event or recreation staff from audiences, participants or spectators
• fatigue from long, late or irregular hours around events or performances
• psychosocial hazards, such as stress, harassment or public abuse in performance and customer‑facing roles.

Your tax obligations and incentives depend on your business structure, the work you do and how you get paid. For example:

• Businesses may need to withhold pay as you go (PAYG) tax from performing artists in promotional activities.
• Businesses may need to withhold PAYG tax from payments to foreign residents for entertainment, sport or gaming junket activities.
• Creative, performing or sporting professionals may be eligible for income averaging.
• Not‑for‑profit cultural organisations and sporting organisations may be exempt from income tax, depending on their purpose.

Gambling taxes

Special goods and services tax (GST) rules apply to gambling activities.

State and territory taxes may apply to gambling and betting activities. Check the rules for each state and territory you do business in:

• Australian Capital Territory
• New South Wales
• Northern Territory
• Queensland
• South Australia
• Tasmania
• Victoria
• Western Australia.

The arts and recreation services industry commonly hires casual staff, short‑term contractors and volunteers.

Make sure you know which workplace laws you need to follow before you create an employment contract or hire contractors.

Things to consider:

• Multiple awards may apply to one business. For example, at a live performance venue bartenders come under the hospitality award and performers under the live performance award.
• Unpaid work and volunteering is common, particularly in the arts. Fair Work rules apply to unpaid work.
• If you work with children or vulnerable people, you may need to do screening checks for you and your staff. For example, coaching staff at sports clubs.
• If you employ children and young people in the arts, you’ll need to follow state, territory and national employment laws.

The Australian Government helps the arts industry through grants, payments, tax rebates and fundraising support:

• Creative Australia – the government’s main arts investment and advisory body offers grants, residencies, scholarships and awards.
• Australian Cultural Fund – a government‑run fundraising platform for Australian artists.
• Australian Screen Production Incentive – tax incentives for film and television producers.
• Lending Rights Scheme – pays eligible Australian book publishers and creators when libraries lend their work.
• Resale Royalty Scheme – royalties for visual artists and rights holders on eligible commercial resales of artworks.

Arts and recreation businesses may use large amounts of energy, fuel and water. They can also create waste and affect the places where their activities take place.

Managing your environmental impact can help lower operating costs and support community expectations.

Common environmental impacts include:

• waste, such as rubbish from events and performances that involve food, drinks, temporary setups or flyers
• pollution and greenhouse gas emissions from audiences, participants, staff and equipment travelling to and from events or activity sites
• damage to land from activities on public or private sites, such as outdoor adventure businesses
• noise, such as loud sound from outdoor music festivals.

The Department of Climate Change, Energy, the Environment and Water has tips and case studies about reducing energy costs in:

• live entertainment
• museums and galleries
• sports clubs.