Your Income as a Musician

1.1.

Musicians face unpredictable earnings—from a one-night gig wind-up to sudden platform shifts—so relying on a single income source is precarious. To build stability and growth, diversify across seven distinct revenue streams. Below, we explain each stream and practical ways for musicians to tap into them.

  • Empty jazz stage with a double bass on the floor, a drum set, and a piano, with stage lights and a wooden floor. NZ Music Directory, Musician Financial Management

    Earned Income

    Active income from your direct work or services (wages, fees).

    Examples for musicians

    Performance fees | Live gigs (pubs, festivals, weddings, corporate events).

    Session work | Studio recordings (albums, film/TV scoring), broadcast sessions.

    Teaching & workshops | Private lessons, group workshops, masterclasses.

    Tax & compliance

    Treated as business income if you operate as a sole trader or company. Accounted under IRD “self-employment” rules.

    GST | Register (if turnover > $60 000 in 12 months) and charge 15% on your fees. File GST returns quarterly.

    Provisional tax | If tax liability > $2 000, pay in instalments to avoid use-of-money interest.

    Critical for cash flow—but highly time-intensive and can lead to burnout without careful scheduling.

  • A grand room with high ceilings, ornate pillars, and a large window with a scenic view of greenery outside. There is a chandelier hanging from the ceiling and a black grand piano near the window, with a piano bag on the floor next to it.

    Profit Income

    Net profit when you run a business (revenue − expenses).

    Musician use-cases

    Merchandise sales | T-shirts, posters, vinyl.

    Production services | Operating a small recording studio or offering mixing/mastering to other artists.

    Artist management | Managing bookings/marketing for other musicians, taking a management fee (%) of their earnings.

    Tax & compliance

    Profits taxed at personal (sole trader) or corporate rates (28% for companies) under sCB 1.

    Must maintain robust expense records (receipts, logs) to substantiate deductions.

    High-margin potential once your brand is strong—but requires up-front investment in merchandise or services.

  • A room filled with various musical instruments hanging from the ceiling and placed on the walls, including drums, guitars, and other percussion instruments.

    Interest Income

    Earnings from lending money (bank deposits, bonds).

    Opportunities for musicians

    High-interest savings accounts or term deposits (e.g. call accounts at major banks).

    Peer-to-peer lending platforms. Note IRD treats interest as investment income under sHC 12.

    Tax & compliance

    Declare all interest on your personal tax return (IR 3).

    Resident withholding tax (RWT) may be deducted at source. Verify your correct RWT rate with the bank to avoid over-withholding.

    A low-effort way to grow surplus cash—though yields can be modest in a low-rate environment.

  • Orchestra musicians playing violins in a concert hall. NZ Session Collective Session Ensembles.

    Dividend Income

    Distributions of profits by a company to its shareholders.

    Musician applications

    Equity investments in music-related ventures (labels, tech start-ups).

    Band shares: If you’ve incorporated and issue shares to members, dividends flow through proportionally.

    Tax & compliance

    Dividends carry imputation credits. Attach credits on your return to avoid double taxation .

    Foreign dividends may incur non-resident withholding tax. Claim treaty relief where applicable.

    A passive boost to your cash flow—best built over years through steady equity investing.

  • Music recording studio with a person working on a computer surrounded by audio equipment and a lamp. NZ Session Collective Session Musicians.

    Rental Income

    Money from leasing assets (property, equipment).

    Musician avenues

    Instrument rental | High-end gear (e.g. vintage instruments).

    Studio space | Rent out home/pro-studio when idle.

    Sync licensing | Leasing rights to compositions for ads, films, games.

    Tax & compliance

    Rental income is business or property income. Claim expenses (depreciation, maintenance) under sEE 1–EE 2.

    GST | Charge 15% if you’re GST-registered and rental turnover pushes you over the $60 000 threshold.

    Turns unused gear or space into ongoing revenue—dependent on local demand and upkeep costs.

  • Grand pipe organ with intricate wood paneling and gold accents inside a historic building with ornate ceiling and arched window. NZ Session Collective Session Musicians.

    Capital Gains

    Profit from selling an asset for more than its purchase price.

    Relevant assets for musicians

    Music rights / catalogues | Selling future royalty streams; common in mature careers.

    Rare instruments or gear | Buying instruments below market and selling at a premium.

    Tax & compliance

    NZ has no general capital gains tax, but specific rules apply (e.g. “bright-line” test for property under sCB 6).

    Sale of music rights can be taxed as revenue (if acquired for resale) or capital (if held long term). Structure carefully.

    Can deliver windfalls on rare assets—plan carefully to manage tax implications and market timing.

  • A person playing a red keyboard synthesizer under dim pink and purple stage lighting. NZ Session Collective Session Musicians.

    Royalty Income

    Passive income from licensing your intellectual property.

    Musician sources

    Streaming & mechanical royalties | Via Spotify, Apple Music, APRA AMCOS distributions.

    Performance royalties | Public broadcasts, live performances of your compositions.

    Sync fees | One-off payments for TV, film, ads, video games.

    Tax & compliance

    Royalties are business income. Deductible expenses may include agent fees or collection-agency charges.

    Withholding tax | Non-resident payers of royalties must deduct 15% unless reduced by treaty (often 0%–10%).

    Register with APRA AMCOS and record every usage to maximise collections.

    Your ultimate passive stream once set up—requires diligent registration and monitoring to maximise collections.

1.2.

Pricing Your Services Correctly

Setting your rates as a musician in New Zealand can feel daunting—there is no universal rate card, and market conditions shift rapidly. This ambiguity makes it hard to know what to charge for gigs, studio sessions or teaching. Below, we outline key benchmarks and factors to help you price your services with confidence.

A colorful mural of a blue and white bird flying with a yellow geometric pattern overlay. NZ Music Directory, Musician Financial Management

Creative New Zealand

Creative NZ’s minimum fair remuneration guidance now sits at NZD 30/hr (up from NZD 25/hr in 2019) for grant-funded projects and serves as a baseline for all artists and art practitioners.

Application | Use NZD 30/hr as your floor—never undercut this when budgeting for grant applications or commercial work.

Senior practitioners | CNZ explicitly encourages paying experienced artists well above the minimum to reflect their expertise and project requirements.

Empty concert hall with a wooden stage, chairs, music stands, and a large pipe organ with wooden pipes at the back. Book Session Musicians, Live music in nz, NZ Music Directory, Musician Financial Management

NZ Session Collective

At NZSC, we’ve published research into standard professional rates to ensure consistency and transparency across our curated musician roster. These rates reflect:

  • Current economic conditions and cost-of-living trends

  • Real-world booking data and feedback from seasoned professional artists.

You can refer to our published musician rates below.

A hand-drawn logo that says 'E tu Musicians' Union' in stylized letters.

E tu Musicians Union

The E tū Musicians Union is developing industry-wide standard rates and advocacy for fair pay across the sector. While still in consultation, their work promises to:

  • Create unified rate guidelines for live performance

  • Support collective bargaining on behalf of NZ musicians

  • Offer resources and training on contract negotiation

Stay informed via the E tū Musicians webpage.

Key Factors when Pricing Your Services

  • Your track record and industry standing justify premium rates.

    Quality over tenure | It’s not merely years played, but consistency, professionalism and client testimonials.

    Scaling with demand | As your profile grows (festivals, high-profile clients, media coverage), incrementally lift your rates.

  • Always build in the true cost of delivery:

    • Travel time & expenses | Factor in mileage (NZD $1.04/km banded), fuel, parking, and return journey.

    • Accommodation & per diems | For remote or overnight gigs, include lodging and daily allowances.

    • Equipment logistics | If you supply PA, lighting or specialise in large gear, itemise those costs separately.

  • Match your fee to the event’s budget and stakes:

    • Corporate, weddings & private VIP | Higher budgets warrant elevated “premium event” rates.

    • Community, club shows & benefit concerts | Consider modest fees or discounted rates in exchange for exposure or goodwill—only when strategically appropriate.

    • Repeat clients & retainers | Offer package pricing or loyalty discounts for ongoing engagements.

  • Charge for all work behind the scenes:

    • Rehearsals & score prep | Estimate hours rehearsing or arranging new material.

    • Production meetings | Time spent liaising with sound engineers, event managers or directors.

    • Administrative coordination | Quoting, invoicing and contract negotiations also consume valuable time.

    Tip | Document your time in a simple log—separate “on-stage” hours from “off-stage” work. This ensures no hidden costs drain your profit and gives clients transparency on what they’re paying for.