Playing Music in Your Business: What You Need to Know About Music Licensing
Music plays a powerful role in shaping the atmosphere of your business. From setting the mood in a café to energising a gym or creating a welcoming retail experience, the right music can enhance customer engagement and staff morale. However, before you hit play, it’s essential to understand your legal obligations around music licensing.
Why Businesses Need a Music Licence
Most music is protected by copyright law. When music is played in a public or commercial setting, such as a shop, bar, café, salon or workplace, it is classified as a public performance. This means businesses must obtain permission from the copyright owners, usually in the form of a licence.
This is very different from playing music at home, where a licence is not required. Failing to comply with public performance copyright laws can result in legal action and significant financial penalties. In one well‑known case, a Melbourne bar owner was ordered to pay close to $200,000 in damages for playing music without the appropriate licence.
The Easiest Way to Get a Music Licence
Fortunately, obtaining a music licence doesn’t have to be complicated. One of the simplest and most efficient options is to secure a licence through a music rights organisation such as OneMusic.
OneMusic is a joint initiative of APRA AMCOS (the Australian Performing Rights Association and Australasian Mechanical Copyright Society) and PPCA (the Phonographic Performance Company of Australia). It offers a single, streamlined licence that covers the majority of commercially available music used in Australian businesses.
A public performance music licence is the most common type required by businesses that play music for customers or staff, including retail stores, cafés, bars, gyms, offices and salons.
How Much Does a Music Licence Cost?
The cost of a music licence depends on several factors, including:
- Your business type
- The size of your premises
- How and where music is played
For small businesses, licences can start from as little as $100 per year. For example, a retail store under 50 square metres playing music from a radio or TV may fall into this lower price range. Larger venues or businesses that use streaming services or multiple music sources may pay higher fees.
Are Any Businesses Exempt?
Some small businesses may be eligible for a complimentary licence, provided they meet specific criteria. Generally, this applies if the business:
- Employs fewer than 20 people
- Plays music only through one radio or TV device, or via employee headphones
- Does not play music for customers or the general public
It’s important to carefully assess whether your business meets all of these conditions before assuming you are exempt.
Can Music Licence Fees Be Tax Deductible?
Yes. In most cases, music licence fees can be claimed as a tax deduction, just like other business expenses, as long as they are directly related to earning your assessable income. Always check with your accountant or tax adviser to confirm how this applies to your specific situation.
Supporting Music Creators
By holding a valid music licence, you’re not just protecting your business — you’re also supporting the people who create the music you enjoy. Licence fees collected by OneMusic are distributed to rights holders, including songwriters, composers and performers, ensuring they are fairly compensated for their work.
Staying Compliant With Music Copyright Laws
To remain compliant, regularly review:
- The type of music you play
- Where the music comes from (radio, TV, streaming services or playlists)
If you use a background music supplier, check whether they include coverage for OneMusic licence fees. If not, or if you use music from other sources, you’ll need to arrange a licence directly. Additionally, if your business operates across multiple locations, each location must be licensed separately.
Taking the time to get your music licensing sorted helps protect your business, avoids unnecessary fines, and ensures you can keep playing music with confidence.
Important: Clients should not act solely on the basis of the material contained here. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We, therefore, recommend that our formal advice be sought before acting in any of the areas.
