In this paper, we assess the impact of the COVID‐19 pandemic on the Australian visual arts sector. We base our analysis on the responses of over 1500 visual artists and arts workers to a survey conducted by the National Association for the Visual Arts (NAVA), the national peak body for the visual and media arts, craft and design sector in September 2021. NAVA employed this online survey to study the relationship between the pandemic and both the incomes and mental health of artists and arts workers. Using regression analysis, we find that there has been a significant impact for both artists and arts workers, with the severity of the impacts varying by gender, age and the availability of state‐based and Australian Government support programmes. Reduced hours and loss of contracted work and commissions due to the pandemic were both related to declines in income and mental health outcomes for artists and for arts workers. Housing stress was associated with a higher likelihood of a significant or extreme mental health impact for artists and arts workers. In addition, artists' incomes and mental health outcomes were impacted when faced with a reduced ability to sell, although some artists were able to increase their online profiles.