GST: The Thot Plickens
Tue, 14 Mar 2000, 09:16 pmGrant Malcolm4 posts in thread
GST: The Thot Plickens
Tue, 14 Mar 2000, 09:16 pmHi all
Has anyone else been able to make sense of the item reproduced on the last pages of the latest Link newsletter? The article is taken from the ArtsWA Art & Law Issue 1999 Issue 4.
It would seem to indicate that under the Pay As You Go system, "where services are provided without the supplier providing and ABN, the payer is obliged to deduct 48.5% and pay it to the tax office."
Check out the examples.
A dramaturg with a theatre company has invoiced the company for his her fee of $1,000. If the dramaturg has not supplied an ABN, the theatre company is required to deduct $485 PAYG tax from the fee.
A multi-media artist has succeeded in obtaining government funding of $10,000 for a project. Without an ABN, the funder will be required to deduct 48.5% witholding tax of $4,850.
A band performs at a local venue for a fee of $500. Unless the band provides an ABN, the venue operator will withhold 48.5% of the fee.
....
So, if a community theatre company mounts a production of a new play, does it have to withold 48.5% of the new playwright's fees if s/he doesn't have an ABN?
Will Lotteries keep 48.5% of the funding for the new lighting rig if the theatre company doesn't have an ABN? What about if it is funded by Healthway to run a community festival?
Can an audience member withold 48.5% of the ticket price to hand back to the tax office, if the theatre company doesn't have an ABN?
This gets crazier every time i look at it!
Cheers
Grant
Has anyone else been able to make sense of the item reproduced on the last pages of the latest Link newsletter? The article is taken from the ArtsWA Art & Law Issue 1999 Issue 4.
It would seem to indicate that under the Pay As You Go system, "where services are provided without the supplier providing and ABN, the payer is obliged to deduct 48.5% and pay it to the tax office."
Check out the examples.
A dramaturg with a theatre company has invoiced the company for his her fee of $1,000. If the dramaturg has not supplied an ABN, the theatre company is required to deduct $485 PAYG tax from the fee.
A multi-media artist has succeeded in obtaining government funding of $10,000 for a project. Without an ABN, the funder will be required to deduct 48.5% witholding tax of $4,850.
A band performs at a local venue for a fee of $500. Unless the band provides an ABN, the venue operator will withhold 48.5% of the fee.
....
So, if a community theatre company mounts a production of a new play, does it have to withold 48.5% of the new playwright's fees if s/he doesn't have an ABN?
Will Lotteries keep 48.5% of the funding for the new lighting rig if the theatre company doesn't have an ABN? What about if it is funded by Healthway to run a community festival?
Can an audience member withold 48.5% of the ticket price to hand back to the tax office, if the theatre company doesn't have an ABN?
This gets crazier every time i look at it!
Cheers
Grant
Grant MalcolmTue, 14 Mar 2000, 09:16 pm
Hi all
Has anyone else been able to make sense of the item reproduced on the last pages of the latest Link newsletter? The article is taken from the ArtsWA Art & Law Issue 1999 Issue 4.
It would seem to indicate that under the Pay As You Go system, "where services are provided without the supplier providing and ABN, the payer is obliged to deduct 48.5% and pay it to the tax office."
Check out the examples.
A dramaturg with a theatre company has invoiced the company for his her fee of $1,000. If the dramaturg has not supplied an ABN, the theatre company is required to deduct $485 PAYG tax from the fee.
A multi-media artist has succeeded in obtaining government funding of $10,000 for a project. Without an ABN, the funder will be required to deduct 48.5% witholding tax of $4,850.
A band performs at a local venue for a fee of $500. Unless the band provides an ABN, the venue operator will withhold 48.5% of the fee.
....
So, if a community theatre company mounts a production of a new play, does it have to withold 48.5% of the new playwright's fees if s/he doesn't have an ABN?
Will Lotteries keep 48.5% of the funding for the new lighting rig if the theatre company doesn't have an ABN? What about if it is funded by Healthway to run a community festival?
Can an audience member withold 48.5% of the ticket price to hand back to the tax office, if the theatre company doesn't have an ABN?
This gets crazier every time i look at it!
Cheers
Grant
Has anyone else been able to make sense of the item reproduced on the last pages of the latest Link newsletter? The article is taken from the ArtsWA Art & Law Issue 1999 Issue 4.
It would seem to indicate that under the Pay As You Go system, "where services are provided without the supplier providing and ABN, the payer is obliged to deduct 48.5% and pay it to the tax office."
Check out the examples.
A dramaturg with a theatre company has invoiced the company for his her fee of $1,000. If the dramaturg has not supplied an ABN, the theatre company is required to deduct $485 PAYG tax from the fee.
A multi-media artist has succeeded in obtaining government funding of $10,000 for a project. Without an ABN, the funder will be required to deduct 48.5% witholding tax of $4,850.
A band performs at a local venue for a fee of $500. Unless the band provides an ABN, the venue operator will withhold 48.5% of the fee.
....
So, if a community theatre company mounts a production of a new play, does it have to withold 48.5% of the new playwright's fees if s/he doesn't have an ABN?
Will Lotteries keep 48.5% of the funding for the new lighting rig if the theatre company doesn't have an ABN? What about if it is funded by Healthway to run a community festival?
Can an audience member withold 48.5% of the ticket price to hand back to the tax office, if the theatre company doesn't have an ABN?
This gets crazier every time i look at it!
Cheers
Grant
Walter PlingeMon, 27 Mar 2000, 12:00 pm
RE: GST: The Thot Plickens
Grant, I agree with you - this GST and new tax system is going to be a complete nightmare! We are trying to sort it out here at Class Act with not much success. More depressingly, someone at Equity has said that on the introduction of VAT in Britain most of the small theatre companies and co-ops disappeared completely within 12 months! There is little paid work for actors in Perth as it is - let's hope it doesn't come to that.
Grant MalcolmFri, 31 Mar 2000, 01:51 pm
URGENT ABN NEWS
Apologies for the caps, but the latest Link newsletter features the following important news from committee member and accountant, David Young:
------
URGENT: POSSIBLE COSTS IF NOT REGISTERED FOR ABN
All theatre clubs should have an Australian Business Number (ABN) for the following reasons:
1. Payments by business customers to the club may have 48.5% tax withheld if you do not have an ABN shown on your invoice, ticket, application for grants.
2. If your club's turnover is less than $100,000 you do not have to register for GST, but you should register for an ABN.
3. Dealing with government and semi government departments can only be done with an ABN.
How do you register? Fill out an "Application to Register for the New Tax System - Companies and other Organisations" available from newsagents or the Tax Office.
If you have trouble filling out the form, [ITA members, i presume, can] give David Young a ring during business hours on 9277 1399.
-------
And the application form? It's an 8 page booklet with more than 50 questions and includes a kind notice informing applicants that the Australian Tax Office estimates it will take approximately 40 minutes to complete.
Good luck!
In the meantime, there's news in The West Australian and else where of two seminars on taxation for artists. The first is intended for art administrators and will be held by the Arts Management Group of WA at the Alexander Library. The cost is $10 and you can book or make further enquiries on 9335 8244.
The second, also to be held at the Alexander library, is run by CraftWest and the Artists' Foundation of WA. It's a free seminar on Saturday 8th April, 10am -2pm. Further information is available from CraftWest 9226 2799 or AFWA 9335 8366.
Cheers
Grant
PS. Has anyone had any contact with the Blue Room Theatre over this? It strikes me that their program may be very seriously affected.
------
URGENT: POSSIBLE COSTS IF NOT REGISTERED FOR ABN
All theatre clubs should have an Australian Business Number (ABN) for the following reasons:
1. Payments by business customers to the club may have 48.5% tax withheld if you do not have an ABN shown on your invoice, ticket, application for grants.
2. If your club's turnover is less than $100,000 you do not have to register for GST, but you should register for an ABN.
3. Dealing with government and semi government departments can only be done with an ABN.
How do you register? Fill out an "Application to Register for the New Tax System - Companies and other Organisations" available from newsagents or the Tax Office.
If you have trouble filling out the form, [ITA members, i presume, can] give David Young a ring during business hours on 9277 1399.
-------
And the application form? It's an 8 page booklet with more than 50 questions and includes a kind notice informing applicants that the Australian Tax Office estimates it will take approximately 40 minutes to complete.
Good luck!
In the meantime, there's news in The West Australian and else where of two seminars on taxation for artists. The first is intended for art administrators and will be held by the Arts Management Group of WA at the Alexander Library. The cost is $10 and you can book or make further enquiries on 9335 8244.
The second, also to be held at the Alexander library, is run by CraftWest and the Artists' Foundation of WA. It's a free seminar on Saturday 8th April, 10am -2pm. Further information is available from CraftWest 9226 2799 or AFWA 9335 8366.
Cheers
Grant
PS. Has anyone had any contact with the Blue Room Theatre over this? It strikes me that their program may be very seriously affected.
Grant MalcolmWed, 10 May 2000, 05:01 pm
More GST Information
A few more interesting links to inform yourself and your theatre company reading for the impending changes.
Check out the Australia Council's Taxation Reform and the Arts page:
The Australia Council is also offering hundreds of free workshops on the new tax system. You can register on-line for these workshops at:
Cheers
Grant
Check out the Australia Council's Taxation Reform and the Arts page:
The Australia Council is also offering hundreds of free workshops on the new tax system. You can register on-line for these workshops at:
Cheers
Grant