GST confusion

Old Feb 14th 2013, 12:23 pm
  #1  
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Default GST confusion

I don;t know if this is a sensible place to enquire about taxes but I guess it can't do any harm.

I am going to be moving over to Oz soon to be with my gf. My plan (all being well) is to hire out an old theatre, hire acts, put on shows, etc. Nothing major, and I certainly don't expect a huge income... but I did this briefly while on my WHV a few years ago and I found it fairly easy and enjoyable.

What is causing me some anxiety is GST. I'm sure it's somthing I'll be able to get my head around eventually... but I just can't find any info online that doesn't bombard me with information that seems largly irrelevant to me.

Can anybody give me a brief outline of how I should aproach GST?
Do I charge GST on ticket sales?

In a nutshell:
My income will come from the sale of tickets and drinks/confectionery.
My outgoing expenses will be the hire of a venue, fees to performers, wholesale purchase of drinks/confectionery.

Any help or advice would be greatly appreciated.
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Old Feb 14th 2013, 1:43 pm
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Default Re: GST confusion

Originally Posted by retroman
I don;t know if this is a sensible place to enquire about taxes but I guess it can't do any harm.

I am going to be moving over to Oz soon to be with my gf. My plan (all being well) is to hire out an old theatre, hire acts, put on shows, etc. Nothing major, and I certainly don't expect a huge income... but I did this briefly while on my WHV a few years ago and I found it fairly easy and enjoyable.

What is causing me some anxiety is GST. I'm sure it's somthing I'll be able to get my head around eventually... but I just can't find any info online that doesn't bombard me with information that seems largly irrelevant to me.

Can anybody give me a brief outline of how I should aproach GST?
Do I charge GST on ticket sales?

In a nutshell:
My income will come from the sale of tickets and drinks/confectionery.
My outgoing expenses will be the hire of a venue, fees to performers, wholesale purchase of drinks/confectionery.

Any help or advice would be greatly appreciated.
Hi Retroman - sorry not an answer to your question but do you have a visa?
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Old Feb 14th 2013, 1:45 pm
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Default Re: GST confusion

Originally Posted by old.sparkles
Hi Retroman - sorry not an answer to your question but do you have a visa?
Yes, I have a visa.
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Old Feb 14th 2013, 1:50 pm
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Default Re: GST confusion

Originally Posted by retroman
Yes, I have a visa.
- it's surprising the number of people that say they are moving but haven't got a visa

Hopefully someone will be along later with the answer to your GST question

Good luck
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Old Feb 14th 2013, 5:45 pm
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Default Re: GST confusion

You will need to set a company up , have insurance if you are employing people you will have to pay there work cover, super etc if its a Pty company should cost you around $1200 to set up.

When you become GST registered you will have to fill a BAS statement in each Quater . Good luck in your venture
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Old Feb 14th 2013, 6:26 pm
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Default Re: GST confusion

Thanks for the reply.
When you say I need to set a company up... is this necessary? I have an ABN number and expected this to suffice. I really want this to be as 'casual' as possible so that it remains enjoyable and more like a hobby. I won't have any employees as such... I'll simply be hiring people for one-off performances and having them invoice me their fees. It's really not going to be as grand a venture as it might sound.

I just always find that taxes scare me far more than they should. I'm always scared that I'll do something wrong and be hit with a huge bill five years down the road.
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Old Feb 14th 2013, 6:37 pm
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Default Re: GST confusion

Best thing to do would be see a accountant / tax adviser they will be able to give you all your opptions, setting up a pty company is expensive, would only go down this route as last resort, if you are hiring people in you will some sort of public liability insurance .
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Old Feb 14th 2013, 8:41 pm
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Default Re: GST confusion

you need to register for GST as a sole trader, you need to keep proper records of your takings and outgoings. you may also claim input tax credits for the GST you paid on your purchases that are connected to your GST taxable income and you have supporting tax invoices on these purchases/outgoings. the tax credit will reduce your payable or sometimes give you a refund.

the ATO website has all the info you need. if still confused, ask a BAS/tax agent. not all accountants have good knowledge of Australian GST.

Last edited by commonwealth; Feb 14th 2013 at 8:48 pm.
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Old Feb 14th 2013, 11:25 pm
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Default Re: GST confusion

Originally Posted by commonwealth
you need to register for GST as a sole trader, you need to keep proper records of your takings and outgoings. you may also claim input tax credits for the GST you paid on your purchases that are connected to your GST taxable income and you have supporting tax invoices on these purchases/outgoings. the tax credit will reduce your payable or sometimes give you a refund.

the ATO website has all the info you need. if still confused, ask a BAS/tax agent. not all accountants have good knowledge of Australian GST.
You only need to register for GST if your annual turnover (that's turnover, not profit) is at, or over, $75,000. This is a rolling figure (ie you need to check each month that the 12 months to date haven't taken you over the threshold)

However, it can be advantageous to register even if you are below this level, if it is likely that your GST liability is going to be less than your GST credits (ie you're spending more on GST rated items/services than you're selling GST rated items/services)

As Commonwealth says above, all the information you need is on the ATO website and they also have an excellent help service.

Have a look here: GST for small businesses
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Old Feb 15th 2013, 1:03 am
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Default Re: GST confusion

If you set up a PTY Ltd company it is compulsory to register for GST
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Old Feb 15th 2013, 1:34 am
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Default Re: GST confusion

From what the OP has said I would expect he could operate as a Sole Trader with an ABN rather than a Pty company with an ACN as well - however I suggest that mor expert advice is needed on this matter, otherwise you could find yourself personally liable for some huge debts (for instance, if one of your booked acts ended up burning the theatre down).
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Old Feb 15th 2013, 6:11 am
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Default Re: GST confusion

Originally Posted by Dreamy
You only need to register for GST if your annual turnover (that's turnover, not profit) is at, or over, $75,000. This is a rolling figure (ie you need to check each month that the 12 months to date haven't taken you over the threshold)

However, it can be advantageous to register even if you are below this level, if it is likely that your GST liability is going to be less than your GST credits (ie you're spending more on GST rated items/services than you're selling GST rated items/services)

As Commonwealth says above, all the information you need is on the ATO website and they also have an excellent help service.

Have a look here: GST for small businesses
After 10 years of paying GST and doing those dreaded quarterly BAS statements I scaled everything back about 3 years ago and decided to semi retire and make less than half of what I was making when I worked 60 to 70 hours a week, apart from the amazing amount of free time this has given me to start enjoying fishing, reading and generally lounging around in the sun one of the best things about it was that I DE REGISTERED FOR GST, phew... talk about the flame not being worth the candle, I can't believe how much extra work those old bloody BAS statements used to take, it's a total relief to be done with all that.

I paid sooooo much in tax, licencing, insurance and accountancy fees when I was working like a dog and in retrospect I didn't have hardly any more disposable net income than I do now just pottering around, I just paid to keep the bureaucratic mediocracy wheels turning and fed 50% of all the fruits of my hard work into the public servant money churning scam.

Bugger them is what I say, I'm now paying tiny rates to a regional council and growing my own veggie garden, and my stress levels have plummeted, my bloody pressure is back to "pommie who eats to many chips" level and my phone hardly ever rings and disturbs my afternoon naps

I wouldn't go down the Company PLC road again for all the tea in china.
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Old Feb 15th 2013, 7:09 am
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Default Re: GST confusion

Originally Posted by Dreamy
You only need to register for GST if your annual turnover (that's turnover, not profit) is at, or over, $75,000. This is a rolling figure (ie you need to check each month that the 12 months to date haven't taken you over the threshold)

However, it can be advantageous to register even if you are below this level, if it is likely that your GST liability is going to be less than your GST credits (ie you're spending more on GST rated items/services than you're selling GST rated items/services)

As Commonwealth says above, all the information you need is on the ATO website and they also have an excellent help service.

Have a look here: GST for small businesses
yeah i agree, i missed that point.
it's important to note that if you want to claim GST input tax credits, you need to be GST registered.
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Old Feb 15th 2013, 7:11 am
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Default Re: GST confusion

Originally Posted by KJCherokee
From what the OP has said I would expect he could operate as a Sole Trader with an ABN rather than a Pty company with an ACN as well - however I suggest that mor expert advice is needed on this matter, otherwise you could find yourself personally liable for some huge debts (for instance, if one of your booked acts ended up burning the theatre down).
that's a good point. you isolate the risks of the business from yourself.
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