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GST Considerations

Changing GST percentages:

Do not worry as any GST percentages used within AgShow are entered into the Base Details form. In fact, in AgShow the GST percentages for each module are defined separately. Initial reason for this is that some shows, often smaller, are GST exempt for this but not for that, so their exempt percentages are simply set to zero. But, if the Government decides to change the GST rate, then AgShow's rates can be as easily reset to the new percentage.

A Show Society has many GST responsibilities:

  1. GST should be added to all entry fees and the amount of GST collected is to be forwarded to the taxation office.
  2. Membership fees, gate entry, sponsorship income and sideshow rental are also subject to GST.
  3. GST should be added to cash prizes won by registered entrants. This additional GST can be claimed back as an input tax credit.
  4. Any GST paid on trophies, ribbons and sashes can also be claimed.

AgShow supports the Show Society in meeting these GST obligations by:

  1. A very easy to use conversion option has been added to AgShow Utilities to convert any previous files to the new Version 3.0 format, ready for GST.
  2. Entry fees should be GST inclusive. GST calculations are automatically performed when every entry is added to the database.
  3. A registered entrant can claim these GST payments and AgShow prints a Confirmation of Entry and Tax Invoice that details such GST payments which the entrant can use for the claim.
  4. Registered entrants must have GST added to any cash prizes they win. AgShow allows for easy specification of registered entrants and clearly specifies the extra GST payable with prize money in the Results by Entrant form.
  5. Trade stalls hire fees are subject to GST as are their insurance fees. AgShow has allowance for such GST.
  6. AgShow prints relevant summary reports that supply information for the tax forms.

Australian Tax Office Links:

Most of the information is specified in the ATO's "Goods and Services Tax Ruling GSTR2002/3" that can be accessed online at http://law.ato.gov.au/atolaw/view.htm?docid=GST/GSTR20023/NAT/ATO/00001

There is certainly much more information in the document - 226 paragraphs! - some (most?) of which will apply to Show Societies.

Summary of GST implicactions for a Show Society:

The following summary uses quotations from a private ruling one Society received from the ATO in 2000.

The Schedule (Entry Fees):

Your entry fees, according to the Australian Tax Office, must include GST:
Competitor entry fees are a right to participate in the events and you are liable to pay GST on these fees (paragraph 9-15(2)(e) of A New Tax System (Goods and Services Tax) Act 1999 (the GST Act)
So, when you specify your entry fees ensure you include the GST payment within them.
AgShow does not break down the entry fee into “fee + GST”, so the entry fee amount you specify for a class should include GST.

Entries:

Competitors will send in their entry payments that includes GST then it is the show society’s responsibility to pass those GST payments onto the ATO.
AgShow prints a GST Summary report that specifies the total of entry fees and the corresponding GST.
Entrants who are registered in an occupation relating to the competition, for example stud breeders, are able to claim input tax credits for any GST paid in their entry fees.
AgShow's “Confirmation of Entry and Tax Invoice” report contains a GST breakdown of the entry fees, so the entrant can use that form when claiming their tax credits.

Note, it is possible to avoid having to pay GST on entries, but your Society needs to be registered as a "Non-Profit (or Charitable) Organisation".  A good place to start gaining more information is at the ATO's web site: http://www.ato.gov.au/nonprofit/ 
AgShow supports such GST exemptions on a class-by-class basis, as each class can be flagged as GST Free for entries.

Prizes:

If a registered entrant wins cash prizes then the show society should include GST in the prize. You can claim this GST payment back from the ATO. The show society can also claim any GST paid on non-cash prizes, such as trophies, ribbons, sashes etc.

According to the ATO:
Prize money is payment to the prize winner for participating in the competition. You will be able to advertise the prize money exclusive of the GST for the show. Registered winning competitors will notify you they are registered. Should they win the prize money, you will add 10% GST in addition to the prize money (where the prize money has been advertised as GST exclusive).
If registered the winning competitors will account for the GST received and you will be able to claim an input tax credit for the GST paid. You will not add GST to the prize money if the winning competitors are not registered
.”

AgShow provides you with the choice of three GST calculation methods for registered entrants (set in Base Details):

  1. Any GST payable is INCLUDED WITHIN the advertised cash prize, as inferred in GSTR 2002/3 Ruling.
  2. GST is ADDED ONTO the advertised prize as the ATO have outlined above.
  3. Simply not applying any GST at all to prizes.

Registered entrants must supply their ABN and such an entrant is flagged as requiring GST to be included to their prizes.
In the Entry of Placings form AgShow clearly specifies any such included GST, which can be altered (zeroed) if necessary.

AgShow has three reports that will aid the entrant and the Show Society with their tax commitments:

  1. The “Results by Entrant” report specifies the total amount of any cash prizes won by the entrant plus any included GST paid.
  2. The “GST Summary” report lists along with entry fee details, the total prize money payout plus the total included GST paid with the prizes.
  3. The “Prizes Summary” report selected from the End of Year menu lists a breakdown of prizes and included GST paid to all winning entrants.