Assisting with GST Compliance
Content creators, social media influencers and brand ambassadors need to register for GST, if their business turnover is $75,000 or more in a 12-month period. The ATO advises individuals to verify whether they meet the GST registration threshold and, when calculating their business turnover, to incorporate both taxable and GST-free sales.
This includes monetary and non-monetary payments they receive, such as:
- reviewing and promoting products and services, gifts, clothing or make-up;
- content being sponsored, endorsed, or having advertising placed in it;
- creating and posting content;
- others licensing your content;
- acquiring followers, viewers and subscribers;
- collaborating with other content creators.
In April 2023, the ATO released a comprehensive guide, shedding light on the tax implications associated with income generated from content creation. Expanding on this, the ATO has issued additional guidance specifically aimed at demystifying the Goods and Services Tax (GST) system.
Receiving payment outside Australia
When businesses receive payments from recipients outside Australia. The ATO suggests that such payments may qualify as GST-free, but it’s crucial for both professionals and clients to proceed with caution in this area. Export rules can be intricate and require thorough examination.
If a business does receive GST-free payments, it won’t be subject to a GST liability for those payments. However, it’s important to remember that these GST-free amounts are still considered when calculating their business turnover. This calculation helps determine whether they must register for GST.
Our team at Simmons Livingstone is here to guide you through your GST queries. For more detailed information and personalised guidance, we encourage you to connect with your Simmons Livingstone accountant at 1800 618 800 or via email at admin@simmonslivingstone.com.au.
