By Lee Kirby – Senior Account Manager at White Sky
With Covid continuing to cause uncertainty, the landscape for performers and hospitality at least for the short term remains unclear.
We’re seeing local restrictions create hurdles for artists in planning shows, cancellations impacting release strategies and importantly associated costs at a time when cash flow is at its tightest.
In response, recent grant support has set out to target the music and hospitality worlds these including Business Victoria’s Events Support Package and Circuit Breaker Business Support as well as the RISE grant to name a few. However, there’s been a difficulty for many in meeting eligibility, as their business don’t have the regular prerequisites such as being registered for GST.
So what does being ‘GST Registered’ mean?
By registering with the Australian Tax office you’ll be responsible to collect and declare Goods & Services Tax (GST). In short meaning, you’ll need to charge 10% GST on your sales and claim the GST charged on eligible costs.
Generally speaking, this will then be declared to the ATO quarterly via a Business Activity Statement (BAS) and any resulting GST balance either paid to or refunded by the ATO.
Registration is legally required once either your income has reached $75k within the past 12 months, or is anticipated to reach $75k in the coming 12 months. However, there is the opportunity to register voluntarily even if you’re under $75k and this is where there may be some value for small businesses.
What are the Pros & Cons of GST Registration?
Regarding GST registrations, this is a decision that should be weighed up not solely based on grant eligibility, as it needs to make sense from a business point of view and align with your strategic direction.
Each business is different and it’s crucial that you seek advice from a professional to assess your unique situation.
Well, you’ll need to move fast, as the application timeframes for the current financial support are short, and you’ll want to allow some time to prepare and set up the above.