Financial Services

Theatres and royalty payments

The University hires out its theatres and associated services to internal and external entities.

Theatres

Services supplied to external customers relating to the hire of theatres are generally subject to GST and include:

  • hiring out facilities such as venues and equipment (theatres, audio-visual equipment and seating) to external entities
  • commissions charged to external entities for collection of takings
  • retention of bond on the cancellation of a booking
  • cancellation fees
  • booking fees
  • sales of drinks and refreshments (including sales to staff and students).

Fees, fares and accommodation of performers/agents

Artists may be paid for costs incurred. Costs may be either:

  • built into the artist's fee
  • paid directly by the University to the supplier
  • incurred by the artist and reimbursed by the University. These inputs are treated as if the cost was incurred directly by the University. GST input tax credits are only available to the University if the supplier's tax invoice is provided to the University and the input tax credits have not already been claimed.

Payments for entertainers may be made to:

  • the artist directly or via an agent
  • individuals or groups
  • residents or visitors
  • GST-registered or non-GST-registered entities
  • entities with or without ABNs.

Sometimes agents take a separate commission from the artist

Input tax credits will be available if the local agents are registered for GST. GST will not be charged on supplies made by non-resident agents (assuming they are not registered for GST).

If the agent is not registered for GST, but has an ABN, then GST will not be charged and the agent will be paid in full. If the agent has no ABN then GST will not be charged and PAYG withholding tax of 46.5 per cent will be withheld from the payment to the agent.

Sometimes the University pays the artist directly who then pays the agent

The transaction is between the artist and the University.

If the artist is registered for GST, then GST will be charged and the invoice paid in full.

If the artist is not registered for GST but has an ABN, then GST will not be charged and the artist will be paid in full.

If the artist has no ABN then GST will not be charged and PAYG withholding tax of 46.5 per cent will be withheld from the payment to the artist unless the transaction is subject to a double tax agreement (refer to PAYG tax withholding).

A set fee for contracting a performance company is paid by the University (often in overseas currency)

Either international or domestic artists perform the show in Australia.

Most international and some domestic performers are likely to be not registered for GST. The University will not be charged GST on these invoices.

Those payments to artists via Australian promoters/agents (who are registered for GST) will be subject to GST.

Royalty payments

The University incurs royalty costs for theatre productions put on. Generally these are subject to GST unless purchased from overseas.