Author Topic: Tax and Tax returns for bands?  (Read 9447 times)

0 Members and 1 Guest are viewing this topic.

Offline Mago_Haydz

  • WF Colonel
  • *****
  • Posts: 7730
  • Reputation: 108
  • Gender: Male
    • View Profile
Re: Tax and Tax returns for bands?
« Reply #25 on: May 08, 2009, 10:53:35 PM »
...so none of you claim anything as a business expense for your band then?
I'm assuming a few proportion of bands don't have an ABN and most gig payments would be cash in hand anyway. Ie. they wouldn't pay tax. Surely not many local bands would make enough money so that even if they did pay tax it'd probably be an insignificant ammount.
One $3000 guitar (or 50 weeks of $60 rehearsal room hire, a bass, an amp, whatever) will get you back $272 (gst) at the end of the month/quarter/year and another $700-900 (tax return rebate, roughly, dependent on your actual financial situation) at the end of the financial year.
Hmmm from what i have been reading no band would get the 10% credits back as you'd have to be earning over $75 000 and registered for GST, which i doubt any Perth band would make.

From what i can make out you don't even have to pay GST if u earn under $75 000 as a businee. At least thats what i can make out of all the jargon. If anyone wnats to clear it up that's be great :P

I. just. don't. get. it.

It's $50,000 from my understanding.
Mongeese like results

Offline DevolvedEmperor

  • WF Colonel
  • *****
  • Posts: 2976
  • Reputation: -57
  • Gender: Male
    • View Profile
Re: Tax and Tax returns for bands?
« Reply #26 on: May 08, 2009, 10:58:59 PM »
Nah definitely 75 000. Read it a hundred times over the last week :P

Offline TnT

  • WF Supreme Commander
  • WF Colonel
  • *****
  • Posts: 5122
  • Reputation: 93
  • Gender: Male
    • View Profile
    • Western Front
Re: Tax and Tax returns for bands?
« Reply #27 on: May 08, 2009, 11:04:37 PM »
Used to definitely be $50,000.. must have gone up with inflation. Either way not a bad thing and not too relevant.

Offline Ormsby_Guitars

  • WF Colonel
  • *****
  • Posts: 3650
  • Reputation: 5
  • Gender: Male
  • Ormsby Guitars and Repairs
    • View Profile
    • www.ormsbyguitars.com
Re: Tax and Tax returns for bands?
« Reply #28 on: May 09, 2009, 02:10:40 AM »
Yeah it went up to $75,000 a while ago. Regardless, that doesnt mean you CANT be registered, thats the limit at which if you go over it, you MUST be registered.

the majority of you all spend way more than your band's earn, and you're all throwing away good money by avoiding a tiny amount of paperwork.


Offline DevolvedEmperor

  • WF Colonel
  • *****
  • Posts: 2976
  • Reputation: -57
  • Gender: Male
    • View Profile
Re: Tax and Tax returns for bands?
« Reply #29 on: May 09, 2009, 02:13:45 AM »
Yeah it went up to $75,000 a while ago. Regardless, that doesnt mean you CANT be registered, thats the limit at which if you go over it, you MUST be registered.

the majority of you all spend way more than your band's earn, and you're all throwing away good money by avoiding a tiny amount of paperwork.


I've read through the site 5 times. It's confusing as fuck. I still don't understand. I can understand why bands don't bother.

Offline Mago_Haydz

  • WF Colonel
  • *****
  • Posts: 7730
  • Reputation: 108
  • Gender: Male
    • View Profile
Re: Tax and Tax returns for bands?
« Reply #30 on: May 09, 2009, 05:27:29 PM »
Yeah it went up to $75,000 a while ago. Regardless, that doesnt mean you CANT be registered, thats the limit at which if you go over it, you MUST be registered.

the majority of you all spend way more than your band's earn, and you're all throwing away good money by avoiding a tiny amount of paperwork.


I've read through the site 5 times. It's confusing as fuck. I still don't understand. I can understand why bands don't bother.

I had about the same amount of knowledge as it sounds like you have and I opened a business that successfully turns over roughly a 1/4 of a million dollars a year. Its really not all that hard once you get into it.... and find a decent accountant.
Mongeese like results

Offline Ormsby_Guitars

  • WF Colonel
  • *****
  • Posts: 3650
  • Reputation: 5
  • Gender: Male
  • Ormsby Guitars and Repairs
    • View Profile
    • www.ormsbyguitars.com
Re: Tax and Tax returns for bands?
« Reply #31 on: May 09, 2009, 05:35:28 PM »
Yup, as confusing as hell until you actually do it. It takes me no more than about 45-60 minutes to do my three monthly accounting and filling out the BAS/PAYG statements. They even send you a little "working out sheet" to help you now.

If you need clarification on anything, just ring and speak to someone. You sometimes have to wait a little while to get through, but the tax office has to be the best government department ever... they are extremely helpful.

Hell, you can even just go into the office in Northbridge and sit down with someone to talk it all through.

Offline memoriesofnam

  • WF Colonel
  • *****
  • Posts: 1395
  • Reputation: -17
  • Gender: Male
    • View Profile
    • http://www.brendan-ninness.com
Re: Tax and Tax returns for bands?
« Reply #32 on: May 09, 2009, 06:07:03 PM »
The govt websites are totally useless. We did the NEIS program, and the WA info isn't even listed on there - so nobody knows it even exists; but that's another story.

There's also short courses available, which I think you get a discount for (or freebie) from registering something along the way, or maybe it was making an appt. with the SBDC? Was a while ago now, but vaguely remember something about a free tax course.

I'm looking into making a tax info sheet PDF for bands when I get the time... just wanted to test the waters to see how beneficial it would be  8).
Cheers for the on-topic replies guys!
« Last Edit: May 09, 2009, 06:12:31 PM by memoriesofnam »

Offline goat

  • WF Colonel
  • *****
  • Posts: 905
  • Reputation: 2
  • Gender: Male
    • View Profile
Re: Tax and Tax returns for bands?
« Reply #33 on: May 13, 2009, 02:32:16 AM »
you gotta spend money to make money in this system, but its fuckn worth it if you can get thru a year doing it right.

I gotta Business set up by my accountant so i can claim all my recording gear and amps n shit as depreciation.
This year im gonna find out how i can milk the fuck out of everything as much as possible. If that means faulking out a bit more next year or having to change some shit, i will.

Thinking bout the long road not the short.
you can really make something of it if you put in the time no doubt.

Offline chantian_deanie

  • WF Colonel
  • *****
  • Posts: 1151
  • Reputation: 1
  • Gender: Male
  • ...
    • View Profile
Re: Tax and Tax returns for bands?
« Reply #34 on: May 15, 2009, 01:28:14 AM »
While we're on the subject, how can I properly invoice someone as a sole trader? Are there rules? (I'm an audio tech)

Edit: Never mind, downloaded e-record from the ATO site.
« Last Edit: May 15, 2009, 02:16:27 AM by chantian_deanie »

Offline Mago_Haydz

  • WF Colonel
  • *****
  • Posts: 7730
  • Reputation: 108
  • Gender: Male
    • View Profile
Re: Tax and Tax returns for bands?
« Reply #35 on: May 15, 2009, 02:21:15 AM »
While we're on the subject, how can I properly invoice someone as a sole trader? Are there rules? (I'm an audio tech)

I assume you have an ABN. I found an invoice template on the microsoft website ages ago and use that. If you are registered for GST, you have to include that at the end. For example, you write in the services provided and the charge - say its $100 for the sake of easy numbers. At the bottom have a subtotal, then the GST component then the grand total...

subtotal -     $100
GST (10%) - $10
TOTAL        - $110

make sure you have your ABN, business name, address and any contact details on the invoice in a header, and usually at the bottom include your accepted payment methods. Also you must have written on there somewhere who you are charging for your services. That way they can claim it in the future too... after all, thats the whole point of an invoice. Create an invoice number, and keep them sequential as you do more. 0001 is always a good place to start, obviously. If you find one of the many invoice templates, its all fairly straight forward, just make sure you have included all the info I told you. Pretty easy. if you have any dramas, I'll email you one of my invoices and you can use that as a guide. hit me up in PM if you want.
Mongeese like results

Offline TnT

  • WF Supreme Commander
  • WF Colonel
  • *****
  • Posts: 5122
  • Reputation: 93
  • Gender: Male
    • View Profile
    • Western Front
Re: Tax and Tax returns for bands?
« Reply #36 on: May 15, 2009, 03:44:46 AM »
Yep, and according to the ATO it has to say "Tax Invoice" on it.

Offline chantian_deanie

  • WF Colonel
  • *****
  • Posts: 1151
  • Reputation: 1
  • Gender: Male
  • ...
    • View Profile
Re: Tax and Tax returns for bands?
« Reply #37 on: May 15, 2009, 03:51:18 AM »
Thanks a lot man, the program that I got from the ATO site covers all that information in the template seems simple enough just wasn't sure if I was missing anything I needed. Also might as well say while I'm here, if anyone is looking for an audio tech pm me, discount if you mention WF.

Offline cyanide_christ

  • WF Colonel
  • *****
  • Posts: 3698
  • Reputation: -7
  • Gender: Male
  • Recording, engineering, mixing services available!
    • View Profile
    • Chaos Divine official web page
Re: Tax and Tax returns for bands?
« Reply #38 on: May 15, 2009, 05:42:21 AM »
Just out of interest, what do you mean by Audio Tech? Like live operator? Recording engineer? System engineer?

Offline chantian_deanie

  • WF Colonel
  • *****
  • Posts: 1151
  • Reputation: 1
  • Gender: Male
  • ...
    • View Profile
Re: Tax and Tax returns for bands?
« Reply #39 on: May 15, 2009, 07:52:36 AM »
Live operation, recording and production.

Offline cyanide_christ

  • WF Colonel
  • *****
  • Posts: 3698
  • Reputation: -7
  • Gender: Male
  • Recording, engineering, mixing services available!
    • View Profile
    • Chaos Divine official web page
Re: Tax and Tax returns for bands?
« Reply #40 on: May 15, 2009, 08:04:18 AM »
Cool. Yay for more metal soundies!

Offline chantian_deanie

  • WF Colonel
  • *****
  • Posts: 1151
  • Reputation: 1
  • Gender: Male
  • ...
    • View Profile
Re: Tax and Tax returns for bands?
« Reply #41 on: May 15, 2009, 05:57:39 PM »
Haha yeah, now we just need more metal customers :P

Offline memoriesofnam

  • WF Colonel
  • *****
  • Posts: 1395
  • Reputation: -17
  • Gender: Male
    • View Profile
    • http://www.brendan-ninness.com
Re: Tax and Tax returns for bands?
« Reply #42 on: May 16, 2009, 05:45:14 AM »
Yep, and according to the ATO it has to say "Tax Invoice" on it.

"Tax Invoice" if you're charging GST or "Invoice" if not, if I'm correct?

Offline chantian_deanie

  • WF Colonel
  • *****
  • Posts: 1151
  • Reputation: 1
  • Gender: Male
  • ...
    • View Profile
Re: Tax and Tax returns for bands?
« Reply #43 on: May 16, 2009, 05:48:04 AM »
Well the ato program changes the header to say invoice if you don't select GST so I hope that's correct.

Offline tekilla.

  • WF Private
  • *
  • Posts: 9
  • Reputation: 5
    • View Profile
Re: Tax and Tax returns for bands?
« Reply #44 on: May 21, 2009, 05:20:25 AM »
I assumed that's the case - but wonder how many do? Is it simply a tax deduction, so you pay less tax per quarter when lodging BAS? Or are bands not bothering to lodge a quarterly BAS due to low 'income'?


That... makes no sense. Are we talking income tax or GST here? Maybe I misunderstood what you were saying, but... BAS Statements have nothing to do with low or high income. BAS Statements are used to report to the ATO the GST you received / paid during each quarter. That's if you are registered for GST.  Which you are required to do if you are running a business and your annual turnover (income) exceeds $75k. If you carry on a business and your  turnover is less than $75k per year, you can choose to register for GST, i.e. it is optional.