Q1. What do I do with my ABN?
A1. The ABN must be quoted on all invoices for sales and services rendered and will also be used for correspondence with government departments and agencies.

Q2. What happens if I do not quote my ABN on my invoices?
A2. Any payments made by businesses will have 48.5% tax deducted.

Q3. When I get my ABN will I be able to use it like my Sales Tax Exemption Number?
A3. No. Sales Tax ceases 30^th June 2000.

Q4. Can I still use my Sales Tax Exemption Number after 30 June 2000?
A4. No Sales Tax ceases 30^th June 2000.

Q5. Should I stock up on materials before the 1^st July 2000 to take advantage of my Sales Tax exemption number?
A5. Yes.

Q6. I only sell one or two artworks per year do I need to register for GST?
A6. No not if your Sale value is less than $50,000, but if you are selling through a gallery, the gallery may prefer you to be registered.

Q7. I don't earn over $50000, therefore I do not need to register for the ABN or GST?
A7. You do need to register for the ABN if you are in Business. It becomes a choice relating to your circumstances as to whether you should register for GST.

Q8. What happens if I am not registered for GST and my income goes over $50,000?
A8. You will need to register straight away. The $50,000 threshold is measured by this month's income and the previous 11 months income or this month's income and the anticipated income for the next 11 months.

Q9. Do I need to register twice for the ABN and GST if I have two business names?
A9. No. If they are held in the same entity. ie registered in your name as a sole proprietor.

Q10. Can I claim GST credits without a tax invoice?
A10. Yes for purchases under $50 provided that you have some documentary evidence to support your claim. All purchases over $50 require a tax invoice for the GST credit to be claimed.

Q11. If I purchase a computer can I claim input tax credits for it?
A11. Yes, to the portion that you use the computer for business purposes.

Q12. Should I purchase new software to help with the GST?
A12. Good record keeping is going to be essential this can be achieved by using computer software or a manual cash book.

Q13. If I enter into a contract now for work that will not be completed before the 1^st July 2000, do I need to ensure that GST has been included in the contract?
A13. Yes, as the provision of goods and services after the 1^st July 2000 will be subject to GST.

Q14. What is a BAS?
A14. It is an acronym for Business Activity Statement. It is the form you use to account for the GST and some other taxes.

Q15. When do I need to complete the BAS?
A15. The 21^st day after the end of the quarter ie 21^st October , 21^st January,21^st April and 21^st July.

Q16. Is the $50,000 threshold for GST the same as my Taxable Income?
A16. No the $50,000 is based on Gross Income from the Sale of Goods and Services,

Q17. Do I still need to lodge a taxation return?
A17. Yes, your personal income tax obligation is separate to your GST obligations.

Q18. What can I do with my $200 GST Direct Assistance Voucher?
A18. This voucher can be used for any expenditure with registered suppliers ie Accounting services, Computer Software.

Q19. I have paid GST on some of my inputs but not others does this affect the GST on the finished product?
A19. No the GST on the finished product is not affected by the inputs, however, the GST you will pay (1/11^th of your income) will be reduced by the GST paid on inputs.

Q20. What happens to stock already in outlets on Consignment (A) Do we automatically increase prices accordingly? (B) Will outlets be forced to purchase the goods held?
A20. (a) If you are GST registered you will have to pay 1/11^th of your sales income in GST, therefore if you wish to maintain your same level of income as pre GST you will have to increase the price by 10% (b) No, outlets cannot be forced to buy the goods held or consignment.

Q21. What happens when a practitioner has paid GST on inputs, has placed the finished products on consignment at an outlet and not all stock has been sold prior to the end of the quarter?
A21. The credit for GST paid on inputs is claimable in the quarter it is paid, it does not have to be matched with the actual finished products sale. All input credits for GST paid in the quarter are claimable in that quarter.

Q22. I am keen to learn about the procedure involved in claiming a GST credit for stock on hand at changeover?
A22. There is no GST credit for stock held (unless you are a second hand dealer) but there may be a Sales Tax credit claimable for Sales Tax paid on finished stock on hand at 30^th June 2000.

Q23. Are Cash prizes subject to Withholding Tax of 48.5% because I do not have an ABN?
A23. Yes, If you are a Professional Artist and the prize would be taxable income to you, if you win as an Amateur no tax is required to be withheld.

Q24. Does GST apply to Prizes?
A24. Again, Yes for a Registered Professional and no for an Amateur.

Q25. I sell about $1500 pa of work through craft and other niche markets, If I do not have an ABN does the outlet have to deduct 48.5% tax?
A25. I think it would be fair to say that this is not a business activity and therefore as an Amateur no tax needs to be deducted.

Q26. Is the GST on the Gross or Net Sales of my work?
A26. GST is on the Gross Sales.

Q27. If I claim input credits quarterly can I still put the expenses on my Income Tax Return?
A27. Yes, GST is an extra Tax System. You still pay income tax on your income less expenses.

Q28. I have traditionally done accounts in a cashbook by hand will this system change?
A28. No, not necessarily, if you are registered for GST, all you need to do is include a column in your cashbook to show expenditure for which you have paid GST to enable the input credits to be claimed.

(With thanks to Bob Poolman)