Jockeys and drivers
Common issues for jockeys and drivers include:
Riding or driving activities as an enterprise
If you are a jockey or driver, it is likely that you are conducting activities as an enterprise if you:
- provide services to a number of owners or trainers in return for a fee, or
- are a track work rider and you provide riding services to a trainer as an independent contractor.
It is unlikely that you are conducting your activities as an enterprise if you:
- are a part-time jockey/driver, that is, you only ride/drive occasionally
- do not have a reasonable expectation of profit or gain
- only ride/drive your own horses or only ride/drive for others occasionally
- are an apprentice jockey or a probationary driver and you provide your services to a master trainer or registered licensed trainer in return for a salary or wage, or
- conduct your activities as an employee (for example, you receive a wage and leave entitlements, and your employer contributes to a superannuation fund on your behalf).
Working out GST turnover
If you are a jockey or driver and you conduct your activities as an enterprise, your riding or driving services are taxable supplies.
Your GST turnover includes all payments you receive for riding, driving or other track work, including any tips or 'slings' you receive. It also includes all monetary and most non-monetary prizes you receive as a result of riding or driving an animal.
If you are employed by a trainer as an apprentice jockey or concession driver, you are not carrying on an enterprise by providing your services to that trainer. Payments you receive as an employee should not be used to calculate your GST turnover.
Receiving additional payments
In general, if you are a jockey or driver, you will receive a standard fee for your services that is set by the racing body. Under certain circumstances, you may receive more than the standard fee for your services. These circumstances may include:
- the owner of the racehorse may choose to pay you more than the standard fee
- you may receive an additional amount from an owner after a successful ride or drive (commonly referred to as a 'sling').
Both of the amounts received in these situations are payments for a supply of your riding or driving services. If you are registered or required to be registered for GST, you must account for GST on these payments.