• Separate payments to the establishment and worker

    These instructions apply where the client makes separate payments to the establishment and the worker. Under this scenario, the client makes a payment to the establishment (for the cost of room hire) and a separate payment directly to the worker (for the service).

     
    Attention

    In all cases where the client makes separate payments to the establishment and the worker, the amount the client pays to the establishment for room hire will include GST and the establishment will account for the total GST on the room hire.

    The client will pay the worker for the amount charged for the service.

    End of attention

    The worker does not have an ABN

    As the worker does not have an ABN, the worker cannot be registered for GST and there is no GST amount in the charge for the service.

    The worker, who is not registered for GST, will not be able to claim the GST credits for any GST amounts paid on business purchases.

    The worker has an ABN but is not registered for GST

    As the worker has an ABN but is not registered for the GST, there will be no GST amount in the charge for the service.

    The worker will not be able to claim the GST credits for any GST amounts paid on business purchases.

    The worker has an ABN and is registered for GST

    As the worker is registered for GST, they will charge GST on the value of their services to the clients and the worker will account for this GST in their next tax period. The worker will be required to issue a tax invoice to the client within 28 days if requested.

    If the establishment has charged the worker a shift fee, or any other expense, then the price paid by the worker will include GST. The worker will be able to claim GST credits for any GST amounts paid on these. In order that the worker can claim GST credits for these amounts, they will need to obtain a tax invoice from the establishment unless the amount of the supply is $82.50 or less, in which case the normal income tax substantiation rules will apply. The establishment will be required to issue a tax invoice to the worker within 28 days once requested.

      Last modified: 04 Jun 2014QC 16396