Sydney Changes to Australia's taxation system and an Australian Taxation Office (ATO) draft ruling regarding sponsorship and contra-deals has led to complaints from the events industry.
Association meetings and events regularly involve some form of sponsorship and the provision of services and, if fully implemented, the ruling may oblige some parties involved to submit GST invoices for goods and services received in kind.
The Meetings Industry Association of Australia (MIAA) has now submitted comment on the ruling which, if carried to its logical conclusion, may result in incidences such as conference speakers issuing invoices for GST purposes for a gift given in appreciation.
In addition, entertainers, who may provide a discounted service to achieve a profile with
a particular audience, could invoice for the full commercial rate.
"Sponsorship and in-kind support allows associations to stage events at a higher level," MIAA chief executive Ms Jenny Lambert said.
"MIAA is to hold a further meeting with the ATO and we hope common sense will prevail and we await their response with interest."
Australian tax changes spark opposition
Sydney Changes to Australia's taxation system and an Australian Taxation Office (ATO) draft ruling regarding sponsorship and contra-deals has led to complaints from the events industry.