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GST


Q1. What is required to have a valid tax invoice?
Q2. Can UTS receive the GST credit on reimbursed purchases?
Q3. What is the University's Australian Business Number?
Q4. What kind of courses are not GST-free?
Q5. Does the GST paid on my purchases appear as an expense on my clearing account?
Q6. When I bill a client with a tax invoice does the GST inclusive amount appear in my clearing account?
Q7. Why are some course charges levied by UTS subject to GST and others are not?
Q8. What type of payments can be made to visiting academics? What is a reasonable allowance / wage that we can pay?
Q9. Will a short course run by UTS be subject to GST?
Q10. Why do I have to provide a tax invoice to FSU when I go to a restaurant? Why won't a receipt just do?
Q11. Why is it important to distinguish correctly between the Employee and Contractor?

FBT

Q1. Is a travel diary required for all travel?
Q2. When will UTS paid meal entertainment be subject to FBT?
Q3. FBT almost doubles the cost of a meal. Is there a way to reduce FBT?
Q4. Is a Meal Entertainment Form always required?

GST

Q1. - What is required to have a valid tax invoice?

A1. - Please refer to the tax invoice chart in section 1-2 of the manual.

Q2. - Can UTS receive the GST credit on reimbursed purchases?

A2. - An Input Tax Credit ("ITC") will be available provided the appropriate original documentation has been attached to the application for reimbursement. For purchases below $55 (GST included) a receipt and not necessarily a tax invoice is not required for claiming the ITC. For purchases above $55 please refer to the tax invoice chart in section 1-2 of the manual.

Q3. - What is the University's Australian Business Number?

A3. - 77 257 686 961

Q4. - What kind of courses are not GST-free?

A4. - Taxable courses include:

  • hobby, personal development or recreational courses
  • continuing professional development courses to maintain membership of a professional body
  • short occupational courses to maintain skills and
  • a course for a qualification which may be required for a particular employer or group of employers, for example, a motor car license for a courier.

Q5. - Does the GST paid on my purchases appear as an expense on my clearing account?

A5. - No, GST is a Balance Sheet item it is paid to suppliers and then claimed back from the Australian Tax Office (ATO). It does not appear in your clearing account.

Q6. - When I bill a client with a tax invoice does the GST inclusive amount appear in my clearing account?

A6. - No GST is collected from the client and remitted to the ATO. It does not appear in your clearing account.

Q7. - Why are some course charges levied by UTS subject to GST and others are not.

A7. - Course charges levied by UTS are generally GST free. There are exceptions to this rule, which include UTS union fees and student association fees. A fee paid that does not guarantee entry to a course would also be subject to GST.

Q8. - What type of payments can be made to visiting academics? What is a reasonable allowance / wage that we can pay?

A8. - The visiting academic must travel on the correct visa to Australia. All payments of allowances or salary to a visiting academic should be agreed upon and correctly documented before the academic arrives in Australia. There are a number of relevant double tax treaties that Australia has with foreign countries. These have the potential to affect the way payments are taxed in Australia.  It is suggested that these payments should be discussed with the Tax and Insurance Officer on extension 2874.

Q9. - Will a short course run by UTS be subject to GST?

A9. - Generally no, however, there are two considerations that determine the GST status of short courses. If the course is accredited tertiary course it will not be subject to GST. If a course is an adult and community education course and adds to the employment related skills of the participants it will not be subject to GST. Please refer to the short course classification flowchart.

Q10. - Why do I have to provide a tax invoice to FSU when I go to a restaurant?  Why won’t a receipt just do?

 A10. -  A receipt will be acceptable for all purchases including meals under $50.00. For all purchases over $50.00 the original tax invoice is required so that UTS can claim back the Input Tax Credits (the 10% GST).

Q11. Why was the Employee v Contractor Form Created?

A11. - Commonwealth and State legislation requires UTS to engage workers as either employees or contractors. This area of law is receiving increased attention by government agencies. The characterisation of an employee as a contractor is not optional. It is dependent on the facts of each situation. Plus there are a number of requirements to be a contractor.

For further information please read http://www.hru.uts.edu.au/recruitment/appointments/contractors.html

FBT

Q1. - Is a travel diary required for all travel?

A1. - A Travel diary is required whenever UTS pays for an employee to travel within Australia for a duration of more than 5 nights and the travel is not exclusively for employment. The University requires a travel diary for all UTS paid overseas travel.

Q2. - When will UTS paid meal entertainment be subject to FBT?

A2. - Meal entertainment is the provision of a meal or drink that has the character of entertainment. Please see the Meal Entertainment Guidelines.

Q3. - FBT almost doubles the cost of a meal is there a way to reduce FBT?

A3. - FBT is only payable when meal entertainment exists. If there is no meal entertainment there is no FBT. Strategies such as not serving wine at in-house events reduces the FBT payable.

Q4. - Will our function be subject to FBT?

A4. - The Meal Entertainment Form is only required when taxable benefits are provided to employees. Kindly note the difference between meal entertainment (taxable) and subsistence (not subject to FBT).  Please refer to the Meal Entertainment Guidelines.