In this section you will find answers to some frequently asked questions in relation to Pay as You Go Tax and Goods and Services Tax for Authors.

For assistance in resolving any other queries about your contract please don't hesitate to contact your editor.

Pay As You Go Tax and Goods and Services Tax issues for Authors

What happens if I don't supply TLR with my Australian Business Number?
Authors who are paid more than fifty dollars for each supply they make to TLR should provide their Australian Business Number to TLR. Failure to provide an ABN will result in 46.5% being withheld from the payment and remitted to the ATO. The legislation governing PAYG withholding is A New Tax System (Pay As You Go) Act 1999.
In the instance where PAYG tax is withheld from an author's payment, TLR shall supply the author with a statement showing the amount paid and the amount withheld. It is up to each individual author to reconcile such statements with their annual tax return.

When should I supply my ABN to TLR?
If you are a current author, you should supply your ABN to TLR as soon as possible. Most authors who were intending to obtain an ABN have done so and supplied it to us. If you are a new author who has not written for TLR before, you should supply your ABN within sixty days of execution of your publishing agreement with TLR.

I delivered my completed manuscript prior to 1 July 2000 and the terms of my agreement provide for payment on delivery of the manuscript. Is this fee subject to PAYG withholding?
No ? monies due and payable prior to 1 July 2000 are not subject to PAYG withholding, even though physical payment may take place after 1 July 2000.

My publishing contract with TLR is in my own name but I direct my royalties/fees to be paid to my family corporate trust. Should I quote my own ABN or that of the trust to avoid withholding?
You should quote BOTH your own ABN and that of the trust if you wish to avoid PAYG withholding tax.

I am registered for GST. In what circumstances will my publishing contract which provides for payment of royalties be GST-free?
Your contract will be GST-free if your publishing agreement contained an assignment of copyright to TLR and you provided completed manuscript prior to 1 July 2000. The GST-free status of the contract will apply until 2005.

I am registered for GST. Do I have to issue TLR with a tax invoice before I am paid my fee or royalty?
No ? all authors who are registered for GST should receive a Recipient Created Tax Invoice agreement during August and September 2000 which they shall be asked to execute and return to TLR. The RCTI agreement allows TLR to provide a tax invoice to the GST-registered author. The GST-registered author does not have to issue a tax invoice.

What will the RCTI show?
The RCTI will show the amount of royalties or fees to which you would be entitled if no GST applied PLUS an additional amount equal to the GST. The author should forward that additional amount representing the GST to the ATO when lodging their Business Activity Statement. Payments to authors will not be reduced as a result of GST.