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GST

IMPORTANT INFORMATION

Class Act has finally been given a ruling from the ATO:

1. Although we are a non-profit organization, Class Act is required to register for GST, which means we are required to collect a 10% GST on all our performances from July 1^st 2000 and pass this money onto the Government.

2. However, all schools will be able to claim an input tax credit on this amount.

3. The good news is that the students will NOT have to pay GST on the per head amount the schools collect from them for our shows and workshops. (See the Draft Goods and Services Tax Ruling: supplies that are GST-free for pre-school, primary and secondary education courses under the heading Curriculum related activities and instruction, points 44 to 50.)

EXAMPLE:

Our play, Bully Busters!, costs $2.50 per head with a minimum fee of $250.00 for audiences under 100.

West Lake Primary School books one performance on July 18^th 2000.

On the day of the show, the school organizer tells the actors there were 150 students in attendence. They have collected $2.50 from each student for the total amount of $375.00. The actors or Class Act Administration will then issue the school with a Tax Invoice for the $375.00 plus 10% GST ($37.50) for a total amount of $412.50. The school then sends us a cheque for this amount. Class Act then sends $37.50 to the Tax Office and West Lake Primary School claims the $37.50 back as an Input Tax Credit.

Therefore, the school will not be out of pocket for booking a Class Act show and the students receive our very important services GST-free.