GST Treatment

Goods and Services Tax (GST) obligations, BAS lodgement, and treatment of different revenue streams at Pride.

GST Registration and Threshold

Pride is registered for GST (required for venues with revenue above $75,000/year; Pride’s revenue well exceeds this).

Monthly BAS (Business Activity Statement) lodgement required to Australian Taxation Office (ATO).

Revenue Stream Classification

GST-inclusive (10% GST):

  • Bar sales (Square POS): Beer, spirits, wine, soft drinks, food (if applicable)
  • TryBooking ticket sales (general ticketing)
  • Merchandise sales (if applicable)

GST-free (no GST):

  • Entertainment and live performance: Some live performances may qualify as GST-free “supplies of entertainment services” depending on nature (professional assessment required; status currently unclear)
  • Certain cultural or educational event tickets (rare; requires specific meeting of ATO criteria)

Current coding:

  • TBKR — TryBooking GST Revenue (ticket sales with GST, suggesting standard GST treatment)
  • TBCTBD — TryBooking Non-GST Revenue (exempt ticket sales, if applicable)

BAS Lodgement

Frequency: Monthly (due by 21st of following month)

Components:

  • GST collected on sales (Tax)
  • GST paid on purchases (Input Tax Credit)
  • Net GST payable to ATO (Tax minus ITC)

Status: Lodged by Mat or bookkeeper; currently mat managing due to bookkeeper departure (November 2025). Compliance status not verified; flag for recent audit.

Challenges and Gaps

  1. Entertainment GST classification: Unclear whether Pride’s drag, DJ, and ticketed entertainment services qualify as GST-free. Requires ATO ruling or professional tax advice. Currently assuming standard GST but status should be verified.

  2. Tracking and coding: Without consistent coding discipline (due to bookkeeper gap), GST may be miscoded, leading to incorrect BAS reporting and potential audit exposure.

  3. Cash vs accrual: Xero can operate on cash or accrual basis; unclear which method Pride uses for BAS purposes. Cash basis may not align with actual financial position.

  4. TryBooking integration: TryBooking deposits to Westpac with clearing account cycle (1–2 day lag); GST reporting timing must align with either settlement date or invoice date (should clarify for compliance).

Superannuation Treatment

Superannuation paid on behalf of employees is not GST-able; properly classified in Xero as super payable (not taxable supply).

Financial Year Context

Australian financial year is 1 July – 30 June. BAS lodgements calendar-aligned (monthly) but annual tax return filed by 30 June deadline.

Co-operative Conversion — GST Registration Impact

Per Co-operative Tax Capital Raising Governance Research.

If Pride converts from Pty Ltd to a distributing co-operative under the CNL, there are no special GST concessions for the new entity. However, the conversion creates a new legal entity with a new ABN. This means:

  • The existing Pty Ltd’s GST registration must be cancelled
  • The new co-operative must apply for its own ABN and register for GST separately
  • This also applies to PAYG withholding registrations, the business name, and all tax obligations
  • The mutuality principle (which may exclude amounts received from members for membership services from assessable income and potentially GST) is complex and “considerably less certain for distributing co-operatives engaged in commercial hospitality” — professional tax advice essential before relying on mutuality arguments

Practical implication: transition planning must include GST registration timing to avoid any gap in compliance. The new co-operative’s GST registration should be in place before the Pty Ltd registration is cancelled.