Isaac
Years ago

ABC Radio discussion of price increases

Just got a heads up re a discussion on ABC/5AN (Matt Abraham and David Bevan) regarding the recent increase in prices for basketball in SA.

Angela had called up to note the increase of $7.50 to $9.00 and said that it would have an impact on those playing more than once a week particularly. She was playing 4 times a week, I think.

5AN spoke with Ron Green, Acting BASA CEO. They confirmed that he was previously from Unley Council and that he'd played basketball in the past.

They asked Green why BASA had put the prices up. After an early stumble, Green talked about the increase in costs of cleaning, electricity and so on. Also said that the increase from the GST a few years ago was never made, but BASA can no longer absorb that cost.

The mention of referees comes a bit later in the piece. He suggests that 25-30% of the increase goes towards an increase in pay for referees.

5AN asks what other avenues were considered before the increase. Green said they looked at the cost of stadium staff, cleaning, etc to see if reductions could be made there first.

5AN mentions Netball and Soccer as receiving government assistance recently. Green mentions the $10.45m debt to the government and says that the government is helping basketball by currently waiving debt payments.

David from Edwardstown calls up. He remembers it being $3.50 per game to play. Said that he'd had no warning of the increase after the Masters Games. Says he's thinking about stopping playing with the cost and petrol prices as well.

Green assures listeners that they agonised over the decision and worked for a couple of months over the figures before making it.

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Anonymous  
Years ago

Abraham and Bevan are on ABC aren't they?

(Mod: Ex-5AN, sorry. Fixed.)

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Kent Brockman  
Years ago

So the dome gets cleaned?

Judging by the rats that call it home i don't think it gets cleaned all that often.

So players are paying GST?

Where is the tax invoice then?

Any tax gurus on the forum?

If you had your own business could you sponsor a player, say yourself, and then claim the costs of playing as a form of advertising?

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XY  
Years ago

GST is payable on ALL goods and services with only a few excptions. BASA is clearly offering a service to basketball players, which will incur GST.

Unless you are a company and wish to claim a GST input credit, you don't really need an itemised invoice. You could probably get one if you ask for it.

The GST was designed by the libs to be virtually invisible (to deceive people about the amount of tax you actually pay), but you pay it on just about everything and often would not know.

The legislation does have some requirements for invoices, but as I understand it, this will be satisfied if you quote a single price inclusive of GST.

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Isaac  
Years ago

I suspect that by law you would have to be able to ask for a receipt. As I understand it, that receipt would need to specify "Tax Invoice" and state the ABN of the seller. Pretty sure that these two elements are compulsory (have a look at any receipt - petrol, supermarket, restaurant, etc).

Then they can either itemise the GST or specify a final figure and indicate that it contained GST, AFAIK.

It is free to get an ABN and you can claim advertising, so I don't see why you couldn't have your team members each register for an ABN, pair up and then sponsor each other.

Of course, then you have to deal with any reporting obligations which might make the saving negligible. If you sponsored yourself, you'd have to report that income and pay tax on it anyway.

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thomo  
Years ago

i sponsor my own indoor cricket team and clam it on tax and it works fine because i have my own ABN

i know it works for uniforms equip cleaning team registration etc.. but never tryed to claim the actual cost of playing the game,

gonna try that now thanks for the heads up kent

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Isaac  
Years ago

"Hello, Mr Brockman? This is the ATO. We hear that you've been advising people on tax-minimisation schemes..."

I can foresee me building you a website: "How I Saved $0.90 per Week Sponsoring Myself in Social Basketball."

And the follow-up book: "Sponsor Yourself to Wealth".

I'm pretty sure Oscar's already looking for it in Angus & Robertson.

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Anonymous  
Years ago

So, legally, does that mean players can if they want to - ask for a receipt, if we are in fact paying for GST?

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Isaac  
Years ago

Depends if GST is charged on sports participation. It's not charged on fresh fruit, vegetables and some other non-luxury goods, so maybe sports participation is exempt to encourage it?

They could simply be passing on the cost of GST incurred on things like cleaning and other bills in the ticket price.

In that case, in might be that the rise is a partial delayed reaction to the GST but not necessarily reflected on a receipt. Realistically, asking for an itemised receipt isn't going to be of much use anyway.

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Anonymous  
Years ago

Sorry but I am 99% sure that the prices did in fact go up 10% when the GST came in anyway, so that along with the orginal memo regarding referee training and development IMO is another lie.

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billo  
Years ago

I think it's a bit rich trying to use GST as justification for a price rise 5 YEARS after its introduction. Clutching at straws anyone?

Reply #56413 | Report this post


Kelly  
Years ago

There are fines in place for companies that blame price rises on the GST. I have worked in retail and we were told very strictly never to say a price rise was to do with the GST (after the GST came in initially), because there are milllion-dollar penalties that come with that if you are caught by the ATO.

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Anonymous  
Years ago

(this actually happened to me around 2 months ago)

I got hassled (as an assistant coach) to pay to get in at Hillcrest. Charging an Asst coach a spectators fee??? so i insisted on a tax receipt.

The door lady at hillcrest wrote on the back of some scrap paper

"Tax receipt. Basketball entry fee"

Smart-arse lady, so i said it wasn't valid unless it had an ABN number on it, after about 10 minutes of trying to find 'the manager' they finally produced (on a purple piece of paper)...

"Tax invoice. Basketball entry fee.
North Adelaide Rockets
ABN XX XXX ...."

Because its not itemised, i am not able to claim it on tax, therefore how can they charge me?

I must declare my coaching payments as income, but cannot claim deductions, allowable under s25 General Deductions ITAA97.

I really hate to knock BASA but there are some glaring holes i hope Dawe will be able to fix.

(Mod: Amusing story.)

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Anonymous  
Years ago

Anon (57296),

Why the hell did you want a tax invoice if as you said you can't claim the entry cost as a deduction. Were you in fact being the smart arse!!

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Anonymous  
Years ago

"Because its not itemised, i am not able to claim it on tax, therefore how can they charge me?"

that is my query.

As an accountant (not a tax accountant), i was of the impression that an ABN was all i needed to claim under the provision above quoted.

Further up in this thread someone has mentioned only receipts that are 'itemised' can be claimed.


"must declare my coaching payments as income, but cannot claim deductions, allowable under s25 General Deductions ITAA97."

Is the result of my query as it stands, perhaps i should have used a question mark?

I am able to claim entry fees (unless the receipt must be itemised?)!

Hope this clears up your confusion.

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Anonymous  
Years ago

OK I see my misinterpretation of you post. I think you will find that you need different types of invoices/receipts for GST and Income tax deductibility purposes.

I would be very surprised if you cannot claim as an income tax deduction the receipt you received.
In fact I would be claiming it along with my accounting fees!!

Reply #57318 | Report this post




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