GST is completely different to PAYG.
They are all separate items.
- GST is Goods and Services Tax
- PAYG withholding is employee income tax (PAYG) withheld from wages
- Voluntary agreements for PAYG withholding is where a contract worked with an ABN (so not an employee) enters into an agreement with the business by where the business deducts withholding tax from its payments so that they will not have to pay a PAYG installment on that income.
- PAYG Installment is paying instalment amounts towards your expected tax liability on your business and investment income for the current income year.
Thank you for your reply. I understand the different nature of GST and PAYG. However, the example on the page 155, which I referred to, included both GST and PAYG with no obvious connection. In particular, it says that Mary has a volunteering agreement AND the transaction should go without GST, which make no sense to me.
Could you pls check the example?
GST implications are based on the completed NAT2772 form.
Payees who have indicated that they are registered for GST on the form will need to consider the response the payer provided regarding GST tax credit entitlement and where the payer has answered:
(a) ‘YES’ to this question, the payee does not charge GST on supplies to which this agreement relates.
(b) ‘NO’ to this question, the payee MUST charge GST on taxable supplies made to which this agreement relates.
If the payee is registered for GST, they can claim input tax credits on goods or services bought and used in performing the work under a voluntary agreement.
- This reply was modified 2 years, 9 months ago by Janelle Bruzzese.
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