FAQ about supplying GST and ABN details
In this section you will find answers to frequently asked questions from our authors regarding Pay As You Go (PAYG) Tax and about Goods and Services Tax (GST).
What happens if I don't supply Thomson Reuters with my Australian Business Number?
Authors who are paid more than $50.00 for each contribution are asked to provide us with their Australian Business Number (ABN). If we don’t have your ABN, we need to withhold 46.5% from your payment and remit this amount to the Australian Taxation Office (ATO).
If PAYG tax is withheld from your payment, we will give you a statement showing the amount paid and the amount withheld. It is up to each individual author to reconcile these statements with their annual tax return.
The legislation governing PAYG withholding is A New Tax System (Pay As You Go) Act 1999.
When should I supply my ABN to Thomson Reuters ?
Most of our authors have supplied us with their ABN. If you are a current author and we don’t have your ABN, please send us these details as soon as possible.
If you are a new author who has not written for us before, please supply your ABN within sixty (60) days of signing your publishing agreement.
My publishing agreement with Thomson Reuters 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. Do I have to issue Thomson Reuters with a tax invoice before I am paid my fee or royalty?
No. For all authors who are registered for GST we provide a Recipient Created Tax Invoice (RCTI) agreement which we ask you to sign and return to us.
The RCTI agreement allows us to provide you with a tax invoice, which means that you will not have to issue a tax invoice.
What will the RCTI show?
The RCTI will show the amount of royalties or fees you would be entitled to if no GST applied PLUS an additional amount equal to the GST. You then forward the additional amount representing the GST to the ATO when lodging your Business Activity Statement.