1. Australia introduces new GST attribution rules for collecting societies and copyright owners

The Australian Taxation Office (ATO) has released a new legislative instrument, A New Tax System (Goods and Services Tax) (Attribution rules–supplies and acquisitions relating to collecting societies) Determination 2025. This determination updates the GST attribution framework governing transactions between collecting societies and copyright owners.

The 2025 Determination provides comprehensive guidance on the attribution of GST liability and input tax credit (ITC) for both entities, depending on whether they account for GST on a cash or non-cash basis. It also repeals and replaces the earlier 2015 Determination in its entirety.

Key Highlights of the 2025 Determination:

(i) Attribution of GST by Collecting Societies

Collecting societies must attribute GST on taxable supplies to the tax period in which they become aware that a copyright owner is entitled to receive a distribution. This applies if a remuneration notice is issued; the relevant amount is collected and the society withholds its administrative fee from that amount.

(ii) Attribution of GST by Copyright Owners

For supplies made by copyright owners to collecting societies, GST attribution depends on their accounting method:

For non-cash basis – GST is attributed to the earlier of:

(a) When the owner becomes aware that consideration has been received; or

(b) When the owner becomes aware an invoice has been issued.

For cash basis – GST is attributed to the period when the owner becomes aware that consideration has been received, but only to the extent of the amount received.

(iii) Input Tax Credits

Attribution of input tax credits for credible acquisitions made by a copyright owner from a collecting society follows similar rules:

For non-cash basis – To the earlier of awareness of consideration provided or invoice issued.

For cash basis – To the period when the owner becomes aware consideration was provided, to the extent of the amount paid.

(iv) Repeal of earlier instrument

The new determination formally repeals the Goods and Services Tax – Particular Attribution Rules Determination (No. 34) 2015, replacing it in full.

Implications

Collecting societies and copyright owners should review their GST accounting and attribution policies to ensure compliance with the updated requirements under the 2025 Determination, particularly regarding awareness-based attribution under both cash and non-cash accounting methods.

With this reform, Australia provides clearer and more consistent GST attribution rules, promoting accuracy and alignment in tax reporting for the creative and rights management sectors.