GST Miscalculation on Commissions
Definition
In agency arrangements, art centres charge commissions (e.g., 40-52%) on artist sales, with GST divided by 11 (e.g., $36.36 on $400 commission). Errors in buy-sell vs agent models lead to revenue leakage via lost invoices or pricing mistakes[1][2].
Key Findings
- Financial Impact: AUD 36-48 GST leakage per $1,000 sale; 2-5% revenue loss from misreported commissions
- Frequency: Per sale, quarterly BAS lodgement
- Root Cause: Manual division (commission/11) and confusion between agent vs buy-sell GST treatments
Why This Matters
The Pitch: Retail Art Dealers in Australia 🇦🇺 waste AUD 36-47 per $1,000 sale on GST miscalculations. Automation of commission GST splitting eliminates this risk.
Affected Stakeholders
Gallery Accountants, Art Dealers, Artists
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Delayed Artist Payments from Commission Disputes
BAS Lodgement Penalties for GST Errors
Commission Overcharge Disputes
Delayed Appraisal Invoice Payments
Probate & Family Division Disputes
Insurance Under-valuation Claims Losses
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