Indigenous artists living in remote communities can continue to operate without an Australian Business Number (ABN) until at least June 30 2004, the Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, announced in Darwin today.
Senator Coonan said that under normal circumstances, if an indigenous artist was carrying on a business and did not quote an ABN, the sale of that art to a business would result in tax of 48.5 per cent being withheld from their payment.
Senator Coonan said Tax Commissioner Michael Carmody had granted the extension which means art centres are not required to withhold tax from payments made to an indigenous artist when purchasing art works.
The exemption has been in operation since the introduction of the new tax system in recognition of the fact that many indigenous artists in remote communities would be faced with new tax issues.
"Entry to the new tax system is difficult for indigenous artists living in remote communities due to issues such as language, literacy, accessibility to information and record keeping requirements," Senator Coonan said.
"The Tax Office is working towards developing closer relationships with indigenous communities to understand the cultural issues affecting their ability to meet their tax obligations."
Senator Coonan said the Government and the Tax Office continue to seek ways of streamlining the taxation system to facilitate the paper-work and the revenue collection process.
For further information contact the Tax Office on 13 28 66 or visit www.ato.gov.au.