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Resources on demand

Discreet supplies – GST lessons from a brothel

In this webinar, partner Fletch Heinemann runs uses a case where the taxpayer was operating a brothel and then, with the help of other case studies (not about brothels), looks at how the central GST concepts apply to business structures.

[Running time: 1 hr 15 mins]



A recent AAT decision provides a practical example of fundamental GST and tax issues that can arise in running a business. In this case, the taxpayer was operating a brothel. But the lessons are not limited to brothel owners.

The case illustrates some more difficult aspects of what constitutes a ‘supply’ for GST purposes. It also shows the importance of getting the documentation right and implementing the business structure correctly.

We run through the case and then, with the help of case studies (not about brothels), look at how the central GST concepts apply to other business structures.

After this webinar, you will be able to:

  • understand the GST and tax issues facing a brothel without having to visit one
  • identify which entity is making the relevant supply for GST purposes
  • distinguish between structures involving contractors and service entities (think professional services) – and the very different GST treatments
  • understand when an entity is acting as agent for another or making its own supplies as principal
  • see when clients’ arrangements have either not been properly documented or not correctly implemented in practice
  • advise clients on the risks of getting it wrong – which can extend beyond GST to PAYG withholding, directors’ penalty notices and payroll tax.