Question 1

Are Brumby Pay rewards considered taxable income?

Accepted Answer

In most cases, no. Brumby Pay rewards are issued after voluntary payment and are not cash, not transferable, and not redeemable for cash.
They’re designed to meet ATO guidelines for low-risk loyalty recognition. If you’re unsure how a reward may apply to your personal or business tax situation, speak with a qualified tax advisor.

The information provided here is general in nature and is not financial or tax advice. Brumby Pay does not provide tax, accounting, or legal advice. You should seek independent professional guidance to assess how any reward or fee applies to your specific circumstances. Brumby Pay accepts no liability for any loss arising from reliance on this information without obtaining appropriate professional advice.

Question 2

Do I need to report my Brumby Pay activity to the ATO?

Accepted Answer

In most cases, no, Brumby Pay rewards are not considered taxable if you’re paying as an individual for personal reasons. If the payment relates to a business, sole trader activity, or employment, tax obligations may apply. Brumby Pay rewards are non-cash, non-transferable, and not redeemable for cash, but if you’re unsure, check with your tax advisor or the ATO.

The information provided here is general in nature and is not financial or tax advice. Brumby Pay does not provide tax, accounting, or legal advice. You should seek independent professional guidance to assess how any reward or fee applies to your specific circumstances. Brumby Pay accepts no liability for any loss arising from reliance on this information without obtaining appropriate professional advice.

Question 3

Can I claim the Brumby Pay fee as a business expense?

Accepted Answer

Yes, the platform fee is generally tax-deductible as a business operating expense. It covers services like reward fulfilment and compliance management, which are directly related to earning your assessable income.  This fee is distinct from marketing or promotional expenses and is typically claimed as a standard operating cost. Ensure you keep accurate records of the fees paid for substantiation.  For personalized advice, consult with a tax professional or refer to the ATO's guidelines on business deductions.

The information provided here is general in nature and is not financial or tax advice. Brumby Pay does not provide tax, accounting, or legal advice. You should seek independent professional guidance to assess how any reward or fee applies to your specific circumstances. Brumby Pay accepts no liability for any loss arising from reliance on this information without obtaining appropriate professional advice.

Question 4

Will I get an invoice or receipt for the commission?

Accepted Answer

Yes, Brumby Pay issues a tax invoice for every successful payment, clearly showing the platform fee as a line item.
This includes GST where applicable and can be used for your business records or tax reporting. All receipts and invoices are available in your Brumby Pay dashboard or sent by email.

The information provided here is general in nature and is not financial or tax advice. Brumby Pay does not provide tax, accounting, or legal advice. You should seek independent professional guidance to assess how any reward or fee applies to your specific circumstances. Brumby Pay accepts no liability for any loss arising from reliance on this information without obtaining appropriate professional advice.

Question 5

How is GST Calculated when using Brumby Pay?

Accepted Answer

For Creditors (Businesses Using Brumby Pay):
Brumby Pay charges a commission that covers both platform service and reward fulfilment.
This commission is treated as a bundled taxable supply under the A New Tax System (Goods and Services Tax) Act 1999 (Cth).
GST is charged on the full commission amount where applicable.
Commission expenses may be tax-deductible depending on structure and accounting method.

Brumby Pay’s platform commission is calculated based on your original invoice amount excluding GST. That means you are never charged a fee on the GST portion you collect on behalf of the ATO.
As a GST-registered business, Brumby Pay is required to apply 10% GST to our commission. This GST is clearly itemised on your Brumby Pay tax invoice and may be claimable as an input tax credit if you are also GST-registered.
For Reward Recipients (Payers):
Brumby rewards are not subject to GST.
Brumby does not issue invoices or statements to reward recipients.
Any tax treatment (e.g. income, promotional rebate) depends on the business type and usage.

The information provided here is general in nature and is not financial or tax advice. Brumby Pay does not provide tax, accounting, or legal advice. You should seek independent professional guidance to assess how any reward or fee applies to your specific circumstances. Brumby Pay accepts no liability for any loss arising from reliance on this information without obtaining appropriate professional advice.

BRUMBY PAY

TM

FAQ
Tax & Accounting

BRUMBY PAY

TM

FAQ Tax & Accounting

FAQ
Tax & Accounting