Hi,
Myself and two friends recently started a small theatre company, set up with a partnership ABN. We would really like to try using a profit share model for our shows - where the company handles all the money and then splits the profit equally between all those involved (eg. actors, directors, etc) and the company itself (to be used for future shows) after each individual show.
I am the treasurer, and thus in charge of all the finances, including splitting the profit and giving each person their share. However, I'm unsure if I have to pay tax or superannuation for the people involved. This is how I was planning to do it:
1) Ask for a 'Statement by a Supplier' form from each person with the box ticked "in pursuit of a hobby"
2) Have each person send me an invoice for their share of the profit.
3) Upon receiving these, send their money via bank transfer.
Is this correct? Or is there a better way to do this? And do I need to pay super?
Thank you for your help!
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