Motel Mingle Forums Online Bookings Commissions, ATO

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  • #5743



      Hi there,

      A question for my accountant no doubt, but asking him and getting charged by the second for his time I thought I’d ask here first.
      The previous owner use to record each booking through expedia with price and commission amount (expedia take the commission first) I asked her briefly about why she recorded it down and she said something like that you can claim the commission either against tax or GST. I can’t exactly remember what she said. Does anyone do anything with the ATO in regards to the commissions paid from any of the OTA?


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      • #5750


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          Thanks for the replies, just found the expedia explanation (and the same for where they aren’t registered for GST and because they are companies abroad etc etc… So pretty much exactly what you guys said. Thanks for the advice, i really appreciate it.


        • #5749

          imageBallina Colonial Motel

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            In accounting terms, you have two distinct transactions here, that should not be netted against each other.

            You have Income in the form of the ‘Accommodation Cost’ that you provide and on which there is GST payable on your BAS return.

            You then have an Expense in the form of ‘Commission’ (I call it ‘Advertising’ in my books), which depending on the OTA may or may not have any GST. If the OTA is based abroad like Expedia,, Agoda etc., they are not charging you GST. But if the OTA is Australia based like Jetstar, Roamfree or Quickbeds then there is GST claimable on your BAS return.

          • #5748


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              Hello Marty,
              There are both Non-GST and GST commissions depending on the OTA or Travel Agent you are dealing with, by rights you should probably record all income as the gross amount and then allocate the commission to the appropriate GST or Non-GST account in your book-keeping program. However often I do record the net income especially for the OTAs that pay with a virtual CC as this all goes into the system as one transaction. You of course need to check which of the OTAs are GST applicable and for any that are it is probably better to record the commission as then you have the GST offset however if there is no GST recording the net income is not a problem.
              Hope this is of some help.

            • #5744


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                In my best knowledge, it will depend how you show your income from this booking.
                i.e, if your rate is $100, you receive $85 from Expedia (15% commission ).
                If you show the income as $100 you would claim the $15 as a deductible amount against your income.
                However if you, as we do, show the NET room income as $85 there is no claim for commissions.
                The same rule would apply to any GST component.

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