The terms of the Copyright Act create an exception to copyright and provide for payment of equitable remuneration by educational institutions, Government and other participating service providers. The exception is not a licence and the right to receive remuneration is not created either by Screenrights as a collecting society nor by the copyright owner. That right is conferred by the Copyright Act itself and not by any person. Accordingly, under Australian tax law, there is no taxable supply and for payment of royalties by Screenrights to rightsholders, GST does not apply.
However, there is GST on Screenrights’ administration fee, which is a service. The GST is calculated as 10% of the administration fee only.