The Radio industry is anxiously awaiting word on whether the government will impose GST on radio contest prizes.

A recent Australian Tax Office Draft Ruling concerning GST on Prizes would make every giveway and low value contest prize a GST’able transaction. Stations would pay double GST on all prizes and giveways – once when they acquire them and then again when they give them out to listeners.

GST on radio prizes is scheduled to come into effect later this month if the government does not reverse the ATO draft decision.

“It will impact all commercial radio … If the outcome is successful we can breath a sigh of relief, if not we will have a bureaucratic nightmare,” said one radio industry source.

Commercial Radio Australia has made representations to the Federal Government about the ruling and is expecting an answer very soon.