You are licensing the brand, franchising the system, or paying royalties offshore — and the money is real. But is the royalty base defined so it captures what it should? Is GST handled correctly? Is royalty withholding tax being deducted on cross-border payments? And is the income flowing to the entity that should hold the IP? A vague royalty clause and a loose structure quietly cost you every reporting period.
Licensing and royalty arrangements where the base is defined, the tax is right, and the income lands in the entity you intended.
Where this maps in the law
AASB 15 revenue and royalty recognition; GST under the A New Tax System (GST) Act 1999; royalty withholding tax under the ITAA 1936 / 1997 and Australia’s tax treaties.
This page is general information only — not personal financial, tax, legal or intellectual-property advice. Any valuation, tax or advisory work is performed under a signed engagement with Local Knowledge Pty Ltd, in accordance with the applicable professional standards. Trademark legal advice is provided by an independent registered trade marks attorney.
The most valuable thing your business owns is often the one asset carried on the books at nothing.
You built the IP. Does the entity that exploits it actually own it — and are you claiming what you can?
You built the brand. Do you own it — or only use it? Registration is a legal question for a qualified attorney.