äht( closes up shop
Sydney production company äht(, which has been a substantial player in the TVC industry for many years, has been forced to close its doors.
At the same time as trying to produce ads in a market challenged by a downturn in TVC production generally (as well as a Global Financial Crisis) – in the last year äht( has had to pay an extraordinary payroll tax penalty in the wake of the recent OSR audits.
Says äht( principal, Adrian Hayward (pictured): “Production Houses have been in the State Revenue gunsights recently with audits into a number of top Sydney Production Companies – a situation fought by äht alongside the Screen Producers Association and numerous other production companies, including the Sydney Film Company which closed last year. Everyone at aht is saddened by this news and wish to send our regrets and our thanks to all the agencies, crews and other suppliers who have worked with us over the years.”
38 Comments
Andrew Tinning from lil’ ol’ Perth says: A sad day indeed. Speaking from a personal note Perry and Toby did an amazing job for us on what was one of the most challenging briefs I’ve had in a long time. Whatever shape you boys shift into moving forward you will always have our support.
Cheerio aht
It’s been a pleasure working with you guys over the years. Good luck to you all.
Just a sign of the times unfortunately. Good luck Adrian. You did good work and you always did it with a smile. We’ll always be grateful for your contribution to Sydney’s Olympic bid.
SHAME!!!!
this is such sad news – Adrian you are a classy bloke.
Hopefully Toby pops up again sometime soon, he’s a great producer, and brings a vital sense of humour to our industry.
Thanks for all your hard work and laughs Tobes!
The Plush co-production profit sharing deal is delivering the desired results within independent production.
I find it incredible that almost 24 hours after this was posted, no-one has commented. Not a single commiseration, no “sad to see you go, thanks for the great work over the years”. Not a single agency even bothering to mark the passing of a significant production company. Not one of the hacks who convinced aht directors to work for free on their pitches, their award jobs, their crappy spots even has the class to say thanks.
Anyone who ever had the chance to work with the people at aht will agree that they were hard working, serious & dedicated to their craft. Thanks for your work folks, here’s hoping you land somewhere where your clients show a little more appreciation.
What do you call a director? Waiter
4.53. Lynchy has been on a plane after being over here for Axis. Hence the delay with the comments.
We all agree this is sad news for Adrian and the guys who have put so much into their company.
Sorry to see it go this way Ade, This is also a sign of shifting budgets with unshifitng scripts. Agencies may not be able to control their clients spending but they could sure start writing to suit it! Keeping the doors open is not helped by having to constantly try to fit “10 pounds of potatoes in a 5 pound sack” Start writing to a budget and you stand a chance of having a decent director around for when you DO actually have a ten pound sack to play with
If the script calls for more than the budget allows why is it always called a ‘budget issue’ ?
oh and 5.35.. your a tool
I made a comment last night in defense of the Office of State Revenue & our obligations to contribute but it has not appeared. I’m not sure if this is censorship or a technical hitch at CB HQ. Suffice to say that all is not what it seems when production companies close the doors in this manner.
This is the 2nd Plush co-production company to go down. As they say in Monopoly – STW go directly to jail.
Oh, and Adrian you are an accomplished director not a fly by nighter, so I am sure you will be pumping out great spots for some time yet.
1.09. so what is it then ?
Ive known many friends companies and my own stung by the OSR / ato and the rulings / grey guidelines have been less than logical or fair. Anyway its just another case of the Aus government going out of their way …reeeeally out of their way to crap on the little guy
I agree it’s a sad day but…….sadder (and harder) for us who may never be paid for the last few jobs.
theres many many prod companies doing co pros with plush, aht like any other company can work with whoever they like. plush is a part of the landscape like it or not,, they bid against other companies to get work and prob win as many as they lose just like any other company..
aht going under is not JUST a plush issue it just shows that its tough out there and its time agencies stop thinking of prod co’s as ponytail wearing rangerover driving money grubbers. theyre mostly regular guys giving it a go who employ people and find it tough going. The australian government also makes it as hard as possible to own a company these days.red taping and taxing them out of existance like many others and those to come, adrian and toby have im sure said it just aint worth it any more
There is nothing grey about payroll tax law. If you consider having a tax obligation being “stung” then it’s your attitude that is in question. I also own a small business and pay all my tax obligations as and when they occur. As for crapping on the little guy, I’m sure these film directors & producers are not living in poverty, in fact far from it. Blaming the government because they insist you pay tax is laughable if not downright insulting.
So Aht, sydney film, and several others i wont name are all tax dodgers? no.. the specific guidelines in question were most definitely grey. Everyone of the companies in question had professionals entering and filing the books and were all im sure surprised by the atos findings. as were many book keepers, lawyers, accountants and SPA…. nothing grey?.. crap.
12.19 Your comments are completely baseless and ill informed.
Having been one of the first to experience a payroll audit I can tell you that the Office of State Revenue randomly change the rules that they apply to film production companies. A finding that they make at one company will vary wildly to one that they make at another. For six years the Screen Producers Association have been requesting guidelines from the OSR so that production companies can correctly calculate payroll. Having sat with Senator Bob Debus, and a group of senior officials from the OSR who promised to meet and draw up guidelines they have failed to do so and continue to ignore our requests. What they have done is challenge our industry, threatening it with a big stick and huge fines. In fact they rely on the grey areas in the law to make interpretations on an industry that they do not comprehend so they can apply as many fines as possible. The State Government has a massive Workers Compensation Debt and use payroll tax as a revenue raising scheme. Our only recourse is to challenge the findings in court. The cost for legal representation of this kind is enormous with no guarantees. 12.19 feel free to contact SPAA to gain a full understanding of what the OSR have been dishing out before making sweeping statements
I am very sorry to hear that. good luck.
12:19 here.
Bob Debus has never been a member of the senate. His only link to the finance portfolio was as finance minister in the NSW State government between 1986 & 1988. Mr Debus is currently the the member for Macquarie and the Minister for Home Affairs. He has held this portfolio since the 2007 Federal election. The assertion that the NSW State government has a massive Workers Comp debt is also a fallacy, usually promoted for political purposes by Barry O’Farrell. Sweeping statements? I don’t think so.
‘12.19’ with respect, perhaps the main sweeping statements are that ‘there’s nothing grey about payroll tax laws’.. clearly as I and 9.49 have said and perhaps others can chime in and concur (?) they have done nothing to clear up specific rules that are considered by MANY professionals very definitely GREY. You know so much about politics and the OSR but little on the very definite confusion, pain and delays production companies have been put through on this subject… perhaps this isnt a thread you have constructive comment to offer on?
12.19 you are a an idiot.
You are right, The Hon Bob Debus was Minister for the Arts in the NSW State government at the time but was the relevant minister representing our industry. Prior to that, in his own words he worked to develop the Payrol tax law and had a clear insight into what now faces our industry. Payroll tax IS a revenue raising scheme and the tax department will not provide any guidance having promised me in front of the Minister to do so.
As an example of the confusion the tax department succeed with Ill give you one specific example. In our payroll assessment we were told to include a production designer who had an ABN, but exclude a production designer who was pty ltd. This was based on the ABN being judged an employee and the Pty Ltd being judged a contractor. They do the same job, have the same responsibilities, run their own businesses, work for a multitude of companies and yet were to be treated differently. When this was challenged we were told that if we didnt agree that they would simply include the pty ltd supplier as well. If that is not grey then you aren’t an ill informed twat.
This was the same across the board. The OSR then applies interest charges and fines that are crippling. We have never avoided paying tax and have tried extremely hard to get some feedback from the department to assist other production companies with handling this area. With over 600 freelance employees, sub contractors, contractors, that are PAYG, ABN and PTY LTD the tax department refuse to give clear guidelines as to who is included and who is excluded. In fact inclusions at one production company appear to vary wildly with inclusions at another.
Thanks for backing me up 10.15 🙂
12:19 here again.
Mr Debus was the Minister Assisting the Premier on the Arts until 2003, he was never The Minister for the Arts.
It seems I have stirred quite a hornets nest in here. The real question is whether it is reasonable to set up business structures with the clear objective of minimising tax obligations and then complaining when it’s found you have crossed the line. You’re probably pretty quick to complain about public transport, hospitals & schools too.
As a little aside, you may consider someone with a differing opinion to be an idiot, but you guys are the ones making silly statements as though they are facts. I never said that payroll tax is not revenue raising, it clearly is. The Tax Department is federal, OSR is State. Debus has never been a Senator or Minister for the Arts.
12.19..
OSR, ATO, left pocket right pocket. if you have a debt with the ATO the OSR will collect. whatever.
None of the prod companies was a set up as a “business structure with the clear objective of minimising tax obligations” but cmon.., who pays more tax than they need to.. just to be sure! maybe you? You ask advice of professionals and the ATO then they change their mind and hit you for it. Brilliant
The ORIGINAL ISSUE was that the guidelines (as explained above) were open to vastly varying interpretations with one company advised differently by the ATO to than another. If they cant get it straight what hope do the accountants and book keepers working for the companies have trying to comply.
12.19 you really are a tool. You clearly have absolutely no understanding of film production or its processes……perhaps you should join the OSR as an auditor
As this is not a discussion about film production or its processes, your post is irrelevant.
Regardless of the semantics 12:19, you’re missing the big picture.
Sorry, I’m coming into this a bit late. I’m even sorrier for äht if it’s the OSR that’s brought them to their knees.
It’s not about about tax avoidance.
All production companies allow for tax implications, but only the taxes we know about.
In broad strokes, any entity that is Pty. Ltd. or has an ABN (a Sole Trader) and doesn’t work for the majority of their time for one company are Payroll Tax exempt for the production company, but responsible for paying their own State and Federal taxes.
From what I understand, äht was downed by a State Government nebulous self serving retrospective Payroll Tax demand.
Budgets are squeezed not only buy clients, but production companies also squeeze budgets relentlessly to deliver the best job for even less because as the adage goes, we are only as good as our last job. Taxes are like any other in item the budget, but no one can allow for retrospective taxes.
Finally, I would have signed my name here, but I don’t need the Office of State Revenue adding me to their äht collection.
Why oh why can’t we have this erudite standard of discussion on creative/agency issues? This is obviously an issue that’s way too complex for the usual rabble to comprehend, let alone comment on. Hopefully a man of Adrian’s talent and experience will rise Phoenix-like from the ashes.
Just for the record. Sydney Film Company closed it doors by choice and nothing to do with a tax bill. Maggie Lewis and Peter Cudlipp farewelled this industry with Maggie and Tony Williams deciding it was a very good time to retire and leave with dignity owing not a cent to anyone.
Now that was a class act.
A very sad day indeed. Tobe and Ade I salute you for your contribution to the industry. …. I look forward to a nice cold lager with you both. see you both soon.
From an old Kiwi friend in Dubai
5.37…
“Why oh why can’t we have this erudite standard of discussion on creative/agency issues?”….
because this is prod company people talking 🙂
Looks like the R-bombs are starting to drop. Take cover!! Send the highly paid wankers to the front!!! Mayday!!
It may be tough when a company goes down…especially when a tax bill is partly responsible but remember….it is NEVER acceptable for a company to shut it’s door and not honour it’s outstanding debts to crew and suppliers. You take the cream in the good times and the crap in the bad times….that’s the deal. Take the money when its rolling in and pay out when it’s not.
It is clear to me that the ‘tax’ issue raised by Adrian is a furphy. I have to agree with April 6 comments. The boys have investment properties in Pyrmont that they could have sold to keep afloat. The properties would have been paid for by the company anyway, indirectly or not is irrelevant, that’s just paper shuffling. They must have known they were trading insolvently for quite some time, but they took the easy (and dastardly) way out, so it would not cost them a cent and they could keep their net worth intact, leaving everyone else to suffer. Effectively they have walked away with over $1m of other people’s money. And then, to add insult to injury, the next day they continue to work out of the same offices as though nothing has happened! Another name, same shit. I can’t see how they can work in the industry again, they should be black listed. Do the right thing boys and cough up, then maybe the industry will cut you some slack!
They still have their big black luxury cars …which they’re driving around in whilst stiffing the little people such as the Grips & the Gaffers etc they owe money to. This whole thing smells bad.