For a long time now a story has bobbled along about whether Local Councils should have to charge GST on ‘property’ transactions (asset sales) and a possible class action to test the issue. On 14 June 2023 the Full High Court handed down its decision. Here is the answer. Read on for more details
What are the GST implications (if any) of property allocated to a government entity by a commercial property developer? This article identifies the key points to consider.
GST, Infrastructure Charges and Developer Contributions Read More »
We recently received a Q&A from a member asking about GST and payments received for recycled containers collected. Question: Council will be receiving revenue from an organisation (‘Recycle Organisation’). Every time Council holds an event any recyclable containers from the event will be collected by Recycle Organisation. Council will be paid for these recyclable containers
Member Q&A: Is GST payable on goods intended for recycling? Read More »
Question We are a Council. If we allow our staff to salary sacrifice their Council rates can we apply the FBT in-house benefit valuation rules and the $1,000 in-house benefit reduction to reduce the FBT impost? Answer The discharging of an employee’s municipal rates obligation by foregoing salary under an effective salary sacrifice arrangement is
Member Q&A: Salary sacrificing Council rates and FBT – how does it work? Read More »
The scenario: Council has set up a wholly-owned subsidiary to act as a project manager for a major development being undertaken by Council. The subsidiary is a for-profit company. We shall refer to it as PMCo. Also, Council and PMCo are both GST-registered and are part of a GST group. PMCo handles all aspects of
GST and processing transactions between group members Read More »
Question We are a local Council and we are examining the possibility of offering salary sacrificing to current employees in the form of discounted childcare in childcare centres which we operate and which are located on our business premises. Can you provide some guidance on the FBT treatment should we proceed. Answer The provision of
Member Q&A: FBT issues for salary sacrifice of discounted childcare Read More »
Question If an employee, who has full private use of a one tonne vehicle and who is required to carry bulky items (e.g. ladder, tools etc,) travels to various sites directly from his home, including during out of hours and on weekends, would those trips be eligible for home to work business travel? The various
In August 2021, the NSW Office of Local Government published draft guidelines for ‘audit, risk and improvement committees’ (ARIC’s) for local councils in NSW. In broad terms, the draft guidelines consider (amongst other things) how frequently members of the ARIC must meet, the ability for ARIC members to be involved with multiple ARICs, whether ARIC
Question: Council have engaged a contractor to provide a service. In order to provide the service the contractor is required to purchase materials and will incur other expenses, however before purchasing any materials or incurring any expenses, the contractor must receive approval from Council in order to be reimbursed. On completion of the project, Council
Member Q&A – Does GST apply when reimbursing a contractor’s expenses? Read More »
