GST and grants: Need more guidance? Is there a better way?

From TaxEd’s perspective, we regularly receive questions via our Q&A service asking whether grants paid or received by government entities (including departments and/or councils) and not-for-profits are subject to GST. The majority of these questions agitate on whether there is ‘sufficient nexus’, or whether there is ‘no supply’. In our responses, we regularly refer to …

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Current ATO Advice under development and matters under consultation

As a part of the ongoing administration of taxation and superannuation laws the ATO provides various forms of information and guidance. The most common of these is the ATO website, and for more specific technical guidance the ATO issues public rulings. From time to time, the ATO undertakes reviews of public rulings and various ATO …

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Member Q&A – GST Treatment of interest and dividends (including disclosure on the BAS)

Question I understand the dividend income/distributions received from share/managed fund investments are not required to be reported on the BAS, however the interest earned on term deposits or through interest bearing banks accounts are required to be reported at G1 (total sales). Are you able to please explain the reasoning behind this treatment from technical …

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Categories GST

When is a COVID-19 grant from a local government subject to GST?

Due to the economic impact of COVID-19 many local councils (along with the state and federal government) are providing grants to assist with the economic recovery. In particular local councils such as Melbourne City Council, City of Sydney and Brisbane City Council are providing grants to stimulate business and businesses in their locality. A question …

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Member Q&A – Is the sale of a ‘towed’ vehicle subject to GST?

Question “Council has arranged for a third party to tow a vehicle due to it committing a traffic offence. After a certain period of non-collection by the owner, the agent will then sell the vehicle on our behalf and remit the proceeds to Council. Does this vehicle sale represent Council making a taxable supply that …

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Categories GST

GST and treatment of expense reimbursements for Councillors

An issue that is regularly raised by TaxEd members is whether a Council can claim GST credits it reimburses a Councillor for travel costs paid by the Councillor for authorised travel arrangements? Background: A common scenario For example, Council arranged for several Councillors to attend a conference and they were attending as representatives of the …

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Categories GST