Council has reimbursed a claimant for an excess payment on a vehicle smash repair. What are the GST implications for Council of the reimbursement? Question A claimant has lodged a reimbursement claim with Council for an excess payment on a vehicle smash repair. To support their claim, a tax invoice issued by the repairer to …
Read moreGST Q&A – GST on reimbursement for insurance excess claim
The classification of an arrangement as one of employment or an independent contract is critical to determine the income taxation (and other) obligations an entity will have. This article broadly considers some of the differing implications under the PAYGW, superannuation guarantee, GST and FBT regimes once an arrangement has been properly classified. Whether an arrangement …
Read moreGST – The effect of the employee/contractor distinction
A recent case has considered whether the transfer of title to an apartment was a ‘supply of accommodation’ for purposes of the GST concessional (GST-free) treatment of supplies of accommodation for consideration that is less than 75% of the GST-inclusive value of the supply. Charities, deductible gift recipients (DGRs) and government schools are able to …
Where a DGR supplies items pursuant to a charity auction, does GST apply to the supply? Question Council has a related endorsed deductible gift recipient (DGR) fund under Council’s ABN. The DGR is hosting an event which will include an auction on the night. Proceeds from the sale of auction items will go towards the …
Is GST payable on funding provided by Council’s related DGR to meet the cost of a Christmas function hosted by a not-for-profit entity? Question Council has a related endorsed deductible gift recipient (DGR) fund. Through the DGR, Council provides funding to various not-for-profit entities (NFPs) to host Christmas luncheons for individuals experiencing financial hardship. The …
Read moreGST Q&A – Provision of funding for Christmas functions
T’is the season for gifts – but are you also making a gift of GST or FBT to the Revenue? Based on the decorations in the streets and the shopping centres, the Christmas season has well and truly arrived and many are caught-up in the gift-giving spirit. The making of a gift by a business/entity …
Is GST applicable to fees paid to Council by a food vendor for the right to have a stall on Council grounds during a festival? Question Could you please advise whether GST is applicable for fees paid to Council by a food vendor to have their stall on Council grounds during a festival. Answer The …
Question Under the Land Acquisition and Compensation Act 1986 (Vic), authorities acquiring land from land owners for a capital works property are required to pay for any legal, valuation and other professional expenses necessarily incurred by the claimant by reason of the acquisition. However, the authorities are not required to pay for the GST component. …
Read moreGST Q&A – GST on costs associated with land acquisitions
Question Where there is a transfer of land between a council (or other local government entity) and a state government department for no consideration, or a peppercorn rate of $1.00, is there GST on the transaction? If so, is GST applied on the basis of the agreed amount or on the market value of the …
The recent release of Class Ruling 2019/61 provides confirmation of how South Australian Councils should be treating their fees and charges for GST purposes. This Class Ruling also provides guidance for other councils regarding the GST treatment of their own fees. Between 2013 and 2015, the Commissioner of Taxation issued a number of Class Rulings …
Read moreGST Article – South Australian Council fees and charges