GST and the margin scheme: Some recent observations

The majority of margin scheme transactions are relatively straightforward. However, various amendments to the margin scheme rules over the years (notably in 2005 and 2008) have seen a range anti-avoidance measures included which add layers of complexity when seeking to determine the two key questions: Am I eligible to apply the margin scheme? and How … Read more

Member Q&A – Are fines issued to members subject to GST?

Question Our organisation is a not-for-profit sports association that operates a league for member clubs. Where a member club has breached certain membership rules imposed by the association the member club is fined. Are these fines subject to GST? Answer A supply will be subject to GST if it meets the requirements of a taxable … Read more

Member Q&A – Dealing with GST on gym memberships

Question Council owns and operates a number of pool and leisure facilities. We have a number of members that we categorize as rehabilitation members which provides them access to the swimming pools or the gyms depending on their needs. These are memberships where the person attends the facility as a result of medical needs for … Read more

Member Q&A – GST, Tax Invoices and RCTI issues on COVID program funding

Question As part of Council’s COVID Recovery Plan, Council is providing another round of the Community Support Fund (for food and essential items support, and COVID-related health programs). Council is calling for Expressions of Interest to provide urgent relief to the community by not-for-profit support organisations already running such programs. Council will enter into contracts … Read more

GST and Asset Protection Bonds

Background and Context It is relatively common that organisations such as local Councils request and retain an asset protection bond amount from people/organisations who are due to commence building works within the municipality. In most instances these bond amounts are returned to the person at the completion of the works where no damage has occurred, … Read more

Categories GST

GST and development leases

The ATO issued GSTR 2015/2: development lease arrangements with government agencies in June 2015. However, recently (in April 2021), the ATO updated this ruling via an addendum. This link takes you to the consolidated ruling which incorporates these updates. At the same time, the ATO also issued GSTD 2021/1: development works in the ACT Given … Read more

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 … Read more