Does GST apply to payments that a developer makes to a Council in lieu of the developer being required to complete infrastructure works? Question The Council has entered into an arrangement whereby a developer will pay to Council an agreed amount in lieu of being required to complete infrastructure works. Under the arrangement, Council will …
Read moreGST Q&A – GST on payments in lieu of infrastructure works
Classifying the GST treatment of taxes, fees and charges is an important and ongoing aspect of many government agencies and particularly local councils. The ATO has issued a document on its website that not only provides a good summary of how Division 81 operates but also provides some practical and useful guidance. While recently searching …
The ATO has broadened its formal view of the concept of ‘improvement’ for the purposes of GST-free supplies of land and supplies taxed under the margin scheme. The change is set out in amendments to GSTR 2006/6. The statutory context Under s. 38-445 of the GST Act, in certain circumstances the following supplies are GST-free: …
Read moreGST – GSTR 2006/6: What constitutes an ‘improvement’ of land?
Question As a local government entity, do we need to report sponsorship payments in the taxable payments annual report (‘TPAR’)? In particular, would sponsorship fees for a food festival event be reportable? Answer Government entities, whether federal, state, territory or local, are required to report the total payments they make to an entity for providing …
Read moreGST Q&A – TPAR reporting: Do I need to report sponsorship payments?
Our featured article for the month covers two proposed legislative changes to the recovery of GST – these are significant changes and are expected to be enacted very soon. These changes will hopefully not apply to your organisation, but we firmly believe it is crucial to be vigilant of potential risks caused by late BAS …
Directors are personally liable to pay certain unpaid tax owed by their company to the Commissioner of Taxation. Soon, this is likely to also include GST. This personal liability can be avoided by taking appropriate timely action. Directors need to be aware of when these liabilities can arise and which steps need to be taken …
In a previous article (from the June TaxEd Update), we considered the GST and income tax treatment of fundraising events from the perspective of both fundraisers and attendees. In this article, we consider the GST implications associated with raising funds through raffle tickets and the non-profit sub-entity rules. A raffle is a lottery where entrants …
We receive many queries about the income tax and GST implications of fundraising events, both from those hosting and those attending the events. We’ve prepared an example to help illustrate the tax consequences for organisations planning on hosting these events. It is important to also keep in mind the income tax consequences of any attendees, …
Question We have two questions in relation to GST charged on transactions with overseas suppliers: Our council has recently received an invoice from an overseas supplier which does not have an ABN, however, does have a VAT ID. GST has been charged on this invoice. Can the supplier charge GST with no ABN and can …
The Queensland Government introduced a waste levy from 1 July 2019 to reduce the amount of waste generated and disposed. The levy zone covers approximately 90% of Queensland’s population, including many of our TaxEd members. Landfill operators, such as local councils, are responsible for paying the levy to the Queensland Government. The Queensland Government has …
Read moreGST – Queensland waste disposal levy: Is it subject to GST?