GST Q&A – Acquiring property without applying the margin scheme

What happens where the vendor wants to apply the margin scheme, but the purchaser doesn’t? Question We are a local government entity and are purchasing a private property in order to develop it into a park. The vendor is requesting GST under the margin scheme, but as we won’t be selling the property this is …

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GST Credits for functions made available to the public

Entitlement to GST credits for entertainment expenditure is subject to the interplay of the FBT and income tax deduction provisions. We explore whether GST credits are available where entertainment expenditure is incurred in holding functions available to the general public. We have previously published an article that looks at the interaction between GST and FBT …

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GST – How to determine if something is regulatory in nature

When looking at the characterisation of exempt taxes, fees and charges, the GST provisions refer to supplies being regulatory in nature. How do you determine whether the provision of information, or thing being done, is regulatory in nature? When trying to determine whether a tax, fee or charge will be exempt from GST under Division …

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GST Q&A – GST on payments to government bodies

Question Council has been invoiced by a State Government department for a capital works project Council is contributing to. Should GST be included in this invoice? As further detail, in order to pay this contribution, Council received funding through a grant from a different government department which had no GST associated with it. Answer In …

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GST Q&A – GST on reimbursement for insurance excess claim

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 …

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GST – The effect of the employee/contractor distinction

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 …

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Categories GST

GST – Can the sale of an apartment by a charity qualify as a GST-free ‘supply of accommodation’?

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 …

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Categories GST