Category: GST

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

March 30, 2021

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 …

Current ATO Advice under development and matters under consultation

March 30, 2021March 30, 2021

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 …

Member Q&A – Claiming GST on credit card surcharges

March 3, 2021

Question What are the requirements to be able to claim GST credits on a credit card surcharge that is not shown on the tax invoice? This typically arises when making payments to suppliers using credit card via their on-line portal. Answer The ATO’s view on credit card surcharges is set out in GSTR 2014/2. Generally, …

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

March 3, 2021

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 …

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

February 3, 2021

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 …

Member Q&A – GST and ‘Meals on Wheels’

December 3, 2020

Question Could you please advise whether we add on GST to Meals on Wheels fees that are: not covered in a client’s Home and Community Care Package or is additional to their package charged to other service providers of Home and Community Care services. Answer We note the provisions applying to this area are quite …

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

November 5, 2020November 5, 2020

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 …

GST Q&A – Receiving funding for student awards

November 5, 2020

Question A private company will provide funding of $20K to a College to award and provide incentives to indigenous Australians while also providing for education and employment opportunities. This funding will be paid by the College to the students as a ‘student of the year’ award and also for scholarships. A further $3K will be …

Member Q&A – How is a Land Swap treated for GST purposes?

October 1, 2020October 1, 2020

Question Hi TaxEd, Council has entered into a land exchange agreement with a state government department i.e. where we give them a piece of land and property we own as a direct trade for a piece of land and property that they own. Does this kind of transaction have GST implications, and if so how …

GST and treatment of expense reimbursements for Councillors

October 1, 2020

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 …