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
We recently dealt with a TaxEd member query as to the correct GST treatment of a forfeited deposit arising in relation to a land sale that was to have been GST-free. It made us think this would be a great newsletter topic. Before dealing with the specific question though it is useful to take a … Read more
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
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
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
Question Council is introducing a credit card processing fee to recover the cost of merchant fees incurred. We are seeking advice as to the correct GST treatment and confirmation as to which of the two possible options is correct: The fee may be taxable or GST free, depending on the GST treatment of the underlying … Read more
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
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
Question As a local government council, we have an agreement with a community group, who we are granting $1M to complete a community-based project. They intend to pass the money on in full to a third party who will actually engage contractors and complete the works. The community group has an ABN but is not … Read more
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