Is GST payable on funding provided by Council’s related DGR to meet the cost of a Christmas function hosted by a not-for-profit entity? Question Council has a related endorsed deductible gift recipient (DGR) fund. Through the DGR, Council provides funding to various not-for-profit entities (NFPs) to host Christmas luncheons for individuals experiencing financial hardship. The …
Read moreGST Q&A – Provision of funding for Christmas functions
T’is the season for gifts – but are you also making a gift of GST or FBT to the Revenue? Based on the decorations in the streets and the shopping centres, the Christmas season has well and truly arrived and many are caught-up in the gift-giving spirit. The making of a gift by a business/entity …
Is GST applicable to fees paid to Council by a food vendor for the right to have a stall on Council grounds during a festival? Question Could you please advise whether GST is applicable for fees paid to Council by a food vendor to have their stall on Council grounds during a festival. Answer The …
Question Under the Land Acquisition and Compensation Act 1986 (Vic), authorities acquiring land from land owners for a capital works property are required to pay for any legal, valuation and other professional expenses necessarily incurred by the claimant by reason of the acquisition. However, the authorities are not required to pay for the GST component. …
Read moreGST Q&A – GST on costs associated with land acquisitions
Question Where there is a transfer of land between a council (or other local government entity) and a state government department for no consideration, or a peppercorn rate of $1.00, is there GST on the transaction? If so, is GST applied on the basis of the agreed amount or on the market value of the …
The recent release of Class Ruling 2019/61 provides confirmation of how South Australian Councils should be treating their fees and charges for GST purposes. This Class Ruling also provides guidance for other councils regarding the GST treatment of their own fees. Between 2013 and 2015, the Commissioner of Taxation issued a number of Class Rulings …
Read moreGST Article – South Australian Council fees and charges
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?