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 […]
GST and the margin scheme: Some recent observations 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
GST and the treatment of deposits – are forfeited deposits subject to GST? 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
Member Q&A – Are fines issued to members subject to GST? 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
Member Q&A – Dealing with GST on gym memberships 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
Member Q&A – GST, Tax Invoices and RCTI issues on COVID program funding 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
Member Q&A – GST and the treatment of credit card surcharges 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,
GST and Asset Protection Bonds 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
GST and development leases 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
Member Q&A: Does GST apply to a grants made to a community group? 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
GST and grants: Need more guidance? Is there a better way? Read More »
