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GST Q&A – Are fees for shopping trolley collection and land clearance subject to GST?

What is the correct GST treatment for fees relating to the collection of abandoned shopping trolleys, and clearing vegetation and overgrown grass? This Q&A discusses how GST regulations and ATO public rulings may apply to these fees.

Question

It would be appreciated if you could provide the answers to the following GST questions:

  • Our council collects abandoned shopping trolleys throughout the municipality and then charges a fee to the supermarkets for collection (i.e. the supermarkets are allowed to pick the trolleys up after they pay the fee). Should we add GST onto this fee?
  • Our council will organise a contractor to clear any overgrown grass/vegetation on any property that it deems to be unsafe. We will then on-charge the contractor’s fee for the land clearance to the owner of the property. Should GST be added on to the fee charged to the land owner?

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Disclaimer: This article is based upon information available as at the time of publishing and may be subject to change.