Racing and Gambling - Rulings and Determinations

GST Ruling - Summary

GSTR 2002/3 Goods and Services Tax:  prizes.

The Ruling, which is divided into two parts, examines how the GST Act applies to suppliers and recipients of prizes.  Part A of the Ruling explains when giving a prize is a taxable supply and when a prize is consideration for a supply made by the recipient.  It also explains how GST applies where a prize is provided by a sponsor.

Part A explains how to value consideration for taxable supplies in a prizes context where the consideration is not expressed as an amount of money (non-monetary consideration).  In this regard, Part A adopts interpretations expressed in GSTR 2001/6, which is about non-monetary consideration.

Part A also explains how GST payable and input tax credits may be attributed in transactions involving the supply and acquisition of a prize.

Part B of the Ruling explains how Division 126 of the GST Act deals with prizes resulting from gambling.  The explanation includes the GST treatment of points awarded by entities such as casinos and clubs.  Examples are provided that demonstrate the application of the Ruling.

The Ruling does not deal with supplies that are GST-free under subdivision 38-H of the GST Act, which is about raffles and bingo games conducted by a charitable institution.

Issued 2 October 2002. 

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.

Copyright

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products)