Issue 19 - Frequent flyer points/loyalty programs

Issue

What is the GST treatment of travel booked using frequent flyer points?

Decision

Media release NAT 2000/14 issued 1 March 2000 states in part:

'The accrual and conversion or redemption of points by members into goods or services will not be subject to GST.'

GST does not apply to the award of frequent flyer points, or to the goods or services supplied on redemption of points, as there is no consideration. However, GST will apply to the supply to the extent that any additional amount is paid.

References

Media release NAT 2000/14 - No GST on loyalty

Goods and Services Tax Ruling GSTR 2012/1: Goods and services tax: loyalty programs

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