Issue 9 – GST treatment of the environmental management charge

The environmental management charge (EMC) levied by the Great Barrier Reef Marine Park Authority does not include GST because it is a 'GST-exempt' government charge.

Some tour operators pay the EMC to the Great Barrier Reef Marine Park Authority. They pass this cost on by incorporating it into the ticket price charged to customers.

Issue

Does a tour operator have to charge GST for the EMC included in the ticket price?

Non-interpretative - straight application of the law.

Decision

From 20 April 2004, tour operators do not have to charge GST for the EMC which may be included in ticket prices.

Please see references below for further background information.

References

For supplies from 20 April 2004 see the fact sheet: GST and the environmental management charge (NAT 11230).

For supplies before 20 April 2004 see media release 03/65 Tour operators welcome ATO decision.