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  • GST credits for costs relating to financial supplies

    Our suite of public advice and guidance products explain our view on the GST treatment for home loans and transaction accounts by providing helpful examples.

    These start from 1 October 2020 and give greater certainty and consistency for GST apportionment for financial suppliers.

    • GSTR 2020/1 Determining the creditable purpose of acquisitions for transaction accounts helps to determine if acquisitions are made solely or partly for a creditable purpose.
    • Schedule 2 to PCG 2019/8 ATO compliance approach to GST apportionment of acquisitions that relate to certain financial supplies outlines how we assess risks associated with apportionment methodologies used to determine entitlement to GST credits for costs and our compliance approach (this schedule complements GSTR 2020/1).
    • GSTD 2020/1 When is the supply of a transaction account GST-free under table item 3 or table item 4(a) of subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999? This provides guidance about the extent of the supply of a transaction account is GST-free when used outside of Australia.
    • GSTR 2004/4 Assignment of payment streams including under a typical securitisation arrangement has been updated to give additional guidance when lenders who securitise home loans will be entitled to GST credits for purchases to provide home loans.

    If you are an affected client, we ask you to review any apportionment methods used in relation to these types of financial supplies.

    Last modified: 28 Sep 2020QC 63767