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  • Notional GST dispute resolution for government entities

    The notional GST dispute resolution process applies when a government entity disputes an ATO position in respect of a notional GST issue.

    This process does not apply to a dispute that relates to a legal GST liability, as that dispute can be resolved through:

    • an objection
    • an Administrative Appeals Tribunal (AAT) review
    • court processes.

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    What is notional GST?

    Notional GST refers to certain GST amounts which government entities are not legally required to pay, but which the Commonwealth, the states and the territories have agreed their government entities will pay. The table below outlines whether the amount is legal GST or notional GST. 

    Table: Legal and notional GST

    Jurisdiction

    Legal GST

    Notional GST

    Commonwealth

    • None

     

    • All GST
    • All GST credits

     

    States (including local government in each state)

    • GST (other than GST on property)
    • All GST credits

     

    • GST on property

     

    Australian Capital Territory

    • GST (other than GST on real property supplied on behalf of the Commonwealth)
    • All GST credits (other than GST credits on acquisitions made on behalf of the Commonwealth)

     

    • GST on real property supplied on behalf of the Commonwealth
    • GST credits on acquisitions made on behalf of the Commonwealth

     

    Northern Territory (including local government in the Northern Territory)

    • All GST
    • All GST credits

     

    • None

     

    How to dispute an ATO position

    Notional GST disputes can arise during an ATO engagement or assurance activity or as a result of ATO advice or guidance.

    If you want to dispute an ATO position, you must follow the notional GST dispute resolution process on the ATO legal database.

    If you don't agree with:

    • an ATO position during your engagement or assurance activity, you can explore alternate dispute resolution (ADR) options if both parties agree.
    • the outcome of an ATO engagement or assurance activity, you can seek an ATO internal review. You can also explore ADR options as part of this review if both parties agree.
    • the outcome of ATO advice and guidance, you can seek an ATO internal review. You can explore ADR options as part of this review if both parties agree.

    To seek an ATO internal review, you can use the process and forms for objections, even though this is not an objection. This needs to be done within the timeframes shown in the notional GST dispute resolution process.

    The ATO internal review is the final stage of the dispute resolution process and no further review rights are available.

      Last modified: 21 Apr 2022QC 69318