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  • GST States and Territories Industry Partnership minutes 19 September 2019

    Welcome and introduction

    ATO Co-chair, Mario Rinaudo, welcomed members, opened the meeting and noted the apologies.

    Mario introduced the new ATO team and mailbox,, for the GST States and Territories Industry Partnership (GST STIP) forum.

    There were no outstanding action items from the April 2019 GST STIP forum.

    GST technical update

    Presented by Jo Drum, ATO.

    Jo provided an overview of her team. The team:

    • provides ongoing legal support and assurance to state and territory governments and related entities
    • issues rulings and guidance for complex matters such as appropriations, machinery of government changes, grants and multiparty arrangements
    • presents seminars to state and territory government entities and participates in GST STIP forums.

    Jo addressed NT STIP members' questions on how to apply ATO’s Goods and Services Tax Ruling GSTR 2012/2 Goods and services tax: financial assistance payments:

    • explaining that there must be sufficient nexus between the financial assistance payment (ie grant) made by the taxpayer and a supply made by the payee
    • going through the seven examples in GSTR 2012/2 and explained the difference between a binding obligation to do something versus a mere expectation
    • acknowledging GST STIP members’ concerns that it can be difficult and resource consuming for state and territory governments to apply GSTR 2012/2 in some complex government grant applications.

    For tailored government grants guidance and support, state and territory governments and related entities are welcome to submit private ruling requests to the ATO’s GST technical mailbox. The service standard for a response is 28 calendar days.

    Useful online resources:

    GST at settlement

    Updates on the following topics were presented by Loretta Bishop-Spalding, ATO.

    • Current GST at settlement process
    • Transaction volumes at 28 June 2019
    • Examples of common errors among some taxpayers
    • Improving data integrity – continuous engagement with Property Exchange Australia (PEXA) and software providers
    • Weekly checks and system changes to rectify client forms and accounts
    • Communication strategy - targeting developers, purchasers and their representatives
    • Supplier Credit Rule – increase from 14 to 28 days and associated legislation changes
    • Non-resident mortgagee in possession
    • Updated web content - clearance certificates and foreign ownership.

    Useful online resources

    Development leases

    Updates on the following topics were presented by Loretta Bishop-Spalding, ATO.

    • What is a development lease arrangement
    • Incorrect reporting by government entity and the developer
    • Elements of a development lease strategy
      • Information and intelligence gathering
      • Stakeholder engagement
      • Communications plan
      • Action for identified participants and advisers
    • Key challenges
      • Information gathering
      • Legal professional privilege
      • Accountants concession
      • Whether private rulings issued exempt the participants under s290-55 of the Taxation Administration Act 1953 (TAA)
    • Intended outcomes
    • Effective measures.

    Useful online resources

    • GSTR 2015/2 Goods and services tax: development lease arrangements with government agencies
    • Taxpayer Alert TA 2018/3 GST implications of certain development lease arrangements
    • Taxation Administration Act 1953External Link subsections 290-55(3) and 290-50(1)
    • PS LA 2008/7 Application of the promoter penalty laws (Division 290 of Schedule 1 to the Taxation Administration Act 1953) to promotion of tax exploitation schemes.

    Unimproved land

    Updates on the following topics were presented by Loretta Bishop-Spalding, ATO.

    • Goods and Services Tax Ruling GSTR 2006/6 - what are ‘improvements on the land’
    • Supply of a piece of land with multiple titles and examples
    • Subdivided land, item 4 of the table in subsection 75-10(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) and example.


    • GSTR 2006/6 Goods and services tax: improvements on the land for the purposes of Subdivision 38-N and Division 75
    • Ruling Compendium GSTR 2006/6EC Compendium
    • Commonwealth of Australia v Oldfield [1976] HCA 17, (1976) 133 CLR 612
    • Dampier Mining Company Limited v The Commissioner of Taxation of the Commonwealth of Australia [1979] FCA 93, (1979) 40 FLR 127, 79 ATC 4469, (1979) 10 ATR 193
    • Dampier Mining Co Limited v Commissioner of Taxation (Cth) [1981] HCA 29, (1981) 147 CLR 408, 81 ATC 4329, (1981) 11 ATR 928.

    Single Touch Payroll

    Updates on the following topics were presented jointly by Angela Lehmann and Michael Karavas, ATO.

    • Single Touch Payroll - uptake numbers and data insights
    • Tax time update
    • Phase 2 update.

    Digital Identity

    Update presented jointly by Benjamin Avery and Helen Thomas, ATO

    AUSkey will be decommissioned in March 2020 and is being replaced with a strong, secure digital identity solution known as myGovID and Relationship Authorisation Manager (RAM).

    Existing AUSkey users will need to transition across to myGovID and RAM by March 2020. The ATO Digital Identity program team is working with 28 relying agencies (including state and territory agencies) to support the transition to the new solution. Timing of agency transition has been based on information provided by agencies as part of agency engagement sessions, agency size, preferences of timing and whether they have an alternate credential. The transition for state and territories is expected to start in late October, with preparation meetings scheduled for early October.

    From December 2019, the ATO will support authorised representatives of the participating relying agencies to manually link their agency in RAM to their government ABNs. The ATO will keep the agencies informed as part of the AUSkey relying agency transition process.

    Other business and close

    Presented by Mario Rinaudo, ATO.

    • State and territory government entities can email new ABN application forms to team mailbox, and copy in our team mailbox, in order to streamline the current paper-based process.
    • SA STIP member’s feedback on expediting the approval process for state and territory government entities would also be passed onto the relevant processing team.
    • Reminder that the Taxable Payments Annual Reports (TPAR) was due to be lodged by 28 August. If you have questions email, or refer to Lodging your TPAR.

    Next meeting

    The date and location of the next meeting are to be confirmed.

    Action item update

    Action item


    Due date

    Before the next GST STIP


    Director of the ATO GST Real Property team


    Director of the ATO GST Real Property team agreed to provide further clarifications to NT STIP member’s question. The question was whether a subdivision under 38-N of the GST Act would be considered differently if the same entity purchased all allotments to whether the allotments were sold to different purchasers.


    Attendees list




    Mario Rinaudo (Co-chair), Small Business


    Elo Guo-Hawkins (Secretariat), Small Business


    Angela Lehmann, Superannuation and Employer Obligations


    Benjamin Avery, Enterprise Solutions and Technology


    Helen Thomas, Enterprise Solutions and Technology


    Jo Drum, Small Business


    Kelly Canavan, Small Business


    Loretta Bishop-Spalding, Private Wealth


    Michael Karavas, Superannuation and Employer Obligations


    Peter Horton, Small Business

    Australian Federal Police

    Christine Havas

    Department of Home Affairs

    Alice Walker

    NT Government

    Joanne Staples

    NT Government

    Michael Kwong (Co-chair)

    NT Government

    Michael Smid

    NT Government

    Stephanie Peters

    QLD Government

    Liza Gordon

    SA Government

    Justyna Carlier

    TAS Government

    Rachel Johnston

    WA Government

    Brad Prentice


    Apologies list




    Claire Miller, Enterprise Solutions and Technology

    ACT Government

    Robert Enright

    NSW Government

    Henriette Prego

    NSW Government

    Joan Cram

    NSW Government

    Yisheng Ho

    VIC Government


      Last modified: 21 Oct 2019QC 60440