Draft Goods and Services Tax Ruling
Goods and services tax: prizes
Please note that the PDF version is the authorised version of this draft ruling.View the Erratum notice for this document.This document has been finalised.
FOI status:draft only - for comment
|What this Ruling is about|
|Date of effect|
|Ruling with explanations|
|Detailed contents list|
|This document is a draft for industry, professional and community comment. As such, it represents the preliminary, though considered, views of the Australian Taxation Office. This draft may not be relied on by taxation officers, taxpayers and practitioners. When the final Ruling is officially released it will be a public ruling for the purposes of section 37 of the Taxation Administration Act 1953 and may be relied upon by any entity to whom it applies.|
What this Ruling is about
2. The Ruling explains when a prize is a taxable supply made by the provider and when it is consideration for a supply made by the recipient of the prize. Taxable supplies of prizes may be made for consideration that is not expressed as an amount of money (non-monetary consideration). Where this Ruling discusses non-monetary consideration, it refers to Goods and Services Tax Ruling GSTR 2001/6, GST: non-monetary consideration ('GSTR 2001/6').
3. This Ruling also explains how Division 126 of the GST Act deals with prizes resulting from gambling. The explanation of Division 126 includes the GST treatment of points awarded by entities such as casinos and clubs.
5. The Ruling adopts interpretations of the GST Act expressed in other public rulings issued by the ATO. This Ruling, when finalised, does not alter the views expressed in those rulings, but explains and applies those views in the context of the particular subject matter of this Ruling.
Date of effect
7. This draft Ruling explains our view of the law as it applied from 1 July 2000. You will be able to rely upon the final Ruling as and from its date of issue for the purposes of section 37 of the Taxation Administration Act 1953. Goods and Services Tax Ruling GSTR 1999/1 explains the GST rulings system and our view of when you can rely on our interpretation of the law in GST public and private rulings.
What is a prize?
- in the form of money;
- in a non-monetary form, such as
- a medal, trophy or ribbon, representing success in a particular endeavour;
- a good, service or right of intrinsic value that a recipient would generally be able to acquire elsewhere if prepared to pay for it (for example, a car, cleaning services or a holiday); or
- a combination of the above.
When are prizes provided?
11. An 'event operator' is an entity that organises events or competitions for which a prize is awarded to the successful participant(s). Examples of situations in which a prize is provided by an event operator are:
- to the successful participant in a competition of physical, intellectual or artistic prowess;
- to the owner of a racehorse or greyhound that wins a race;
- to a sporting club member who is chosen as the club's best and fairest player for the season;
- to a volunteer collector for a charitable cause in recognition of effort; or
- to the winner of a lottery or raffle.
12. In dealing with the issue of valuation, the Ruling refers to GSTR 2001/6, which provides guidelines that you may apply to determine a reasonable market value of consideration. For example, in certain circumstances, using the market value of a prize that is supplied may be a reasonable valuation method for the non-monetary consideration provided for the prize.
Ruling with explanations
Prizes as supplies
13. 'Supply' is defined very broadly in section 9-10. However, a supply does not include a supply of money unless the money is provided as consideration for a supply that is itself a supply of money.[F1] In providing money as a prize, an entity does not make a supply for GST purposes (but the provision of money could be consideration for a supply). In providing a non-monetary prize, an entity is making a supply for GST purposes.
14. In the organisation of a competition for which a prize is awarded to the successful participant, there are several identifiable supplies. (See the diagram in Appendix A that shows the exchange of supplies and consideration for the examples below).
Supply by the event operator - the right to participate in the event
15. When an event operator organises a competition or similar undertaking, participants may be required to formally enter the event by completing an entry form and paying an entry fee. In return, the event operator provides to the participant a right to participate. However, the supply of a right to participate may be a supply for no consideration if no entry fee is charged.
Example 1: Professional golfer
Supply by the participant - participating in the event
Example 2: Professional golfer
Supply by the event operator to the winner - the non-monetary prize
Example 3: Professional golfer
Prizes and what is a taxable supply
21. Where a prize is provided to a participant by an event operator, the prize may be a taxable supply made by the event operator, as well as consideration provided by the event operator for the supply of the participant's services.
Prizes as taxable supplies
22. The supply of a prize will be a taxable supply if the requirements of section 9-5 are met in relation to that supply. As noted above at paragraph 13, a monetary prize is not a supply for GST purposes but could be consideration for a supply made by the recipient of the prize.
- 'You make a taxable supply if:
- you make the supply for consideration;
- the supply is made in the course or furtherance of an enterprise that you carry on;
- the supply is connected with Australia; and
- you are registered or required to be registered.
- However, the supply is not a taxable supply to the extent that it is GST-free or input taxed.'
- it is a non-monetary prize;
- the supply of the prize is made for consideration; and
- the supplier is registered or required to be registered.
Prizes as consideration for taxable supplies
25. Prizes may be provided as consideration for a supply of services by a participant in a competition. The participant's supply will be a taxable supply if all of the requirements of section 9-5 are met. For example, participants in a local art show competition will not be making a taxable supply if they are not registered or required to be registered. However, the art show operator may be making a taxable supply of the prize if there is consideration for the prize and the operator is registered or required to be registered.
26. In analysing the GST consequences of supplying and receiving prizes, this Ruling focuses on the requirements that the supply of a prize is made for consideration, and that the supplier is registered or required to be registered.
Consideration for the supply of a prize
27. A supply is a taxable supply if (among other things) the supply is made for consideration.[F2] Consideration is defined in section 195-1 to mean 'any consideration within the meaning given by section 9-15, in connection with the supply or acquisition'.
28. Subsection 9-15(1) further provides that a payment, act or forbearance will be consideration for a supply if it is 'in connection with', 'in response to' or 'for the inducement' of a supply. A payment, act or forbearance may be consideration for a supply even though it is made voluntarily, and regardless of whether it is made by persons other than the recipient of a supply.[F3]
The sufficient nexus test
30. A supply is not subject to GST unless it is made for consideration.[F4] Consideration for a supply or acquisition is defined in section 195-1 as any consideration, within the meaning given by section 9-15, in connection with the supply or acquisition.
31. We consider that, in the context of the GST Act, the expression 'you make the supply for consideration' in paragraph 9-5(a) has a similar meaning to 'there is consideration for the supply that you make'.[F5]
32. The references in the GST Act to 'supply for consideration'[F6] and more commonly to 'consideration for a supply'[F7] underscore the close coupling between the supply and the consideration that is necessary before a payment will be consideration for a supply.
33. In determining whether a payment satisfies the requirements of subsection 9-15(1), the test is whether there is a sufficient nexus between the supply and the payment made. Sufficient nexus is explained further in GSTR 2001/6. The explanation given in that Ruling draws on analyses of tests of consideration for a supply that apply in overseas jurisdictions.
Applying the sufficient nexus test to prizes awarded in a competition
34. In the context of a horse race for which monetary and non-monetary prizes may be awarded, the owner of the winning horse makes a supply to the event operator by providing the horse to participate in the race. The event operator makes a supply of the non-monetary prize to the owner.
35. As the prize provided by the event operator is in connection with and in response to the supply by the owner, the prize has sufficient nexus with the supply. The prize (whether monetary and/or non-monetary) is consideration for the supply by the owner.[F8]
36. The event operator makes a supply of the non-monetary prize to the owner. The owner provided the horse to participate for the inducement of the prize. In providing the horse to race, the owner provided consideration for the supply of the prize.
Example 4: Professional horse owner and racing club
37. Both Basil and the Central Racing Club are registered for GST. Basil pays a nomination fee to enter his horse in a race organised by the Central Racing Club. In return, he is supplied with a right to race his horse in the nominated race. There is a sufficient nexus between the supply of the right and the consideration that is the nomination fee.
38. Basil's horse wins the race and he receives prize money and a trophy. Basil makes a supply to the Central Racing Club by providing his horse to participate in the race. The consideration for this supply is the prize money and the trophy provided by the club.[F9] Basil makes a taxable supply as there is a sufficient nexus between the supply of the winning horse and the consideration provided by the club.
39. The Central Racing Club makes a taxable supply of the trophy. The consideration provided by Basil for this supply is the provision of his horse to participate in the race. The club makes a taxable supply as there is a sufficient nexus between the supply of the trophy and the consideration provided by Basil.
Participant not registered nor required to be registered
40. Although a prize that is provided to a successful participant may be consideration for the supply by the participant, the supply will not be a taxable supply if the participant is not registered nor required to be registered for GST.
Example 5: Hobby race horse owner
41. Wendy is a hobby race horse owner who enters her horse into a race at the Central Racing Club. Wendy is not registered nor required to be registered as she is not carrying on an enterprise. Wendy makes a supply to the club by providing her horse to participate in the race.
42. Wendy's horse wins the race and she receives a monetary prize and a trophy. Although the prize, both the money and the trophy, is consideration for the supply Wendy makes, she does not make a taxable supply as she is not registered nor required to be registered.
43. The Central Racing Club makes a taxable supply of the trophy. The consideration provided by Wendy for this supply is Wendy's provision of her horse to participate in the race. The club makes a taxable supply as there is a sufficient nexus between the supply of the trophy and the consideration provided by Wendy.
Other examples of sufficient nexus
Example 6: Fund raising quest prize
46. Professional Fundraising Services ('PFS') enters competitions to win prizes. Both PFS and the Centre are registered for GST. PFS raises the highest amount of funds for the Centre. The Centre awards PFS a non-monetary prize of a motor vehicle.
47. The supply of PFS's services will be a taxable supply for which the consideration is the motor vehicle. The motor vehicle is a taxable supply made by the Centre. The consideration made in connection with this supply is the fund raising work provided by PFS.
Example 7: Professional artist prize
48. Linda is a professional artist and submits a painting to an exhibition organised by the Bright Artists Society. Both Linda and the society are registered for GST. The painting submitted by Linda is judged to be the best entry and a $4,000 computer system is awarded to her as a prize.
Prize awarded without formal entry into a competition
51. Participants are sometimes considered for prizes on the basis of how their services compare with the services of others, even though they have not formally entered into any competition. For example, sportspeople may be awarded end-of-season awards.
52. Where a non-monetary prize is awarded to a participant in these circumstances, the services of the participant will be consideration for the supply of the prize, if there is a sufficient nexus between the services and the supply of the prize.
Example 8: Sportsperson award
53. Anthony is a professional footballer who is contracted (as an independent contractor) to provide his services to a football club. Both Anthony and the club are registered for GST. Anthony receives payments for his playing services. His contract with the club as an independent contractor also provides for bonuses and other incentives based on his and the team's performance.
55. In providing the award, the club makes a taxable supply to Anthony. Although Anthony has not specifically entered a competition for the award, it forms part of his contractual relationship with the club. He supplies his services for rewards that are connected with or result from his contract. The consideration provided by Anthony is the supply of his services.
Example 9: Product promotion prize
56. Lisa is an independent travel agent who is registered for GST and works on a commission basis for various airlines. At the end of the financial year, Lisa makes the highest number of sales of tickets for Jumbuk Airlines.
57. In recognition of her achievement, Jumbuk decides to provide Lisa with a return ticket to any capital city in Australia. Jumbuk supplies this prize to Lisa and she provides consideration for the supply in the form of her services.
No consideration for the supply of a prize
58. A prize may be awarded in circumstances where not all the elements of section 9-5 are satisfied. In these circumstances, a GST liability does not arise for the entity making the supply. For example, where work is provided voluntarily without any entitlement to compensation, it may indicate that the work is not consideration for the supply.
- the entity receiving the services does not make any undertaking to the worker about remuneration or reward before the work is provided;
- the worker provides the services without any expectation of remuneration or reward from the recipient of the services; and
- the entity receiving the services does not have any legal obligation to provide any remuneration or reward to the worker.
Example 10: Prize in recognition of personal attributes
60. Bill provides his services of making street collections for the Jones Hospital Foundation. The Foundation decides after the collection to award a prize of a CD player to Bill who collected the most money on their collection weekend. Bill is awarded the prize in recognition of his personal attributes in providing community support.
61. Bill provides his services on a voluntary basis without any entitlement to compensation. The Foundation has not made a taxable supply, as there has not been any consideration for the supply of the CD player.
Example 11: Best student in the State
62. Tom is a student in the final year of secondary education. At the end of the year, his school decides to award a prize to Tom, who topped the State in the final examinations. In recognition of this achievement, the school provides Tom with a laptop computer.
63. Tom has worked hard to attain his grades as he wishes to undertake a medical degree at a university. Tom does not make a supply to the school. The school makes a supply, but it does not make a taxable supply as there is not any payment in connection with the supply of the laptop computer.
Consideration must have economic value and independent identity
64. For a thing to be treated as a payment for the supply of a prize, it must have economic value and independent identity[F10] provided as compensation for the making of the supply. That is, it must be capable of being valued and be something of value that an acquirer would usually or commercially pay money to acquire.
Examples where there is no economic value and independent identity
Example 12: Student quiz prize
65. Gembrook College is registered for GST and conducts a general knowledge quiz for its final year students. Jim is a final year student and wins the quiz. The school awards him a prize of sporting equipment worth $200.
66. The school makes a supply of the prize. Jim's participation in the quiz is not something that someone would pay for and does not have any economic value and independent identity. The school does not have any GST liability for the supply of the prize.
Example 13: Amateur cricketer prize
69. The club, in providing the award, makes a supply of the trophy to Peter. However, Peter's services do not have any economic value and independent identity in connection with these particular transactions and for GST purposes.
Examples where there is economic value and independent identity
Example 14: Professional sportsperson receiving a trophy
72. The club makes a supply of the trophy to Paul. Paul's playing services have been provided in connection with the prize and there is an economic value and independent identity attached to those services. The club makes a taxable supply of the prize.
Example 15: Amateur playing in a professional golf tournament
73. Jack is an amateur golfer who regularly participates in amateur and professional tournaments. He is invited to play in a professional golf tournament held by the Clinton Golf Club. He finishes the tournament as runner-up and wins a trophy for his efforts.
74. The club makes a supply of the trophy to Jack. His participation has an economic value and independent identity to the operators. The club wanted a good gallery and expected every player in the tournament, either professional or amateur, to play to a high standard to promote a successful tournament. His participation is in connection with and for the inducement of the prize.
76. Although the trophy is consideration for the supply Jack makes, he does not make a taxable supply as he is not registered nor required to be registered. However, he will need to register if he is carrying on an enterprise and accumulates prizes to a value of $50,000 or more in any 12 month period.[F11]
Non-monetary lottery prizes - no consideration
79. The purchase of the lottery ticket provides the holder with a right to be placed in a draw. The holder of the winning ticket acquires a right to the prize. The supply of the prize is separate from the supply of the ticket. No separate or additional consideration is provided for the supply of the prize.
Example 16: Non-monetary lottery prize
Valuation of non-monetary consideration
83. Where the consideration for the supply of a non-monetary prize is a person's services, the value of the supply is the GST inclusive market value of that consideration.[F12] GSTR 2001/6 provides guidelines on how to determine the GST inclusive market value of non-monetary consideration. That Ruling states that any reasonable valuation method may be used.
84. Consistent with GSTR 2001/6, it is reasonable to determine the GST inclusive market value of services provided as consideration for the supply of a prize, on the basis of the market value of the prize itself.
Example 17: GST inclusive market value of participation
85. In example 15 above, by participating in the event, Jack provides consideration for the supply of the trophy. The cost of the trophy is $500. The Clinton Golf Club may treat $500 as being the GST inclusive market value of the consideration that is provided by Jack for the supply of the trophy.
Supply of prizes by the provider of gambling supplies
86. The general rule for working out the net amount of GST that applies to you for a tax period is contained in Division 17. Subsection 17-5(1) provides that the net amount for a tax period applying to you is worked out using the formula:
'GST - Input tax credits'.
Definition of gambling supplies and gambling events
- A gambling supply is a taxable supply involving:
- the supply of a ticket (however described) in a lottery, raffle or similar undertaking; or
- the acceptance of a bet (however described) relating to the outcome of a gambling event.
- A gambling event is:
- the conducting of a lottery or raffle, or similar undertaking; or
- a race, game, or sporting event, or any other event, for which there is an outcome.'
- games offered in casinos;
- gaming machines in clubs and hotels;
- lotteries; and
- horse and greyhound racing;
- football and other sporting matches; and
- other events, the outcome of which will not be known until some time in the future, such as which participant will receive an award.
92. A gambling supply, in relation to the above examples, is the supply of the ticket for the raffle or lottery, and the acceptance of a bet. When a sporting team plays a match, it is not making a gambling supply. However, a bookmaker in accepting a bet on the outcome of the match, is making a gambling supply.
Global GST amount and prizes
'(Total amount wagered - Total monetary prizes) x 1/11
total amounts wagered is the sum of the consideration for all of your gambling supplies that are attributable to that tax period.
total monetary prizes is the sum of:
- the monetary prizes you are liable to pay, during the tax period, on the outcome of gambling events (whether or not any of those gambling events, or the gambling supplies to which the monetary prizes relate, take place during the tax period); and
- any amounts of money you are liable to pay, during the tax period, under agreements between you and recipients of your gambling supplies, to repay to them a proportion of their losses relating to those supplies (whether or not the supplies take place during the tax period).'
- any prize, or part of a prize, in the form of money; or
- if the prize is given at a casino - any prize, or part of a prize, in the form of money or in the form of gambling chips that may be redeemed for money.'[F13]
GST treatment of prizes supplied on the outcome of a gambling event
96. A lottery or raffle is a gambling event as defined in paragraph 126-35(2)(a). Money paid as a prize on the outcome of a lottery or raffle is included in total monetary prizes in the calculation of the global GST amount.
Example 18: Calculating global GST amount
GST treatment of points awarded as prizes by providers of gambling supplies
101. A common practice in the gambling industry is for points to be awarded to players to encourage their further participation in gambling events or to facilitate the purchase of products or services sold in the club, hotel or casino.
- as a prize or part of the prize on a gambling event or a competition (for example, points are awarded for a win on a gaming machine or a player's success in a card game at a casino);
- on the basis of participation rather than for a win on a gaming machine or a card game at a casino (for example, points awarded on the basis of the number of games played, time or money spent playing on gaming machines, or the time spent at gaming tables); or
- on the purchase of meals, beverages and other non-gambling services supplied by the entity.
104. When points are awarded for a winning bet, and/or for participation, and the points are redeemed for money (or gambling chips if paid by a casino), the money (or chips) will be a monetary prize. The monetary prize will need to be included in the total monetary prizes for the purposes of calculating the global GST amounts in section 126-10.
105. However, points awarded for the purchase of meals, beverages and other non-gambling services supplied by an entity, or points purchased by a participating member, are not considered to be on the outcome of a gambling event. Where these points are redeemed for money, the monetary prize cannot be included in the global GST amount.
Example 19: Points awarded on a prize basis
107. As the points have been awarded on the outcome of a gambling event, the club can include the money paid over in redeeming the points as part of the total monetary prizes, when calculating its global GST amount.
Example 20: Points awarded on a participation basis
108. Roseanne plays a gaming machine at a licensed club. Roseanne is unsuccessful and does not win any jackpots on the machine. The club awards points on the basis of the number of games played and/or time spent playing the gaming machine.
109. Although the points are awarded on a participation basis, the redemption of these points for money constitutes a monetary prize for the purposes of section 126-10. The points are treated as being awarded on the outcome of a gambling event.
Example 21: Points awarded for the purchase of non-gambling products
When does the money paid for these points give rise to monetary prizes?
112. When points are redeemed for money (or gambling chips if paid by a casino), we consider that the money paid is a monetary prize. Therefore, the money paid can be claimed as a monetary prize in the section 126-10 calculation of a gambling supply provider.
113. For these gambling points to be claimed as total monetary prizes, it is not sufficient that they are merely awarded by a gambling supply provider. At the time of the awarding of points, there is no liability upon the gambling supply provider to pay money (or if the provider is a casino, to pay the value of the points in the form of gambling chips).
114. When gambling points are redeemed, the player is entitled to receive the value of them as money (or in the form of gambling chips if the provider is a casino). The money you are liable to pay the player at that time can be included in total monetary prizes for the purposes of section 126-10.
115. Entities that are gambling supply providers also often conduct various forms of promotional events, with the purpose of encouraging increased gambling participation from members/customers. Often these promotional activities involve extra prize payments and bonus draws on various gaming jackpots.
Example 22: Increased and additional money prizes
118. The Koalas Sporting Club is a GST registered gambling supply provider and conducts a jackpot hour every Friday night. Any lucky players who win a $50 cash jackpot in the jackpot hour will receive double that amount.
Lucky membership draws
122. For promotional purposes, it is common practice in the club industry to conduct lucky membership draws for club members. These draws involve the random drawing of a membership number for a monetary prize and are normally held at a particular time each day or week.
123. The purpose of the draw is to encourage members to attend the club and the prize is paid if the member is present. If the prize is unclaimed, it may jackpot to the following draw. Generally, there is no charge for the entry into the draw and there is no condition of entry, other than being a financial member of the club.
'A contest where the outcome is mainly determined through the operation of chance, the disposition of prizes by lot.'[F14]
'the conducting of a lottery or raffle, or similar undertaking.'
Therefore, any monetary prize paid to the winner of the draw may be included within total monetary prizes for purposes of section 126-10.
Example 23: Lucky membership draws
126. Legends Sporting Club makes gambling supplies and conducts a free lucky member draw every Friday evening at its 'happy hour' at 5.00pm. A money jackpot of $50 is payable on the random selection of a current member's registration number. If the prize is not claimed by the member, it will jackpot by $50 per week, until it is claimed by a member who is selected in a draw. The member needs to be present at the draw to be eligible to take the prize.
127. As the event can be described as a gambling event, the prize that is paid is a monetary prize for the purposes of section 126-10. It needs to be included as a monetary prize when calculating the club's global GST amount.
Contributions to cross-venue jackpots
128. Some gaming machines in licensed clubs and hotels may be linked to provide opportunities to play for larger jackpots. Participating clubs and hotels contribute to a 'jackpot fund' to cover the payment of a cross-venue jackpot that is set up. It is not known when and where the jackpot will be won.
129. The contributions into the jackpot fund are treated as being a monetary prize for the purposes of section 126-10, as they are for the sole purpose of being paid out as a monetary prize. The contribution to the jackpot pool by each participating gambling supply provider has the same effect as if the amount had been paid out by them as a monetary prize on the outcome of a gambling event. Each contributing member is entitled to claim the value of the extent of their contribution to the jackpot pool as a monetary prize when calculating their global GST amount.
Example 24: Cross-venue jackpots
130. Ten of the Koala Sporting Club's gaming machines are linked to the Animals Sporting Club's Jackpot Network. As a participating member club of the network, Koala Sporting Club is required to contribute a percentage of the revenue of these other machines to the jackpot pool. These contributions are a monetary prize for the purposes of section 126-10.
Detailed contents list
|What this Ruling is about||1|
|Date of effect||7|
|What is a prize?||8|
|When are prizes provided?||11|
|Ruling with explanations||13|
|Prizes as supplies||13|
|Supply by the event operator - the right to participate in the event||15|
|Example 1: Professional golfer||16|
|Supply by the participant - participating in the event||17|
|Example 2: Professional golfer||18|
|Supply by the event operator to the winner - the non-monetary prize||19|
|Example 3: Professional golfer||20|
|Prizes and what is a taxable supply||21|
|Prizes as taxable supplies||22|
|Prizes as consideration for taxable supplies||25|
|Consideration for the supply of a prize||27|
|The sufficient nexus test||30|
|Applying the sufficient nexus test to prizes awarded in a competition||34|
|Example 4: Professional horse owner and racing club||37|
|Participant not registered nor required to be registered||40|
|Example 5: Hobby race horse owner||41|
|Other examples of sufficient nexus||44|
|Example 6: Fund raising quest prize||45|
|Example 7: Professional artist prize||48|
|Prize awarded without formal entry into a competition||51|
|Example 8: Sportsperson award||53|
|Example 9: Product promotion prize||56|
|No consideration for the supply of a prize||58|
|Example 10: Prize in recognition of personal attribute||60|
|Example 11: Best student in the State||62|
|Consideration must have economic value and independent identity||64|
|Examples where there is no economic value and independent identity||65|
|Example 12: Student quiz prize||65|
|Example 13: Amateur cricketer prize||67|
|Examples where there is economic value and independent identity||71|
|Example 14: Professional sportsperson receiving a trophy||71|
|Example 15: Amateur playing in a professional golf tournament||73|
|Non-monetary lottery prizes - no consideration||77|
|Example 16: Non-monetary lottery prize||80|
|Valuation of non-monetary consideration||83|
|Example 17: GST inclusive market value of participation||85|
|Supply of prizes by the provider of gambling supplies||86|
|Definition of gambling supplies and gambling events||89|
|Global GST amount and prizes||93|
|GST treatment of prizes supplied on the outcome of a gambling event||96|
|Example 18: Calculating global GST amount||97|
|GST treatment of points awarded as prizes by providers of gambling supplies||101|
|Example 19: Points awarded on a prize basis||106|
|Example 20: Points awarded on a participation basis||108|
|Example 21: Points awarded for the purchase of non-gambling products||110|
|When does the money paid for these points give rise to monetary prizes?||112|
|Example 22: Increased and additional money prizes||118|
|Example 23: Lucky membership draws||126|
|Contributions to cross-venue jackpots||128|
|Example 24: Cross venue jackpots||130|
|Detailed contents list||131|
|Contact officer details have been removed following publication of the final ruling.|
Commissioner of Taxation
28 November 2001
SUPPLIES IN THE ORGANISATION OF A COMPETITION
1 Subsection 9-10(4)
2 See paragraphs 25 and 26.
3 Subsection 9-15(2).
4 Paragraph 9-5(a).
5 Compare paragraph 11-5(c) - one of the requirements of a creditable acquisition is that you provide consideration for the supply. In addition, the definition of 'supply' itself adopts the expression 'consideration for a supply'.
6 For example paragraph 9-5(a).
7 The term 'consideration for a supply' appears in, for example, paragraph (a) of the definition of 'price' in subsection 9-75(1), in subsection 9-85(2) in relation to the value of a supply, and in paragraph 11-5(c) in defining a creditable acquisition.
8 Support for this view is provided at paragraph 6.215 of the Consolidated EM to the GST Act.
9 Subsection 9-75(1)
10 Refer to GTR 2001/6 for an explanation of economic value and independent identity.
11 Division 23 - Who is required to be registered and who may be registered.
12 Paragraph 9-75(1)(b)
13 Section 195-1
14 Butterworths Legal Dictionary 1997, p.709
Not previously released in draft form.
global GST amount
input tax credits
total monetary prizes
ANTS(GST)A99 Subdiv 9-A
ANTS(GST)A99 Div 17
ANTS(GST)A99 Div 23
ANTS(GST)A99 Subdiv 38-H
ANTS(GST)A99 Div 126
TAA 1953 37