A New Tax System (Goods and Services Tax) Regulations 2019

Chapter 3 - The exemptions  

Part 3-1 - Supplies that are not taxable supplies  

Division 40 - Input taxed supplies  

Subdivision 40-A - Financial supplies  

SECTION 40-5.12  

40-5.12   What supplies are not financial supplies  


For the purposes of subsection 40-5(2) of the Act, a supply mentioned in section 40-5.09 of this instrument is not a financial supply if it is the supply of something, or an interest in or under something, that is mentioned in an item in the following table.


Supplies that are not financial supplies
Item Supply of, or supply of an interest in or under …
1 Cheque and deposit forms and books supplied to an Australian ADI in connection with an account mentioned in item 1 of the table in subsection 40-5.09(3)
2 Special forms, or overprinting of standard forms, by an Australian ADI to the requirements of particular account holders in connection with an account mentioned in item 1 of the table in subsection 40-5.09(3)
3 Professional services, including information and advice, in relation to a financial supply
4 A payment system, except to the extent that it is digital currency
5 Stored value facility cards and prepayments not linked to accounts provided by an Australian ADI in connection with an account mentioned in item 1 of the table in subsection 40-5.09(3)
6 Goods in accordance with agreements under which the goods are supplied under a lease, if:
(a) the lessees have no obligation or option to acquire the rights of the lessors in the goods; or
(b) the lessors dispose of their rights in the goods to the lessees
7 An option, right or obligation to make a taxable supply or acquire something the supply of which is a taxable supply, except a mortgage or charge mentioned in item 3 of the table in subsection 40-5.09(3)
8 A supply made as a result of the exercise of an option or right, or the performance of an obligation, to make taxable supply or acquire something the supply of which is a taxable supply, including an option, right or obligation under a mortgage or charge mentioned in item 3 of the table in subsection 40-5.09(3)
9 Facilities for:
(a) trading securities or derivatives; and
(b) clearance and settlement of those trades
10 Insurance and reinsurance business, except life insurance business mentioned in item 6 of the table in subsection 40-5.09(3)
11 Broking services
12 Management of the assets or liabilities of another entity, including investment portfolio management and administration services for trusts or superannuation, pension or annuity funds
13 Debt collection services
14 Sales accounting services under a factoring arrangement, or an arrangement having the same effect as a factoring arrangement
15 Trustee services
16 Custodian services in relation to money, digital currency, documents and other things
17 (a) Australian currency, or foreign currency, the market value of which exceeds its stated value as legal tender; or
(b) an agreement to buy or sell currency to which paragraph (a) applies
18 An arrangement for the provision of goods to an entity for display or demonstration pending disposal of the goods to a third party
19 Goods supplied under a hire purchase agreement entered into on or after 1 July 2012
20 Credit under a hire purchase agreement entered into on or after 1 July 2012
21 A warranty for goods

Note 1:

If something is within the scope of both an item in the table in subsection 40-5.09(3) and an item in the table in this section, it will not be a financial supply (see paragraph 40-5.08(a) ).

Note 2:

This section does not apply in relation to incidental financial supplies. As a result, if something is both an incidental financial supply and within the scope of an item in the table in this section, it will still be a financial supply.

Note 3:

Sections 7-1 and 9-70 of the Act, and this section in respect of items 7 and 8 of the table in this section, have the effect that GST is payable on the premium (if any) on a taxable deliverable commodity derivative and the price on settlement when the commodity is delivered.




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