ATO Interpretative Decision

ATO ID 2002/1061 (Withdrawn)

Goods and Services Tax

GST and the transport of passengers on the domestic leg of an international flight
FOI status: may be released

This ATO ID is withdrawn as it has been superseded by the GST and the transport of international passengers fact sheet

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Status of this decision: Decision Withdrawn 25 November 2005

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Is the entity, an airline operator, making a GST-free supply of transport under item 2 in the table in section 38-355 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies transport on the domestic leg of an international flight for which it separately issues a domestic air travel ticket that is sold in conjunction with and cross referenced to an international air travel ticket?

Decision

Yes, the entity is making a GST-free supply under item 2 in the table in section 38-355 of the GST Act when it supplies transport on the domestic leg of an international flight for which it separately issues a domestic air travel ticket that is sold in conjunction with and cross referenced to an international air travel ticket.

Facts

The entity is an airline operator. The entity is supplying transport on the domestic leg of an international flight. In relation to the domestic leg, the entity separately issues a domestic air travel ticket. The domestic ticket is sold in conjunction with and cross-referenced to an international air travel ticket.

The entity is registered for goods and services tax (GST).

Reasons for Decision

Item 2 in the table in section 38-355 of the GST Act (Item 2) deals with the transport of passengers on domestic legs of international flights. Item 2 provides that the transport of a passenger within Australia by air is GST-free if:

(a): the transport in Australia is part of a wider arrangement, itinerary or contract for transport by air involving international travel; and
(b): at the time the arrangement, itinerary or contract was entered into, the transport within Australia formed part of a ticket for international travel, or was cross-referenced to such a ticket, issued at that time.

The effect of Item 2 is that a supply of domestic transport by air is GST-free if:

•

the transport is part of an itinerary or arrangement in conjunction with international air transport; and either:

•: the domestic transport formed part of a ticket for international air transport, or was cross-referenced to it, at the time the arrangement was made; or
•: the domestic ticket was issued separately and at a different time from the international air ticket but was cross-referenced to it (the domestic ticket can be issued any time before the commencement of the international air transport).

The entity is supplying air transport within Australia on the domestic leg of an international flight. This transport is part of an itinerary in conjunction with international air transport. Furthermore, although the domestic ticket was issued separately and at a different time from the international air ticket, it was cross-referenced to the international air ticket. Therefore, the entity's supply of domestic air transport satisfies the requirements in paragraphs (a) and (b) of Item 2, and is GST-free under section 38-355 of the GST Act.

Date of decision: 19 February 2002

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 38-355
   section 38-355 table item 2
   section 38-355 table item 2 paragraph (a)
   section 38-355 table item 2 paragraph (b)

Other References:
Fact Sheet: GST and International Transport of Passengers (NAT3459)

Keywords
Goods and services tax
GST free
GST transport
Domestic legs
International travel

Business Line: GST

Date of publication: 28 November 2002

ISSN: 1445-2782

history

	Date:	Version:
	19 February 2002	Original statement
You are here →	25 November 2005	Archived

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