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Edited version of private ruling

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Ruling

Subject: GST and residential green waste

Question 1

Is residential green waste exempt from GST?

Detailed reasoning

GST is payable on taxable supplies. A supply is a taxable supply if all the conditions under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) are satisfied. Section 9-5 of the GST Act provides that an entity makes a taxable supply if;

 However, the supply is not a taxable supply to the extent that it is GST-free or input taxed.

As stated, a supply is a taxable supply where amongst other things the supply is made for 'consideration'.

Paragraph 9-15(1)(a) of the GST Act provides that 'consideration' includes any payment in connection with a supply of anything.

Furthermore subsection 81-5(1) of the GST Act provides that the payment of any Australian tax, fee or charge (other than GST) is to be treated as the provision of consideration to the entity to which tax, fee or charge is payable, for a supply that the entity makes to you.

However, subsection 81-5(2) of the GST Act states that the payment of any Australian tax, fee or charge that is specified in a written determination of the Treasurer is not the provision of consideration. Hence any Australian tax, fee or charge that is specified in a written determination of the Treasurer will not be subject to GST.

The latest written determination of the Treasurer is A New Tax System (Goods and Services Tax) (Exempt Taxes, Fees and Charges) Determination 2010 No 2 (Treasurer's Determination).

An Australian tax, fee or charge is defined under section 195-1 of the GST Act to mean:

(a)     a tax (however described) imposed under an *Australian law; or

(b)     a fee or charge (however described) imposed under an Australian law and

payable to an *Australian government agency.

Section 995-1 of the Income Tax Assessment Act 1997 provides the following definitions;

Australian Government Agency means

(a) the Commonwealth, a State or a Territory; or

(b) an authority of the Commonwealth, a State or a Territory

Australian law means a Commonwealth law, a State law or a Territory law.

The Council is an authority of the State. The Council imposes taxes, fees and charges under the LGA, which is a State law and consequently an Australian law.

So if the tax, fee or charge imposed is specified in the Treasurer's Determination, that payment or the discharging of that liability for that tax, fee or charge is not a provision of consideration.

Residential green waste is listed under item 8.56 of Part 3 of the A New Tax System (Goods and services Tax)(Exempt Taxes, Fees and Charges) Determination 2010 No 2, the fees and charges for the provision for this service are deemed not to be consideration and are not subject to GST.

Question 2

Is it a requirement for the charge to be included on the Shire rate notice for the charges to be GST exempt, or can it be billed via a normal debtors system?

Detailed reasoning

Since the residential green waste is listed under item 8.56 of Part 3 of the A New Tax System (Goods and services Tax)(Exempt Taxes, Fees and Charges) Determination 2010 No 2,. the fees and charges for the provision of this service is deemed not to be consideration and is not subject to GST. There is currently no requirement on how you charge for the services to receive a GST exemption.

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