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Edited version of private ruling

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Ruling

Subject: GST and treatment of fees and charges

Question

Does GST apply to the listed fees and charges?

Answer

Specific details provided in the table.

Relevant facts

You are a government body established under an Australian Act.

Your customers are charged for your services according to a published Schedule of Fees and Charges.

You mostly charge for the supply of your services. However, there are also a range of other services of an administrative nature that you charge your clients.

Fees and charges requiring clarification are outlined in your correspondence.

Reasons for decision

Under section 9-5 of the GST Act you make a taxable supply if:

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

Section 9-15 of the GST Act states that consideration includes any payment, act or forbearance in connection with or in response to a supply. You receive payments of fees and charges for the supply of your services. This constitutes consideration under paragraph 9-15 of the GST Act.

However, section 9-39 of the GST Act provides special rules in relation to making taxable supplies. Item 8 in the table in section 9-39 of the GST Act provides that where there is a payment of taxes, fees and charges, the special rules in Division 81 of the GST may apply.

Subsection 81-5(1) of the GST Act provides that the payment of any Australian tax, fee or charge or the discharging of a liability to make such a payment is treated as the provision of consideration for a supply made by the entity charging the payment.

However, subsection 81-5(2) of the GST Act provides 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 for a supply. As such, any Australian tax, fee or charge that is specified in a written determination of the Treasurer will not be subject to GST.

An Australian tax, fee or charge is defined in section 195-1 of the GST Act as:

Australian government agency has the meaning given by section 995-1 of the Income Tax Assessment Act 1997 (ITAA 1997) to mean:

From the information provided, you were established under an Australian Act as a regional authority and impose fees and/or charges under this Australian Act which is an Australian law. Therefore, you are an Australian government agency for the purposes of section 195-1 of the GST Act.

Pursuant to Division 81 of the GST Act, the Treasurer has issued a determination A New System (Goods and Services tax) (exempt taxes, fees and charges) Determination 2010 (No 2) (the Determination). This Determination covers the payment to an Australian government agency of exempt taxes fees and charges. As you are considered to be an Australian government agency this Determination applies.

We have considered the fees and charges listed in your correspondence and conclude that only some fees and charges meet the requirements of subsection 81-5(2) of the GST Act as Australian taxes, fees and charges. These fees and charges are not provision of consideration and therefore not subject to GST.

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