Edited version of private advice

Authorisation number: 1052504156498

Date of advice: 16 February 2026

Ruling

Subject: GST free - tour package

Question

Will the supply of selling tour package in XXX by Australia XXX Pty Ltd (you) to the clients be GST-free under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

Yes. The supply of selling a tour package in XXX by you will be GST-free under Item 3 of the table in subsection 38-190(1) of the GST Act.

Relevant facts and circumstances

You are registered for Goods and Services Tax (GST).

You are selling a tour package in XXX to your clients.

The services that you arrange/provide to the clients include:

•                     Land transportation overseas;

•                     Food (meals) provided overseas; and

•                     Accommodation located overseas.

You do not supply domestic transportation or any other services in Australia.

You will prepay the entire cost of the package through your entity in Australia and will add a XX% margin for your efforts, to pay for the guide in XXX, and to pay your CEO to accompany your clients in XXX.

You invoice your clients individually through your company based in Australia.

You are not trading as a travel agent.

You are booking accommodation, services and tour guides yourself.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999, section 9-5

A New Tax System (Goods and Services Tax) Act 1999, section 38-190

Reasons for decision

GST is payable on a taxable supply.

A supply is a taxable supply under section 9-5 of the GST Act if:

(a)          you make the supply for *consideration; and

(b)          the supply is made in the course or furtherance of an *enterprise that you *carry on; and

(c)          the supply is *connected with the indirect tax zone; and

(d)          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.

(* denotes a term defined under section 195-1 of the GST Act)

You must satisfy all the above for your supply to be a taxable supply. The supply of services made by you to the clients will be made for consideration and in the course of your enterprise. The supply will be connected with the indirect tax zone as it will be made through an enterprise that you carry on in Australia. You are registered for GST. All the requirements in paragraphs 9-5(a) to 9-5(d) are satisfied therefore, the supply will be a taxable supply unless it is GST-free or input taxed.

There is no provision in the GST Act under which your supply of services would be input taxed therefore, what remains to be determined is whether your supply would be GST-free.

Item 3 in the table in subsection 38-190(1) of the GST Act (Item 3) provides that a supply of anything, other than goods or real property, is GST-free if:

(a)          the supply is made to a recipient who is not in the indirect tax zone when the thing supplied is done; and

(b)          the effective use or enjoyment of which takes place outside the indirect tax zone.

Item 3 does not apply to a supply of work physically performed on goods situated in the indirect tax zone when the thing supplied is done, or a supply directly connected with real property situated in the indirect tax zone.

Goods and Services Tax Ruling GSTR 2004/7: in the application of items 2 and 3 and paragraph (b) of item 4 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GSTR 2004/7) provides amongst other things the meaning of "not in Australia and outside Australia". Paragraph 181 of GSTR 2004/7 states:

181. The requirement that a supply is made to a non-resident (item 2), or recipient (item 3), who is 'not in Australia' 'when the thing supplied is done' is in effect a proxy test for determining where the supply to that entity is consumed. The presumption is that if the non-resident or other recipient of the supply is 'not in Australia' when the thing supplied is done, the supply of that thing is for consumption outside Australia and is GST-free, provided the other requirements of the item are met.

For the purposes of item 3 it is also necessary to determine when the thing supplied is 'done'. Paragraph 199 of GSTR 2004/7 provides that if the thing supplied is a service, 'the thing supplied is done' during the period of time when the service is performed. We consider the supply of your tour package in XXX to be the supply of a service and that supply will be 'done' during the period for which the tour lasts.

Accordingly, you will make the supply to a recipient who is not in Australia when the thing supplied is done and the effective use or enjoyment of the supply will take place outside Australia. Therefore, paragraph (a) and (b) of Item 3 are satisfied.

The supply of the tour package that will be made by you is GST-free under Item 3, where the services are performed in XXX.

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