A New Tax System (Goods and Services Tax) Act 1999

Chapter 3 - The exemptions

Part 3-1 - Supplies that are not taxable supplies

Division 38 - GST-free supplies

Subdivision 38-K - Transport and related matters

38-355 Supplies of transport and related matters

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(1)

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The third column of this table sets out supplies that are GST-free :

Supplies of transport and related matters
Item	Topic	These supplies are GST-free …
1	Transport of passengers to, from or outside the indirect tax zone	the transport of a passenger:
		(a)	from the last place of departure in the indirect tax zone to a destination outside the indirect tax zone; or
		(b)	from a place outside the indirect tax zone to the first place of arrival in the indirect tax zone; or
		(c)	from a place outside the indirect tax zone to the same or another place outside the indirect tax zone.
2	Transport of passengers on domestic legs of international flights	the transport of a passenger within the indirect tax zone by air, but only if:
		(a)	the transport 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 the indirect tax zone formed part of a ticket for international travel, or was cross referenced to such a ticket, issued at that time.
3	Domestic air travel of non-residents	the transport of a passenger within the indirect tax zone by air, but only if:
		(a)	the passenger is a *non-resident; and
		(b)	the supply was purchased while the passenger was outside the indirect tax zone.
4	Transport of passengers on domestic legs of international sea voyages	the transport of a passenger within the indirect tax zone by sea, but only if:
		(a)	the transport is part of a journey by sea from the indirect tax zone to a destination outside the indirect tax zone, or from a destination outside the indirect tax zone to the indirect tax zone; and
		(b)	the transport is provided by the supplier who transports the passenger to or from the indirect tax zone.
5	Transport etc. of goods	subject to subsections (2) and (3) , the *international transport of goods:
		(a)	from their *place of export in the indirect tax zone to a destination outside the indirect tax zone; or
		(b)	from a place outside the indirect tax zone to their *place of consignment in the indirect tax zone; or
		(c)	from a place outside the indirect tax zone to the same or another place outside the indirect tax zone.
5A	Loading or handling etc.	subject to subsections (2) and (3) :
		(a)	loading or handling of goods, the *international transport of which is covered by item 5, during the course of the international transport; or
		(b)	supply of a service, during the course of the international transport of goods covered by item 5, that facilitates the international transport.
6	Insuring transport etc.	subject to subsection (3) :
		(a)	insuring transport covered by item 1, 2, 3 or 4; or
		(b)	insuring the international transport of goods from their place of export in the indirect tax zone to a destination outside the indirect tax zone; or
		(c)	insuring:
			(i)	the transport of goods from a place outside the indirect tax zone to their *place of consignment in the indirect tax zone; and
			(ii)	the subsequent transport of those goods within the indirect tax zone, if it is an integral part of the transport of goods from the place outside the indirect tax zone to the place of consignment in the indirect tax zone;
			including loading and handling within the indirect tax zone that is part of that transport; or
		(d)	insuring the transport of goods from a place outside the indirect tax zone to the same or another place outside the indirect tax zone.
7	Arranging transport etc.	subject to subsection (3) :
		(a)	arranging transport covered by item 1, 2, 3 or 4; or
		(b)	arranging the *international transport of goods covered by item 5; or
		(c)	arranging insurance covered by item 6.

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History

S 38-355(1) amended by No 77 of 2017, s 3 and Sch 1 items 16 and 17, by substituting " subject to subsections (2) and (3) " for " subject to subsection (2) " in table items 5 and 5A, and inserting " subject to subsection (3): " in table items 6 and 7, effective 1 July 2017. For application provisions, see note under Div 146 heading.

S 38-355(1) amended by No 2 of 2015, s 3 and Sch 4 item 31, by substituting " the indirect tax zone " for " Australia " (wherever occurring) in the table, applicable to a tax period that commences on or after 1 July 2015.

S 38-355(1) amended by No 91 of 2010, s 3 and Sch 1 items 5 to 8, by inserting " (1) " before " The third column " , inserting " subject to subsection (2), " before " the *international transport " in table item 5, omitting " However, paragraph (a) or (b) only applies to the transport of the goods within Australia if it is supplied by the supplier of the transport of the goods from or to Australia (whichever is relevant). " from table item 5, and inserting table item 5A, effective 29 June 2010. For application provision, see history note under s 13-20(2) .

S 38-355(1) amended by No 92 of 2000, s 3 and Sch 8 item 1, by substituting paras (b), (c) and (d) for para (b) in the third column of table item 6, effective 1 July 2000. Para (b) of the third column of item 6 formerly read:

(b) insuring the *international transport of goods covered by item 5.

S 38-355(1) amended by No 176 of 1999, s 3 and Sch 1 items 71 to 75, by inserting " of passengers " after " Transport " in table item 1 (column 2), omitting " or goods " in table item 1 (column 3), substituting table item 5 and substituting " the *international transport " for " transport, loading or handling " in table items 6 and 7 (column 3), effective 1 July 2000. Table item 5 formerly read:


5	Transport etc. of goods within Australia	the transport, loading or handling of goods within Australia, but only if: (a) it is an integral part of the supply of transporting goods to or from Australia; and (b) it is provided by the supplier who transports those goods to or from Australia.

(2)

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Paragraphs (a) and (b) of item 5, and item 5A, in the table in subsection (1) do not apply to a supply to the extent that the thing supplied is done in the indirect tax zone, unless:

(a) the *recipient of the supply:

(i) is a *non-resident; and

(ii) is not in the indirect tax zone when the thing supplied is done in the indirect tax zone; or

(b) the supply is done by the supplier of the transport of the goods from or to the indirect tax zone (whichever is relevant).

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(3)

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Items 5 and 5A, paragraphs (b) to (d) of item 6, and paragraphs (b) and (c) of item 7, in the table in subsection (1) do not apply to a supply to the extent that:

(a) the supply is, or relates to, the *international transport of goods; and

(b) the supplier is a *redeliverer that is treated as the supplier of the goods under subsection 84-81(4) ; and

(c) the supply of the goods is a *taxable supply.

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