ATO Interpretative Decision
ATO ID 2002/79
Goods and Services Tax
GST and beach access tracksFOI status: may be released
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With effect from 1 July 2015, the term 'Australia' is replaced in nearly all instances within the GST, Luxury Car Tax and Wine Equalisation Tax legislation with the term 'indirect tax zone' by the Treasury Legislation Amendment (Repeal Day) Act 2015. The scope of the new term, however, remains the same as the repealed definition of 'Australia' used in those Acts. For readability and other reasons, where the term 'Australia' is used in this document, it is referring to the 'indirect tax zone' as defined in subsection 195-1 of the GST Act.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 importer, making a taxable importation under section 13-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it imports tracks to enable access to the beach?
Decision
Yes, the entity is making a taxable importation under section 13-5 of the GST Act when it imports tracks to enable access to the beach.
Facts
The entity is an importer. The entity imports access tracks. The tracks are laid on sand to make paths which allow access to the beach for wheelchairs, pedestrians, strollers, cyclists and light vehicles.
The entity enters the tracks for home consumption (within the meaning of the Customs Act 1901). The access tracks are not non-taxable importations under Part 3-2 of the GST Act.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Under section 13-5 of the GST Act, an entity makes a taxable importation if the goods are imported and the entity enters the goods for home consumption (within the meaning of the Customs Act 1901). However, paragraph 13-10(b) of the GST Act provides that an importation is a non-taxable importation if it would have been a supply that was GST-free or input taxed if it had been a supply. This means that where the supply of the goods within Australia would be GST-free then the importation of these goods is a non-taxable importation.
Therefore, the importation of access tracks which enable access to the beach will be a non-taxable importation if the supply of the access tracks within Australia would be GST-free.
Under subsection 38-45(1) of the GST Act, the supply of a medical aid or appliance is GST-free where the medical aid or appliance:
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- is covered by Schedule 3 to the GST Act (Schedule 3), or specified in the A New Tax System (Goods and Services Tax) Regulations 2019(GST Regulations);
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- is specifically designed for people with an illness or disability; and
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- is not widely used by people without an illness or disability.
In relation to Schedule 3, the only items of relevance in this case are Item 106 in the table in Schedule 3 which lists 'accessories associated with wheelchairs, scooters, tricycles, spinal carriages and other goods for the carriage of people with disabilities' and Item 56 in the table in Schedule 3 which lists 'wheelchair ramp'.
However, regardless of whether the beach access tracks could potentially be covered by either of these two Items in the table in Schedule 3, the beach access tracks in question provide beach access for strollers, pedestrians, cyclists and light vehicles as well as wheelchairs. Accordingly, it is considered that these beach access tracks are not specifically designed for people with an illness or disability and are widely used by people without an illness or disability.
Therefore, the supply of the beach access tracks is not GST-free under subsection 38-45(1) of the GST Act.
The importation by the entity meets the positive limbs of section 13-5 of the GST Act. Furthermore, the importation is neither a non-taxable importation under Part 3-2 of the GST Act nor would it have been GST-free under Division 38 of the GST Act or input taxed under Division 40 of the GST Act had the importation been a supply. Therefore, the entity is making a taxable importation under section 13-5 of the GST Act when it imports tracks to enable access to the beach.
Amendment History
| Date of Amendment | Part | Comment |
|---|---|---|
| 9 April 2019 | Throughout | Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019. |
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 13-5
section 13-10
Division 38
Division 40
subsection 38-45(1)
Schedule 3
Part 3-2
The Regulations Customs Act 1901
The Act
Keywords
Goods & services tax
GST free
GST health
Section 38-45 - medical aids & appliances
Imports
Taxable importations
ISSN: 1445-2782