| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private ruling
Authorisation Number: 1011676179282
This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.
Ruling
Subject: GST and child care
Question
Would your supply of child care be taxable if you were registered for goods and services tax (GST)?
Answer: No, your supply of child care would be GST-free.
Relevant facts and circumstances
You are not registered for GST.
You supply after school and vacation child care.
You are registered with the Family Assistance Office (FAO) as an approved child care service.
Being an approved child care service allows parents and caregivers to claim child care rebates.
Parents and caregivers of the children under your care are entitled to claim child care rebates.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 (GST Act)
Section 38-145
Section 38-155
Reasons for decision
Summary
Your supply of after school and vacation child care would be GST-free given you are registered with the FAO as an approved child care service.
Detailed reasoning
Under section 38-145 of the GST Act a supply of child care is GST-free where the supply is made by an approved child care service within the meaning of section 3 of the A New Tax System (Family Assistance) (Administration) Act 1999 (FAA Act).
Further, under section 3 of the FAA Act (with reference to other provisions within this Act) an approved child care service is one that is registered with the FAO. Being an approved child care service allows parents and caregivers to claim child care rebates.
You have advised that you are registered with the FAO as an approved child care service with parents and caregivers of the children under your care being entitled to claim child care rebates. Hence, your supply of after school and vacation child care meets the requirements of section 38-145 of the GST Act and would therefore be GST-free if you were to register for GST.
Also note that under section 38-155 of the GST Act, any extra activities that you offer (or that are offered on your behalf) that are directly related to your supply of child care, and for which an extra fee is charged, would also be GST-free.
Registering for GST
If you elect to register for GST then this can be done by either:
· electronically through the Australian Business Register at www.abr.gov.au
· on a paper form, by phoning the ATO on 13 28 66, or
· through a tax agent, who will lodge an application using the electronic lodgement system.