| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1011688792391
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 treatment of attending false warning systems
Question
What is the goods and services tax (GST) treatment in respect of charges to organisations for attendance at false warning systems by participants?
Answer
Charges for attending false warning systems by the participants are not subject to GST.
Relevant facts and circumstances
The participant/s (you) is registered for GST.
You have provided an extract of the relevant legislature that relates to charges payable for false warning systems. This legislature provides information including the stipulated number of day/s period and other details. It also includes the following explanation:
'building' includes part of a building.
'owner', in relation to a building, means:
(a) the owner of the building, or
(b) the occupier of the building.
'prescribed charge' means the amount indicated as prescribed.
Reasons for decision
One of the requirements of a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax Act) 1999 (GST Act) is that there must be a supply for consideration.
You attend the business premises when a warning system is activated. A charge is made when you attend a warning system at a building more than once in a stipulated number of day/s.
The charge is made as a deterrent and to encourage building owners to properly maintain their warning systems and to reduce the likelihood of subsequent false warning systems. The charge is made under the relevant legislature as a prescribed charge and not for the supply of the participant's services.
Subsection 81-5(1) of the GST Act provides that the payment of any Australian tax, fee or charge (other than GST) that you make, is to be treated as consideration for a supply made to you by the entity to which the tax, fee or charge is payable.
However, subsection 81-5(2) of the GST Act provides that the payment of any tax, fee or charge that is specified in a written determination of the Treasurer is deemed not to be the provision of consideration for a supply.
Schedule 1, Part 2 of the A New Tax System (Goods and Services Tax)(Exempt Taxes, Fees and Charges) Determination 2010 (Division 81 Determination) lists exempt taxes, fees and charges for the relevant state and provides:
|
Item |
Australian tax, fee or charge |
Australian law |
Notes |
|
As shown |
Charges payable for false warning system |
Participants relevant legislature |
Charges payable for attending false warning system |
The charge you are making is for attending false warning systems at a building in the stipulated number of day/s. The charge is intended as a punishment or deterrent, to encourage businesses to properly maintain warning systems.
We consider that payment of the charge is not the provision of consideration by virtue of subsection 81-5(2) of the GST Act.
Therefore, as one of the requirements of a taxable supply is not met, no GST is payable on these charges.