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Edited version of your private ruling
Authorisation Number: 1012585471050
Ruling
Subject: Goods and services tax (GST) and tours
Question
Will you be required to be registered for GST pursuant to subsection 144-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) regardless of the level of your turnover?
Answer
No.
Relevant facts and circumstances
You have opened your hosted bed and breakfast business. You are currently going through the process of getting your 4wd vehicle accredited to provide tours for, predominantly, your guests.
These tours will be pre-booked and will include tours to certain areas and winery tours. It is envisaged that the tours will be a value added component of your B&B business with the B&B being your core business. You will charge a fare for the tours.
You will not be permitted to pick up passengers from any absolutely location and transport them to absolutely any location. The accreditation you will obtain will allow you to do tours only, for example, tours to wineries.
You will transport passengers from your B&B.
You will not receive taxi number plates. You will receive a different type of number plate.
The 4wd seats 8 passengers.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 subsection 144-5(1)
Reasons for decision
Summary
You will not be required to be registered for GST pursuant to subsection 144-5(1) of the GST Act because you will not be supplying taxi travel.
Detailed reasoning
Subsection 144-5(1) of the GST Act states:
You are required to be registered if, in carrying on your enterprise, you supply *taxi travel.
Taxi travel means travel that involves transporting passengers, by taxi or limousine, for fares.
The intent of including limousines in Division 144 of the GST Act was to remove any competitive advantage that may be obtained by limousines that operate in a taxi like manner if registration were compulsory for taxis but not such limousine services.
For the purposes of this ruling, operating in a taxi like manner means providing a service similar to and essentially in competition with the taxi industry.
You will not receive taxi number plates.
You will not be permitted to pick up passengers from absolutely any location and transport them to absolutely any location. The accreditation you will receive as a tour provider will limit you to providing tours, for example, tours to wineries. Therefore, you will not be providing a service similar to and essentially in competition with the taxi industry.
Hence, you will not be supplying taxi travel. Therefore, you will not be required to be registered for GST pursuant to subsection 144-5(1) of the GST Act.