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Edited version of your written advice
Authorisation Number: 1012879685393
Date of advice: 14 October 2015
Ruling
Subject: GST and landowner contributions
Question 1
Will the landowners' contributions towards the subdivision works and development plan costs of the land be an Australian fee or charge for a supply of a regulatory nature made by Entity A (you), as an Australian government agency, within the meaning of paragraph 81-15.01(1)(f) of the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations)?
Answer 1
Yes, the landowners' contributions will be an Australian fee or charge for a supply of a regulatory nature made by you, an Australian government agency, within the meaning of paragraph 81-15.01(1)(f) of the GST Regulations.
Special rules in Division 81 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) apply to the payment (or the discharging of the liability to make a payment) of Australian fees or charges, to an Australian government agency by an entity which is liable for the fee or charge under the provisions of the applicable Australian law. In particular, Division 81 provides for regulations to prescribe Australian fees and charges for certain kinds of supplies.
Regulation 81-15.01 of the GST Regulations sets out those fees and charges that are prescribed for section 81-15 of the GST Act. Paragraph 81-15.01(1)(f) of the GST Regulations prescribes a fee or charge for a supply of a regulatory nature made by an Australian government agency.
In your case, under State government legislation (State Act) you require landowners to make contributions towards the subdivision works and development plan costs of the land.
To determine if these contributions are an Australian fee or charge it is necessary to examine if they are imposed under an Australian law and whether you are an Australian government agency.
The State Act, under which the contributions are payable to you, is an Australian law. Also, for the purposes of this Ruling, it is accepted that you come within the definition of an Australian government agency.
Accordingly, the contributions payable to you by landowners towards the subdivision works and development plan costs are an Australian fee or charge.
Further, the contributions are of the kind prescribed for a supply of a regulatory nature made by an Australian government agency within the meaning of paragraph 81-15.01(1)(f) of the GST Regulations.
Question 2
Will the landowners' contributions constitute, or be treated as, consideration for GST purposes?
Answer 2
No, the landowners' contributions will not constitute, and will not be treated as, consideration for GST purposes.
Under the special rules in Division 81 of the GST Act, the payment of Australian fees or charges to which Division 81 applies is treated as not being the provision of consideration and is not subject to GST. Regulation 81-15.01 of the GST Regulations sets out those fees and charges that are prescribed for section 81-15 of the GST Act and which do not constitute consideration.
As discussed above, the contributions are an Australian fee or charge of the kind prescribed for a supply of a regulatory nature made by an Australian government agency within the meaning of paragraph 81-15.01(1)(f) of the GST Regulations.
Therefore, the contributions payable to you (or the discharging of the liability to make such a payment) by landowners towards the subdivision works and development plan costs will not constitute (and will not be treated as) consideration for GST purposes.
Relevant facts and circumstances
You are a statutory State owned corporation.
You are registered for GST.
Relevant legislative provisions
References to the GST Act:
• section 9-5
• Division 81
• section 81-15.
References to the GST Regulations:
• Regulation 81-15.01
• paragraph 81-15.01(1)(f).