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Edited version of your written advice
Authorisation Number: 1051460604585
Date of advice: 29 November 2018
Ruling
Subject: GST and supply of a debit card
Question 1
Are you making a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you begin charging a card fee to a customer?
Answer
Yes. You are making a taxable supply under section 9-5 of the GST Act when you begin charging a card fee to a customer.
Question 2
When a customer transfers the 'Initial Top-Up Amount’ to its debit card account, is that amount consideration for a supply that you make?
Answer
No. The transfer of the Initial Top-Up Amount is not consideration for a supply that you make to a customer.
Question 3
When a customer transfers by direct debit the ‘Additional Top-Up Amount’ to its debit card account, is that amount consideration for a supply you make?
Answer
No. The transfer of the Additional Top-Up Amount is not consideration for a supply that you make to a customer.
Question 4
When a debit card account is debited, upon using the debit card, when paying for goods or services you supply to a customer, is the amount debited consideration for a supply and the requirements of section 9-5 of the GST Act are satisfied?
Answer
Yes. The amount debited in a customer’s debit card account is consideration for a supply and you are making a taxable supply under section 9-5 of the GST Act unless the supply is GST-free.
Question 5
Are you making a financial supply when you accept the Initial Top-Up Amount and the Additional Top-Up Amount from a Customer?
Answer
No. You are not making a financial supply when you accept the Initial Top-Up Amount and the Additional Top-Up Amount from a Customer.
This ruling applies for the following periods:
from 1 July 2018
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 sections 9-5 and 40-5