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This edited version has been archived due to the length of time since original publication.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.

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Edited version of private advice

Authorisation Number: 1051549842105

Date of advice: 25 July 2019

Ruling

Subject: GST and supplies

Question

Can the Commissioner of Taxation (Commissioner) confirm that the payments (regulated payment) made by customers to Entity A, which are not subject to GST due to the operation of Division 81 of the GST Act, continue to maintain their current GST treatment notwithstanding the Agreement between Entity A and Entity B?

Answer

The Commissioner confirms that the regulated payment made by a customer to Entity A, which are not subject to GST due to the operation of Division 81 of the GST Act, continue to maintain their current GST treatment notwithstanding the Agreement between Entity A and Entity B.

Based on the facts and circumstances Entity A continues to be the supplier of the services to the customer for which they receive the regulated payment. As such the acquisition of Services by Entity A from Entity B under the Agreement has not changed the supply that Entity A makes to its customers.

For the purposes of this Private Ruling we have been advised that the regulated payments made by customers to Entity A are for services provided by Entity A that are currently excluded from GST under Division 81 of the GST Act. This Private Ruling does not cover any other payments for services made by Entity A.

This ruling applies for the following periods:

1 July 2019 till 30 June 2021

The scheme commences on:

1 July 2019

Relevant legislative provisions

A New tax System (Goods and Services tax) Act 1999 9-5