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Edited version of private advice
Authorisation Number: 1051730876017
Date of advice: 3 August 2020
Ruling
Subject: GST-free supply of accommodation
Question
Is the supply of the manse by the XYZ Church to the minister a GST-free supply of accommodation?
Answer
Yes
Relevant facts and circumstances
You are an endorsed charity for the purposes of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
You employ a person and provide accommodation to that person as part of their salary package.
You have been renting premises to provide the accommodation. You have recently built premises that you will now use to provide accommodation.
Reasons for decision
Unless otherwise stated, all legislative references are to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
A supply of accommodation will be GST-free under subsection 38-250(1) where:
· the supplier is an endorsed charity, a gift-deductible entity or a government school, and
· the supply is for consideration that is less than 75% of the GST inclusive market value of the supply.
You are an endorsed charity, so the first requirement is satisfied.
Based on the information you have provided the second requirement is also satisfied and your supply of accommodation is GST-free.