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Edited version of private advice
Authorisation Number: 1051907478043
Date of advice: 8 October 2021
Ruling
Subject: Financial supply of a credit arrangement
Question
Whether certain fees are consideration for an input taxed supply under A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes. The fees are consideration for an input taxed financial supply under section 40-5 of the GST Act.
Relevant facts and circumstances
Entity A entered into a contract with Entity B to construct an infrastructure where payments were payable at different stages.
The Entity A charged fees to Entity B to defer payment for each milestone payment.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Section 9-5
A New Tax System (Goods and Services Tax) Act 1999 Section 40-5
A New Tax System (Goods and Services Tax) Regulations 2019 Section 40-5