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Edited version of private advice
Authorisation Number: 1052284391635
NOTICE
This is an edited version of a revised private ruling. It replaces the edited version of the private ruling with the authorisation number 1013056141277.
Date of advice: 6 August 2024
Ruling
Subject: GST and adviser services
Question 1
Do you make a reduced credit acquisition (RCA) under section 70-5 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act) where Advisers provide Adviser Services for a fee in respect of a financial product you provide where funds are held by you?
Answer
No, you do not make an RCA under section 70-5 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act) where Advisers provide Adviser Services for a fee in respect of a financial product you provide where funds are held by you.
Question 2
Does Division 84 of the GST Act apply where you acquire supplies of Adviser Services from non-resident Advisers for supplies not connected with the indirect tax zone?
Answer
No. As you do not make an acquisition from the non-resident Advisers for which the ASF are consideration, Division 84 does not apply.
This ruling applies for the following period:
Date of issue to xx August xx
Relevant facts and circumstances
You provide financial products and services including holding investment funds in accounts for members and investors. Advisers provide Adviser Services to members and investors for a fee in respect of financial products you provide, which is paid out of their account funds pursuant to contractual arrangements entered into with members and investors. Liability to pay for the Adviser Services rests with the members and investors at all times.
You are registered for GST.
You have provided a number of documents in your ruling request that set out the framework within which each of the parties operates under the arrangement.
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 11-5
A New Tax System (Goods and Services Tax) Act 1999 section 40-5
A New Tax System (Goods and Services Tax) Act 1999 section 70-5
A New Tax System (Goods and Services Tax) Act 1999 section 70-10
A New Tax System (Goods and Services Tax) Act 1999 section 84
A New Tax System (Goods and Services Tax) Act 1999 section
A New Tax System (Goods and Services Tax) Regulations 2019 subsection 40-5.09(3)
A New Tax System (Goods and Services Tax) Regulations 2019 section 70-5.02
A New Tax System (Goods and Services Tax) Regulations 2019 subsection 70-5.02(2) item 32
Superannuation Industry (Supervision) Act 1993 section 62
Reasons for decision
You are not acquiring the supply of Adviser Services made by Advisers. The supply of Adviser Services by the Advisers is made to your members and investors, not to you. The liability to pay for the Adviser Services rests with your members and investors, not with you. The consideration for those supplies is not consideration for any supply to you. You are not entitled to a reduced input tax credit (RITC) because you are not making an RCA of a taxable supply from the Advisers for which the payment of the fee is consideration. You are not entitled to RITCs under section 11-5 and Division 70 of the GST Act and subsection 70-5.02(1) of the GST Regulations. To the extent there is a supply made by the Advisers to you, the fee is not consideration for that supply.