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Edited version of private advice
Authorisation Number: 1052378838238
NOTICE
This is an edited version of a revised private ruling. It replaces the edited version of the private ruling with the authorisation number 1051863718855.
Date of advice: 08 April 2025
Ruling
Subject: Financial supplies
Question 1
Are the payments payable either to, or by, you under the agreement consideration for a supply for the purposes of section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer 1
Yes, the payments made to you, or by you, are further consideration for the purposes of section 9-5 of the GST Act.
Question 2
Are payments payable under the agreement consideration for an input taxed financial supply for the purposes of Division 40 the GST Act?
Answer 2
Yes, you make an input taxed financial supply under section 40-5 of the GST Act of the provision of an interest in a derivative under table item 11 of subsection 40-5.09(3) of the A New Tax System (Goods and Services Tax) Regulations 2019 (GST Regulations).
Question 3
Is the specific X amount payable under the agreement consideration for the supply of widgets for the purposes of section 9-5 of the GST Act?
Answer 3
No, the specific X amount payable to you is further consideration for your input taxed financial supply of the provision of an interest in a derivative to the contracting party of the agreement.The supply of widgets by you is non-monetary consideration for the contracting party's supply of the derivative.
The scheme commenced on:
X April 20XX
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 Division 40
A New Tax System (Goods and Services Tax) Act 1999 section 40-5
A New Tax System (Goods and Services Tax) Regulations 2019 subsection 40-5.09