GST issues registers

Tourism and hospitality industry partnership

Issue 31 - Childcare facilities provided at resorts and hotels

Many resorts and hotels provide child minding services for a fee.

Issue

Are childcare facilities provided at resorts and hotels GST-free?

For source of ATO view, refer to the general application of the principles in GSTR 2001/3 - Goods and services tax: GST and how it applies to supplies of fringe benefits.

Decision

To be GST-free, the supply of child care must be supplied by, or on behalf of:

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a registered carer (within the meaning of section 3 of the A New Tax System (Family Assistance) (Administration) Act 1999), or

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by an approved child care service (within the meaning of section 3 of the A New Tax System (Family Assistance) (Administration) Act 1999), or

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a supplier that is eligible for funding from the Commonwealth under guidelines made by Child Care Minister that relate to the funding of:

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family day care

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occasional care

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outside school hours care

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vacation care, or

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any other type of care determined in writing by that Minister.

References

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Sections 38-140, 38-145, 38-150 and 38-155 of the GST Act.

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GSTD 2001/1 - Goods and services tax: what is the GST treatment of the administration levy paid by parents and carers to a family day care scheme and child care benefits (CCB) paid to carers by a Family Day Care Scheme on behalf of parents?

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