Private ruling: GST and the provision of facilities and services
Date of advice: 19 December 2025
Published: 9 February 2026
Ruling period: XX/XX/20XX to XX/XX/20XX
Date scheme commenced: XX/XX/20XX

Ruling: Q1: Do you make a supply to clients under section 9-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when providing facilities and services under your agreement with contractors? | A1: No. You do not make a supply to clients under section 9-10 of the GST Act when providing facilities and services under your agreement, as these activities are performed to meet your obligations to contractors. | Q2: Are you making a taxable supply to contractors under section 9-5 of the GST Act when you provide facilities and services under your agreement with contractors? | A2: Yes. You are making a taxable supply to contractors under section 9-5 of the GST Act when you provide facilities and services to them under the agreement.

Relevant facts and circumstances: You hold an active Australian Business Number and are registered for GST. You enter into an agreement with contractors to allow them to operate from your premises. You provide administrative and financial services as part of your agreement, including the collection of client payments for contractor operations. Your agreement is not exclusive to any specific contractor. Contractors have complete control over their operations. Contractors must be registered for GST and maintain relevant insurances. You charge a fee to contractors, calculated as a percentage of the fees set by them. You issue tax invoices to contractors for your charged fee.

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 9-10 | A New Tax System (Goods and Services Tax) Act 1999 section 9-15

Reasons for decision: Summary: No. You do not make a supply to clients under section 9-10 of the GST Act when providing facilities and services under your agreement, as these activities are performed to meet your obligations to contractors. | Detailed Reasoning - Detailed reasoning: A supply is defined broadly in section 9-10 of the GST Act as any form of supply whatsoever, including goods, services, rights, and obligations. A supply will normally involve a supplier and a recipient. To determine whether you make a supply to clients, it is necessary to identify what is provided and to whom. Goods and Services Tax Ruling GSTR 2006/9 Goods and services tax: supplies (GSTR 2006/9) explains how to identify supplies, suppliers, and recipients where more than two parties are involved. Proposition 11 of GSTR 2006/9 states that the starting point for identifying the supplier and recipient is any agreement between the parties. Your agreement with contractors is therefore fundamental in determining whether you make a supply to an entity. You undertake a range of obligations under the agreement with contractors to enable them to perform their operations. You do not have a separate agreement with clients to provide these services. Your involvement with clients is limited to functions such as receiving payments for operations performed by contractors. These activities do not create a separate supply to clients. The contractors remain responsible and have full control of their operations and set the pricing. They are responsible for maintaining GST registration and relevant insurances. Accordingly, the requirements of section 9-10 of the GST Act are not satisfied in relation to clients. | Detailed Reasoning - Conclusion: Your provision of facilities and administrative services under the agreement is not a supply to clients under section 9-10 of the GST Act. | Detailed Reasoning - Question 2: Are you making a taxable supply to contractors under section 9-5 of the GST Act when you provide facilities and services under your agreement with contractors? | Summary: Yes. You are making a taxable supply to contractors under section 9-5 of the GST Act when you provide facilities and services to them under the agreement. | Detailed Reasoning - Detailed reasoning: You make a taxable supply under section 9-5 of the GST if: • You make a supply for consideration; • The supply is made in the course or furtherance of an enterprise you carry on; • The supply is connected with Australia; and • You are registered or required to be registered for GST. However, a supply will not be taxable to the extent that it is input taxed or GST-free. You provide facilities and administrative services to contractors under the agreement. In return, you retain a fee calculated as a percentage of client fees collected. You issue tax invoices to contractors for this fee. The fee is consideration under section 9-15 of the GST Act for the facilities and services you supply to them. Supplying these services to contractors is in the course of your enterprise in Australia. You are registered for GST. All requirements of section 9-5 of the GST Act are satisfied. There is no provision in the GST Act that makes this supply GST-free or input taxed. | Detailed Reasoning - Conclusion: You make a taxable supply to contractors under section 9-5 of the GST Act when you provide facilities and administrative services under the agreement.

Question 1: Do you make a supply to clients under section 9-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when providing facilities and services under agreement with contractors?