Private ruling: GST and government fees and charges
Published: May 2015

Ruling: Q1: Are the payments received by you for your supplies consideration for taxable supplies under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No the payments are not consideration for taxable supplies.

Relevant facts and circumstances: You are a local government entity. You are registered for goods and services tax (GST). You receive payments from rating authorities.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 subsection 81-10(1) | A New Tax System (Goods and Services Tax) Act 1999 Subsection 81-10(5) | A New Tax System (Goods and Services Tax) Act 1999 Section 81-15 | A New Tax System (Goods and Services Tax) Regulations 1999 Regulation 81-10.01 | A New Tax System (Goods and Services Tax) Regulations 1999 Regulation 81-15.01

Reasons for decision: Summary: Division 81 of the GST Act Subsection 81-10(1) of the GST Act provides that a payment, or the discharging of a liability to make a payment, is not the provision of consideration to the extent that the payment is an Australian fee or charge that is of a kind covered by subsection 81-10(4) or (5) of the GST Act. An Australian fee or charge is defined in section 195-1 of the GST Act as a fee or charge (however described) other than an Australian tax, imposed under an Australian law and payable to an Australian government agency. For the purposes of this ruling we consider that you are an Australian government agency and that the fee paid to you was imposed under an Australian law. Subsection 81-10(5) of the GST Act covers a fee or charge that relates to the Australian government agency doing any of the following: • recording information • copying information • modifying information • allowing access to information • receiving information • processing information, and • searching for information We consider that the fees and charges for your supplies come under subsection 81-10(5) of the GST Act. Subsection 81-10(2) of the GST Act provides that although a fee or charge comes under subsection 81-10(5) of the GST Act the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations) may provide for exceptions. We do not consider the fee is covered by the 81-10.01 GST Regulations and accordingly is not the provision of consideration. It follows, that the payments received by you for your supplies are not consideration for taxable supplies under section 9-5 of the GST Act. If the other fee relates to you recording, copying, modifying, receiving and allowing access to information, it will also be covered by subsection 81-10(5) of the GST Act. However, it may be that the fee is not covered by subsection 81-10(5) of the GST Act. Section 81-15 of the GST Act provides that other fees that are not covered by 81-10(4) or (5) of the GST Act do not constitute consideration if the fee or charge is covered by the GST Regulations for section 81-15 of the GST Act. Paragraph 81-15.01(1)(d) and (f) of the GST Regulations provide that a fee or charge to compensate an Australian government agency for costs incurred by the agency in undertaking regulatory activities or for a supply of a regulatory nature made by an Australian government agency does not constitute consideration. The explanatory statement to the A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No.2) (ES) explains that: The term 'regulatory' captures those supplies made by a government agency, where that agency is legislatively empowered to make the relevant supply and the supply is to satisfy a regulatory purpose. On the facts provided, it is considered that the fee (not covered by subsection 81-10(5) of the GST Act) is covered by paragraphs 81-15.01(1)(d) or (f) of the GST Regulations and therefore does not constitute consideration.