Private ruling: GST and the application of Division 81 to Government fees and charges
Date of advice: 23 September 2015
Published: September 2015

Ruling: Q1: Do the following fees and charges attract GST? (a) annual rent paid for a title or a non-compliant existing interest pursuant to Act. (b) an annual fee for a permit, a licence or pursuant to the Act. (c) an annual fee for a permit, a licence, pursuant to the Act. (d) an annual licence fee pursuant to the Act . (e) an annual fee in respect of a permit, a licence or a lease pursuant to the Act . | A1: (a) No (b) No (c) No (d) No (e) No | Q2: Are application fees relating to Question 1 out-of-scope for GST? | A2: Yes | Q3: Is the response to questions 1(a) to 1(b) and question 2 the same where the permit, lease or licence relates to another government agency's land? | A3: Yes

Relevant facts and circumstances: Entity is an Australian Government agency and is registered for GST.

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 Subsection 81-10(1) | A New Tax System (Goods and Services Tax) Act 1999 Subsection 81-10(2) | A New Tax System (Goods and Services Tax) Act 1999 Subsection 81-10(2) | A New Tax System (Goods and Services Tax) Act 1999 Subsection 81-10(4) | A New Tax System (Goods and Services Tax) Act 1999 Subsection 81-15 | A New Tax System (Goods and Services Tax) Regulations 1999 81-15.01

Reasons for decision: Summary: All legislative references in this Ruling, unless otherwise stated are to A New Tax System (Goods and Services Tax) Act 1999 (GST Act). The relevant legislative provisions are discussed below. | Detailed Reasoning - Division 81: Division 81 allows entities to self-assess the GST treatment of a payment of an Australian tax or an Australian fee or charge in accordance with certain principles. | Detailed Reasoning - Australian Fees and Charges: Sections 81-10 and 81-15 consider the effect of certain fees and charges and state: | Detailed Reasoning - 81-10 Effect of payment of certain fees and charges: Certain fees and charges not consideration (1) A payment, or the discharging of a liability to make a payment, is not the provision of *consideration to the extent the payment is an *Australian fee or charge that is of a kind covered by subsection (4) or (5). (2) However, a payment you make, or a discharging of your liability to make a payment, is treated as the provision of consideration to the extent the payment is an *Australian fee or charge that is, or is of a kind, prescribed by the regulations. (3) For the purposes of subsection (2), the consideration is taken to be provided to the entity to which the fee or charge is payable, for a supply that the entity makes to you. Fees or charges paid for permissions etc. (4) This subsection covers a fee or charge if the fee or charge: (a) relates to; or (b) relates to an application for; the provision, retention, or amendment, under an *Australian law, of a permission, exemption, authority or licence (however described)… The term 'Australian fee or charge' is defined in section 195-1 as: Australian fee or charge means a fee or charge (however described), other than an Australian tax, imposed under an *Australian law and payable to an *Australian government agency. The Australian fees and charges listed in question 1(a) to 1(e) are not consideration as they are covered by subsection 81-10(4) and excluded by the GST Regulations as they are regulatory.