Private ruling: NFP company
Date of advice: 15 December 2025
Published: 2 February 2026
Ruling period: 1 October 20XX to 31 December 20XX
Date scheme commenced: 1 November 20XX

Ruling: Q1: Is Company (You) making a GST free supply under section 38-355 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you supply participation fees which include services of organising and purchasing international flights, accommodation in XXXXX, ground transport in XXXXX, travel insurance and registration fee and event transport in XXXXX? | A1: Yes, your supply of organising and purchasing international flights, accommodation in XXXXX, ground transport in XXXXX, travel insurance and registration fee and event transport in XXXXX is GST-free under section 38-355 and section 38-190 of the GST Act | Q2: Are you making a taxable supply under section 9-25 of the GST act when you supply merchandise, uniform and information session in Australian to the athletes? | A2: Yes, you are making a taxable supply under section 9-25 of the GST act when you supply the athletes with merchandise, uniform and information session in Australia | Q3: Are you making a supply connected to Australia as per section 9-25(5) of the GST Act for suppling medical support to the athletes, and do they become GST free under item 3 in section 38-190 of the GST act as they are consumed outside the indirect tax zone? | A3: Yes, your supply of medical support to the athletes is connected to Australia as per section 9-25(5) but becomes GST free under item 3 of section 38-190 of the GST Act. | Q4: To the extent that you charge a single participant fee, is the organization required to apportion the fee between GST-free components (international travel, accommodation, insurance) and taxable components (uniforms, administration, Australian costs)? | A4: Yes, you will need to list each item on the tax invoice separately and clearly mark which is GST-free and which one is a taxable supply. | Q5: If apportionment is required, what is the correct method of apportionment (e.g. based on actual costs, or a reasonable percentage allocation)? | A5: Yes. Apportionment is required between GST-free and taxable supplies made to participants within the indirect tax zone and outside the indirect tax zone. The GST payable on the supply to the participants can be calculated using actual costs as these are already available as each item is already identified as well as their costs. | Q6: Can you offset GST-free participant income against GST-free expenses for BAS reporting purposes? | A6: The BAS doesn't allow offsetting GST-free sales and expenses net of GST; it treats them separately.

Relevant facts and circumstances: • You are a national peak body for sports. • You are coordinating the 20XX in XXXXX for Australian participants. • The participants have travelled to XXXXX in November 20XX. • You get paid a participation fee by the participants which range anywhere between $XXXX. • The participation fee that you charge the athletes include a range of different services like: o International flights o Accommodation in XXXXX o Ground transport in XXXXX o Registration fee and event transport in XXXXX o Travel insurance o Uniform and merchandise o Information session in Australia o Medical support & coordination • You contract directly with all the suppliers. • You collect participation fee in Australia prior to the athlete departure. • You also may receive some donations from business which are not linked to any specifically, and the benefits are treated as non-consideration income

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 38-190(1) | A New Tax System (Goods and Services Tax) Act 1999 subsection 38-190(3) | A New Tax System (Goods and Services Tax) Act 1999 subsection 38-355

Reasons for decision: Detailed Reasoning - Supply of accommodation, ground transport and travel insurance - Section 38-190: Section 38-190 of the GST Act discusses when the supplies of things other than goods or real property, for consumption outside Australia are GST-free. Specific to the supplies of international accommodation, ground transport and travel insurance that you are providing to the athletes is item 3 in the table in subsection 38-190(1) of the GST Act. Item 3 provides that a supply of a thing (other than goods or real property) made to a non-resident is GST-free if it is made to a non-resident, who is not in Australia when the thing supplied is done, and: (a) the supply is neither a supply of work physically performed on goods situated in Australia when the work is done, nor a supply directly connected with real property situated in Australia; or (b) the non-resident acquires the thing in carrying on the non-resident's enterprise but is not registered or required to be registered for GST. Paragraph (a) of item 3 Item 3 may apply irrespective of whether the recipient is a resident or non-resident of Australia. 'Recipient' is defined in section 195-1 of the GST Act and means in relation to a supply, the entity to which the supply was made This paragraph is satisfied as the supply is made to the athletes that are not in Australia when the supply of services is done. | Detailed Reasoning - Supply of international transport of passengers- Section 38-355: Section 38-355 of the GST Act specifies the general rules for the GST-free supplies of international transport of goods and related matters. The purpose of this section is to allow only certain aspects of the supply of transportation of goods to be GST-free. Item 1 in the table in section 38-355 of the GST Act allows for the GST-free transport of passengers to, from or outside the indirect tax zone in certain circumstances as follows: Therefore, the purchase of international flights continues to be GST free under item 1 in the table in subsection 38-355(1) of the GST Act. | Detailed Reasoning - Question 2: Are you making a taxable supply under section 9-25 of the GST act when you supply merchandise, uniform and information session in Australian to the athletes? | Detailed Reasoning - Answer: Yes, you are making a taxable supply under section 9-25 of the GST act when you supply the athletes with merchandise, uniform and information session in Australia. | Detailed Reasoning - Section 9-5: GST is payable on a taxable supply. Section 9-5 of the GST Act provides that you make a taxable supply if: (a) you make the supply for consideration; and (b) the supply is made in the course or furtherance of an enterprise that you carry on; and (c) the supply is connected with Australia; and (d) you are registered or required to be registered. However, the supply is not a taxable supply to the extent that it is GST-free or input taxed. From the facts given, you satisfy all the requirements of paragraphs 9-5(a) to 9-5(d) of the GST Act as: (a) you receive consideration for your supply of providing merchandise, uniform and information session in Australia; (b) you make this supply in the course or furtherance of an enterprise that you carry on; (c) your supply is connected with Australia as you make this supply through an enterprise that you carry on in Australia; and (d) you are registered for GST in Australia. The supply of merchandise, uniform and information session in Australia provided by you to the athletes is input taxed. | Detailed Reasoning - Question 3: Are you making a taxable supply under section 9-25 of the GST act when you supply merchandise, uniform and information session in Australian to the Are you making a supply connected to Australia as per section 9-25(5) of the GST Act for suppling medical support to the athletes, and do they become GST free under item 3 in section 38-190 of the GST act as they are consumed outside the indirect tax zone? | Detailed Reasoning - Answer: Yes, your supply of medical support to the athletes is connected to Australia as per section 9-25(5) but becomes GST free under item 3 of section 38-190 of the GST Act. | Detailed Reasoning - Section 9-25 (5) Connected with Australia: A supply of an intangible, for example, a service, is connected with Australia if the requirements of subsection 9-25(5) of the GST Act are met, which states: A supply of anything other than goods or *real property is connected with the indirect tax zone if: (a) the thing is done in the indirect tax zone; or (b) the supplier makes the supply through an *enterprise that the supplier *carries on in the indirect tax zone; or (c) all of the following apply: (i) neither paragraph (a) nor (b) applies in respect of that thing: (ii) the thing is a right or option to acquire another thing; (iii) the supply of the other thing would be connected with the indirect tax zone: or (d) the *recipient of the supply is an *Australian consumer. | Detailed Reasoning - The thing is done in Australia: When you provide medical support to the athletes, from Australian professionals they are things supplied in Australia, however they perform their service outside Australia and will therefore be classified as GST-free under item 3 of section 38-190 38-190 paragraph (b) of item 3 In determining where a supply is used or enjoyed it is first necessary to establish the entity to which the supply is provided. A supply may be made and provided to the same entity or may be made to one entity but be provided to another entity. A supply is provided to another entity if, in the performance of a service, the actual flow of that supply is to an entity that is not the recipient. The contractual flow is to the recipient, and the actual flow of the supply is to another entity and thus the other entity is the provider. Having determined the provider entity it is then necessary to consider whether use or enjoyment of the supply by that provider entity takes place outside Australia. Effective use or enjoyment of the supply only takes place outside of Australia, if there is provision of the supply to the provider entity outside Australia. If a company does not have a presence in Australia, the supply is provided to that entity outside Australia and effective use, or enjoyment of the supply takes place outside Australia. You are providing Australian athletes a service of support and management in XXXXX. In this instance paragraph (b) of item 3 is satisfied as the use and enjoyment of your supply of services takes place outside Australia. | Detailed Reasoning - Question 4: To the extent that you charge a single participant fee, is the organization required to apportion the fee between GST-free components (international travel, accommodation, insurance) and taxable components (uniforms, administration, Australian costs)? | Detailed Reasoning - Answer 4: Yes, you will need to list each item on the tax invoice separately and clearly mark which is GST-free and which one is a taxable supply. | Detailed Reasoning - Question 5: If apportionment is required, what is the correct method of apportionment (e.g. based on actual costs, or a reasonable percentage allocation)? | Detailed Reasoning - Answer 5: Yes. Apportionment is required between GST-free and taxable supplies made to participants within the indirect tax zone and outside the indirect tax zone. The GST payable on the supply to the participants can be calculated using actual costs as these are already available as each item is already identified as well as their costs. | Detailed Reasoning - Paragraphs 440 to 442 of Goods and Services Tax Ruling GSTR 2004/7 state:: 440. Section 9-5 provides that a supply is a taxable supply except to the extent that it is GST-free or input taxed. This creates a general apportionment rule for the GST Act. A supply may be partly GST-free under item 2 or item 3 (or paragraph (b) of item 4 because of the application of subsection 38-190(2)) to the extent that the requirements of the relevant item are met. If the 'not in Australia in relation to the supply' requirement for the non-resident or other recipient of the supply is met for only part of the time when the thing supplied is done, the supply is only partly GST-free under the relevant item. 441. If a supply consists of a taxable part and a GST-free part, it is necessary to apportion the consideration between these parts to work out the GST payable on the taxable part of the supply. 442. The need to apportion in the context of items 2 and 3 arises if the thing supplied is done over a period. For example, apportionment is necessary if the recipient of a supply of services is in Australia in relation to the supply for part of the time over which the services are performed. That part of the supply that is done when the recipient is in Australia in relation to the supply is the taxable part of the supply. That part of the supply that is done when the recipient is not in Australia in relation to the supply is the GST-free part of the supply, provided the other requirements of the item are met. The supply that you make in this ruling request consists of mixed supplies of taxable and GST-free. Therefore, you are required to apportion the consideration received from the participants between the taxable and GST-free parts of the supply. Paragraph 446 of GSTR 2004/7 provides that to work out the value of the taxable part of the supply, the consideration must be apportioned to each of the parts to find the consideration for the taxable part. The supplier can use any reasonable method that is supportable in the circumstances to apportion the consideration. The supplier should keep records that explain the method used. As you already have a list of all the items and services that you are supplying to the participants with costs itemised, it would be convenient to use the actual costs method to apportion the taxable and non-taxable portions of your supply. However, as the above ruling states, you can use a reasonable method that is supportable if you cannot itemise the costs of each item. | Detailed Reasoning - Question 6: Can you offset GST-free participant income against GST-free expenses for BAS reporting purposes? | Detailed Reasoning - Answer: The BAS doesn't allow offsetting GST-free sales and expenses net of GST; it treats them separately. | Detailed Reasoning - Detailed reasoning: BAS reporting, GST-free income and GST-free expenses are treated differently from taxable supplies and purchases: GST-free income (e.g., certain health services, exports, basic food) is reported at G1 (Total sales) but does not contribute to GST payable because it's GST-free. GST-free expenses are reported at G11 (non-capital purchases) or G13 (Purchases for making input-taxed sales), but they do not generate GST credits because no GST was paid. You cannot offset GST-free income against GST-free expenses for BAS purposes. The BAS requires you to report the gross amounts separately in their respective fields. Offsetting is not allowed because the BAS is designed to capture total sales and purchases, regardless of GST status. Simplified BAS reporting is designed to make GST reporting easier for small businesses. Here's how it works:5 Instead of reporting detailed figures for GST-free sales, capital purchases, and non-capital purchases, you only report: G1: Total sales 1A: GST on sales 1B: GST on purchases You don't need to break down GST-free or input-taxed amounts separately.

Question 1: Is Company (you) making a GST free supplies under section 38-355 and section 38-190 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you supply participation fees which include services of organising and purchasing international flights, accommodation in XXXXX, ground transport in XXXXX, travel insurance and registration fee and event transport in XXXXX?