Private ruling: GST and government related entity
Date of advice: 13 April 2016
Published: June 2016

Ruling: Q1: Are you a government related entity for the purposes of subsection 9-17(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No, you are not a government related entity for the purposes of subsection 9-17(3) of the GST Act.

Relevant facts and circumstances: You are a "public benevolent institution" endorsed to access various tax concessions, and have been registered as a charity with the Australian Charities and Not-for-profits Commission. You rely on money given by the community to provide services, fund research and run education programs. In addition, you secure grant funding from the State and Federal government for specific projects.

Relevant legislative provisions: Section 195-1 of A New Tax System (Goods and Services Tax) Act 1999. | Section 41 of A New Tax System (Australian Business Number) Act 1999 .

Reasons for decision: Summary: An entity is a government related entity for the purposes of subsection 9-17(3) of the GST Act if it satisfies the definition of that term in section 195-1. Of relevance to you is paragraph (b) of that definition, which provides that a government related entity is: (b) an entity that would be a government entity but for subparagraph (e)(i) of the definition of government entity in the A New Tax System (Australian Business Number) Act 1999... Paragraph (e) of the definition of government entity in section 41 of the A New Tax System (Australian Business Number) Act 1999 (ABN Act) states that a government entity means: e) an organisation that: (i) is not an entity; and (ii) is either established by the Commonwealth, a State or a Territory (whether under a law or not) to carry on an *enterprise or established for a public purpose by an *Australian law; and (iii) can be separately identified by reference to the nature of the activities carried on through the organisation or the location of the organisation; whether or not the organisation is part of a Department or branch described in paragraph (a), (b), (c) or (d) or of another organisation of the kind described in this paragraph. Therefore, if you satisfy subparagraphs (e)(ii) and (e)(iii) of the above definition, then you will be a government related entity for the purposes of the GST Act. Regarding the first part of subparagraph (e)(ii) of the definition of government entity in section 41 of the (ABN Act) , you need to have been established by the Commonwealth, a State or a Territory to carry on an enterprise. Although it could be considered a State was involved in the process of your establishment, it was not a State that incorporated you but rather your members. Therefore you were not established by the Commonwealth, a State or a Territory. In regards to the second part of subparagraph (e)(ii) of the definition of government entity in section 41 of the (ABN Act) , you were not established for a public purpose by an Australian law. Although you were incorporated under the Associations Incorporation Act 1895, that does not mean that you was established for a public purpose specifically by that Act. As subparagraph (e)(ii) of the definition of government entity in section 41 of the (ABN Act) is not satisfied, there is no need to consider if subparagraph (e)(iii) is satisfied. As such, you are not a government related entity for the purposes of subsection 9-17(3) of the GST Act.