Private ruling: GST and the application of Division 81 to Council fees and charges
Date of advice: 31 August 2015
Published: August 2015

Ruling: Q1: Is a sale of an additional bin by a Council Authority to a resident a taxable supply? | A1: No. | Q2: Is the charge by a Council Authority to a resident for the additional service 240Litre bin collection when the standard is a 140 litre a taxable supply? | A2: No.

Relevant facts and circumstances: The Council Authority is a regional subsidiary under the Local Government Act. It provides the kerbside collection of waste and the supply, exchange or removal of bins on behalf of the councils. It may sell to householders an additional bin or larger bin at their request and charge an additional fee for the supply of the bin and the kerbside collection of the bin. The Council Authority invoices the residents directly for the additional bins and service. For the purposes of this Ruling, it is accepted that Council regional subsidiary comes within the definition of an Australian government agency.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Section 81-15.

Reasons for decision: Summary: Regulation 81-15.01 of the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations) sets out those fees and charges that are prescribed for section 81-15 and which do not constitute consideration. Of relevance to this ruling are the following paragraphs: Paragraph 81-15.01(1)(a) of the GST Regulations refers to a fee or charge for the: (i) kerbside collection of waste, or (ii) supply, exchange or removal of bins or crates used in connection with kerbside collection of waste. Paragraph 81-15.01(2) of the GST Regulations provides that waste includes green waste and recyclables. The supply of the bin and service charge to residents is in connection with kerbside collection of waste and the fee charged is not consideration for a supply and therefore not a taxable supply.