Private ruling: GST and restaurant tips
Date of advice: 16 June 2023
Published: 31 July 2023

Ruling: A ruling issued to a restaurant that tips paid on a purely voluntary basis and passed on to the employees who provided the service are not consideration for the supply of the restaurant meal. | 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 9-15(2) | A New Tax System (Goods and Services Tax) Act 1999 paragraph 9-20(2)(a) | ATO View: | GSTR 2006/9 Goods and services tax: supplies | Goods and Services Tax Industry Issues: Tourism and Hospitality Industry Partnership: Restaurant Tips.