Private ruling: GST and employee liabilities
Date of advice: 29 November 2016
Published: January 2017

Ruling: The ruling concerned the GST treatment of statutory imposed liabilities under a sale contract. The Commissioner has ruled in the following way: | Will the Commissioner of Taxation (the Commissioner) accept that under a sale contract, employee liabilities excluding statutory imposed liabilities, such as long service leave, represent additional consideration for the vendor's supply of assets including employee assets to the purchaser? | Yes, the employee liabilities excluding statutory imposed liabilities, such as long service leave, will represent additional consideration for the vendor's supply of assets including employee assets to the purchaser. | This is consistent with the Commissioner's view as discussed in Goods and Services Tax Ruling GSTR 2004/9 Goods and services tax: GST consequences of the assumption of vendor liabilities by the purchaser of an enterprise . | A New Tax System (Goods and Services Tax) Act 1999: | Section 9-5 | Section 9-10 | Section 9-15 | Section 9-75