Private ruling: GST and incentive payments
Published: December 2014

Ruling: Q1: Does the receipt of each payment under the new arrangement by the companies result in an adjustment event under paragraph 19-10(1)(b) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes | Q2: Does either company have an increasing adjustment under section 19-80 of the GST Act for each of the payments paid to them under the new arrangement? | A2: No | Q3: In respect to a subsequent supply, is the receipt of each payment by either company included in the calculation of: (a) the 'price' of the goods for the purposes of a particular subsection of the relevant legislation; or (b) the 'consideration' for the supply of the goods under a particular paragraph of the relevant legislation ? | A3: (a) No (b) No | Q4: Will the Commissioner apply the anti-avoidance provisions in Division 165 of the GST Act to negate any goods and services tax (GST) benefit that either company (or the representative member of the GST Group) may get from the new arrangement?" | A4: No




Subject: GST and incentive payments: In order to protect the privacy and commercial in-confidence of this private binding ruling the following summary is provided with the Commissioner ruling on each of the following questions.